Importing products from China for your online store or a physical one increases your profit margins. This is because products imported from China cost competitively lower.
There are many reasons why China is able to offer competitive prices to the whole world. The immediate availability of raw materials, skilled labor, and tax-free economic zones are some of the reasons.
China has a large number of suppliers who are always ready to close deals with global importers. So, if you look to close your first deal with Chinese suppliers, we have got your back.
Following are the steps that you need to follow for importing products from China.
Identifying product for your business is crucial. Whether you sell on Amazon, Shopify, or Wix, or run a brick-and-mortar shop, the identification of the product you want to import should take considerable time brainstorming.
Also, think if white-label products will suit your business or private-label products.
Private-label products are customized products for your brand. You contact suppliers and send them your product and packaging designs. It means you are requesting private-label products.
White-label products are generic products with no labels. You paste your own labels and resell them. So, you have the option to request white-label products too.
Make sure that the product demand is sufficient, its management is easy, and profits are substantial. Also, see if it is permissible for you to import that product under your customs regulations. And make sure you do have an import license.
The hunt for Chinese wholesale suppliers isn’t easy. Suppliers help you scale up revenues. On the other hand, they can sink your titanic too. Choose wisely.
Beware that suppliers can be either manufacturers or traders. Doing business with traders can cut your margins. However, traders can take orders with low MOQ (minimum order quantity).
Let’s explore together where we could find potential Chinese suppliers.
You may have heard about Alibaba and how Alibaba impacted global trade.
Alibaba is basically a business-to-business platform that connects wholesale suppliers to wholesale buyers.
Wholesale suppliers sign up on Alibaba, set up their profiles, and offer their products. Some checks by which you can vet the suppliers’ profiles:
- Gold members: Gold members are the premium members that have paid membership.
- Verified Suppliers: The Alibaba team or third party has verified the supplier.
- Trade Assurance: The suppliers with trade assurance badge guarantees on-time delivery. If the order gets delayed, or the products aren’t what you manufactured, you are entitled to claim a refund.
The downside of Alibaba is that the costs can be higher for both B2B sellers and buyers.
Global Sources is a directory for Chinese suppliers. The suppliers’ profiles there are generally more vetted.
No one can skip building their online presence. And same goes for the manufacturers and suppliers in China. One of the ways to find Chinese suppliers is through the web and the internet. Enter the keywords related to your product. And the suppliers will pop up for you.
You can also search the suppliers on social media networks like Facebook, Twitter, LinkedIn, and others. Finding direct suppliers substantially increases the profit margins. But you will need to go the extra mile vetting and auditing the suppliers’ production facilities.
Chinese suppliers ensure their presence at trade shows and exhibitions. The good thing about attending trade shows is you get to meet your suppliers directly. The business representatives attending trade shows from the suppliers’ side are proficient in English. So, the language barriers are minimum.
Some of the famous trade shows in China are:
- Canton Fair
- Global Sources Trade Show
- East China Import and Export Commodity Fair
Once you have selected a few suppliers that you want to work with, send all of them Request for Quotes. Be detailed when you send them your requirements. Include product quantity, packaging and label requirements, shipping methods, and others.
Now, you know which supplier you will do business with. There has to be some agreement between you. Likewise, you will need to make an initial deposit too.
Generally, the initial deposit is 30% of the order price. The remaining 70% is paid when you receive the products.
The channels via which you can make payments are
- Telegraphic Transfer
- Western Union
- Letter of Credit (You deposit the amount into your bank which then ensures the suppliers the payment will be released upon the confirmation of order receiving)
Here come the freight forwarders
How many times will it take for your products to arrive at your port depends on the courier service you utilize or the freight forwarder you contact.
The courier can either come by air, sea, or road. It depends on your geographical location and what products you are importing. The Sea route is the most suitable for bulky products.
Another matter of concern is here the customs clearance. You will need to pay taxes to your customs department and that can cost you a lot.
Usually, importers calculate the cost of their cargo even before they place the order. It gives them an idea if their ventures are worthwhile. The cost includes:
- Product cost (The bills paid to the supplier)
- Shipping Costs (The cost of the freight forwarder or the courier)
- Tax and duties
Freight forwarders can clear your customs too when you ask for door-to-door shipment. The procedure is as described.
You place an order with the supplier and pay for the products. The shipping costs as discussed are included in the order. The supplier will make your order and inform the freight forwarder. The freight forwarder will examine the products and calculate the tax to be levied on them. The freight forwarder would send you the invoice for the taxes and duties incurred which you would have to pay immediately. They would then ship the products to your doorstep.
We are a leading makeup brush manufacturer from China and deal with other makeup accessories too. Our buyers come from across the globe and we could help you set up your makeup brush line. You can download our catalog to see the wide variety of products that we export. And if you were looking for personalized makeup brushes for your business, you only need to send us an inquiry. We know the best international trade practices and deal with the whole process that starts from production and ends and door-to-door delivery.