What Is Alibaba Wholesale

Everyone knows that Alibaba is a B2B platform which offers you to purchase everything you want to do and that’s why there are lots of manufacturers available. You can contact with any of them and start your business but do you know that there are lots of things you can’t directly with Alibaba. The first thing is that you aren’t able to buy the amount you want to purchase like there is a minimum order quantity.

If you aren’t purchasing this much product then you can’t make a deal but there are some methods you can try to reduce MOQ. Well, these things apart, you are able to get products in low amount and this is from another version of Alibaba called as Alibaba wholesale. You can purchase anything in wholesale price, this is the little bit expensive than direct deal but you are getting what you need. There is no need to worry about the shipment and other issues. The product will be shipped in few days.

How To Pay On Alibaba wholesale?

Basically, Alibaba wholesale offers you to purchase your needs with the help of three payment methods. Most of the methods are secured by Alibaba and if you don’t get the product according to your need then it guaranty you that your money will be returned. Well, there is nothing safer than this and small size enterprises are getting the benefits of this platform. There is also an application available for IOS and Android to browse through. Still now, there is a minimum order quantity option so you must have to buy the products in this amount. Make sure that you pay on the website which has https written in the URL bar and a lock icon must be with it.

This is the only method to get assured about a website. There are few more websites which look like this and when you pay, they fraud with you. Precaution is recommended while browsing on B2B platforms. Alibaba wholesale is the more compatible platform and most of the small companies are running due to this platform. Safety is the main issue with most of the platforms but Alibaba’s wholesale version offers you safe method with escrow.

How Does It Work?

This is not like other platforms which require lots of things to fulfill which means everyone can shop on Alibaba wholesale. While searching for the right manufacturer, you should check out the product reviews. If everything is fine, click on buy and choose the minimum amount. You need to create an account before getting started. Now, fill everything properly and pay for the product. This will tell you a time in shipment. The product will be shipped 30 to 50 days and all the work will be done by Alibaba so you don’t have to worry about a single thing. You get low MOQ, fast transaction and full payment protection benefits with Alibaba that’s why there is nothing to worry about.

You must be amazed to know that most of the product sold on Amazon, eBay and Wal-Mart are goods imported from China.  There is no other country which is doing this much large production of every human need. This thing let you glean the idea that there are 6,000 suppliers for Wal-Mart and 5,000 are from China which means that China is leading power in imports due to its affordable and cheap price. On the other hand, the large production made this possible to export goods all over the world. Perhaps, there might be any country that doesn’t use China’s import. Well, importing from China is a good idea to earn money and start a business. Some people may be thinking that is there any benefit even there are many indulged in this business? If you consider the demand compared to supply then you can know that Chinese products import is still a good business decision.

Things To Know

In order to start an import and export business, you should know many things. Basically, the product which is in demand and where to sell it is the first thing you need to know. Starting from the apex, choose the products which are available in reasonable price in importing from China trade and the demand of the product is enough to sell it easily. On the other hand, you can try to sell the product which is hard to locate in the market and if you sell the product which no one else has can alleviate the market competition issue. Now, you are able to sell the product at the price which earns you good profit. Some manufacturer claims to have brand products at the low price like clothes or electronics but these are certainly fake and if you try to sell these products then you can get behind bars. Selling fake products with a good brand name is illegal and such thing decreases the reputation in the market. Always think twice before contacting to duplicate branded products suppliers to stay away from legit issues.

Getting Started

If you have never done a trade business then there are a lot to learn but not with import business. What product you sell first is the important thing and this thing vary everywhere. Maybe your mind will run in circles while thinking about this business but you need to make a decision so that you can proceed. Importing from China and selling it at the reasonable price to earn is a strategic business. Selling the products online is the good option until you don’t make it complex by thinking excessively. Let’s get started with deciding a budget considering the market risk. No one wants to lose money but this is business and you can face financial loses that’s why start with the small amount like 1000$. Now, do a little research to know the right product to sell. You are starting a small scale business so the product must be cheap than have a good demand. Importing from China will be much better than getting it from local suppliers.

Choosing Suppliers and Selling Products

There are many suppliers in the city but which one is right can take good research and time. No one wants to get indulged in scams this is why don’t deal with the supplier who is providing you the product is too low price compared to others. If you are done with choosing the suppliers and importing from China, consider checking all of them and testing a sample. This is the only way to get ensured about a supplier and now it’s time to connect with e-commerce websites. As you start selling then tries to keep your price reasonable and try to earn less. Most of the good business start from less profit but such paths leads to success.

Grow Your Business by increase in Importing From China

As you have tried selling a small amount and get the success, even the profit is low; it’s time to scale up by investing little more. Increase in a number of products importing from China and try to add few more products to your list. Everyone has own strategy but most people start from selling purse, belts, toys and other fancy things which attract the most. Don’t sell counterfeits because you will lose everything soon. The profit may be good but you will get in trouble soon that’s why going slow and legit is the best way to grow your business.

Things To Avoid

While importing from China and selling the products, you will get to know about the thing that there are many products which have way more selling price than the product costing you including the import. Such products may be good in earning profit but an example will help you know the drawback of cheap products. Imagine that you have sold 5 units of a product but one of them returned by the customer for damaged or defectiveness then all profit recovered the damaged product costing.  Always avoid the heavy and oversize products which are costly and if you don’t want to run cashless or face bankrupt issues then scale up slowly. Always retain some cash so that you can do marketing otherwise you will end up stocking up which isn’t sold for months. On the other hand, you should stay away from commoditized markets because there is lot more risk than anything else.

Improving Relations

There are many websites which offer you importing from China and you can check out the profit you will earn. Keep on connecting with a supplier will improve your business relations and the price of a product import will decrease with improvement in relation. Soon, you will be importing from China in fewer prices and earn but choosing the right product is the main thing. Always choose the product which has demand instead of buying the product which is cheap to import and resale price is more. Such products are wastage of money because these products can’t be sold for a long time. Heavy products which take higher shipping from your warehouse to customers is the little bit risky because if the customer returns your product then it can be unexpected money lose.

During the first 6 months of 2016, the fastest-growing product category for Canadian imports from China was television reception equipment. These hi-tech imports were up 456.7% from the same period last year.

Internet Television Modem Boxes

Included in television reception equipment are set-top boxes with modems that connect to the Internet. This technology enables consumers to use their televisions to communicate via the Web. Ironically, imports of these microprocessor-based Internet boxes (tariff item code 8528.71.20) are duty-free, so the Canadian government is missing out on tariff revenues on a top import product from China.

Internet TV and Phone Technology

Printed circuit assemblies provided another opportunity for China to solidify its position as one of Canada’s leading technology suppliers. Canadian imports of printed circuit assemblies are up so far this year by 208% over 2015.

Printed circuit assemblies are key telecommunication components that provide the backbone for cellular communication devices and wireless communication networks. These networks include Internet TV and phone systems. Under tariff classification code 8517.70.00, these technological devices from China are not subject to custom duty.

Oil and Gas Drill Piping

China also sold US$125.5 million worth of non-stainless steel drill piping to Canada’s oil and gas companies in the first half of this year, a robust gain of 370% over last year. Canada also receives no tariff duties for oil or gas drill pipe, including non-stainless steel piping under tariff code 7304.29.00.

Despite these improvements, overall Canadian imports from China for 2016 were down 14.2% to $15.66 billion from the $18.25 billion consumed from January to June in 2015.

Fastest Growing Canadian Imports from China in First Half of 2016

From the 25 most popular Chinese imports, the only 6 products that Canada imported from China with percentage increases from comparable sales during the first 6 months of 2015 are listed. The list is in order of items with the highest percentage gains in import sales.

In addition to the value of Canadian imports from China and the 6-digit tariff classification code within brackets, the following summary presents the percentage change for each product compared with consumption for the same 6-month period in 2015.

  1. Television Reception Equipment (tariff item 852871) … $140 million (up 456.7%)
  2. Non-Stainless Steel Oil or Gas Drill Pipe (730429) … $125.5 million (up 370.5%)
  3. Wireless Network Printed Circuit Assemblies (851770) … $205.6 million (up 208%)
  4. Knitted Cotton Sweaters, Sweatshirts and Coats (611020) … $138.6 million (up 9.5%)
  5. Rubber or Plastic Footwear (640299) … $135.3 million (up 5.8%)
  6. Taps, Valves and Similar Appliances (848180) … $92.5 million (up 1.1%)

Under the Most Favored Nation tariff treatment, only 3 of the above imported products from China are subject to tariff duty.

Knitted cotton sweaters, sweatshirts and coats are subject to a hefty 18% tariff when imported from China. Similarly, Chinese rubber or plastic footwear is assessed a 17.5% duty by Canadian Customs officials. Television reception equipment from China have custom duties ranging from 0% to 5% depending on a tariff item’s sub-classification. As noted above, Internet TV modem boxes are duty-free.

Top 25 Imports from China into Canada in First Half of 2016

The effects of the global recession are evident in the decreased imports of consumer items including computers, video games, cell phones and digital cameras from China.

  1. Computers, Laptops, Notebooks (tariff item 847130) … US$869.6 million (down 3.4% from 2015)
  2. Toys including Dolls and Puzzles (950300) … $291.5 million (down 23.1%)
  3. Video Games (950410) … $285.7 million (down 30.9%)
  4. Switches and Routers for Voice, Images or Data (851762) … $234.3 million (down 2.4%)
  5. Cellular Phones and Other Wireless Phones (851712) … $224.5 million (down 4.8%)
  6. Wireless Network Printed Circuit Assemblies (851770) … $205.6 million (up 208%)
  7. Leather Footwear (640399) … $183.9 million (down 4.5%)
  8. Computer Monitors (852851) … $177.7 million (down 49.1%)
  9. Other Computer Parts And Accessories (847330) … $164.2 million (down 30.9%)
  10. Metal Furniture Not For Office Use (940320) … $149.2 million (down 10.8%)
  11. Female Cotton Trousers, Overalls and Shorts (620462) … $148 million (down 11.2%)
  12. Golf Bags, Tool Bags, Other Plastic or Textile Containers (420292) … $144.2 million (down 1.3%)
  13. Television, Digital and Video Recorder Cameras (852580) … $144 million (down 25.6%)
  14. Television Reception Equipment (852871) … $140 million (up 456.7%)
  15. Knitted Cotton Sweaters, Sweatshirts and Waist-Coats (611020) … $138.6 million (up 9.5%)
  16. Rubber or Plastic Footwear (640299) … $135.3 million (up 5.8%)
  17. Sound Recording Equipment (851981) … $130.3 million (down 23.1%)
  18. Non-Electric Iron or Steel Cooking Appliances (732111) … $129.1 million (down 8.7%)
  19. Non-Stainless Steel Oil or Gas Drill Pipe (730429) … $125.5 million (up 370.5%)
  20. Plastic Articles (392690) … $124,116 million (down 3.1%)
  21. Upholstered Seats with Wooden Frames (940161) … $120.9 million (down 34.5%)
  22. Wooden Furniture for Other Use (940360) … $118.8 million (down 20.2%)
  23. Electric Static Converters (850440) … $106.7 million (down 13.4%)
  24. Non-Portable Computers (847141) … $100.8 million (down 17.4%)
  25. Taps, Valves and Similar Appliances (848180) … $92.5 million (up 1.1%)

Like Internet TV and Web phone equipment, consumer technology products such as computers, video games, cell phones and digital cameras imported from China into Canada are tariff-free.