China Sourcing for Beginners — Your First Margin-Positive Order

“Just buy cheap in China and sell it on my store, right?” Basically yes — but margin is decided by landed cost, not sticker price. Here is the big picture for the parts first-time sellers get stuck on. The details live in the linked posts.

What to sell — picking your first product

As a beginner, an item that is easy to calculate beats one you personally find pretty. Small size (low shipping), no certification burden (KC, food/drug, etc.), and quick turnover make a category friendly for a first order.

  • Light and small — low volumetric weight, cheaper air freight
  • Low certification risk — avoid electrical, food, cosmetics and baby items at first
  • Reasonable price and turnover — too cheap and shipping eats the margin, too pricey and cash is stuck in stock

Your first product is not a jackpot but a test of whether your cost math is right. The point is to verify the landed-cost and margin formula on a small quantity.

Where to buy — Taobao, 1688 and local markets

The same item has different unit prices and minimum order quantities (MOQ) by channel. A common path: validate with small quantities on Taobao, move to wholesale on 1688 as volume grows, then local markets and factories at scale.

ChannelUnit priceMin. quantityBest stage
TaobaoRetail1 pc+Samples, small tests
1688WholesaleUsually 2–dozensReselling, real sourcing
Local market / factoryNegotiatedHighScaling, OEM

Sampling on Taobao to check quality, then re-sourcing the winner at wholesale on 1688, is the combination with the lowest cost of failure.

What price leaves a profit — landed cost and margin

Margin is decided by landed cost — the total to get goods to Korea — not the sticker price. Price off the item price alone and shipping, fees and duties will erase your margin. Add all four below, then layer on selling fees and target margin.

1

Item price

Taobao/1688 unit price × quantity. Budget a conservative FX rate.

2

Agent commission

A percentage of item value; better rates at larger volumes.

3

International shipping

Charged on volumetric, not actual, weight. Light-but-bulky is the trap.

4

Duties & VAT

Depend on item (HS code) and value; check list vs. formal clearance.

Price = landed cost ÷ (1 − target margin − selling-fee rate). Fold Naver/Coupang payment and ad fees into cost so real margin actually survives.

Traps beginners keep stepping into

  • Bulk-ordering with no sample — stuck with stock that differs from the photos
  • Estimating shipping as a share of item price — it is billed by volumetric weight
  • Ordering without checking certification/customs — delays or disposal for electrical, food, etc.
  • Calculating margin without FX and fees — a structure that loses money per sale

Most of these are prevented by starting small. Make the first order a sample quantity, verify the cost formula against a real quote, then scale up.

Frequently Asked Questions

How much capital do I need to start?
There is no fixed number, but a sample-validation stage needs very little. The first goal is not volume but verifying your cost and margin formula against a real quote.
Should I start on Taobao or 1688?
Before you've confirmed quality, sample on Taobao (small quantities), then re-source the winner on 1688 at wholesale once the product is decided.
Can I know duties and fees in advance?
They vary by item (HS code), value and shipping method. At the agent quote stage you can see item price + commission + estimated shipping + estimated duties together.

Contact us

PTO China handles your China sourcing from start to finish.