How to do Procurement in YIWU City?

The name ‘Yiwu Small Commodity City’ has been known to the world for decades, and it’s here to stay. Countless buyers come rushing from different parts of the globe for the right item they are searching for, and most of the time, they get what they come for.

For newcomers, they might get super overwhelmed in face of such a big market. But do not get intimidated by this, JIJU is here with you every step of the way.

Decide on what you want to find

Total of five enormous wholesaler districts, you’ll need a good pair of sneakers if you do not set a target beforehand. Every district has different categories of products, for example, the first district mostly showcases toys and home decor items. 

Every district has separate buildings, and we’re not talking about an ordinary building, we are talking about a giant supermarket for wholesalers.

So in order to locate exactly what you’re after, it’s necessary to do some research.

Be ready to bargain and compare

Factories (or sheer agents) have their shops/showrooms set up inside the market. They sell the products they produce/ represent.

Some of the shop owners don’t speak any English and know little about foreign trade. Their job is to keep everything under control. So the shops here just put whatever is available inside, and sell. That’s it. They are happy with this. To export directly to overseas buyers is not something they’re happy to do, or able to do. 

Therefore, there might be communication issues.

And a lot of the time, one particular product could show up in different stores, with different prices and MOQs. That means, it is not wise to settle for the first store that you lay eyes on. Compare the prices of various stores and then make a decision.

It’s time for order

For orders, suppliers usually charge a deposit of a certain amount and need to pay the balance before shipment to the designated warehouse. And for the amount of the entire order, most of the tradings are done via Terms of Payment.

Then it comes down to shipping. 

Shipment is very convenient in Yiwu. Data shows that it has been trading with 219 countries. Here is a brief introduction of a few main shipment ways to help you quickly select the most economical one. 

Express

Express is usually used when the time is limited, the goods are less and the requirement is high. But the cost is relatively high. Different express companies will have different rates. If you only consider the price, then you may face the loss of parcels, delayed receipt of parcels, extra charges in destination countries, and so on.

Air Freight

We often send goods by air (to the airport of the destination country) when there aren’t so many products and the receiver needs them fast.

Sea Freight

When there is a large quantity of goods, sea freight is the regular choice.

If the goods are less than 15 CBM, they are usually delivered in bulk. And the volume of goods is relatively large, we will deliver them in a whole container. 

Long story short, despite the fact that the small commodity city is called the heaven for wholesalers, it requires some knowledge and experience to make a successful purchase. 

Being in the industry for 13 years, JIJU knows exactly how the market works and has helped many of our customers create a long-lasting business.

Cover photo by maggie yang on Unsplash

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