Guide to mainland Chinese wholesale platforms: procurement, logistics, and payment tips for Hong Kong merchants

Mainland China has long been the top choice for many Hong Kong merchants seeking wholesale goods. Its proximity, shared language, and highly competitive prices make it an attractive sourcing option. Plus, flexible logistics allow merchants to quickly introduce new products and keep customers coming back.

This article will guide Hong Kong merchants through selecting the right mainland Chinese wholesale platform, navigating operational procedures, and mastering essential skills for smooth cross-border procurement.

Why should Hong Kong merchants buy from mainland Chinese wholesale platforms?

1. Cost-effectiveness and diverse options

As the world’s manufacturing hub, mainland China offers an extensive range of products. From everyday consumer goods and electronics to fashion apparel and professional equipment, most items can be sourced through mainland Chinese wholesale platforms, such as Alibaba, Pinduoduo, and Yiwugou.

For Hong Kong merchants, the ability to browse diverse products on a single platform and compare prices from multiple wholesalers ensures maximum cost-effectiveness.

2. Wide range of support services available

Mainland China’s logistics network has become highly sophisticated, offering a wide range of international express and freight options. Wholesale platforms now provide packaging, labelling, and customs clearance services, allowing Hong Kong merchants to receive goods and start selling online quickly.

Many factories also offer direct shipping and customisation, eliminating intermediaries and enabling Hong Kong merchants to rapidly update their product offerings and respond to changing market demands.

Introduction and comparison of major wholesale platforms in mainland China

Mainland China boasts a wide variety of wholesale platforms, each catering to different types of goods. Here are six of the most popular platforms for international buyers:

1. Alibaba

Alibaba is one of the largest and most well-known wholesale platforms globally. It offers a broad range of products, including electronics, clothing, and daily essentials, and supports multiple languages for easy international navigation.

Advantages

• Wide variety of products with multiple suppliers

• Comprehensive buyer protection policies and payment systems

Limitations

• Primarily supports bulk orders

• Requires careful supplier comparison to avoid potential quality and transaction issues

2. 1688

1688, an Alibaba Group company, operates much like Alibaba but focuses specifically on the Chinese domestic market. It's an ideal platform for international buyers who are proficient in Chinese or prefer to source directly from Chinese suppliers.

Advantages

• More competitive pricing than Alibaba

• Direct communication with local Chinese suppliers reduces costs

Limitations

• Chinese language only

• Suppliers only offer domestic shipping, necessitating the use of forwarding services or agents for international buyers

• Transactions are predominantly settled in RMB, potentially complicating international payments

3. AliExpress

AliExpress, also part of the Alibaba Group, is a retail marketplace suitable for merchants buying in smaller quantities. Its multi-language support, including English, makes it convenient for international buyers.

Advantages

• No minimum order requirement

• Direct international shipping options available 

• Supports multi-currency settlement 

Limitations

• Prices tend to be higher than those on wholesale platforms

• Longer shipping durations

4. DHgate

DHgate is a leading cross-border B2B eCommerce platform designed primarily for SME retailers. It holds a significant presence in the US market and offers support in 10 languages, making it highly accessible for international buyers.

Advantages

• One-stop cross-border procurement services, along with high-quality logistics and after-sales support

• Lower minimum order requirements, ideal for SMEs

• Supports 71 currencies 

Limitations

• Varying shipping times and reliability

5. Yiwugou

Yiwugo is an emerging platform positioning itself as the "global small commodity wholesale network." Centred around the renowned Yiwu International Trade City in Zhejiang, it specialises in products like toys, accessories, textiles, and small electronic items. The platform supports both Chinese and English, making it accessible to international buyers.

Advantages

• Competitive pricing

• Specialises in small commodities with low minimum-order requirements

• Customisation options available for some products

Limitations

• May not cater to high-end product needs, impacting potential profit margins

6. Pinduoduo

Pinduoduo is a relatively new eCommerce platform that has gained significant traction by offering incredibly low-priced products and a unique group-buying model. This model encourages users to invite friends via social media for deeper discounts. While highly popular in China, its primary interface is in Chinese, resulting in a smaller international user base.

Advantages

• Primarily focuses on low-priced goods

• Often offers subsidies and discount coupons, allowing for even lower prices

Limitations

• Inconsistent quality and brand reputation compared to larger platforms

• Logistics information lacks transparency, potentially causing delays or losses

• Currency conversion management required for Hong Kong merchants, as domestic sellers settle in RMB while Hong Kong sellers settle in USD

It’s also worth noting that many factories leverage social media platforms, forums, and online communities to promote their products. For example, WeChat and QQ often host dedicated supplier groups, which can be invaluable for buyers seeking wholesalers specialising in particular product categories. Some factories even go a step further, directly promoting their products through innovative and engaging content.

Step-by-step guide for Hong Kong merchants to purchase on mainland Chinese wholesale platforms

1. Register an account and complete real-name authentication

No matter which mainland Chinese wholesale platform you opt for, your initial step will always be to register an account and complete the crucial real-name authentication process.

You have two main avenues for registration:

• You can sign up as an individual using your Hong Kong ID card, which usually requires linking to an Alipay account for verification.

• Alternatively, you can provide your Hong Kong business registration certificate to register as a company; opting for a company account typically unlocks additional shopping privileges and transaction benefits.

However, it's vital to note that if you're looking to purchase from platforms primarily catering to domestic Chinese suppliers (such as 1688.com), you'll generally be required to have a registered company within mainland China to establish a business account and access all features.

2. Find, screen, and negotiate with suppliers

When searching for products on these wholesale platforms, remember to broaden your net. Don't just stick to English; actively try keywords in Traditional Chinese and Simplified Chinese as well. This can significantly expand your search results and connect you with a wider array of suppliers and products.

Most major wholesale platforms come with valuable supplier screening tools. These allow you to easily browse a list of "verified suppliers" – those who have undergone a more thorough vetting process by the platform. You can also filter or rank suppliers based on their transaction volume and customer ratings. Using these tools is highly recommended, as it can significantly reduce your transaction risks and help ensure you're dealing with reliable partners.

Before committing to an order, especially for larger transactions, negotiating the price is absolutely crucial. Bargaining isn't just an option; it's a fundamental part of working with Chinese suppliers and is deeply embedded in the local trading culture. Simply inquiring about discounts, requesting better prices, or even expressing your interest in building a long-term business relationship can often lead to significant cost reductions. Don't hesitate to engage in this process – a little negotiation can go a long way in improving your purchasing costs.

3. Confirm minimum order quantities and request samples 

Before proceeding with any payment, always confirm the Minimum Order Quantity (MOQ) with your supplier. It's also crucial to request product samples to thoroughly verify the quality beforehand. Do note that suppliers typically require buyers to pay for these samples before dispatch.

Payment methods on wholesale platforms: How do Hong Kong merchants pay?

Alipay and bank transfer 

While AlipayHK offers some cross-border payment features, many mainland Chinese suppliers may not accept payments directly from it, especially for larger or business-to-business transactions.

For Hong Kong merchants seeking to pay directly in RMB, the most efficient solution is to apply for a mainland Chinese Alipay account. This approach can significantly reduce exchange fees and bypass payment restrictions often faced with cross-border transactions, making it much smoother to process large-value payments.

To utilise a mainland Alipay account for payments, Hong Kong merchants must ensure their account has undergone the necessary real-name authentication. This typically involves linking it to a mainland Chinese bank account or completing facial recognition verification. Without these steps, the full payment functionality of a mainland Alipay account will not be accessible.

International payment options: credit cards and PayPal

Major mainland Chinese wholesale platforms support international payment methods, including credit cards and PayPal. However, merchants should be aware that cross-border transaction fees and conversion fees may apply, which can increase overall procurement costs.

Payment service providers or cross-border payment solutions

For Hong Kong merchants aiming to reduce transaction costs when mainland payment methods aren't feasible, an all-in-one financial and payments platform like Airwallex presents an excellent solution. These comprehensive services empower merchants with competitive transaction fees and deliver a fast, seamless payment experience for cross-border operations.

Quality control and risk management

Identify high-quality suppliers: qualification review and factory inspection 

To ensure the reliability of suppliers and the quality of goods, Hong Kong merchants must conduct thorough reviews of potential suppliers. Here are some steps to help identify trustworthy suppliers:

• Certifications: Request certificates such as ISO 9001 (Quality Management System) or environmental standard certifications to verify the supplier's quality control processes.

• Product Test Reports: Ask for third-party reports that prove the product meets international safety standards and quality requirements. For example, for electronic products, merchants can request safety certifications such as Europe’s CE or America’s FCC certifications.

• Factory Inspection: While some wholesale platforms provide their own factory inspection reports for suppliers, merchants can gain greater assurance by collaborating with independent third-party inspection agencies for on-site factory audits. These audits offer unbiased verification of the supplier's actual conditions and capabilities.

Request samples and use third-party inspection services

Before placing large orders, Hong Kong merchants should always request product samples to assess the quality of the goods. This also allows you to test the market response with a smaller quantity before committing to bulk purchases.

In addition to inspecting the product’s appearance and functionality, merchants can also consider engaging third-party inspection services. These professional inspection companies can conduct comprehensive product quality checks and factory audits, helping merchants identify potential issues early on, significantly reducing the risks associated with cross-border procurement.

Understand return and exchange polices, and ways of dispute resolution 

It’s crucial for Hong Kong merchants to confirm the return and exchange conditions, procedures, and time limits with suppliers in advance. Typically, suppliers will have different return policies based on product types and delivery conditions. Merchants must carefully review these details to ensure they can quickly resolve any issues and minimise losses if something goes wrong.

In the case of product discrepancies, delivery delays, or quality issues, merchants should understand the available dispute resolution options. These may include the supplier’s own mechanisms, arbitration services, or whether the wholesale platform can intervene. For example, Alibaba’s platform has a dedicated dispute resolution system that allows merchants to directly file complaints through the platform.

Shipping from mainland China to Hong Kong: logistics and freight calculation

Consolidation services

Hong Kong merchants can opt for consolidation services, where multiple small orders from different suppliers are collected at a mainland warehouse and shipped together to Hong Kong.

By consolidating shipments, merchants avoid paying individual freight costs for each supplier’s delivery, which significantly reduces transportation expenses.

Direct shipping and express delivery

• Direct shipping: The supplier directly ships the goods to Hong Kong, shortening delivery time. This is ideal for shipping small, high-value items such as delicate electronics.

• Express delivery: Express services provide faster delivery and offer a complete tracking system to ensure the safety of goods. However, the cost is higher, making this option suitable for small or medium-sized goods, or for merchants who need to rapidly stock their shelves to meet market demand.

Volumetric weight and actual weight

Volumetric weight refers to the size of the space occupied by the goods, factoring in their dimensions; actual weight is the real, physical weight of the goods.

Most logistics companies calculate freight based on the larger of the two weights. Therefore, merchants should improve their packaging design to reduce unnecessary volume and thus shipping costs.

Tariffs and VAT

Apart from basic freight charges, merchants should also be aware of potential extra costs, including import duties and VAT. Cross-border trade from Mainland China to Hong Kong is generally not subject to tariffs, with exceptions only for four categories of goods: alcohol, tobacco, hydrocarbon oils, and methanol.

Streamline your procurement process with Airwallex

Airwallex offers a straightforward and convenient payment solution, streamlining the mainland wholesale procurement process and making cross-border payments easier. With just one Airwallex global Business Account, Hong Kong merchants can:

• Fast and secure cross-border transfers: Airwallex supports same-day cross-border transfers, allowing Hong Kong merchants to maintain smooth and efficient relationships with Mainland suppliers. With multiple security features in place, Airwallex ensures the safety of all transactions.

• Enjoy market-leading exchange rates: Merchants can exchange RMB at the interbank exchange rate with Airwallex, and the fee is as low as 0.2% above the interbank conversion rates.

• Save on transaction costs: Airwallex supports over 60 currencies. Merchants can choose to make payments directly in RMB, saving up to 80% on transaction and conversion fees.

Frequently asked questions

1. Is there a minimum order requirement when purchasing from mainland Chinese wholesale platforms?

Most suppliers on Mainland wholesale platforms set a minimum order quantity (MOQ). Hong Kong merchants should confirm this detail before placing orders to avoid any disputes.

2. Can Hong Kong merchants communicate directly with Mainland suppliers?

Yes, Hong Kong merchants can communicate directly with suppliers. We highly recommend that Hong Kong merchants confirm transaction details, request samples, and verify certifications to ensure the reliability of suppliers and quality of products.

3. How to ensure I’m purchasing the authentic products from mainland Chinese wholesale platforms?

When searching for suppliers, use the platform’s screening tools to filter for verified suppliers with positive reviews. After selecting a few potential suppliers, always request samples, product certificates, and factory certifications. For extra assurance, consider using a third-party inspection service to verify the authenticity of the products.