Why are the Prices from Chinese Suppliers Higher than those from Domestic?
USA China Supplier

Why are the Prices from Chinese Suppliers Higher than those from Domestic?

A frequent question my US clients have always asked me is: why are your prices even higher than those from domestic? And the products they inquire about are usually the most common and useful ones in our daily life: Ceramic Mug, Stainless Steel Opener, Non-woven Tote Bag, Mouse Pad, etc.

It is not hard to find that some of the products above are comparatively heavy (like Ceramic Mug and Stainless-Steel Opener), while the other products are light but in a bigger size (like Non-woven Tote bag and Mouse Pad). In this case, the shipping cost will be even much higher than the products themselves. Let’s say we order 500pcs of Ceramic Mugs and have them shipped directly from China to the US. The shipping cost will be as high as around 1300USD, provided we choose FedEx/DHL/UPS to proceed with the delivery.

But for the same products, how come some domestic US distributors can have lower pricing? In which way do they deliver goods from China to the US? 

Below are the Top 10 Distributors and Suppliers’ charts in the US in 2019 (Distributors to the left and Suppliers to the right). Taking the well-known Distributors like 4imprint,HALO Branded Solutions and Hit Promotional Products as an example, they normally purchase products like Ceramic Mug, Non-woven Tote Bag as much as several containers from China, and ship them to their warehouses by the ocean. The printing will be finished in their print shops.

top 10 distributors

As a result, their shipping cost of 500pcs of Ceramic Mugs will be only around 160USD, much lower than ours (around 1300USD). What’s more, since they print the products in their local print shop, the order can be ready to ship in approximately two business days.

In conclusion, the advantages of Chinese Suppliers compared to US domestic Suppliers/Distributors are listed respectively as below:

  • US domestic Suppliers/Distributors: for those big products or heavy products, the US domestic Suppliers/Distributors will be more competitive when your order is relatively small and in a rush.
  • Chinese Suppliers: Except for those big products or heavy products, Chinese Suppliers are always more competitive, no matter how small your order is, by the ocean or by air. Even for those bulky products, our prices can still be lower than those from US domestic as long as your order is big. The total shipping time can be just one week or less if we have sufficient stock in China.

******Your comment will be appreciated******Next topic: The Most Common 3 Ways to Delivery Promotional Gifts from China.”

Tony

Tony Chen -- the founder of TonySourcing & TonyPromos. He is Professional merchandiser in China since 2011, Now he have quote a lot of Professional knowledge for all kind of Toys and Promos item.