Tea Sourcing: Direct vs. Wholesale

Should you be buying directly from the source? A collection of 100 teas may contain a dozen different suppliers in five countries. To keep shipping and import costs low, you need to be able to purchase and store large quantities from each source. The most efficient shipping method is a full 40-foot container of tea, roughly 16,000 Kilograms, or over 35,000 pounds. Your import costs for this shipment are below $1 per kilo. If you are a small wholesaler and are only able to purchase 25 Kg (55 lbs) from a single supplier, your import will likely be much closer to $20 per kilo. It will be challenging to develop a competitive wholesale business with those numbers.

The question of direct sourcing is far more complex than this simple analysis of import costs; however, the branding value of direct sourcing is immense. Even if it's ridiculously inefficient and you're only able to source one or two teas, being able to tell the story of your relationship with a single garden gives you tremendous credibility and the mystique of a "real" tea buyer. Our general recommendation would be to source all but a handful of your teas from US wholesalers. Your costs will be much lower, the minimum quantities much more manageable, and you can rely on their ability to manage relationships and quality control across dozens of international partners.

As you choose your tea vendors in the US, we encourage you to ask questions in the following categories:

1. Freshness
2. Supply Chain
3. Processing, Blending & Packaging
4. Inventory Levels
5. Quality Controls
6. Guarantees & Returns
7. MSRP and Market Value
8. Other Services
9. References