One of the flourishing businesses nowadays is the distribution of China products worldwide. That’s why many entrepreneurs are looking for the best ways on how to import goods from China. This is a reasonable venture since there is a constant increase in the demand for such products. If you are a businessman and planning to get into this, there are a number of basic processes that you should not neglect in order for you to have a safe and cost-effective transaction.
These include recognizing your suppliers, picking the right supplier and evaluating the quality of their products, understanding the terms of trade, complying with import regulations, and the shipment methods of your imported products from overseas to your warehouse. This may seem quite difficult at the beginning but once you get to learn them, importing can become an easy process for you.
Identifying Your Import Products and Suppliers
Today, with the power of the internet, looking for a supplier can be an easy task. You can search for several suppliers without leaving your home. For example, you can visit some online directories to look for information about thousands of verified China suppliers. By doing this, you can also search for hundreds of thousands of products from these suppliers at the same time. Online directories made it easier for you to search for products because they are being categorized. However, there are also some measures that you should not overlook when searching for suppliers.
As scams are very rampant nowadays, you have to ensure that a particular supplier is real. Trade shows are also another good way to look for suppliers. In this way, you have the opportunity to meet the suppliers and you can also check and evaluate their products personally.
Picking the Right Import Supplier and Evaluating Their Products’ QualityWhen contacting a supplier, try to attract them by explaining your business to them. Keep in mind that many of the suppliers have already piled up tons of orders for production and they may not accommodate your order especially if it is of no significant quantity. Meanwhile, one of your primary concerns being an importer is the quality of products. You can check the quality of the product from your chosen supplier by requesting samples but you have to pay for the shipping fee and the cost of the product though. When assessing the samples, see to it if all importing regulations are being met.
You can also ask the suppliers whether they have previously exported such products to your country and what certifications are required. It is also very important to communicate regularly with the supplier about all the details of the transaction. Check not just the product but also the lead times and the manufacturing completion dates. If you’re new to importing, it is better to begin with less quantity order for you to be familiar with the processes and to evaluate the quality of the product better. Later on, you can move forward with a substantial quantity that will generate more profit.
Understanding the Terms of Trade of Your Import Products
With regard to payments terms, there is no fixed format that is applicable nationwide or industry-wide. However, the common payment term is 30% of the total cost at the time of the order and 70% when goods are shipped. The 30% gives the manufacturer the money needed to purchase the raw materials to begin the production. It also mitigates risks for the supplier if the buyer won’t pay.
The payment terms when importing China products is more complicated than purchasing locally. What you can do best as a buyer is to negotiate to reach a mutually beneficial payment terms. If you don’t ask for better terms, suppliers will not just offer it to you proactively. By regularly transacting with a particular supplier, you can then build trust over time and for better terms in the future.
Complying with Import Duties
As the importer, you are responsible for identifying and strictly complying with the import regulations of your country. You may contact your local customs agency to know the duties and requirements about various product categories. Remember that your imported products can be put on hold by concerned agencies if it did not meet the import requirements. So, invest more time to know such obligations so your business will truly yield maximum profits.
Your Shipment Options for Your Import Products
When you import goods from China, you also need to know the shipment terms as this is one factor that will contribute to the overall costs of the transaction. While most of the shipment terms are being covered by the supplier, you have to find out how much of the journey they are paying for. Also, identify at what stage the shipping becomes your responsibility. However, it is not the best option to let your suppliers be responsible for the shipment of your products all the way down the line. One other option for you is to arrange the shipping with a forwarder or shipping agent before importing goods from China.