China is fast becoming a production super power, manufacturing a hefty proportion of the world’s consumer products - particularly in the technology sector.
And what does this mean to you?
Because the Chinese economy is in a growth period, costs of manufacturing are very low compared to elsewhere in the world. This presents a fantastic opportunity to you as a seller. By sourcing your merchandise directly from China, you are able to get extremely low prices per unit and turn then around for a good profit in your own country. There are an enormous variety of products produced in China. A couple of the best suppliers are:
Here are some important points to bear in mind when dealing with China:
- Credit card payments (and Paypal) are not usually accepted. It is very difficult to get a credit card in China, so typically you will have to pay by non-secure payment methods such as Western Union and wire transfer. Neither method is traceable so you should always place a very small order at first with a new supplier so you don’t lose too much money if something goes awry.
- Worried about quality? Don’t listen to the horror stories. As long as you spend time talking to your supplier, check their reputation on the Salehoo forum, ask for a sample, and start with a small order first, you shouldn’t have any problems.
- Unsure how to contact a supplier? The best way is to either ring or use instant messaging to chat.
- Authentic or fake? We advise that you avoid products advertised as ‘authentic designer brands’ from China. Nine times out of 10, these will be fakes.
Six Tips for Safe Importing from China to the United States
Guess what? China is now the third largest trade partner of the USA. Importing from China is only going to become more and more common as China opens its arms to international trade.
Here are some tips to make sure you get off to a good start!
Tip #1: Before you do anything else, check up on import restrictions for the product you want to import.
Tip #2: Carry out a bit of quick research on the wholesaler supplier.
- Visit China Vista Yellow Pages and search for the business name:
http://www.yp.net.cn - If your wholesaler is located in Wehai, you can check the Chinese Companies List:
http://www.business-in-asia.com/chinese_companies_list.html
Tip #3: Ask the supplier whether they attend trade shows. If yes, it’s usually a good indication that they are legitimate. Trade shows require a monetary investment – making it unlikely that bogus operations will be present! However, if they say that they don’t attend trade shows, it doesn’t necessarily mean they are a fraud.
Tip #4: Make sure you put all important details are in writing. It’s critical that a breakdown in dialogue is prevented. And if it should occur, having everything documented will help trace the point of breakdown.
Tip #5: If you are moving into large-scale importing, invest time and money on a few trips to China to see the suppliers/manufacturers/agents that you feel you want to work with.
Tip #6: Be prepared to deal with people who have a completely different attitude towards business than you. They will have their own customs and local particularities – don’t get annoyed if they do things differently to your local suppliers.
Read up on Chinese culture and learn a few Chinese words! This is a good way of showing you respect their culture and that you are genuinely interested in building a mutually beneficial business relationship.
Shipping to the UK and Europe from China
The costs and logistics of shipping from China to the UK can be intimidating for inexperienced importers who don’t know what to expect. The wide variety of shipping rates just adds to the confusion - it’s very difficult to tell what ‘reasonable’ costs actually are.
The first thing any new importer needs to do is make some inquiries. Don’t forget to shop around for shipping rates before selecting a wholesaler.
I also recommend finding out the following details when you are arranging shipping:
- Is there an inland freight charge to get to from the wholesale warehouse to port?
- Is there a duty payable on the product?
- Are there any restrictions on bringing this product to the UK?
- Request the tariff number from the shipping agent.
- Ask the shipping agent to quote you on the shipping cost, including any clearance document costs.
- How are you going to pick up the stock once it arrives? How much will this cost?
My tips to NZ and Australian importers apply here as well: make an effort to bargain with the wholesaler over shipping costs. If they seem unwilling, tell them that you are shopping around to find the best deal!
After you have been trading with the wholesaler and/or shipper successfully for some time, inquire about lower rates for frequent customers. Most won’t offer if you don’t ask.
And another thing: everything imported into the UK from outside the EU is subject to VAT of 17.5%. This applies to everyone, not just VAT registered companies. If you aren’t VAT registered, you will have to get a PSEUDO TURN number. Your goods won’t get clearance without one.
I think that the most useful site for finding information on this topic is HM Revenue and Customs http://www.hmrc.gov.uk. Download the PDF’s ‘Introduction to Import and Export’ and ‘Guide to Importing and Exporting: Breaking down the Barriers’, these should cover most of what you need to know.
Importing Costs from China to New Zealand and Australia
I’ve noticed a few posts on the SaleHoo forum recently about the high costs of importing wholesale goods from China to NZ and Australia. ‘Down-under’ is literally on the other side of the World from China, and it makes sense that Australasian importers are concerned. The main point I would like to make here – and I can’t emphasize this enough! – is don’t accept the shipping costs that you are quoted as fixed.
NZ and Australia don’t have bargaining cultures. We tend to assume that the price stated is The Price…and that’s it. But the same cannot be said for all countries, including China. I suggest that you negotiate the shipping costs with the wholesaler – just as you should negotiate the cost of the wholesale goods themselves.
How much the wholesaler will be willing to move on shipping costs will depend on the individual. Some wholesalers will have more room to negotiate than others, but most will be open to a little bartering.
Don’t forget to try and haggle the insurance costs down as well. Some importers have managed to reduce their insurance by 25% - a big saving for a little bit of bargaining!
