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China Wholesale: How Buying in Bulk Works

Turn a supplier's quote into a landed cost per unit and a margin. You type every rate; nothing is looked up or uploaded.

Buying wholesale from China means ordering goods in bulk directly from Chinese factories or trading companies at a lower unit price than retail. This page explains how that works and includes a free Landed cost calculator that shows what each unit costs once it reaches your warehouse. The calculator runs in your browser, uploads nothing and looks nothing up, so you type in every number yourself.

The unit price is only the start of the cost. Freight, insurance, duty, customs fees, broker charges and delivery all add to it. Before you commit to a china wholesale order, work out the full figure so you know what you actually pay per unit. The same page can also show your profit per unit at a selling price you choose, along with the break-even price and the price needed for a target margin.

China wholesale example

How to use the Landed cost calculator

  1. Enter the unit price in USD from your supplier quote.
  2. Enter the quantity you plan to order.
  3. Enter the freight quote for the whole shipment. The calculator does not estimate freight, so bring the quote with you.
  4. Enter insurance, if you are paying for it.
  5. Enter the base duty rate in percent. Search your product’s HTS code on the USITC Harmonized Tariff Schedule site (hts.usitc.gov) and type in the rate you find.
  6. Add every additional duty on China-origin goods that applies to your product, in percent.
  7. Enter other dutiable additions, such as tooling.
  8. If they apply, tick the boxes to add the merchandise processing fee (MPF) and harbor maintenance fee (HMF). Their rates are filled in from CBP’s fee table and you can edit them.
  9. Enter broker and other fees, and the cost of delivery to your warehouse.
  10. If you want the profit view, enter a target selling price, selling fees in percent and a target margin.

The results show the total landed cost, the cost per unit, and a table listing each cost with its share of the total. If you entered a selling price, you also get the profit per unit, the margin, the break-even price and the price needed for your target margin.

The tool has no tariff rates built in. Check the duty rates and any additional duties yourself, and update the MPF and HMF rates if CBP changes them.

How does buying wholesale from China work?

Buying wholesale from China means placing a large order directly with a factory or a trading company. You pay a lower unit price than retail because you buy in volume, and the supplier sets a minimum order quantity and often lowers the price per unit as the quantity rises.

Before you pay for a full order, ask for a sample so you can check quality. Then agree a detailed purchase order that states the specification, price, quantity and delivery terms. Payment usually comes in two parts: a deposit and a balance. Alibaba’s how-it-works page says you typically pay an initial amount, with the rest due at shipment. Production inspections before shipment help you catch problems early on larger runs.

Factories and trading companies suit different buyers. Epic Sourcing, a sourcing agent, says trading companies can offer lower minimums because they pool orders. Other advantages it lists are one contact for many product categories, export paperwork and logistics help, better English communication, and sometimes stock on hand. The downsides it lists are a markup of 10 to 30% and mediated factory access. It says factories often set high minimums, 500 to 1,000 or more units for custom products. These are that agent’s figures, not a survey.

Incoterms set out who pays for shipping and when risk passes to you. ICC Incoterms 2020 has eleven rules. Seven work for any transport mode: EXW, FCA, CPT, CIP, DAP, DPU and DDP. Four are for sea and inland waterway only: FAS, FOB, CFR and CIF. Check which rule your quote uses, because it decides which costs are yours.

What is a minimum order quantity?

A minimum order quantity (MOQ) is the smallest number of units a supplier will sell you in one order. If you order fewer, the supplier may refuse the order. Many suppliers quote price tiers, so a larger quantity brings a lower unit price but also a bigger bill up front.

The MOQ affects landed cost because fixed costs such as freight, broker fees and delivery are shared across all the units you buy. Enter each quantity you are considering in the calculator and compare the cost per unit for each tier.

The calculator works out the landed cost per unit with this formula:

(unit price × quantity + freight + insurance + duty + other dutiable additions + fees + delivery) ÷ quantity

Duty is worked out on the goods value plus any dutiable additions you enter. CBP’s transaction value excludes international freight and insurance when you can document the actual amounts, so those costs are left out of the duty base.

Sources read for this page

Opened on the dates shown; notes say where we used a substitute.

Frequently asked questions

How much does it cost to buy wholesale from China?

There is no fixed figure. The unit price is only the start, and freight, duty, customs fees, broker charges and delivery depend on your product and shipment. Enter your own numbers in the calculator to see the total.

Do I pay duty on wholesale goods from China?

Yes, if your product has a base duty rate, and China-origin goods can also face additional Section 301 duties. Find the base rate in the USITC Harmonized Tariff Schedule search, then check USTR’s Section 301 page for current rates and exclusions, since they change. Section 301 duties depend on country of origin, not the country you ship from, and they do not apply to goods from Hong Kong or Macau.

Are small parcels from China duty-free?

Not by default at the time of writing. Thompson Hine, a law firm, reported in June 2026 that CBP’s interim final rules suspend the $800 de minimis exemption for all modes. It also said the One Big Beautiful Bill Act ends the statutory exemption on 1 July 2027. Check CBP’s e-commerce page for the latest position before you assume a parcel is exempt.

Do I need a customs broker?

A customs broker normally handles the entry, which is the paperwork for bringing goods into the US. Add the broker’s charges to the broker and other fees field in the calculator.

Is it safe to pay a supplier in China?

Alibaba’s Help Center says payments made outside the platform cannot be protected. On Alibaba, Trade Assurance protects your order for 30 days after you receive it. Keep payment and all messages on the platform, and use a detailed purchase order.