Sourcing your products from the China wholesale markets means margins you can’t find elsewhere, margins which will skyrocket your profits and allow you to dominate your market.

China has been described as the world’s factory.

It might well be re-named China Wholesale Inc.

The phenomenal economic growth in China, typified by the rise of Shanghai - now the world’s biggest city, in the world’s biggest country - will have an ever-increasing effect on world trade, and on the world of re-selling on the Internet.

China manufactures for the world, and anyone looking to source products just has to start their search in the China wholesale markets. And that means me, and probably you as well.

Many US re-sellers are still convinced that the way to a quick fortune is to go to China, find the guy who makes shoes for Gucci or handbags for Prada, and persuade him to run off an extra few hundred.

A less-reputable China wholesale manufacturer might do this, but the product will not bear the coveted label. You might manage to import the goods into the US, but no way can you sell them - legally - as brand-name products, even if they are made by the same manufacturer as the genuine product.

Beware the so-called “grey market”. The Brand name companies are becoming ever-more aggressive in pursuing through the courts anyone infringing their copyright.

In most manufacturing sectors, China is a volume producer, which means that you will always be facing high minimum order quantities, typically thousands of units, which make it seem a no-go area for the solitary trader of modest means. But there is a solution to this problem, as you will see later.

China already has a good reputation for quality clothing, shoes, and basic commodities, but increasingly China wholesalers are turning to high-technology products.

The good news is that the China wholesale manufacturers and the agents are very clued-up on the US market, and very quick to respond to requests for sample products and price and delivery quotations. The really good news is that there is usually an unbelievably margin, so if you have the bankroll and the expertise you could really make a lot of money at this.

So what about a plan of action?

If the China wholesale market excites you, you really can’t do without the services of a local China-based agent.

He is the guy who has personal contact with all the manufacturers and factory owners. He knows the China wholesale world intimately - he knows the best sources for all the products. He acts as the middleman and effectively as the purse-holder, and you will need such an expert to guide you through the minefield that is the Chinese-US tax issue.