Today, the majority of nations favor trading with China. Aside from currently having the most number of manufacturers and labor force, this country has also the most number of products to choose from. Lower cost of labor means more competitive end-product price value. With this knowledge, it is logical to assume that the total revenue one gets from importing Chinese goods is promising. Businessmen are searching for tactics on how to import products from China. The globalization phenomenon has made importation easier. However, the importation process may still seem a little complicated especially if you are just new to this kind of business. In the meantime, here are some important steps to remember when importing goods from China.
Locating Your Right Suppliers to Deal with
There is a vast range of products for you to choose and Import. Your success depends on your selection of products. You may conduct a market research beforehand to obtain knowledge about the buying behavior of your target consumers. It is also good to identify and evaluate your competitors before selecting the products that you are going to import.
The next crucial step is finding the right supplier. There are various ways to find the right supplier. Attend gatherings that you can participate in. This is an effective way to meet potential partners as it gives you a glimpse of their products and assess it personally. Ask questions about how they manufacture their products.
Go online, check out web directory sites, they usually have categories for these products and who supplies them. Categories are helpful and can narrow your search down. Consult a broker to help with the information you need. There should be quite a few in the Import export business in your area. Get the most info you possibly can to help you speed up the learning process.
Have everything clear before importation starts with you and your distributor. Know everything you need to know about your order. One of the most typical shipping agreements is “FOB Hong Kong.” With this condition, the store will shoulder the installment for you to get the goods to the port of Hong Kong while you pay to get them from Hong Kong to your warehouse.
A common practice is paying 30% as down payment and then completing payment when you receive the products. The down payment is important as it gives the manufacturer the money needed to the buy the raw materials needed to start production. Expert negotiation skills are needed during this process. Another way is paying 30% up front, 55% when the goods are shipped and the remaining 15% paid upon receipt. Wire transfer is usually used for these types of payments.
Check the Quality of Your Products
Manage and check the quality of your products. You can check the quality of the products even before manufacture starts. Ask for samples. This is a good way your product’s qualities and features. You might have to pay for the samples and shipping though. Ask your seller to explain to you how they can ensure the quality and safety of the products when they ship it to you. Ask about the production process and their sourcing.
Import Regulations Compliance
Be knowledgeable with your responsibilities as an importer. Learn everything you can about these. Besides your local Customs agency, there are also other government authorities that regulate the importation of goods. You should know everything there is to know about your item and how it can comply with your local customs laws. This is a very tricky process. Seek out the answers through the web or get a customs broker to help you.
Understanding the Market
Lastly, you have to understand the market behavior of the product you are importing. Do your research about your target market. Ask yourself this: “is your item hot or not?” Remember that by taking the necessary steps listed above, you can make a good profit in importing China products.