Exports from China are booming yet there’s one segment of products that importers tend to stay away from. Business owners shy away from wholesale electronics from China as they find the process and regulation compliance complicated and confusing.
However, we will encourage you to indulge in wholesale electronic from China as the profit margins are comparatively higher, which gives you an opportunity to develop a successful business.
As far as import regulation compliance is concerned, I am going to offer a complete guide to fill in the knowledge gap and clear all your worries and apprehensions. Read on!
Here’s what you’ll take away from this article:
- Why purchase Wholesale Electronic from China? (Hint: The Significant Profit Margin)
- Where to find an electronic supplier？ Shenzhen or Yiwu?
- Trade Shows & Fairs of Electronic Products
- Online Wholesale Electronic Websites for Searching Suppliers
- Four Facts You Need to Know before you Import Electronics from China
- Different Regulations of US and EU Market
- Electronic Products Transportation
1. Why Purchase Wholesale Electronic from China? (Hint: The Significant Profit Margin)
This day and age, building a successful business by importing products from China and selling them in your home country is no more a secret. The strategy has enabled a plethora of people worldwide in developing a profitable business.
The idea sounds incredibly alluring and equally simple for anyone looking to start his own business. At the same time, many beginners find their mind running in circles while trying to figure out the best wholesale items to import from China.
This is where we step in!
Jingsourcing is a sourcing company in China that enjoys enormous popularity and high reputation amongst the American Amazon sellers. We help many American sellers import a variety of products from China for sale in the United States.
We leveraged our experience and researched the most profitable items that are in high demand for sale in the United States and other countries across the world. After going through years of data, we established that electronic products are not only trending but also the most profitable items to import from China. Here’s why:
a. High Value
The price of electronic products is generally higher than regular commodities. For example, an Electronic Toothbrush is $40 whereas a regular toothbrush costs just $3.
To earn $10,000 by selling regular toothbrushes, you will need to sell approximately 3,333 brushes. However, if you choose to sell electronic toothbrushes, you’ll have to sell only 250 pieces. What would you prefer?
b. Cool Range of Products
It is easy to find new and unique designs along with a lot of cool options that appeal to the modern consumers in the category of electronic products. All you’ll need is a good marketing strategy to catapult sales and make money.
For example, one can find both wireless chargers for mobile phones and a normal USB charger in the market. What do you think will attract today’s consumer more? Wireless chargers for sure because they lend the ability to keep the mobile’s battery charged on the go all day long. Hence, they are in demand and easier to sell.
c. Fewer Competitors
Yes, there are many difficulties when it comes to importing electronic products like transportation, regulation compliance, quality and maintenance problems, etc. This is precisely the reason most of the business owners stay away from dealing in electronic products.
Since there aren’t many businesses trading in the category of electronic products, you’ll face lesser competitors and will have a broader scope to build and sustainable and profitable business. All you need to do is gain knowledge to overcome the challenges.
If you analyze the market, there is a wide range of electronic products that can be imported from China. Here, I’ve listed some of the most successful wholesale electronic product catalogues that you can import from China.
2. Where to find an electronic supplier？ Shenzhen or Yiwu?
Finding reliable suppliers is one of the biggest challenges that interested business owners face while importing products from China. Yes, that’s a fact. China is a vast country, and then there is the language barrier as well, which makes finding a reliable supplier incredibly daunting for anyone who is not familiar with the country. If you are considering becoming an importer from China, it is a good idea to do some homework, and you can start right away.
Here, I am going to share 2 of the best ways of finding dependable electronic suppliers in China.
a. Find a supplier before coming to China
If you plan on trading in a specific electronic product or perhaps want to build a customized a product and develop your own brand, then the best way is to research and identify potential suppliers before visiting China.
You can research and locate some of the potential Chinese electronic suppliers through the internet. You may also participate in electronics exhibitions held in your country and connect with suppliers. Once you have shortlisted some prospective suppliers, you can fly to China and visit their respective factories and workout a potential collaboration.
Directly visiting China and contacting different electronic suppliers will only cost you time, money and efforts.
b. Come to China first, then find a supplier
If you are still discovering the range of products in the electronic category and trying to figure out which products you should import, then we recommend visiting China and exploring the possibilities. You can visit Shenzhen Electronic Market or Yiwu Wholesale Market to know more about the product range in the electronic category. Read the pointers below to determine if you should visit Shenzhen or Yiwu.
Shenzhen, the Capital of Electronics in China
Shenzhen is famous all over the globe for being the Electronics capital of China. Majority of electronic products manufactured in China are produced in Shenzhen or its nearby cities. The densely populated Huaqiangbei area has a lot of large electronic wholesale markets. Seg Square(赛格广场) or Seg Electronics Market can be a great place to start with, where you can find cheap electronics like mobile phone accessories, tablets, hoverboard, headsets, monitoring equipment and several fad products as well.
However, in order to easily find electronic suppliers in the Huaqiangbei Electronic Market, it’s important to know some things.
Huaqiangbei Electronic Market offers a large variety of both fad products and some of the best-selling electronic products in the market as well. Therefore, you will easily get a fair idea of the product range you would want to sell. But it’s important to take note that the sellers at the Huaqiangbei consumer electronics market are middlemen. You can directly purchase products from them but cannot get the products customized.
The suppliers in the market rent the booths on a monthly basis, so you cannot expect a stable supply of products from the same supplier for a long-term. However, you may get surprised by the range of products available at Huaqiangbei. Once I stumbled upon an amazing video showcasing an American guy making his own iPhone at the Huaqiangbei electronics markets. See it for yourself.
How He Made His Own iPhone - in Shenzhen, China
Lastly, the suppliers at the Shenzhen electronic market only speak simple English and do not accept US dollars as payment. So, having an agent is advisable.
Yiwu, World’s Biggest Wholesale Market
Yiwu Wholesale Market is a comprehensive international trading market. Here you can find a wide range of products like fashion accessories, toys, jewelry, bags, and decorations and so on. Yiwu wholesale market is not the main electronic market yet you can find a lot of electronic products made in China in district 2, floor 3.
Since the electronics manufacturers in China are mostly concentrated in Shenzhen, many Yiwu electronic suppliers purchase products from suppliers in Huaqiangbei Market. Therefore, you may encounter price difference as well as the products in Yiwu market will be pricier.
On the flip side, Yiwu’s suppliers are very stable unlike the supplier from Huaqiangbei Market. You will find the same supplier at the same place even if you are visiting after 2 or 3 years. This gives an added advantage for you to come back to the supplier in case of problems with the products.
Another advantage of shopping from the Yiwu Wholesale Market is that the suppliers may allow a credit if you are placing a large order. You can negotiate with the supplier and pay a 30% deposit when you place your order. The remaining 70% payment can be made after receiving the delivery, or as agreed upon.
Yiwu market also has its shortcomings. Generally, suppliers only speak simple English, and hence you will need to find an agent to ensure smooth communication.
For more information about Yiwu Market Agent and Their Tricks, you can click here.
3. Trade Shows & Fairs of Electronic Products
China’s electronic exhibitions, trade shows and fairs are also a great place for product procurement. Some of the most famous exhibits are the Canton Fair and the Hong Kong electronics fair.
Canton Fair is held every spring and autumn in Guangzhou, China. It is an international trading event with the longest history and showcases the most comprehensive variety of products. You can find electronic suppliers in Phrase 1. Here is the catalog of the Phrase 1.
Dates：2018.10.15-19 Venue: Guangdong, China
Hong Kong Electronics Fair is the largest electronics show in Asia and is held every spring and autumn in Hong Kong. The fair is a very professional electronic exhibition where you will find electronic suppliers not only from China but from all over the world.
Venue: Hong Kong, China (Hong Kong Convention and Exhibition Centre, China）
There are many well-known exhibitions held every year all over the world. These exhibitions also attract many Chinese electronic suppliers. If the place of the exhibition is located near you, it’s definitely worth paying a visit. Here’s a list of some of the best Electronics fairs and trade shows.
CES is the world’s gathering place for all who thrive on the business of consumer technologies.
Venue: LAS VEGAS, NV
NEPCON Japan is Asia’s Leading Exhibition for Electronics R&D, Manufacturing and Packaging Technology.
Venue: Tokyo Big Sight, Japan
4. Online Wholesale Electronic Websites for Supplier Searching
Do you plan on wholesale products from China but feel that the idea of visiting China is troublesome? At the same time, you might not always have the option to meet with suppliers at a trade fair or exhibition. What would you do when faced with such a scenario?
Well, you always have the option to go online and look for wholesale electronic suppliers from China. You can find a link to their website, which will give you the required contact information. It’s easy to find Chinese suppliers by looking up Alibaba, global source & Made in China, Google, aliexpress or DHgate.
Many online guides share tips on how to find suppliers through internet resources. But no guide clearly tells the difference between these platforms or how to choose a suitable platform for electronic products.
Here, I want to help you find the best site for electronics, so that you can choose better suppliers.
a. Find electronic suppliers on Alibaba
Alibaba has the most comprehensive assortment of products. Several new electronic items are first released on the Alibaba platform.
But, oftentimes there are only one or two suppliers of a new electronic item, and hence their price is high.You may also find similar products at a lower price listed by different suppliers.
The lower price products are generally the copy of an original product and can be of poor quality.
Therefore, while shopping on Alibaba distinguishing between the products sold by different suppliers can be difficult.
b. Find electronic suppliers on Global Source & Made in China
The suppliers and products available on Global Source or Made In China are not as abundant as Alibaba.
However, there’s a higher probability of finding electronic manufacturers on these resources. If you want to find the real electronic manufactures instead of suppliers, you can take a look at these two websites.
If you find manufacturers through these sites, we recommend getting the products designed and customized according to your own ideas.
c. Find electronic suppliers on Aliexpress & DHgate
These two platforms are suitable for ordering a small number of products. The prices of products found on these sites are usually high.
Moreover, the suppliers on these platforms often purchase from different manufacturers, and hence the quality of their products is also hard to control.
On the positive side, these sites can provide dropshipping which can be beneficial if you don’t plan on holding stock.
If you feel inexperienced and don’t want to find a supplier yourself using any of the strategies mentioned above, then you can find a trusted sourcing agent to help you procure products from suppliers. Finding a sourcing agent online is much easier than finding a right supplier online.
Here is a guide that will let you in on all the secrets of finding a good sourcing agent.
5. Four Facts You Need to Know Before Importing Electronics from China
Fact 1: Quality Comes First
As we know, electronic products are of high value and have a high-profit margin. As such, it is recommended that you spend 5-10% of your money on providing better quality or service.
This is because unlike other consumer products such as hard-wearing backpack. Instead, electronics are fragile and are likely to be easily broken. Providing high-quality products will ensure that the products you are selling are durable.
Investing in the high-quality product is especially important of your selling online or via Amazon because just one poor quality product can give you a bad review and damage your seller reputation. Bad reviews can turn off future buyers and you will also lose money invested in pre-marketing activities.
Fact 2: Quality Warranty of Electronic Suppliers
“How long is the quality warranty of electronic products?” “How can I maintain my electronic products within the warranty period?”
The questions mentioned above are common to all electronics product and are frequently asked by every interested buyer. Here, it’s important to note that some of the simple electronic products such as a flashlight, earphone, etc. have no warranty. However, complex and high-value electronic products like a smartwatch, or a bitcoin miner may have a few months’ warranties.
3 months warranty
6 months warranty
12 months warranty
Fact 3: Quality Maintenance
You should realize that if there is a problem with electronics made in China, you cannot refund it. You only have the option to return the goods to your Chinese supplier who can help you with repairs. But the freight cost and customs duty incurred in returning the products to China will be your own and these costs can be really huge.
If the goods must be returned to China, then there are two more cost-effective options.
You can collect the damaged electronic products from your customers and send them all together to your supplier for repairs. As for customs duty, you can choose to return the damaged products all together to the bonded zone in China. Then ask your supplier to send people to the bonded area for repair.
Or you can ship the goods to Hong Kong and then ask the suppliers to repair the products in Hong Kong, so you don’t have to pay customs duties because there are no customs duties in Hong Kong.
You can request your electronics suppliers to send the accessories or parts needed to repair the products in your own country.
Fact 4: No Need to Find the Real Electronic Manufacturer
Most Chinese electronics manufacturers sell their products to foreign importers through trading companies. These manufacturers do not promote their products online or through fairs and exhibitions. So, it’s hard to find them anyway.
Therefore, for the wholesale electronic products, you should just focus on the price of the product, the quality of the product and the quality of service provided by the electronic suppliers.
If you find an electronic supplier that meets all your requirements, then even if they are a trader, you can cooperate with them and sell the products in your country and get high profits.
6. Different Regulations of US and EU Market
Different regulations apply depending on the market, product, usage and its function. Generally speaking, Europe has stricter regulations on imports as compared to the USA. Here are some of the common regulations that both the US and EU importers need to know.
Electronic Product Regulation for European Union
The CE marking is a mandatory conformity marking if you want to import into Europe. It basically confirms that your product is manufactured according to certain European standards. It covers most standards and is the absolute minimum that you need to have when importing to Europe, no matter which product you are importing.
GS or “Gepruefte Sicherheit” is a quality seal issued by a third party laboratory and mostly recommended if sold as a retailer or to the retailers. It is voluntary and NOT required by law but it helps in establishing trust with the customers as GS seal is commonly known and trusted by consumers, especially in Germany. The requirements to get a GS certificate is higher than the one for CE. GS is not available or doesn’t make sense for several products such as battery operated items.
“Restriction of Hazardous Substances” or RoHS regulates the use of 6 hazardous substances in the product. These hazardous substances are lead, cadmium, mercury, chromium, PBDE and PBB.
It is closely linked with the Waste Electrical and Electronic Equipment Directive (WEEE) 2002/96/EC which sets collection, recycling and recovery targets for electrical goods and is a part of the legislative initiative to solve the problem of increasing toxic e-waste.
Most suppliers have at least a report for the incoming raw-materials that they later use for the final product. So, while they do not have a RoHS certificate for the entire product they may have the material tested which is generally accepted by the authorities.
Regulations for Import to The United States
The FCC basically regulates anything that is electronic including WiFi, Bluetooth, Radio transmission etc. Therefore, import of any device that is electrical and remits radio waves (in any way) needs to be certified by the FCC.
There are two regulations within FCC for both Intentional & Un-Intentional radiators. Intentional radiators are Bluetooth speakers, Wi-Fi devices, radios or smartphones. Unintentional radiators are Headphones, Earphones, power packs, PCB’s etc.
UL is a global certification company that performs safety testing on your products according to several established standards. Even if you have an FCC certification you may still need UL certification, especially if you are a retailer. It’s a seal of quality that helps institute trust and credibility with the consumers.
RoHS in the United State is the same as in Europe. It is also recognized in the US and widely available at suppliers. RoHS self-declarations are generally accepted by authorities.
7. Electronic Products Transportation
Congratulations! Now, that you’ve reached this chapter it means the majority of the work is done. All left to do is overcome the challenge of transporting the products.
As you may already know, all the electronic products come with batteries, lithium batteries or button batteries. In China, not all the freight forwarding companies transport electronic products with lithium batteries by air. Therefore, express companies like FedEx, UPS or DHL may not transport products featuring lithium batteries.
However, the fact is, lithium batteries can be transported by air but is a little complicates as it requires a lot of certificates and documentation. Not all the Chinese electronic suppliers have the ability to prepare these documents and comply with the necessary certifications.
If you really want to transport products with lithium batteries, here are some special ways that may prove helpful.
There are several express agents in Shenzhen or Guangzhou, who offer special ways to help you transport lithium batteries to your country. However, it may cost you 50% more than the ordinary expenses. To learn more click here.
For button batteries, if your quantity is less than 100kg, courier companies will help you with the transportation. If the quantity is higher, then you have to ask the special way for help.
We recommend transporting electronic products without the batteries and avoid the hassle and costs involved in importing the products along with the batteries. You can procure batteries from domestic suppliers and sell the products with batteries.
Furthermore, in addition to express and air transport, you also have the option to transport the products via ship. But shipping also requires corresponding documents. Generally speaking, it is mainly MSDS and Reports for Safe Transport of Goods. Preparing these files will be a bit simpler. As long as it is a professional electronic supplier, they can solve these problems for you.
If you are an American Amazon Seller, who wants to import electronics to the USA, then you are at luck. Check out this guide on “Shipping from China to Amazon FBA: The Definitive Guide in 2018”, which will provide you with all the details and information required to deal with the shipping issues.
Now you’ve reached the end.
All that is left to do is go ahead and get started.
Take note of the information outlined in this guide and get started with wholesale electronic from China the right way.