Buying Wholesale Jewelry from China - How Small Businesses Can Buy Direct

You can import jewelry directly from China

Most small business owners have no idea that they can buy jewelry and other items directly from China, there is a huge misconception that only big businesses can import products.

After several years of selling products for other companies I had a conversation with one of my colleagues regarding a product he was selling online. I was amazed to learn that he was importing this item directly from China, bypassing the normal wholesale channels and buying direct.

A vacation and fact finding trip to China was planned.

Though my colleague had arranged to buy from China without ever going there I decided to plan a vacation to China to research potential products and wholesale sources. What I learned during my first trip to China was a revelation, it really was possible and in fact easy to import products from China.

Admittedly the product you decide to import will effect how easy and how expensive it will be for your small business to get started, but the money I saved and the opportunities I discovered made my trip well worth the time.

How your small business can import products from China.

The first step is to do some serious research, and the Internet can help you a lot with this. You will want to search for Chinese companies that produce the products you currently sell, or would like to sell.

After creating a list of companies and compiling the contact information you will want to do one more thing before making contact, that is to create a business plan detailing how many products you want to buy, and how much you expect to pay per item.

By creating a business plan you will know exactly how cheap you will need to buy your products in order to make buying from China worthwhile.

Deciding what products are best and easiest to import

The products I decided to import are jewelry and art. The reason I decided to import these items was simple, I was able to bring back hundreds of pieces of jade duty free, as the total cost of the items was below the limit of items I could bring back with me on my return flight.

I brought back a few art samples to show prospective wholesale buyers, but the majority of the art was sent to me via ocean freight. There were two main reasons for choosing to import artworks as part of my first wholesale purchase, the first was price and the second is because artworks are exempt from import duties.

Determining and paying applicable import duties is the responsibility of the importer.

Import duties are an important factor to consider when deciding whether it is cost effective to import products from China. There are many items like art that can be imported duty free, while others require a duty fee be paid in order to clear customs in the USA.

There are some items that are more difficult to import, such as certain textiles, as they require a duty be paid and also have quota limits placed upon them. Items with quotas can be imported, but you will have to do a lot more research.

GOOD NEWS! You can contact a customs office in your area, or the U.S. Customs department for assistance. They can help you determine what duty fees you must pay for a particular product, and whether there are any import restrictions for that product.

Whether or not to buy directly from the manufacturer.

It is possible in many cases to buy directly from the manufacturer, though often language barriers and trust issues make this difficult and possibly very risky. There are many companies in China who can arrange wholesale purchases for you, though you will pay a little more for their services. A purchasing agent can negotiate pricing, arrange shipping and export your products for you.

Typically the agent will handle any export issues that would prevent your products from clearing customs in China, allowing your shipment to be exported without any problems. If the agent does not offer this service you should find one who does, and if you have any doubts don't be afraid ask for references.

If at all possible you should try to find an American company, or at least that allows you to pay with a credit card. Paying with a credit card offers you some protection, because if the products are not delivered you can contact your credit card company and initiate a charge-back.

What can you do if things go wrong?

This is something you need to carefully consider when you are buying directly from China. What is your recourse if the products you purchased are not as described, arrive damaged, they are the wrong color or there is some other problem with your order? Even if you are able to return the items shipping costs may make this unfeasible, as having the items replaced could cost you even more than accepting the loss. This is one reason many small businesses are afraid to buy direct from China, and it is a valid concern.

The good news is there are some American companies who have contacts in China and can handle everything for you. Typically they will charge you anywhere from 2-10% of the total cost for their services, but they will often guarantee delivery and your satisfaction. Some will even allow you to return damaged products to an address in the USA, which will save you a lot of money on return shipping costs.

Do purchasing agents receive kick-backs from the manufacturer?

This is hard if not impossible for you to determine, even if you went to China and negotiated a deal directly with the manufacturer it is unlikely you would be able to buy your products as cheap as someone from China.

If a purchasing agent assured me they do not accept kick-backs or raise the price of the products they purchased on my behalf I would be very skeptical. I would also be amazed, as I have lived in China for a few years and have a good idea of how things work here. My suggestion is to focus on the bottom line, the price. Its best not to concern yourself with how much the agent makes. Your only goal should be to negotiate the lowest possible price for the quantity and quality of the products you are interested in purchasing.

YOU MUST import products to stay competitive.

If you want to stay competitive and maximize your your profits, you must import your products directly. This is especially important in highly competitive markets. You can buy direct from China, or any other country, but you must be able to buy your products cheaper or you will be at a distinct disadvantage to competitors who do. It will take some time to get started, but all of your efforts will be well rewarded.

James Turner is the owner of Web Central Ltd., which has been doing business online since 1998. He personally operates many successful online shopping sites including http://JadeJewelryStore.com and http://ChineseArtStore.com. His company also provides custom shopping cart design services and acts as a wholesale purchasing agent for small business owners who are interested in importing products directly from China.