As an online store seller, when they are looking for suppliers, there is a common question, are you factory or just trading company, are these products made by your factory? Buyers subconsciously think that if it is their own production, then the products must competitive on price, in fact, this concept is wrong, especially for the Jewelry industry here in Yiwu, with biggest jewelry industry in China.
Sometimes we have to admit that everyone has their own things good at, some people are suitable for sales, some people are suitable for production, some people are suitable for service, same for a company, so, when a company, they assume all a set of processes, design, development, production, sales ... Does not mean that the company's product unit price is very low, usually this type of company's purchase unit price will be relatively high.
Our company, from the beginning to do trade, and then began to do own production, and now back to trade, focusing on trade and customer service, is because all our management is not good at managing production, the cost of our own production higher than the cost of outside procurement.
In addition, each factory is good at the jewelry type, some factories good at with products with the material is copper, some factories have advantages over alloy materials, other factories for stainless steel products have advantages, or some factories are located in the region with labor costs are relatively low, so they need a lot of manual work of the product price will have an advantage.
Therefore, when you purchase products, including many kinds, I actually suggest you find a foreign trade company to cooperate, or maybe some factory they have their own production but also will purchase finished products from other, that will be better, because a foreign trade company will have a lot of high-quality jewelry factory resources, including various types of products, so you only need to cooperate with one supplier, if you look for a direct factory, you may need to find a lot of factory goods, so you need to spend a lot of energy.
And in terms of price, my experience is that the direct factory will not be much lower than the price of foreign trade companies, such as a company at the same time to do foreign trade and production, taking into account production costs, capital investment, etc. , the company may give customers a quoted profit of 35%, but you find foreign trade companies to place orders, foreign trade companies may give you a profit of 20%, and because foreign trade companies in the local, for product costs and factories more familiar, he can get lower prices of products, his suppliers to his quotation, may only 20%, So overall, the price difference won't be very big.
As an e-commerce, compared to the gap between the price advantage, more should be looked at service from your supplier!
By David Fan
Fanstyle Jewelry China, professional for wedding & Bridal Jewelry, Fashion Jewelry
Whatsapp: +86 18857996328