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Online hookah store with its own assortment: to buy directly in China is 25% cheaper than in Ukraine

How we helped to choose a Chinese supplier with an assortment previously not presented in Ukraine and purchased and delivered goods for an online hookah store.

Situation

The online store of hookahs and accessories has been buying goods from local suppliers for a long time. Their assortment did not differ significantly from the assortment of other stores. The company could not offer a lower price than the competitors and thus gain a competitive advantage. Therefore, it was decided to expand the assortment with new models of hookahs that competitors do not have.

The problem is to

Study the offers of Chinese suppliers and choose a reliable partner in China with a range that differs from the market in Ukraine. Purchase the goods and deliver the cargo by sea to Ukraine.

The solution to the problem
Stage 1

A detailed study of the proposals led the purchasing department M3Cargo to 10 Chinese suppliers of hookahs and accessories - manufacturers and intermediaries. Of these, the TOP-3 suppliers were selected, potentially fitting the customer's range and price.

Stage 2

Based on the appearance of hookah models, the customer chose one of the suppliers and requested a trial shipment of the goods.

The purchasing department of M3Cargo contacted the supplier, ordered a trial batch of goods, and carried out air delivery.

A week later, the client received a trial shipment. The received goods satisfied his requests, and the customer made an order for a large batch of hookahs and accessories.

Stage 3

The purchasing department of M3Cargo has begun the process of coordinating models, their quantity, and components with the supplier. After signing the contract, the client paid for the order, and the supplier started to collect the order.

Stage 4

At the appointed time, M3Cargo shipped a batch of goods from the supplier's warehouse in China and transported it to its own warehouse in Guangzhou, where the goods remained before loading as part of an LCL container.
Loading of the batch into the container has begun.

Stage 5

Shipping by sea took 60 days. During this time, the client could track the path of his goods on the M3Cargo website using tracking.

Stage 6

The cargo arrived at the warehouse in Ukraine and was accepted by the client.
The client received all the accompanying documents.

Customers who order small shipments in China usually do not use the cargo inspection service before loading. In this case, to check the supplier and the quality of his goods, it is enough to study his constituent documents and receive a trial batch of goods. To avoid delaying the process of making a purchase decision, it is better to use air delivery for the delivery of test samples. It is much more expensive than the sea shipment but significantly reduces the time for making a decision on cooperation. But remember that this does not always work and the most reliable option for quality control is an inspection.

Bohdan Malohatko, client-manager M3Cargo
Final result
  • The client expanded the assortment of the store with goods that were not previously presented by competitors.
  • The client gained an advantage in the market by expanding the assortment with new models of goods previously unavailable in Ukraine.
  • The client purchased a quality product with a new design for 25% cheaper than from local distributors in Ukraine.
  • The M3Cargo team was responsible for the search and communication process with the Chinese partner.
  • Ordering a trial batch of goods made it possible to avoid cargo inspection before loading into a container.
  • Sea delivery of a consignment of goods has reduced costs compared to air delivery.
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