All You Need To Know About Importing From China – A Guide for Newbies
All You Need To Know About Importing From China; A Guide for Newbies
The world is becoming globalized at a faster pace than ever. With the advancement in technologies, ease in facilities and fast interconnected globe, trade industry has gotten a boom. Today, when you think of starting your own business, the globalized world presents myriad opportunities in trade and imports. So what can be better than having your own importing business and that too from china?
China is the hub of manufacturing products. With its growing focus towards consumers’ products, it provides a million products in its portfolio suited for all types of consumers. From luxury to necessities, from basic medicines to the most complex medical formulas, from electronics to other home products, china has got it all. Therefore, importing from China will provide you with a fantastic base to establish yourself in the trade market. However, as easy as it sounds, there a quite a few things to be mindful about especially if you are just starting. It is common for newbies to get lost in complex paperwork, high shipping costs, custom delays etc. Hence, getting the right advice and avoiding the most common mistakes can expedite your business. Here a few tips to avoid common sourcing mistakes that you don’t want to make.
Verify the supplier before you proceed to pay
This is one of the most common and repeated mistakes that people make when sourcing from China. There are thousands of suppliers in China who claim to supply you with the desired product requirements but alas, only a few turn out to be reliable. Hence, it is important to check out popular websites such as Alibaba and other international supplier websites before placing an order. Check out reviews mentioned by clients and know how peoples’ experience was before you confirm your vendor. A few factors to keep in mind before signing any supplier include response time, ratings, payment terms and procedures and the range of products they supply.
It is possible for you to have more than one supplier but that is never a recommended option as it can cause a lot of hassle and unwanted stress. You can also sign independent vendors if you have got personal contacts in the China’s trade market or if you are willing to do further research. What also matters is getting trustworthy and reliable vendors and suppliers willing to do business with you and communicate and update you on regular basis.
Get a Know-how of Importing rights
Every country has its set rules and standard procedure for importing and exporting products. The strict rules ensure smooth and efficient trade for commercial activities. Therefore, before you start sourcing, you must be well aware of custom duties, the tax policies and the maximum quantity allowed to be imported via road or ship or air. If you are importing for commercial purpose then chances are you have complete paperwork and adhere to the country’s guidelines before sourcing products from China. Confirming your products and paying in advance to suppliers after being well acquainted with the procedure can save you a lot of time and money.
Choose the products you want to Import wisely
The recipe for being a successful entrepreneur and businessman is in knowing the right products to serve your customers. Therefore, before you start sourcing goods know the type of products you want to import, know your customers’ interest and know your market inside out. You might want to pick a specific niche such as luxury items, electronics or cheap consumer products that might not be available in your country or you might want to import affordable and reliable products for middle-income groups. What-ever products you choose to import make sure you do your research well because it will affect your demand for further products, help you define your marketing strategies, decide your profit margin and set your business vision in the long run.
In the start, it is suggested to go for minimum yet unique products that could be sold at a good profit margin. Additionally, in some cases, the shipping charges combined with the high taxes makes the cost of the products twice as much as the original cost of the products. Therefore, you must choose products that can be shipped easily and shipped in large quantities avoid paying double that what the product costs.
Ensure Quality and make personal visits to Factory whenever possible
When using China products, the first things that strike a consumer’s mind is the quality of the products. No doubt the standard, quality and durability of some products imported from China are questionable. For someone who is doing sourcing products from China for the first time, you have to be extra careful. It is always favourable to invest time and resources during the initial period by meeting your potential vendors in person, making personal visits to the factory and inspecting the quality of products.
No one can ensure that all thing is in check and balance including the product quality, delivery time, and legitimacy of the vendors better that you. Remember, it is usually the first order that helps build your brand name in the market and set long term customers. If it is not convenient for you to make personal visits then you also have the option outsource the inspection to independent companies depending on your budget and type of products you import.
Track you import and make arrangements for arrival
Now when your imports are ready for arrival, the last but the most important thing to do is to track your cargo. An International shipment approximately takes around a week to reach its destination. Hence, keep yourself updated of both cost and time of your imports to avoid any inconvenience. Once the cargo arrives at the destination, make sure you have suitable space/warehouse to store and proper facilities to get them delivered.
After being well versed of all the technicalities of importing from China, do not forget that in the end, it is your hard work, determination and consistency that will make your business a success. Do not shy away from experimenting new idea and always leave a room for improvement.
Ensure that your products comply with Australian requirements.