Small business from scratch: how to buy leather products in China and sell under your name
As we helped to find leather handbag manufacturers in China, solved the issue of delivery of goods of improper quality with a 100% refund of value, bought a batch from a new supplier, inspected it, and delivered the goods to Ukraine.
Young, ambitious people with a small budget decided to open a small online business in Ukraine - to sell women's bags and accessories. After analyzing the competitive environment, they came to the conclusion that in order to be different, they need to develop their models of bags under a unique name and start their own production. But the budget was not enough to create its own platform for sales - an online store. They decided to find a quality product in China, order a batch of noname handbags and sell under your own name through the available sales channels - Instagram and Facebook.
Study the offers of Chinese suppliers, and select several suppliers with quality goods - leather women's bags. Purchase a consignment of goods and deliver the goods by sea to Ukraine.
The M3Cargo purchasing department has contacted 9 Chinese leather bag factories. The client chose three manufacturers whose bag models he liked the most.
We continued negotiations with suppliers, ordered product samples, and delivered them by air.
The trial samples satisfied the client's requests, and he placed an order for the first batch of women's leather bags from one of the suppliers.
M3Cargo has started the process of agreeing on models and requirements for them. Among the main requirements for the product were: high-quality leather, without embossing, products must be without a logo and mention of the country of production.
A few days after the payment was made, the factory began manufacturing a batch of women's leather bags for our customer.
After the order was ready, we started shipping the goods. Since the client did not order an inspection of the cargo, a sample check by basic indicators of the batch was carried out before loading.
Shipping by sea took 60 days. The cargo arrived at the warehouse in Ukraine and was accepted by the client with all accompanying documents.
After inspecting the goods, the client found that the quality of the bags that arrived significantly differed from the quality of the test samples. The purchasing department of M3Cargo contacted the supplier and provided evidence of a quality mismatch. Further negotiations led to a decision: the manufacturer returned the entire batch cost and paid for the shipment of the goods back to China.
When a customer does not order a shipment inspection, relying on the quality of test samples, there is a risk of receiving an inferior quality product. In such a situation, achieving a 100% refund of the cost is often complicated in negotiations with a Chinese supplier. We still recommend inspecting even small shipments until you have established a long-term relationship of trust with your supplier.
After returning the product to the supplier, the client decided not to work with him anymore and decided to cooperate with other factories. Within a few days, we contacted three new suppliers, and after examining trial samples and agreeing on the model range, we ordered a new batch of leather bags.
After the order was ready, M3Cargo representatives in China conducted an inspection of the cargo. Since the goods corresponded to the agreed quality, loading into a container and shipping by sea to Ukraine as part of an LCL container
began.
The cargo arrived by sea at a warehouse in Ukraine and was accepted by the client. The new batch of bags fully met his requirements.
Six months later, the client placed a new order with M3Cargo to find a manufacturer of wallets and a factory that would develop a line of men's bags and leather accessories.
- The client reduced the cost of goods by 50% compared to creating and producing a similar product in Ukraine.
- Ordering high-quality noname bags in China, the client got the opportunity to sell them in Ukraine under his own name.
- M3Cargo was entirely responsible for the process of searching and communicating with Chinese partners, signing contracts, and paying.
- Even after receiving low-quality goods in Ukraine, thanks to the negotiations of the M3Cargo procurement department with the Chinese supplier, the customer received a 100% refund.
- By ordering the trial samples, the client satisfied all the wishes for materials and colors. The post-production inspection of the cargo avoided the risk of obtaining goods of inadequate quality for a second time.
- The sea delivery of the shipment resulted in reduced costs compared to air transportation.
How to save 25% on purchasing and introduce a new brand in Ukraine
