Searching ways to become a millionaire (I’m very far to the goal) I found an item that is usually sold in stores for 10 euro tax included.
In Italy you can get this item from wholesalers for about 2.50 euro + tax
But what’s the price in China?
If you search it on Aliexpress you can find it for 2 dollars, free shipping. The shipping is very slow, it takes up to 2 months, if the post office doesn’t lose it.
If you search on Alibaba (that’s a “Wholesale Aliexpress”) you can find it for $0.90 + shipping, with a minimum order of 500 pieces. Shipping is a big fee, because a 500 pcs box weights 20 kg and sending it with a fast delivery like the FedEx costs at least 1000 yuan.
If you search on Taobao (that’s a “Chinese eBay”) you can find them for 4 yuan each, no minumum. If you ask for a quantity discount, you can get them for 3.5 yuan.
So, the prices, converted in chinese yuan are:
- MSRP in Italy: 60 yuan
- Wholesale in Italy: 18 yuan
- Aliexpress slow shipping, 1 piece: 13 yuan
- An agent sources them for you in China: 5.80 yuan. With 1000 yuan for shipping, its 7.80 yuan each.
- If you can source them by yourself (you need to speak Chinese): 3.50 yuan; shipped is 5.50 yuan each.
It’s interesting seeing how a product price rises, at each middleman: once the final customer gets in their hand, the price increased ten times!
Of course there’s the problem about how you can sell them in stores: it’s almost impossible to sell 500 pieces at 10 euro each if you are not a big chain, like Target.