In the course of our work in the last couple of years, we’ve seen many buyers needing to procure various products from international suppliers. In this manner, they could receive better rates than if they collaborated with a trading business. At the same time, they face another issue: the high cost of shipping.
We all know that shipping costs are high from every supplier in China separately, because each shipment includes a standard shipping cost. If you send each purchase separately and do not combine them, you must pay for this base shipping cost per shipment, which is costly. It is especially true since several manufacturing companies are in the mix.
How do we solve this issue? That’s the focus of this article.
How to reduce shipping costs when buying from China
If you purchase goods from multiple suppliers in China, the most efficient way to save money is to mix goods from various suppliers into one batch and then ship them to your destination.
So, you only have to pay for the cost of shipping and customs charges at one time.
In addition, international shipping prices are usually structured so that the larger or heavier the shipment, the less the cost of shipping per cubic meter or kilogram. The more items you have, the lower the shipping options, either by sea or air.
This is an essential aspect for your company, mainly if your profit margins aren’t high.
- The minimum weight in airfreight can be as high as 21KG.
- The minimum weight to transport sea cargo will be 100kg.
For instance, if you buy 5 different goods from five suppliers, each weighing 20kgs, You can combine them and ship them all together via shipping them by sea or air.
In other words, since the mass of every package does not meet the weight requirements for the ocean and air freight, it is necessary to pay five international express fees separately.
Shipping via sea is around three times more affordable than express, and that’s extremely appealing.
It is possible to simplify this process by using three ways.
Partner with an agent for freight forwarding:
One option is to locate the freight forwarder whose warehouse can be used later to combine the items.
Typically, the freight forwarder will combine the goods at no cost.
A freight forwarder will typically offer these services.
- Quality inspection service
- Label service
- Consolidation service
- Flexible shipping methods
- Professional customs clearing service
The drawback of this method can be that the freight forwarders aren’t proficient in sourcing goods or dealing with their suppliers.
If you are dealing with suppliers, you should provide the shipping address and packaging method, as well as the volume and weight of the box and so on. to all suppliers you work with to be aware of the total cost of the entire project before making an order.
If you’re skilled at these things, this option is the right one for you.
Request any of the suppliers you have to coordinate shipping costs for you:
- Another option is to request the supplier to combine your shipment on your behalf.
- If you enjoy strong relations with your supplier and purchase regularly from them, I suggest asking your supplier for advice on this.
- They may have warehouse space and allow you to make use of it.
- If you are dealing with multiple suppliers, you should contact the supplier closest to the port of your shipment. After that, you can send other items to their factories.
- Some providers may not charge for storage space for a couple of days.
- The only additional expense is shipping from different suppliers to this warehouse/factory consolidated.
- If you don’t have a long-term relationship and trust suppliers in China, the solution you are looking for is not a good fit for your needs.
Utilize a sourcing firm to help consolidate your shipment:
The most secure and worry-free solution is to choose a sourcing Asian sourcing company.
These companies can assist you in keeping your packages for no cost until you have received the entire package, which allows them to put them back in boxes and send them out using lower international shipping charges.
Alongside the free warehouse and repacking service, you will also get these benefits.
- Buy items at less locally than international buyers.
Sourcing companies are specialists in the purchase of products, and their main competitive advantage lies in the negotiation of more favourable purchase costs.
- Flexible Shipping Method.
To obtain the most competitive price on shipping, the Asian sourcing company that you purchase from will pick the most advantageous shipping method based on the size of your items.
In addition, purchasing companies have long-term agreements with freight companies. They are often able to obtain lower shipping costs.
- Lower minimum order quantity:
Since purchasing firms have been in the purchasing business for a lengthy period, they can obtain lower minimum order quantities from suppliers.
- Be aware of the costs associated with the project before its start:
The Asian sourcing company will assist you in determining all possible charges before placing an order. These include the price of the item and shipping charges within China and international shipping costs, and any other costs that might occur.
- Inspection of quality:
When you receive the items, submit the items to your agent for sourcing to inspect the quality.
For most everyday products, A general overview of the products will help you solve any problem.
When the quality issue is identified Once an issue is identified, your supplier can promptly return and replace the items for you.
If the issue is discovered within a few days of receiving the items the goods, it is difficult to claim compensation. The cost of returning the items to China is extremely high.
- Customs clearance professional services:
While purchasing companies aren’t specialists in the field of shipping, they can provide a range of services ranging from sourcing items to delivery to your doorstep that includes customs clearance and taxes.
If you want to cooperate with an Asian sourcing company, you must pay a service charge to them, typically 5 to10 per cent of the total amount.
Suppose you’re not skilled at sourcing products, supplier negotiations, product freight accounting, etc. Working with a sourcing firm is the best choice.
However, some sourcing companies will not accept orders below $5,000 because it’s not financially profitable for them.
A good China or Asian sourcing company will help you in the consolidation of manufactured products in an organized manner. They will have strong networks with local warehousing and logistics companies. They will take up the entire responsibility of consolidating the products in the containers and then shipping them to your shores.