In Guangzhou, some merchants running micro - stores and some physical stores have been cleared out by the Market Regulatory Bureau. Some of the merchants I know who haven't been inspected dare not sell anymore recently.
What do you think are the most important parts of product reselling?
Based on my experience, reselling is actually not that complicated. The top priority is to have competitive product pricing.
When it comes to sourcing goods, I always recommend buying from 1688. It offers products at generally low prices. I don’t suggest choosing suppliers that claim to stock hundreds of different items. They rarely have real price advantages, and only a few of their products are cost-effective.
Here is the reason: A regular factory can only produce around ten to twenty main products due to limited production capacity. If a supplier has hundreds of items, they are definitely not direct manufacturers. Extra markups will make their prices higher.
Besides, you need to optimize your supply chain, especially shipping. I’ve compared plenty of price lists. Shipping via middlemen usually costs 20% more than working with local Chinese international logistics companies. The gap will be even bigger without discount coupons.
If you work as a full-time reseller, it’s wise to find reliable local freight forwarders in China. It will greatly cut down your logistics costs. Admittedly, there are risks of being scammed during cooperation. However, if you want to stick to this business for the long run, sorting out your shipping channels and avoiding risks is essential.
To stand out from competitors, cutting your overall costs is always a key strategy.