Sourcing your products from the China wholesale markets means margins you can't find elsewhere, margins which will skyrocket your profits and allow you to dominate your market.
China has been described as the world's factory.
It might well be re-named China Wholesale Inc.
The phenomenal economic growth in China, typified by the rise of Shanghai - now the world's biggest city, in the world's biggest country - will have an ever-increasing effect on world trade, and on the world of re-selling on the Internet.
China manufactures for the world, and anyone looking to source products just has to start their search in the China wholesale markets. And that means me, and probably you as well.
Many US re-sellers are still convinced that the way to a quick fortune is to go to China, find the guy who makes shoes for Gucci or handbags for Prada, and persuade him to run off an extra few hundred.
A less-reputable China wholesale manufacturer might do this, but the product will not bear the coveted label. You might manage to import the goods into the US, but no way can you sell them - legally - as brand-name products, even if they are made by the same manufacturer as the genuine product.
Beware the so-called "grey market". The Brand name companies are becoming ever-more aggressive in pursuing through the courts anyone infringing their copyright.
In most manufacturing sectors, China is a volume producer, which means that you will always be facing high minimum order quantities, typically thousands of units, which make it seem a no-go area for the solitary trader of modest means. But there is a solution to this problem, as you will see later.
China already has a good reputation for quality clothing, shoes, and basic commodities, but increasingly China wholesalers are turning to high-technology products.
The good news is that the China wholesale manufacturers and the agents are very clued-up on the US market, and very quick to respond to requests for sample products and price and delivery quotations. The really good news is that there is usually an unbelievably margin, so if you have the bankroll and the expertise you could really make a lot of money at this.
So what about a plan of action?
If the China wholesale market excites you, you really can't do without the services of a local China-based agent.
He is the guy who has personal contact with all the manufacturers and factory owners. He knows the China wholesale world intimately - he knows the best sources for all the products. He acts as the middleman and effectively as the purse-holder, and you will need such an expert to guide you through the minefield that is the Chinese-US tax issue.
He will ensure that the product gets shipped on time, and most importantly can check on the quality of the product before it is shipped.
These Chinese export agents are monitored and encouraged financially by their Government to promote China wholesale business overseas, so you should be able to find a reputable one without any problem.
The bottom line is - if you're serious about sourcing goods from China in volume, then you really can't do the business without a good China-based agent. You just have to invest the time to go over to China, ideally when one of the big trade fairs or conventions are taking place. (You can easily find this information on your favorite Search Engine).
Here you can meet with the agents, who can introduce you to the factory owners, who will invite you to the factory to see the product being made, and will probably give you an on-the-spot quotation.
You will find, as I did, that much business in China is still conducted on a personal-relationship basis, so if you don't make the personal contacts and establish and cultivate relationships in the China wholesale world, then you probably won't thrive in China.
If you simply haven't got the time or resources to establish personal contacts in China, then you could look for a good US based Chinese agent or broker - ideally one based in your own city or State.(Again, you can find one using the Search Engines). You may be lucky and find one who has good contacts in China, and he can guide you through much of the bureaucracy involved in importing from a China wholesaler.
Find out who he has represented before, and be sure to contact this person or business to check out your agent or broker.
There is an excellent resource on the internet with a lot of expertise in sourcing China wholesale products. This is the website at www.alibaba.com, which offers excellent advice, and can immediately supply details of Chinese manufacturers for your chosen product.
So there are 3 levels at which you can get involved with the China wholesale markets - the 3 paths to enlightenment and profit as we might call them.
At the bottom level,if you just want to get a feel for what is available, then spend some time on research at www.Alibaba.com - a great resource which can show you the incredible range of products available, and which can put you in contact with agents or manufacturers in the China wholesale business.
At a slightly more ambitious level, if you are committed to doing business long-term, then you could look for a reliable US-based Chinese agent or broker, who for a fee or commission will ease your way into the often-baffling world of importing goods from China.
And the serious marketers will jump in at the top level, and get themselves over to China, the sooner the better, in order to establish those long-term relationships with those active in the China wholesale world.
Relationships which will reap rich rewards for years to come.
If you aren't big enough or confident enough to face this on your own, then find a few other re-sellers in the same market - or related market - as yourself, and pool your time and resources. Whatever it takes, get into this lucrative market place - the potential profits are HUGE !
China and its manufacturers will have an enormous impact on the Internet re-selling world over the next 5 years.
It is already starting to happen, and the time to get involved is now.
The guy who sources the product at the lowest price is the guy who wins, particularly on the Internet.
And that lowest price will almost certainly be provided by a Chinese manufacturer.
If you're still not persuaded to check out the fabulous opportunities in the China wholesale markets, then you should certainly have a look at the best resource on the internet for sourcing products for reselling - just go to Sourcing
About the Author
Brendan Forde has 15 years experience in the IT industry. Now specialising in Internet start-up businesses. For your free ebook "Starting Your Internet Business Right" visit our Wholesale and Dropship Resources site at www.wholesale-dropship-researchproduct.com/