9 Tips to Find a Reliable Wholesale Supplier in China and Grow Your Business

Over the years, I have assisted numerous individuals in their quest to import goods from China by identifying reliable wholesale suppliers. To be frank, out of at least 100 suppliers, I carefully chose only 1 or 2 reputable ones for each of my clients. This process can indeed be a headache, but it has also afforded me ample experience in supplier relations.

Therefore, I believe it is essential to share some of my personal experiences in acquiring wholesale suppliers from China. The following information is both practical and reliable for your business. Please read with patience, and I assure you that you will not be disappointed. Let’s dive right in.

1. Finding Suppliers on Chinese Wholesale Websites
2. Finding Wholesale Suppliers by Visiting China
3. Five Types of China Wholesale Suppliers
4. Choosing China Wholesale Suppliers for Your Business
5. Five Tips to Verify Reliable China Wholesale Suppliers
6. Four Tactics to Deal with Your Long-term China Wholesale Suppliers

1. Finding Suppliers on Chinese Wholesale Websites

There are many B2B platforms where you can find suppliers, such as Alibaba, Global Sources, Made in China, DHgate, AliExpress, and others.

Here are the most common ones:

• Alibaba
• Onestopimport
• Made in China & Global Sources
• DHgate
• AliExpress
• Yiwugo
• 1688

The process of finding suppliers on these wholesale websites is similar, and there are no shortcuts. Choose the one that suits your needs.

Next, let’s analyze the characteristics of Chinese wholesale suppliers on each site.

Alibaba

If you want to buy wholesale from China, you have probably heard of Alibaba. It is a good place to find Chinese suppliers, but there are some misunderstandings that might worry you about the safety of Alibaba. Here are some things to keep in mind:

Ⅰ. Verified Supplier members are not necessarily good

In the past, Alibaba had a Gold Supplier membership. Almost everyone on Alibaba was a Gold Supplier. Now, it has been replaced by Verified Supplier. However, being a Verified Supplier is just a paid membership and is not a criterion for judging a good supplier.

Ⅱ. High ranking on search results does not always indicate a good supplier.

Alibaba’s search ranking mechanism differs from Google’s. Good rankings on Alibaba are often based on expensive ad-rates. Therefore, the top search results may not always lead you to reliable suppliers.

ONESTOPIMPORT

Onestopimport is a leading sourcing agent in China that selects reliable suppliers from a long list for you. Their sourcing specialists have years of experience and abundant resources for different product categories. You can simply tell them what kind of product you want, and they will help you find many different factories based on your budget and needs. They can also send different samples to you for better comparison. Whether you have experience or not, their sourcing specialists can help you import from China and get quality products at very competitive prices.

Made in China & Global Sources

If you are overwhelmed by the numerous suppliers on Alibaba, then Global Sources and Made in China are better alternatives. Although you won’t find as many suppliers on these sites as on Alibaba, the chances of finding a reliable supplier are higher. Why?

Because both of these sites have much higher auditing standards and fees for members. So, in addition to being able to screen some of the most reliable suppliers in the market; you have a higher probability of finding a direct factory.

In fact, you can find the same suppliers on Alibaba, Made in China, and Global Sources. Thus, the MOQ or the product categories you can find on these platforms might be the same.

However, the latter two sites specialize in different products from Alibaba. If you deal with machinery or electronic products, I suggest you should go to Global Sources & Made-in-China.

For example, if you want to develop a Bluetooth headset according to your design, finding suppliers on these two sites will be more efficient. Also, the suppliers will be more professional.

AliExpress & DHgate

The MOQ on both sites is small. If you’re new to the business and just want to place an order for a few hundred dollars, you can visit AliExpress or DHgate.

When you reorder from the same supplier, the quality of the product might be different from your first order. Since the suppliers on the two sites usually source the same product from various factories, they cannot guarantee consistent quality.

But don’t let one terrible experience lead you to doubt the safety of buying from AliExpress or DHgate. Actually, most AliExpress and DHgate sellers are legit. You should try to keep in close contact with them to avoid such issues.

You can find suppliers who sell their own branded products. They will pay more attention to the product quality. But it’s hard to distinguish yourself from other competitors because others also purchase these brands.

In brief, if you are running a long-term business, or are an Amazon seller, I will not recommend you to purchase from these two sites. If you are new, please ensure that you know how to use Dhgate and Aliexpress safely before buying.

Yiwugo

Yiwugo is a website that gathers China wholesale suppliers from different Yiwu markets. The markets include Yiwu International Trading City, Huangyuan Clothing Market, and Yiwu Production Material Market. You can send inquiries to suppliers online or use it as a tool to search for information about the suppliers covering their contacts, store address, and product categories.

1688

1688 is a wholesale marketplace only for Chinese buyers. That’s why it has only a Chinese version. Besides, some people think that 1688 suppliers are all factories. That is not true.

Actually, you can find the same suppliers on 1688 and Alibaba. That is to say, there are trading companies as well as factories on the website of 1688, just like Alibaba. If you want to buy from 1688, you will meet many hassles. In short, it is not a suitable platform for non-Chinese people.

2. Finding Wholesale Suppliers by Visiting China

Some people may want to find suppliers in China personally though it might be a great challenge. In this way, you’re likely to get lower prices and better products from these direct supply sources. I will give you some practical tactics for finding suppliers from the aspect of the following sourcing methods:

• China wholesale markets
• Trade fairs
• Industrial clusters

China Wholesale Markets

China has numerous wholesale markets for different product categories. Just like when searching for suppliers online, you can find hundreds or thousands of China wholesale suppliers in each wholesale market.

Yiwu, Guangzhou, and Shenzhen are three major trade cities in China. If you’re looking for suppliers in wholesale markets, I recommend visiting these cities. Every wholesale market in these trade cities attracts suppliers from the surrounding industry belts.

Yiwu

Yiwu boasts the world’s largest wholesale market, covering more than 70,000 booths. It is divided into five main districts, each with 3-4 floors. All the areas are connected, and the store layout is quite standard. For example, if you want to import toys from China, all the toy suppliers in the market are gathered together in one area. It’s easy for you to compare the price and quality of products from several suppliers.

Guangzhou

If you trade in clothing, bags, luggage, watches, or electronics, come to Guangzhou. Guangzhou has the largest luggage and clothing wholesale market in China. The wholesale market in Guangzhou is spread all over the city.

Shenzhen

If you want to wholesale electronics from China, I also recommend visiting Shenzhen. You can find a wide range of electronic products in this magical place. For example, after the release of Apple’s new product-iWatch, many smartwatches with similar functions to this iWatch were instantly available in Shenzhen.

Huaqiangbei in Shenzhen is a premier electronics hub in China. The electronic wholesale markets are located in different buildings. Seg Square is one of the most popular electronics markets.

To sum up, regardless of the markets you plan to explore, it is crucial to consider the following:

• Most suppliers in markets do not accept US dollars and only accept RMB. Wire transfers are not allowed.
• It is advisable to hire a capable interpreter in advance to facilitate communication with the suppliers.
• It is also recommended to find a reliable freight forwarder beforehand to ensure timely shipment and receive guidance on import-related concerns.
• Alternatively, you can bypass the first three steps by engaging a local sourcing agent to assist you in purchasing from the wholesale market and arranging for shipment to your country.

Trade Fairs

In China, there are two main types of exhibitions: comprehensive exhibitions and professional exhibitions. Let’s take a closer look at each of them.

Comprehensive exhibitions, such as the famous Canton Fair, showcase a wide range of product categories, making it easy to find what you’re looking for.

On the other hand, professional exhibitions focus on a single category of product, bringing together various suppliers in that field. For example, if you’re in the market for baby bottles, you’ll find a better selection at the CBME exhibition than at the Canton Fair.

Industrial Clusters

China is known for its labor-intensive production, with different regions having their own advantages in specific industries. This has led to the development of industrial clusters throughout the country. These clusters are a great place to find China manufacturers, who often only sell their products through trading companies.

Two of the leading industrial provinces in China are Zhejiang and Guangdong. If you are looking to import from China, I recommend checking out these regions. They have different industrial clusters such as Yiwu, Shaoxing, Wenzhou, Guangzhou, Shenzhen, and more.

For instance, if you are in the market for cheap daily-use products, Yiwu is the world’s largest wholesale center and a great place to start. On the other hand, Guangzhou is known for its leather bags.

Below is a list of industrial clusters and their respective product categories for your reference:

3. Five Types of China Wholesale Suppliers

In this chapter, I will provide detailed information regarding the various types of China-based wholesale suppliers and their specific roles within the supply chain. I will classify Chinese suppliers into five distinct categories and provide a comprehensive introduction to each one.

• Manufacturer
• Trading Company
• Sourcing Agent or Sourcing Company
• Small Wholesaler or Dropshipper
• Overstock Wholesalers

China Manufacturer

Manufacturers are the main source of products for a variety of suppliers in the market. As a supplier, a manufacturer is able to offer you products at the lowest price. In China, there are two types of manufacturers that I will introduce.

The first type of manufacturer does not have their own English salesmen. They typically sell their goods to foreigners through trading companies and sourcing agents. You will not be able to find them on Alibaba or trading fairs. However, the prices offered by these factories are generally the best.

The second type of manufacturer has their own English salesmen and usually participates in exhibitions both in China and abroad. You can find them on Alibaba or through a simple Google search. Typically, these types of manufacturers have their own online stores on Alibaba or independent websites. Although prices at these factories are comparatively higher than the first type, they are still lower than those offered by a trading company. Unfortunately, the MOQ offered by these factories is generally very high. If you find such a manufacturer on Alibaba, your expected MOQ is perhaps above $4,000-$5,000.

Chinese Trading Company

Trading companies, also known as middlemen, can help importers procure products from China. There are many trading companies on Alibaba. Sometimes, you may come across self-proclaimed factories on Alibaba that are actually trading companies.

Usually, trading companies work with many factories, so finding a good factory is not difficult for them. Additionally, you can get a relatively small MOQ (generally at $1,000-$2,000 at the beginning) because trading companies and factories have long-term cooperative relationships.

Sourcing Agent or Sourcing Company

Sourcing agents or companies focus on sourcing services instead of selling their own products. Compared to trading companies, sourcing agents are more flexible. Thus, many Amazon sellers prefer a sourcing agent that can act as their representative in China.
All you need to do is tell them what you want, and you can enjoy complete import services including finding suppliers, production follow-up, quality inspection, and shipping arrangements.
Hiring a sourcing agent is the best option for those who want to source different products from China. For instance, if you want to purchase three products, you will need to find individual suppliers for each product. Furthermore, you need to compare at least five suppliers per product to find the best option. Imagine how many suppliers you have to find and deal with if you need dozens or hundreds of products.
In addition, many experienced Amazon sellers also prefer sourcing agents to help them. For example, we have a client from the US Republic who started with hundreds of thousands of dollars and has purchased products worth 4 million dollars so far. With complete trust after long-term cooperation, he has let us maintain his supply chain while he devotes himself to the marketing of the products.

Small Wholesaler or Dropshipper

Small wholesalers are generally on DHgate, AliExpress, and other distribution platforms. Usually, the MOQ on these platforms is relatively small, but dozens of units are also available.

China dropshipping suppliers ship products directly to customers, so you never see or handle the product yourself. Furthermore, dropshippers or wholesalers often purchase products from different factories. Due to these two factors, it’s hard for you to guarantee product quality.

If your customers have high-quality requirements for products, I don’t recommend you to find small wholesalers or dropshippers. Of course, you can test the market this way when your online business starts, but it’s definitely not a long-term solution.

Wholesalers of Overstocks

There are two types of overstock products: those from manufacturers and wholesalers, and those with minor flaws that can still be used. Wholesalers often sell these products at reduced prices to clear out inventory.

In China, there are specialized markets for selling overstocks. In these markets, you can find a pair of jeans for less than a dollar or a toothbrush for just a few cents. You can then sell these items in your local market back home.

Guangzhou and Yiwu are the two largest overstock markets in China. If you’re looking to purchase overstock clothing, you should go to Guangzhou. If you’re interested in daily consumer goods, then Yiwu is your destination. Yiwu has two overstock markets: Wuai and Jinfuyuan.

4. Choosing China Wholesale Suppliers for Your Business

Every business is unique and has individual requirements, which means that the type of supplier that’s right for you depends on your unique business model and the scale of each period.

I’ve divided importers into five categories and provided practical advice for each type. Analyze your business model in-depth and then read the corresponding instructions:

• eBay, Shopify, and Wish sellers (multiple SKUs make them profitable)
• Amazon sellers
• Importers who specialize in importing certain products, such as auto parts
• Importers who want to develop a product based on their own ideas
• Importers who have or plan to open local supermarket chains

eBay, Shopify, and Wish Sellers

When selling on eBay, Shopify, or Wish, it’s best to show as many kinds of products as possible in your shop and store a lot of inventory.

Usually, big sellers can easily purchase and keep a large inventory of products. However, the order quantity of small or medium sellers is not large because they must test the waters and evaluate the market response to the products during the initial stages.

Each product will only need a small amount of inventory to test the market. After the test period, you can purchase goods that had a good response in large amounts.

So, in this case, DHgate and Aliexpress are perfect places to start for small or medium sellers.

Amazon Sellers

Are you an Amazon seller? Well, today you’ll receive practical and efficient tips that will boost your business. I have served more than 1,500 Amazon sellers over the years and have a lot of good advice to share.

The marketing principle of Amazon is essentially different from the above three e-commerce platforms. Amazon is committed to giving users a good experience in terms of product and customer service. So, the success mantra here is:

Good product + Right marketing strategy = Good Ranking

Thus, for Amazon sellers, a good product and a stable supply chain are important for starting your business. I have met some young clients who sell only one or two products on Amazon and have already earned their first bucket of gold.

It’s worth noting that if you buy from Alibaba, many China suppliers on Alibaba will give you a large MOQ of up to $2000 at the beginning. Don’t give up. Instead, try to communicate with suppliers. Usually, there is some room to maneuver, though you may get a 20% higher price.

If you’re satisfied with the supplier and the quality of the products, you should not be concerned about the high price. Once the sales volume of your listing is stable, you can slowly increase your MOQ to lower your unit cost and accelerate your profit.

Importers Who Specialize in Importing Certain Products, Such As Auto Parts

Unlike consumer goods, certain products such as auto parts require a deep understanding of technical parameters, materials, and more in order to evaluate their quality.

To find the best suppliers for these products, it is important to seek out those with significant experience and expertise in the specific product category. I recommend considering both online suppliers and sourcing agents, each of which has its own benefits and drawbacks. Take the time to weigh these options and identify the best possible solution for your needs.

When working with online suppliers, you can leverage their expertise and resources to source other related products, particularly if you have a wide range of product lines. This can save you valuable time and effort.

Hiring a sourcing agent directly is also a smart choice. However, it is important to find a highly professional and experienced agent who specializes in the specific industry. Simply finding a sourcing agent who focuses on sourcing daily consumer goods may take longer and result in unsatisfactory suppliers.

Importers Seeking to Develop a Product Based on Their Own Ideas

Developing a new product that is both tangible and marketable is not as simple as printing a logo or changing the materials. It requires a focus on product performance and appearance.

If you are looking to develop and manufacture a new product in China, manufacturers are the way to go. They can offer valuable advice on product design and help you develop the product at the lowest possible price.

Sourcing agents can help you find the right manufacturer in China based on your product design requirements and budget. What’s surprising is that they can often find suppliers that you wouldn’t be able to find on Alibaba or even at trade fairs.

In addition to sourcing, these agents can personally take you to the factory, help you negotiate with manufacturers, and even bring you to the latest product showrooms. Acting as negotiators, translators, and supervisors, they ensure that all your requirements are met.

While major fairs and exhibitions in China can also be good places to find relevant suppliers, they require you to visit China at a fixed time each year and participate in the fairs.

For importers who currently own or plan to open local supermarket chains

Importers who open local supermarket chains typically require tens of thousands of products, many of which are sourced from China. Finding the right suppliers in China can be a daunting task, especially for importers without any experience. In fact, outsourcing is often the best option. For example, large retailers like Walmart, Costco, and Carrefour typically purchase goods through trading or sourcing companies instead of sourcing products themselves from China.

5. Five Tips to Verify Reliable China Wholesale Suppliers

If a deal seems too good to be true, like an iPhone X for only $100, it’s likely a scam. It’s important to identify products that don’t conform to the logic of the market.

Fortunately, most Chinese suppliers are now doing legitimate business. The key is finding a reliable supplier that’s worth long-term cooperation. To help you do that, here are some tips:

• Look for a balance between quality and price
• Evaluate the expertise of the salesman
• Consider the efficiency of communication
• Evaluate the supplier’s responsibility
• Check the background of the supplier

Balance between quality and price

You can always find products on the market that are cheap. However, it’s unlikely that you would purchase products that are 15% cheaper than the lowest price in the industry. As the saying goes, “You get what you pay for.” Therefore, it’s important to adjust your budget while ensuring the quality of the product.

Some time ago, an Amazon seller contacted us to inquire about surveillance cameras. We provided him with three suppliers to choose from. However, he found a supplier who offered him a price that was $1.85 cheaper than ours.

After three months, we received an email from him stating that he had purchased a total of 1000 surveillance cameras, but only received 927. Furthermore, some of the products were defective. He asked us for advice. This is a perfect example of how trying to save a little money can end up costing you a lot.

Salesperson Expertise

A qualified salesperson should be very knowledgeable about the products they are selling. They should have an understanding of the products’ pros and cons, different materials, costs, and relevant certificates required for import and export.

The salesperson assigned to you by the suppliers is random, whether it’s on Alibaba or at a trade show. However, if you show that you are a big purchaser right from the beginning, they will likely send a more experienced salesperson to serve you.

If you find it difficult to communicate with your salesperson, you can request a better and more professional one.

Communication Efficiency

Time is money, and effective communication is critical. Timely communication can solve most of your problems and make the process smoother.

In international trade, communication mainly relies on emails. However, the time difference may lead to delayed responses. Using a common chat tool can solve this problem. Some Chinese suppliers may use WhatsApp or Skype, but they might not check the messages on time, while some suppliers don’t use them at all.

Therefore, we suggest that you install a Chinese app like WeChat on your phone. In Europe and America, not everyone uses Facebook to communicate, but in China, everyone uses WeChat in their daily life. They will reply to you at any time, even on weekends.

Responsibility

A responsible supplier treats all orders equally, regardless of their size. They maintain a positive attitude and seek to establish long-term cooperation with you.

The attitude towards handling problems also reflects the supplier’s responsibility. A good supplier understands win-win situations and takes responsibility for mistakes, even if it results in a loss. They ensure that you don’t suffer unreasonable losses due to unexpected problems in the order.

Various challenges and obstacles are bound to occur when purchasing existing brand products from China or customizing a product, especially during production. For example, the factory may print the logo in the wrong position, or not make the change according to your requirements. This is why choosing a responsible supplier becomes crucial.

Background of the supplier

Before placing an order, it is essential to check the supplier from all aspects, beyond just requesting samples. While it is impossible to eliminate all risks, you can take steps to avoid potential issues.

If you find a supplier on Alibaba, you can ask them whether they accept trade assurance. If the supplier agrees, it indicates their confidence in their products. Additionally, you can check their business license and the certificates of the products exported to other countries under their company name. It can prove that this supplier has been selling this product for a long time.

6. Four Tactics to Deal with Your Long-term China Wholesale Suppliers

In business, it is always best to create favorable conditions for thriving. Here are some tips drawn from years of experience dealing with suppliers:

Ask for better payment terms

Steady cash flow is critical for both big and small importers, especially for e-commerce businesses such as Amazon and Shopify.

For example, with Amazon, you pay in full when you place an order. Shipping takes 1-1.5 months, while the goods tend to sell out in around two months. The money is released by Amazon after 30 days. If everything goes well, your return on investment will take at least four months. If you borrow from a bank or don’t get someone else’s investment, your annual business growth is limited.

Thus, you can negotiate with your suppliers for longer payment terms to improve your cash flow. However, it’s challenging to get their support in the beginning. If you have reordered the same product more than three times, it will be a chance to strive for a longer payment term from your supplier.

There are generally three types of payment terms:

• Wire Transfer (Pay 30% deposit before production, pay 70% balance payment before shipment)
• Wire Transfer (Pay 30% deposit before production, pay 70% balance payment before goods arrive at the port of your country)
• LC and OA (Letter of credit & Open account)

Wire Transfer 30% 70% (Before Shipment)

When using this payment method, the supplier will ask you to pay a 30% deposit when you place the order and the balance before the shipment. Afterward, the China wholesale suppliers will arrange to ship the goods to your country. Although this payment term is commonly used, it may not be helpful for your cash flow.

Wire Transfer 30% 70% (Before Arrival at the Port)

This payment method also requires a 30% deposit and then 70% of the balance payment before your shipment arrives at your national port. You will receive a bill of lading from the supplier, which you will need to pick up your goods at the port. If your products are shipped to the west coast of the United States, it means that you will have at least one month’s shipping time.

L/C and OA

In short, L/C is a payment commitment issued by a bank based on the importer’s requirements. This means that the importer promises to pay the supplier at a later time, so L/C can potentially serve as a financing guarantee.

OA is not a commonly used payment method. Under this term, payment is made to the supplier after the products have arrived. It requires a strong credit history for importers and a stable cash flow for suppliers. Wal-Mart typically uses OA.

This provides importers with a secondary option to wire transfer 30% upfront and 70% upon arrival at the port.

Negotiating with the Supplier When the Exchange Rate Changes Significantly

The exchange rate is constantly changing and can vary between 5% and 10% over a period of six months to a year. If the fluctuations are not significant, there is usually no need to worry as suppliers generally do not adjust their product prices for slight changes in the exchange rate.

For example, if the rate drops from 6.5 to 6.2, it will not have a significant impact on your product prices. However, if the exchange rate experiences a significant drop and your goods have a high value, you may negotiate with your supplier to update the product price. If the exchange rate drops from 6.9 to 6.2, for instance, the supplier will adjust the price accordingly.

Consult with your regular supplier before sourcing a new item

A long-term, reliable supplier is a valuable resource. When you are looking to purchase a new product, it is advisable to consult with your old supplier. They may be able to assist with the purchase or provide you with information about other reliable suppliers, which can save you time and reduce potential risks.

Seek suggestions from your supplier when developing a new design

To stay competitive, it’s important to keep up with the latest product offerings from your supplier. Don’t hesitate to ask them what’s new this quarter, as they often improve their products based on customer feedback. Monitoring industry trends and keeping an eye on your competitors’ product lines is also crucial.

For instance, many customers of the supplier prefer canvas diaper bags with a leather bottom. This may be a feature worth considering for your own product line.

Being the first to offer the hottest products can increase your profits, especially in the fashion industry. Therefore, it’s essential to gather information from your suppliers to inform your product ideas.

Choosing the right supplier is like finding a business partner. It requires effective communication and a thorough understanding of each other’s needs. However, it can be difficult to determine the quality of a supplier before working with them. That’s where ONESTOPIMPORT comes in.

As a leading sourcing company in China, we’ve helped over 4,000 clients worldwide find high-quality products. Our database of suppliers has passed rigorous factory audits and has a proven track record of good performance. This means we can quickly connect you with a reliable supplier at a competitive price.

In addition, we offer support throughout the entire production process, from quality control to transportation logistics. Let us help you streamline your sourcing operations and achieve greater success in your business.

Onestopimport is a top sourcing provider in China, committed to assisting our clients in finding quality products from China at the most competitive prices while also providing reliable shipping services that alleviate the stress of importing DG. If you are interested in wholesale or dropshipping goods, including dangerous goods (document, declaration) from China, please don’t hesitate to contact us.