Are You Interested to Buy from China Directly to Set Up Your Business? Follow These Steps

It pays to look around while finding things to offer in your small business. Your profit margin can always be higher if you can also source an item for less money. Alternatively, you can also use the low-cost price as a tactic to acquire market share by lowering the end price for your consumers.

China is the first location, every small business look for low-cost goods for their store because production prices are pretty lower in Asia. Here are some things to take care of if you like to start your wholesale business, buying directly from China. Of course, to start with, you may also need the support of a certain China buying agent.


Firstly, you have to take the right steps that are necessary to set up your business.

  • Get the wholesale license

A wholesale license may not be necessary for the commodities you intend to import particularly from China. Why should you first apply for one, then? Sales tax is imposed by all state governments, and you certainly don’t prefer to be taxed numerous times between receiving your items from the manufacturer and selling them to local consumers.

Your wholesale license permits you to purchase things in bulk and resale them without paying tax. Your company may additionally require a certain sales tax license.

  • How to apply for a license?

Start by visiting the website of US Customs to learn more about wholesale license requirements. Different government entities demand different types of licenses. If you are importing skincare or hair care products from China, for example, you may also need to meet FDA criteria.

Various states have different requirements for obtaining a wholesale license. As a result, the price of your wholesale license may vary per state.

  • Find your China suppliers

Finding the correct suppliers in China is the most critical component of starting a business. You could either fly to China or look for the ideal manufacturers, or you could do your next best thing which is to make use of a certain China buying agent


If you have got the financial means to travel to China, attending a trade fair is probably the best way of finding a reliable supplier. You can think of two major fairs:

  • Canton Import & Export Fair

Canton is the world’s largest sourcing fair, held in Guangzhou, twice a year usually in April/May and November. It is so enormous, in fact, that it works in three phases, each encompassing electronics, home decor, and consumer goods as well as “anything else.” Visit the English version of the Canton Fair website for dates and information.

  • Global sources trade-show

The GST is a yearly event in Hong Kong that is similar to the above Canton Fair and has almost the same exhibitors. Because this fair focuses on specific product categories, it may be the perfect exhibition to attend if you are seeking fashion or electronics accessories.

The lower language barrier is also appealing. Unlike mainland China, practically everybody in Hong Kong will speak English.

Both fairs can be free to attend, but flights, accommodation, interpreters, and other expenses must be budgeted for. This could be your minimal expenditure in comparison to the contacts you could make with reputable local manufacturers.


It is critical to conduct market research for products generally that are in very high demand but in short supply. You can get your hands on almost anything in the China manufacturing business. However, if the product that you want to market is already being sold by established organizations, expanding your business will be tough.

To stand out in a crowded market, your product, as well as marketing, must be distinctive. Investigate the internet for information on how to purchase such unique products from any Chinese producers, as well as whether the overall cost leaves a profit margin.


The most prominent product sourcing portals in China are Global Sources, Alibaba, and Various providers labelled “gold member,” “onsite supplier,” “verified supplier,” “accredited supplier,” and so on can be found on these sites. These labels, however, do not imply that the things they create are of high quality.

It merely means that the existence of these businesses has been established. Platforms such as Global Sources will provide customers with additional protection. China Sourcing Reports is another report published by Global Sources. These reports can be a great way to learn about product providers in your speciality, their performance, and customer feedback.


You should email a possible supplier after making contact with them, either online or through a trade show, and request a sample of the goods you are interested in. Most vendors will offer you product photographs or catalogues for free, however, it is impossible to judge a product’s quality from a photograph.

To ensure the product’s quality, you should obtain a test sample. Samples may be costly, but they are usually a modest price to pay for your peace of mind. You can also involve your China buying agent in this activity.


Make sure the payment terms of your order are specific. When working with Chinese manufacturers, there is generally some room available for price negotiation, but ensure that you have a record of the final price. Your China buying agent may play a very effective role here.


Alibaba offers “trade assurance,” a certain payment protection service. If you do not get the number or quality of items you requested, or if the shipment doesn’t arrive, you will get your money back.


When importing a significant number of products, ocean transportation is 5 to 6 times less expensive than air shipment.

If you are not sure what you are doing, it is also difficult to navigate. Importing products by air or sea necessitates a slew of paperwork, including packing lists, business invoices, and also bills of lading, as well as the payment of customs duty on your various imported goods.

Importers must additionally pay a bond, which serves as insurance in case you fail to pay your customs duty. Of course, some things are simply not allowed to be imported.