A lot of people and companies are looking forward to starting their import business. This is, without any doubt, a better idea to work on. However, importing products and selling them in your own country is not that easy. You will need to do proper homework before you start to import. Or else you might end up throwing your money to waste.
China is one of the best countries to start your import with. But before importing products from China, there are some essentials you should know. Let’s start with them.
Why You Should You be Importing Products From China
You are reading this article, which means you are a first-time importer, and you are looking for some products to import and some countries to import from. Or maybe you are the one who is willing to expand the business.
In both cases, China is one of the best options to go with. But why China?
Since 2009, China has exported the largest amount of products in the world. Refer to the below stats from Statista, and you will get an idea about it.
China is exporting more products worth more than 2 trillion every year. There must be a reason behind it. The Chinese government supports their exporters, and the cost of manufacturing and production is significantly low in China as compared to all over the world. China has utilized its manpower and is producing almost all types of products at a very low cost. Therefore, if you import from China, you can get relatively good prices and low import duties.
Deciding Upon The Products
Now, you should look for a suitable product that you can import from China based on the demand in your locality or country. Well, maybe you already have a product in mind, but if not, don’t worry. All you need is to pay more attention to this section of the article.
I would prefer to look for a product that is in your niche. Find a product that you have been using, or you love to deal with.
This will build your interest in the business a lot more than having any other product. It will also make sure that you stay long in the business.
Having such products can motivate you all the time as you enjoy business, and it does not remain only work for you. It will become your passion, and there are better chances of success.
Keeping in mind the import point of view, look for a product that has the following features.
- Preferably smaller in size. A portable product will lower your shipping cost.
- Find a product that is unique and has different features. You can also look for a better update of previously available products in your locality.
- Make sure that the selling price is not too huge. A product within the price range of $10-$200 would be good.
- Ensure that the products you are importing are permissible in your country, and you will not find any difficulty selling them.
These features will save you money and allow you to capture a relatively bigger market in comparison to other products.
How Can You Find The Best Local Supplier
No need to be confused about getting a good supplier in China. You can find various suppliers easily with the four ways described below.
Many trade shows are planned every year in China, and attending these fairs is the best way to look for a suitable Chinese Supplier. Here, you can not only contact the supplier but inspect your product physically as well. It will save you a lot of time.
Canton fair is amongst the largest trade exhibitions in Guangzhou. It is held usually in April and October, two times a year. Every exhibition has three phases, and you can look for several products during this fair.
Social media is a very wide platform. Various social media apps can be of great value while finding a suitable supplier. Although this is time consuming, you can reach the client directly via ads and community groups.
Keep in mind however what Social Media reflects is not always true, for example, while a picture or a product might look great, the real-life item would be different, or of a lower quality.
Other Online Platforms
Above all the channels is the biggest online platform in China, Alibaba. You will get thousands of suppliers for numerous products here. Apart from that, there are many more B2C and B2B marketplaces in China, like AliExpress, which can be accessed online.
Now these platforms are theoretically easy to use, however you can incur in problems, such as, again, low quality products, or B2C resellers (AliExpress) where no matter the quantity of items you purchase, you still have to pay the same price. This makes it difficult for you to gain a significant margin.
Visiting Markets Physically
You could visit various wholesale markets in China. Yiwu International Trade City, is China’s biggest wholesale market for export products. It covers about 4 million square meters and has more than 70,000 booths and five districts carrying various categories of products.
From various foods in China to handcraft products, everything is available there. Keep in mind however that visiting China is not exactly cheap, in order to attend these markets, you need to physically be there, which means you ought to pay for the hotel, transportation, food and all other expenses you might have as you reside in China.
Sourcing and Fulfillment Platform
The easiest way to import Products From China is probably by using online platforms that can assist you from the sourcing up to fulfillment.
One such platform is Yakkyofy, which allows you to request wholesale quotations from an online dashboard autonomously, and in just a few minutes.
You will get a comprehensive quote in just a few days, inclusive of all importation costs, such as shipping, import duties and custom clearance.
Yakkyofy only works with the best suppliers in China, and offers product evaluation services, which can help you access the product’s worth before you buy big stocks of it.
With Yakkyofy you can safely source in China, be sure that your products are of a high quality, without spending hundreds of hours researching factories or visiting fairs, and without any concern about things being “lost in translation”.
Be Aware Of The Documentation Required
It is important to know which permits, licences or documentation are necessary for importing products from China. The basic documents required are,
- Bill of Lading/Air Waybill.
- Country of Origin Certificate.
- Insurance Certificate.
- Purchase Order.
- Commercial Invoice cum Packing List.
- Proforma Invoice.
- Letter of Credit.
- Health Certificate (for food products)
Most researchers working with Dissertation Assistance UK refer that you will need to go through various US governmental departments in order to get knowledge about these documents. Start your journey by visiting the Department of Commerce. You can easily find relevant information regarding the licences required and documentation via the website of US Customs and Border Patrol (CBP).
It is suggested to wait for the approval of your application before placing the order for import.
Importing Products From China: Incoterms
While dealing with shipments, and exporters, you will go through a lot of International Commercial Terms. You should be familiar with these terms in order to keep your import process smooth. Let’s discuss some of the commonly used Incoterms in China.
EXW – EX Works
It is basically a shipping arrangement in which the seller is responsible for manufacturing the products and handing them over to the buyer. Now, it is the buyer’s responsibility to take it to the designated place and bear all the costs, including transportation, booking, customs declaration, and inspection. Normally, buyers will avoid such a type of shipment as it involves all the risk and transportation costs.
FOB – Free On Board
In this shipment type, the seller delivers your purchased products to the port and loads them on the particular vessel. The seller is responsible for the customs clearance of the export as well. At this time, the liability is transferred to the buyer, and from onwards, it’s the buyer’s responsibility to get the products to the destination. This is amongst the most commonly used shipment processes during international trade.
CFR – Cost and Freight
This is quite similar to the FOB, but the seller is also responsible for paying for the costs and freight for bringing the products to the destination port.
CIF – Cost, Insurance and Freight
In this type of shipment, the seller, alongside cost and freight, takes on the insurance as well. The risk is still transferred to the buyer after onboarding the products.
DDP – Delivered Duty Paid
This is the most preferred way of shipment during international trade, but very few exporters agree on it. In this, the seller is responsible for all the fees and risks involved in the whole process until the goods are delivered to the destination. After the delivery, risks and fees are transferred to the buyer.
This could be the high time to start your import from China and grow your business to the peak.
Now that you know everything about importing products from China, we have good news for you!
You will not need to worry about any of the above problems or logistics if you use Yakkyofy.
We will keep you a turnkey service that will deal with everything, from finding the best suppliers, based on your needs and on the quality of the items, up to the delivery to the final destination country.
And the best thing? All of this can be arranged easily and comfortably from your home, from any part of the world.
Yakkyofy makes your sourcing and importing faster, easier, and safer.
So what are you waiting for?