Mexico: 25 Containers a Year and 20% Lower Product Cost

Summary: A toy importer in Monterrey, Mexico, used to buy stock from wholesalers in the local market. Four years ago he started buying through us, directly from suppliers in China, and his product cost dropped by more than 20%. Today he imports about 25 containers a year. We ship his goods door to door, from China to his warehouse in Mexico. He is now also a business partner who introduces other Mexican buyers to OLWAN.

ClientToy importer and wholesaler, Monterrey, Mexico (name withheld)
ProductsToys
Working together since2022
ServicesSourcing at the source in China, pre-shipment inspection, door-to-door shipping to Mexico
VolumeAbout 25 containers a year
ResultProduct cost down by more than 20%
In this guide

The problem

Before working with us, this importer bought his toys from wholesalers in Mexico. That’s the easy way to start: no travel, no language barrier, goods already in the country.

But every wholesaler in that chain buys from China too, and each one adds a margin. By the time the toys reached his shelves, he was paying for two or three middlemen. He knew the goods came from China, but he had no supplier contacts there and no way to check who was real.

The decision

We moved his buying to the source:

  1. Direct suppliers in China. Instead of buying from a Mexican wholesaler, he now buys through us from the suppliers who sell to those wholesalers.
  2. Inspection before shipping. We check every order before it’s loaded, so problems are fixed in China, not discovered in Monterrey.
  3. Door-to-door shipping. We handle shipping from China to his door in Mexico, so he doesn’t deal with freight forwarders or customs brokers himself.

The result

  • More than 20% lower product cost compared with buying the same goods in the local market.
  • About 25 containers a year, from one client.
  • 4 years of steady orders, since 2022.
  • A partnership. Today he also promotes OLWAN to other buyers in Mexico.

He isn’t our only client in Mexico. We ship door to door for several Mexican importers of power tools and electronics, and we run our own wholesale business in Mexico too, selling cables, iPhone chargers, TV wall mounts and many other products.

What other importers can learn

  1. Local wholesale is the most expensive way to buy Chinese goods. If your supplier buys from China, you’re paying their margin. Once your volume is steady, buying at the source usually pays for itself.
  2. You don’t need your own contacts in China to start. This client had none. What you need is a team on the ground that knows which suppliers are real.
  3. Door to door removes the scary part. For most first-time importers, shipping and customs are what stop them. If one team handles it all the way to your warehouse, you can focus on selling.
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