How to source cheap products from China — a polished, practical playbook

Thesis: Cheap = total landed cost + managed risk. If you ignore either side, the lowest unit price will cost you more in the long run.

 

Introduction — reframe the goal

 

You want low cost, sure. Smart buyers want value: the lowest total cost that keeps customers happy and cash flowing. Chasing the lowest unit price is a common trap — it ignores freight, duty, inspection, returs, and the damage a bad batch does to your brand.

Quick scenario: a $1 part with poor QC and $2.00 per-unit effective shipping often ends up costing more — in money and headaches — than a $3 part with reliable quality and $0.50 shipping. Always run the numbers before you buy.

 

The best platforms & markets for sourcing cheap products

 

Platform / Market	Best for	Key advantage	Main drawback	When to use
1688.com	Buyers who can use Chinese agents or read Chinese	Lowest factory prices; many domestic manufacturers; flexible small batches	Chinese-only, mostly domestic sellers, export logistics harder	Use with a trusted local agent for the cheapest factory buys
Alibaba.com	Global importers, first-timers	English UI, Trade Assurance, many exporters	Higher prices vs 1688; many trading companies (middlemen)	Good for sample orders, export-ready suppliers, lower risk
Yiwu Market	Small commodity/retail resellers	Huge selection of low-value items, low MOQ	Quality inconsistency, variable compliance	Best for novelty items, retail testers, impulse products
Huaqiangbei (Shenzhen)	Electronics components & small consumer electronics	Huge component ecosystem, quick prototyping, bargain components	Authenticity and safety risks	Use for electronics sourcing/prototyping with testing
Local factories / trade shows	Buyers who can travel or send agents	Direct factory connections, negotiation leverage	Time & travel cost, misleading showroom samples	Best when scaling and building long-term supplier relationships

 

Bottom line: 1688 is the cheapest but needs local support. Alibaba is safer/cleaner for international buyers. Markets like Yiwu/Huaqiangbei are category-specific powerhouses.

 

The real cost of “cheap” — Total Landed Cost (TLC)

Rule: never compare suppliers by unit price alone. You must compute Total Landed Cost (TLC).

TLC formula (spreadsheet-ready)

 

SKU	UnitPrice	Qty	UnitPrice_x_Qty	Freight	Insurance	CustomsDuty	VAT	CustomsClearanceFees	PortTerminalCharges	LocalTransport	InspectionCosts	PackagingLabeling	PaymentFees	ReturnsProvision	TotalCost	TLC_per_unit
EX-A-001	1.00	1000.00	1000.00	600.00	10.00	120.00	150.00	80.00	0.00	40.00	120.00	50.00	10.00	100.00	2280.00	2.28
TEMPLATE	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

 

Components you must include

 

Unit price (FOB/EXW) — confirm which incoterm is used.

Freight & handling — sea FCL vs LCL vs air vs express; include container run, drayage, terminal handling.

Insurance — usually 0.1–0.5% of cargo value depending on risk.

Customs duty & VAT — depends on HS code; small changes in classification change duty.

Customs clearance & broker fees — documentation, agent fee, possible demurrage.

Local transport — port to warehouse or FBA center.

Inspection & testing — third-party inspection, lab tests for regulated products.

Packaging & labeling — retail-ready costs, inserts, barcode printing.

Payment & FX fees — bank TT fees, currency conversion margins, PayPal fees.

Returns/warranty provision — set aside % of sales for expected returns or replacements.

Time cost / inventory holding — cash tied up during transit and lead time.

Bold warning: If your TLC math is sloppy, your margins lie to you. Build the TLC for each supplier and SKU before you commit.

 

Two worked examples (digit-by-digit arithmetic)

 

Example A — very low unit price, higher hidden costs

Unit price = $1.00

Qty = 1,000 → UnitPrice × Qty = $1,000.00

Freight (sea LCL, all-in) = $600.00

Insurance = $10.00

Customs duty = $120.00

VAT = $150.00

Clearance fees = $80.00

Local transport = $40.00

Inspection = $120.00

Packaging = $50.00

Payment fees = $10.00

Returns provision = $100.00

Total cost = add all:
1,000.00 + 600.00 + 10.00 + 120.00 + 150.00 + 80.00 + 40.00 + 120.00 + 50.00 + 10.00 + 100.00 = $2,380.00

TLC per unit = $2,380.00 ÷ 1,000 = $2.38 per unit

Although unit price was $1.00, true cost = $2.38.

 

Example B — higher unit price, lower ancillary cost

Unit price = $3.00

Qty = 1,000 → UnitPrice × Qty = $3,000.00

Freight (consolidated FCL/economy) = $300.00

Insurance = $10.00

Customs duty = $360.00

VAT = $450.00

Clearance fees = $80.00

Local transport = $40.00

Inspection = $50.00

Packaging = $100.00

Payment fees = $12.00

Returns provision = $30.00

Total cost = 3,000.00 + 300.00 + 10.00 + 360.00 + 450.00 + 80.00 + 40.00 + 50.00 + 100.00 + 12.00 + 30.00 = $4,432.00

TLC per unit = $4,432.00 ÷ 1,000 = $4.432 per unit

Here, $3.00 unit => $4.43 landed. Compare A ($2.38) vs B ($4.43) — A is actually cheaper in this scenario. The point: compute the TLC and compare.

 

A step-by-step vetting checklist for low-cost suppliers

Work through stages:filter → qualify → validate → sample → contract.

 

Fast pre-filter (platform-level)

Alibaba: Filter for Gold Supplier, Trade Assurance, years in business, product reviews, transaction history, and onsite/factory verification badges.

1688: Look for factory (厂) listings, high sales numbers, many product images, and verified business license via agent.

 

Quick qualification checklist (ask and confirm)

Can you supply a sample? Price and lead time.

MOQ for production and for samples.

Incoterm for quote (EXW, FOB, CIF).

Payment terms (30/70 TT, LC, escrow).

Production lead time and monthly capacity.

HS code and suggested duty rate.

QC procedures and whether they accept third-party inspection.

Factory photos, ISO/CE/UL documentation if applicable.

References or export clients.

 

Red flags (walk away or escalate)

Refuses samples or insists on huge MOQ immediately.

Requests untraceable payment methods (Western Union).

Vague about lead times or refuses third-party inspection.

Extremely poor or inconsistent product images.

No verifiable years of operation or suspiciously new supplier claiming huge capacity.

 

Green flags (good to move forward)

Transparent answers, timely replies, accepts trade assurance/escrow.

Provides HS code, factory photos, and inspection willingness.

Offers a trial/pilot run and clear packaging specs.

 

Sampling — non-negotiable and how to do it right

 

Sampling is your cheapest insurance. For cheap SKUs, sampling prevents catastrophic costly recalls or returns.

 

How to order an effective sample

Get the exact SKU with the precise packaging and labeling you intend to use.

Pay for the sample and express shipping — you want it in-hand, inspected.

Document everything: order number, sample photos, timestamps, batch numbers.

If possible, order samples from multiple suppliers to compare quality.

 

What to check (inspection checklist)

Functionality and basic stress testing.

Dimensional accuracy and tolerances.

Visual finish: seams, paint, labels.

Packaging strength and retail readiness.

Safety hazards and obvious noncompliance signs.

 

If the sample fails

Ask the supplier for root cause and corrective plan.

Negotiate a second sample after corrections, or a discount/compensation.

If they refuse reasonable correction, walk away — cheap isn’t worth fraud.

Bold tip: Third-party inspection before shipment (pre-shipment inspection) is cheap insurance — typically 0.5–1% of order value but can save 10× that in returns.

 

Managing expectations — the trade-offs of going cheap

 

Be honest: lower price almost always means trade-offs.

Common trade-offs: less consistent quality, minimal supplier after-sales support, basic packaging, potential longer lead times, higher defect rates.

When trade-offs are acceptable: disposable consumables, low-margin impulse items, testing markets.

When trade-offs are unacceptable: regulated items, electronics with safety concerns, high-brand products.

Rule of thumb: if your business depends on repeat customers and brand value, prioritize QC and compliance over a few percentage points of unit savings.

 

Practical operating rules (do these every order)

 

Compute TLC for every supplier & SKU.

Order samples from the factory (not just trading companies) where possible.

Use escrow/trade assurance for the first 1–2 orders.

Inspect before shipment.

Start with a pilot batch (small volume) before scaling.

Budget a returns/warranty reserve (percentage depends on category).

 

What Are the Cheapest Things to Buy from China?

China is a global hub for low-cost manufacturing, but “cheap” means more than just unit price—it’s about scale, supply chain efficiency, and shipping weight. Below are the categories where buyers consistently find the best savings:

Electronics Accessories: USB cables, LED lights, power banks. (⚠️ Always test quality before bulk orders.)

Fashion Accessories: Jewelry, sunglasses, handbags—lightweight and easy to ship.

Home & Kitchen Goods: Plastic containers, utensils, cleaning tools—produced at massive scale.

Stationery & Office Supplies: Pens, notebooks, school sets—high automation keeps costs down.

Toys & Gifts: Plush toys, puzzles, party favors—low price but check safety compliance.

Textiles: Socks, T-shirts, towels—supported by strong textile hubs.

Promotional Items: Keychains, mugs, tote bags—cheap and customizable.

Key Takeaway: The cheapest products are usually small, light, and mass-produced. Always factor in total landed cost (shipping, duties, quality control) and not just the unit price.

 

What Is the Best Sourcing Website in China?

The “best” sourcing website depends on your business needs:

Alibaba.com – Best for international buyers.

English-friendly interface

Wide supplier base (manufacturers + trading companies)

Strong buyer protection and escrow options

Slightly higher prices than local platforms

1688.com – Best for ultra-low domestic prices.

Wholesale marketplace for Chinese buyers

Cheapest product costs (often factory-direct)

Requires Chinese language and payment methods

No built-in international shipping

Made-in-China.com – Professional B2B platform.

Good for industrial and machinery products

Strong supplier verification system

Global Sources – Trusted by experienced importers.

High-quality suppliers, especially electronics

Good for bulk orders and trade shows

 

Do You Need a Business License to Wholesale From China?

The short answer: Not always.

If you buy small quantities (test orders, samples, or bulk via Alibaba/1688), suppliers usually do not require a business license. Many cross-border wholesalers work with individuals or startups without formal registration.

If you plan large-scale or long-term importing, a business license (or company registration in your own country) is strongly recommended.

Customs clearance often requires a registered importer.

Some Chinese suppliers may only work with verified businesses for high-volume orders.

It protects you legally in contracts and payments.

Alternative: Some new importers use freight forwarders or sourcing agents who handle the business license requirement on their side.

 

Bottom line:

Small trial orders: No license usually needed.

Serious wholesale/importing: Yes, you should have a business license in your country.

 

How to Spot Fake Wholesale Distributors

Unfortunately, not every “wholesaler” online is legitimate. Many are middlemen or even outright scammers. Here are key ways to identify them:

 

1. Check Business Credentials

Ask for their business license or Chinese company registration.

Verify their details on official platforms (e.g., China’s National Enterprise Credit Information Publicity System).

 

2. Analyze Website & Communication

Genuine distributors usually have a professional website, not just a WeChat or Gmail contact.

      Red flag: Only accepts risky payment methods like Western Union or MoneyGram. Reliable suppliers usually offer bank transfer, Alibaba Trade Assurance, or PayPal (for samples).

 

3. Pricing Reality Check

If the price is too good to be true, it probably is.

Compare across multiple suppliers—if one is dramatically lower, it may be counterfeit stock.

 

4. Request Samples

A legitimate wholesaler will send samples, even if you need to cover shipping.

Refusal to provide samples = big warning sign.

 

5. Supplier History & Reviews

Check how long they’ve been in business.

On Alibaba/1688, look at years active, transaction volume, and buyer feedback.

Search the company name online with keywords like “scam” or “fraud”.

 

Bottom Line:

A real wholesaler is transparent, has verifiable credentials, and is willing to provide samples. Scammers rely on urgency, unrealistic prices, and vague communication.

 

FAQ 

 

Q1 — Is 1688 safe for foreigners?

Yes, with a Chinese agent or fluent Chinese contact. 1688 is domestic-focused, so exporters are less common. Use a verified agent for payment, translation, and logistics.

 

Q2 — How to pay safely?

Use bank TT with documented terms, PayPal for small samples, or Trade Assurance / escrow services for first orders. Avoid Western Union or untraceable payments.

 

Q3 — Cheapest shipping method?

For volume: sea freight FCL is cheapest per unit. For small urgent orders: air/express costs more but is faster. Always compute cost-per-unit for your order size.

 

Q4 — How much should I allocate for inspection?

Typical 3rd-party inspection costs range $100–$400 depending on location and order complexity; factor it into TLC. For high-risk items, allocate lab test costs as needed.

 

Q5 — What’s a reasonable returns provision?

Depends on category: electronics 5–10%, textile/apparel 3–6%, simple accessories 1–3%. Start conservative and adjust from real return data.

 

Q6 — Can I use Alibaba suppliers for Amazon FBA?

Yes — many Alibaba suppliers are export-ready and can prepare FBA-compliant pallets. Confirm packaging, labeling, and prep requirements in advance.

 

Q7 — How many suppliers should I contact?

Start with 3–7 suppliers per SKU to get a realistic price and quality range. Fewer than three leaves you exposed to price-manipulation.

 

Q8 — What if a supplier refuses inspection?

Treat refusal as a red flag. Either insist on inspection by a third party or move to another supplier.

 

Q9 — What paperwork do I need?

At minimum: commercial invoice, packing list, bill of lading/air waybill, certificate of origin (if needed), and product compliance certificates (where required).

 

Q10 — Should I visit China or hire an agent?

For high-volume or complex sourcing, visiting (or hiring a reliable agent) builds relationships and often saves money. For smaller buyers, a vetted agent is usually the best ROI.