Have you been thinking about how you can start importing goods from China? You are not alone. So many entrepreneurs have also been thinking about it too. Since China took World Trade Organization in 2001, she has become the top world exporter among other countries.
Directly importing from China is truly economical and can be your ticket to wealth if you do your proper research before you start importing. Almost all products we can find in the market namely from shoes, electronics, clothes, and furniture are products from China. How much does it cost to import from China? How much tax is to be paid on imported Chinese items like clothes and machinery?
However, it is not that easy for newbies entrepreneur to be able to import goods from China. The process can be extremely stressful, confusing and costly. If you are finding it difficult or you want to learn how to start direct importing goods from China, here are the step by step guide to help you do that without stress.
Identify the Goods you want to Import
If you are going to be successful as an entrepreneur importing goods from China, you need to first choose the right goods you wish to import. You need to gather as much information as possible about the goods.
Make sure the goods you want to be importing from China has huge market demand in your country. There are so many fake products and dealers in China, so you have to be careful when choosing products you want to import to your country.
If you make the mistake of choosing the wrong products, you are already losing your money and time. Choose products that can be shipped in large quantities at a low shipping cost per unit and make sure the goods are allowed in your country too.
Identify Your Import Rights
After identifying the goods you wish to import from China, you need to check from the custom authority if you have the import right mostly if you are dealing with commercial goods.
When you buy goods in small quantity, courier services like DHL/UPS/FedEx help to handle the shipping and delivery at your doorstep so you won’t need to ask for import right from the custom office.
But, when importing large commercial goods, you will need to verify for custom import rights.
Find a Good Supplier
After knowing that you have to right to import goods from China and you have identified the goods you want to import, you will need to find a trusted supplier to avoid being scam. You can make use of sites like aliexpress.com or Alibaba.com to search for trusted suppliers for different product categories.
It is advisable to check the credentials of your chosen supplier before making purchase. If you are in doubt or in cases where poor quality goods are supplied, you can request for samples. With samples, you only pay for freight charges but get the product free of charge.
Don’t let any supplier tell you that they can’t ship any samples that you have buy in bulk. It is a scam alert. Don’t buy into that.
Calculate Your Spending
As far as you are importing the goods for resale, you need to calculate your spending to ensure you make profit after everything. Apart from money spent in paying the supplier, you still have other cost like duty fee, clearing, paying for freight, and other charges you will need to cover.
All these should be at the front of your mind when thinking of importing goods from China to sell in your country. There is a formula I got from an experience importer, he said to calculate how much you are going to spend in the whole process of importing goods, you have to multiply the manufacturer’s price by 1.6.
The answer you get will be the total amount you will spend in the importing process, and with the figure in mind, you will be able to predict your profit before importing the goods.
Identify the Port of Loading
Shipping goods from China takes time. Once you have placed your order and have done all necessary arrangement, the next thing is for you to identify your port of loading.
Once you have identified your port and gotten a reliable courier company that will deliver your goods, you can inform your supplier to drop your goods at your agent’s office in the nearest city port. From there, you can then negotiate with the courier company on terms of delivery.
Confirm and Collect the Goods at the Port
If you pay for your goods to be delivered by air, then you will need to go and collect your goods from the nearest international airport. If it is by sea, you are supposed to know which port you are to collect your goods from.
Remember that you will be required to pay for inspection charges and custom duties. You can make use of experience importer to help you in this stage.