Source Items in China to Make a Profit
If you have aspirations of cashing in on the craze for online shopping then an online selling business would be a great idea. There is no doubt that there has been a marked increase in people looking to buy everything online over the last few years, from clothes to grocery shopping, everything you desire can now be purchased online with just one click off a button.
Since there is not much upfront investment required to open an online shop, you can get quick gains from your small investments over a short period of time.
The key to success as an online seller lies in how you procure your goods in the first place, which is common sense off course, the lower you can source your products for in the first instance the greater the chance you have of earning a profit. If you can get goods at low prices and then sell them at higher prices, you can easily make a lot of profit. For this to happen though, you must tap into markets from where you fellow countrymen do not shop. This means that you must look into markets where the price of given goods is low while the demand for these goods in your country is high. Afterwards, all you need to do is import goods from that market and then sell them at higher prices in your own market. It’s frankly a great business model if you can find the right supplier for your goods – which can be time consuming and a bit trail and error.
A great place to purchase items directly from the manufacture is off course China and websites such as Alibaba.com, Ali Express and DHgate.com are just three of the most popular examples that can prove extremely helpful in finding you the right supplier to get your business up and running so you can begin to purchase items, sell them via Amazon and look for returns as quickly as possible on your initial investment.
How do you purchase goods using Alibaba.com, Aliexpress.com and DHgate.com?
Alibaba.com, Aliexpress.com and DHgate.com have one thing in common and that is their connection with China, the home of low cost manufactured products.
China is the hub of manufacturing and because of cheap manpower the goods manufactured in China are normally sold at lower prices. The basic idea behind these websites is to help foreign buyers get in touch with local suppliers in order to bring the products manufactured in China to foreign markets.
You have to simply find the supplier from these websites and then arrange for a selling agreement that lets you get your selected products or goods at a cheaper rate. Once you receive them, you can then sell them at market rates on online shopping sites such as Amazon and generate great profits.
There are a few differences between each of the three websites and understanding these differences is critical to finding success with locating the right supplier according to your needs.
Alibaba.com is a B2B (Business to Business) platform which connects foreign businesses with local suppliers and manufacturers in China. The website simply serves as a meeting point between different parties with suppliers showing off the items that they can supply to interested buyers. There is no way you can shop directly from the website as there is no shopping cart function. You can get in touch with suppliers here and then proceed either through the website’s chat function or via e-mail. The website generates revenue with Gold membership fees from suppliers who opt for that program and takes nothing from the agreements made between suppliers and overseas buyers.
The thing about Alibaba.com is that suppliers here do not show off ready-made products but give an idea to buyers about the kind of products they can manufacture. As a result, you can’t get products right away from suppliers found through Alibaba.com. The suppliers here are best suited for custom demands. You can easily state your requirements and then let the suppliers manufacture it accordingly. However, since the products are custom-made, you can’t place smaller orders. As a result, Alibaba.com is suitable if you are looking for large custom-made orders and are ready to wait for a certain time to receive your products.
There are three suggestions when looking to find suppliers via Alibaba.com:
Ali Express offers a B2B as well as a B2C platform. It’s owned by the same group that owns Alibaba.com and these is even an app for Andriod and iPhone. The difference between the two websites lies in how they operate. While Alibaba.com only offers a contact point between two businesses, AliExpress.com serves as a marketplace from where you can directly buy ready-made goods from suppliers in China.
There is a shopping cart option to use so can buy directly from suppliers who are listing items to sell via AliExpress.com, this has more of an Ebay feel to it which is great if you are looking to purchase items in a hurry to begin your selling journey or if you need to top up on your current stock urgently to keep your customers happy.
The website is basically great for users who aren’t looking for anything specific and are ready to settle for manufactured products which can be bought directly in quick time. You can order small amounts in this case as these products are already manufactured and suppliers can sell them to a number of small businesses. In a sense, AliExpress.com is suitable for start-ups and small businesses while Alibaba.com is great for established businesses which can afford bigger orders and who are working on larger spending budgets.
DHgate.com is similar to Alibaba.com in the sense that it also provides a B2B platform. The working of the website is similar as well. The difference is basically in the suppliers present on the platform and the website can serve as a great alternative to Alibaba.com in case you are not satisfied with the suppliers listed on Alibaba.
However, you must proceed with caution on DHgate.com since it does not use PayPal which severed its relations with the site in 2012 due to a few fraudulent transactions. The company’s track record has improved since then but it won’t be wrong to say that it’s not as trustworthy as Alibaba.com as they have their gold suppliers certification which provides a more trustworthy platform for any buyer to purchase items in good faith.
There are others websites in China to purchase items from or you can look to try and contact manufacturing companies directly which can be time consuming.
The other options you have to source items directly from China is to go on an organised business trip or to attend trade shows in your own country or in China itself as companies based there have representatives who are looking to create new business relationships and attend various trade shows around the world over the course of the year.
The key to finding the right products is by doing lots of research in the first instance, you need to delve deep in to looking in to what products are selling well on Amazon and platforms such as Jungle Scout can help take a lot of the hard work away for you – we will cover this side of the operation in separate posts.
So if you are looking to purchase items to sell on Amazon, grow your business and earn money your best bet will be to source items in China to make a profit.