I had just started prepping my China local business partner project when Miz Tomato messaged me. “Hey Robin, do you know any lab diamond suppliers?”

She and her mom wanted to start a side hustle, but every supplier they found, local or on Alibaba was too expensive.

It was such perfect timing. I literally said, “How did you know I’m doing this now? Be my first client.”

I told her to give me a day or two to see if I could help. I had zero experience with diamonds before, only knew they were expensive and rare. But I also knew one thing: it’s just a product, like any other.

What I Did in the First Two Days

Step 1: Tapped into my local network

Reached out to a friend who’s been doing jewelry retail for over 10 years in the biggest local market in Shenzhen Shui Bei. She wasn’t dealing with lab diamonds at the time, but still had useful insight.

Step 2: Cross-border scouting

Asked a Hong Kong friend to check out the ongoing jewelry exhibition and collect price info and supplier contacts.

Step 3: Factory level research

Researched major lab diamond factories across China. Sent quote requests to about 8 of them.

Step 4: Price and quality check

Compared all the replies, looking at product specs, pricing, and MOQ. Narrowed it down to two top suppliers.

The final price? Almost 40% cheaper than what my friend had found on Alibaba or in their local market.

That was a huge shock. And I also learned a few valuable lessons:

Key Takeaways

1. Factory direct isn’t always cheaper.

Some source factories were even more expensive than wholesalers because they focus on big volume clients, not small buyers.

1. Don’t blindly chase the lowest price.

Quality matters. You need a balance between price, trust, and reliability.

1. Prices can vary a lot

Between different suppliers, it’s common to see a 10 to 20 percent difference, or even more. Comparing multiple sources is a must.

1. Best deals often come from local market wholesalers

In Shenzhen’s Shui Bei market, some of the best sellers move large volumes, which lets them negotiate better prices with factories. But most don’t have shops, just small offices with no signs. You won’t find them without the right contacts.

Inside China’s Jewelry Capital

Shui Bei Jewelry Park is the biggest and most concentrated jewelry hub in Shenzhen. Covering less than one square kilometer, it’s home to:

• Over 2,000 jewelry companies

• 20+ specialized markets

• Close to 20,000 active business entities by end of 2023

The local government has been actively pushing to upgrade the area from a traditional manufacturing zone into a modern, global level jewelry cluster. It now supports over 63,000 workers and generates more than 120 billion yuan in annual revenue.

💡 Pro tip: Some of the best deals are hidden inside second floor offices, behind unmarked doors. This is the real Shenzhen supply chain. You just have to know where to look.

The Logistics Challenge

Once my friend confirmed the order, we ran into the next problem, shipping.

Diamonds aren’t like phone cases or toys. They’re small, valuable, and risky to transport. And most wholesalers in local markets don’t handle overseas logistics.

What happened:

1. I asked 4–5 regular shipping agents. All of them said no. Too risky, too hard to insure. Clearly, none of them had ever shipped diamonds before.

2. Found a large shipping company that initially agreed. But right before shipping, their manager rejected the order, or we had to pay 4x the original cost. Market risk had gone up. It might just be their way of turning down the order.

3. Reached out to my trading friends. Also contacted major express service providers. Eventually found two reliable solutions: one trusted shipping agent, and one major express courier.

4. To reduce risk and simplify customs, I split the shipment between both. It worked out smoothly, and I learned a few tax and insurance tips in the process.

What About Payment?

Since these wholesalers don’t do export business, they usually don’t accept USD or international wires. The workaround?

Use payment services via Hong Kong. Less regulation, lower bank fees, and easier transfers for cross-border deals.

The Result

The first test order was eight lab diamonds. They sold out in just two weeks.

Now they’re planning to order more.