A practical guide to buying from China for Australian businesses: where to find suppliers, how to evaluate them, understanding true landed costs, MOQs, payment terms, and shipping options.
Australia imports more from China than any other country. In the 2024-25 financial year, China accounted for over 25% of all Australian imports by value, covering everything from electronics and clothing to furniture, building materials, and consumer goods. The combination of manufacturing scale, pricing, and ChAFTA's preferential tariff rates makes China the default starting point for most Australian businesses looking to source products cost-effectively.
Almost anything. China's manufacturing base covers virtually every product category: clothing and apparel, footwear, furniture and homewares, electronics and tech accessories, packaging and printing, cosmetics and personal care, health and supplement products, sporting goods, outdoor equipment, construction materials, and automotive accessories. The key is matching the right product category to the right manufacturing region and supplier type.
Alibaba is the world's largest B2B sourcing platform and the default starting point for most first-time buyers. It lists hundreds of thousands of Chinese manufacturers and trading companies. Advantages: enormous selection, easy to compare quotes, and many suppliers have export experience with Western buyers. Disadvantages: significant mix of trading companies and factories, variable quality standards, and the need for careful due diligence before trusting any new supplier.
1688 is Alibaba's domestic Chinese platform, where manufacturers list products at prices intended for Chinese domestic buyers rather than international importers. Prices are often significantly lower than Alibaba, but the platform is entirely in Mandarin and is designed for buyers within China. Most Australian businesses need a China-based agent or representative to source effectively through 1688.
Global Sources focuses on verified manufacturers, particularly in electronics, fashion accessories, and home products. Generally considered higher quality than Alibaba with stricter supplier verification, though with a smaller total supplier count.
The Canton Fair (China Import and Export Fair) in Guangzhou is the world's largest trade fair, held every April and October. It's the single best opportunity to meet verified Chinese manufacturers face-to-face, inspect products in person, and build supplier relationships. For Australian businesses serious about China sourcing, attending at least once is highly recommended.
Supplier evaluation is the most critical step in buying from China. Key checks include: verifying the supplier's business licence and export licence, confirming whether they are a factory or trading company, requesting production capacity and lead time information, checking references from existing Western customers, and arranging a factory audit (either in-person or via a third-party audit service) for significant orders.
Red flags include suppliers unwilling to provide a business licence, extremely low prices that seem too good to be true, requests for 100% payment upfront with no escrow or trade assurance option, and poor English communication that suggests limited export experience.
Chinese suppliers quote prices EXW (Ex Works) or FOB (Free On Board). Neither of these is your landed cost in Australia. Your true cost includes the supplier price, sea or air freight, Australian import duty (which varies by product category, though many goods attract 0% under ChAFTA), 10% GST on the landed value, customs brokerage fees, and port handling and delivery to your warehouse.
A common mistake is calculating margins based on the supplier's quoted price without accounting for all these additional costs. For a product quoted at A$10 EXW, the total landed cost in Australia might be A$14 to $18 depending on the category, freight method, and duty rate.
MOQ is one of the biggest challenges for small Australian businesses buying from China for the first time. Factories set minimum order quantities because producing small runs is inefficient and unprofitable at their cost structure. Typical MOQs range from 100 to 500 units for manufactured goods, though specialised or complex products may require 1,000+ unit minimums.
MOQs are almost always negotiable, especially for a new supplier relationship where they are willing to invest in proving their quality. A China sourcing agent with established factory relationships can often negotiate significantly lower MOQs than a business approaching the same factory cold.
Standard payment terms for new supplier relationships are 30% deposit before production begins and 70% balance payment before shipment. For established relationships, 30/70 remains common, though some suppliers will extend 30-day net payment terms for trusted buyers.
Never pay 100% upfront to a supplier you haven't worked with before. Use Alibaba Trade Assurance or a Letter of Credit for high-value orders to protect your deposit. For smaller orders, PayPal provides limited buyer protection but is rarely accepted by manufacturers for B2B transactions.
The two main freight options are sea freight and air freight. Sea freight is cost-effective for large volumes, with transit times of 15 to 25 days from major Chinese ports (Shanghai, Shenzhen, Ningbo) to Australian capital cities. Air freight is significantly more expensive per kilogram but delivers in 5 to 7 days, making it suitable for urgent or high-value, low-weight shipments.
For sea freight, you will ship either LCL (Less than Container Load, where your goods share a container with other importers' cargo) or FCL (Full Container Load, where you fill an entire 20ft or 40ft container). LCL is more cost-effective for smaller volumes; FCL becomes cheaper per cubic metre once you exceed roughly 15 cubic metres of cargo.
A sourcing agent acts as your representative in China, managing the supplier search, factory audits, price negotiation, quality inspection, and logistics coordination on your behalf. For Australian businesses without existing China connections, Mandarin language capability, or experience navigating Chinese business culture, a sourcing agent dramatically reduces risk and usually saves more in avoided mistakes and better pricing than their fee costs.
Epic Sourcing specialises in helping Australian businesses buy from China and Vietnam effectively. Our China-based team handles the full sourcing process, from product brief to delivery, so you can focus on selling while we manage supply. Contact us for a free initial consultation.
