Is Buying Direct From China Right For Me?

Why buy direct from China? Chinese factories make all imaginable types of products, usually much cheaper than anywhere else. The world's large companies are still moving more and more of their manufacturing to China... it's about the bottom line.

The low manufacturing costs mostly come from low human resources costs. Basically, the job market in China is highly competitive while living costs and expectations are relatively low: this means factories can employ hard-working people very cheaply. Most factories don't need to pay social security or insurance for their workers, and providing for their living costs isn't too expensive.

Absence of bureaucratic red tape, a lower corporate tax burden, quite cheap energy costs, favourable interest rates, abundant cheap real estate, and low construction costs, are all other factors that lower the running costs for a Chinese factory.

The low production costs leave a lot of room for middlemen in China, Hong Kong, or Taiwan trading the goods even before they reach export markets. The closer you can get to buying from the source - the manufacturer/factory in China - the lower the price you will get.

This used to be difficult but now thanks to the internet and more a more open attitude in China, it is possible in many cases for a normal foreign buyer to go directly to the source - ie, buy direct from China.

Chinese suppliers are heavily geared towards exporting to western markets and are actively marketing their products to buyers like you. Expect Chinese efforts in international marketing to become much more vigorous and visible in the next couple of years.

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Since the suppliers in China are sending goods to your country, why not get them to send directly to your customers? Have you thought about the possibility of drop-shipping goods directly to international markets which are much less competitive than your market at home? If you already have a reliable supplier and have established a good relationship, you could profit from finding buyers for their products in markets abroad - bought through you of course.

Chinese suppliers are not too picky about who they supply to, and even beginners with no registered company will be able to buy direct from China. Also, Chinese people have few cultural or religious prejudices - in other words, they are totally open-minded about which nationalities they are doing business with - as long as there is a good relationship sustained - and a reliable flow of cash!

Chinese companies geared for export are going to have English speaking staff, possibly also other languages, and they're ready to help you build a relationship. Even if you're not an experienced jet-setting business executive, people in China are definitely not going to scorn you for being a beginner to this country.

So the people in China you need to talk to are going to be ready to help you start. Don't be nervous. You just need to jump in there and start grabbing the opportunities! Take your first and in no time you will be on your way to importing direct from China.