As a wholesaler operating in any country, going into business with a Chinese wholesale buying agent is a very crucial step to help achieve success. As a businessman, buying wholesale from China to resale is very profitable. Prices of items in China are quite affordable and it is one place you are sure to get high-quality goods.
5 Facts You Must Know Before Importing From China
Importing is a complex business that requires a lot of skills and planning. Failure to plan leads to failure that is why this article has been prepared to remind you of the things you need to know and help you plan your business.
1. Your right is your fighting power
Your right is your fighting power and you should be aware of them. Be sure you have the right to import a particular product as a resident of a particular country. Some countries enforce rules and regulations on certain items and certain procedures. It is best to familiarize yourself with China’s import/export policy and restrictions that may be pertinent to your country of residence.
2. No product is tagged the best.
The truth is, no one product is considered the best for your importation business. Every product is capable of yielding a great amount of profit if the trade is done right. Do not be the type to just follow the trend, investing in what every other person is buying. Conduct your research and determine the possibility of making a great sale based on location and economy. Remember it is best to invest in products you have an interest in.
3. Always examine the products
Before purchasing any product from any supplier in China, ask for samples. These samples will give you a clear view of what to expect as regards product quality and otherwise. Granted price is a very important factor to consider while making purchases but you wouldn’t want to jeopardize quality for a cheaper price. Also, seek basic information about the company’s manufacturing plants.
4. Know the rules for placing an order
Different orders and shipment agreements exist for different companies. What this means is that rules might differ depending on the company you are working with. Most companies in China will require you to purchase at least 10,000 units in a single order.
Also, you are expected to deposit about 30 to 50 % before production commences. The balance is paid on delivery. Shipment can be made via Carrier airmail or Sea freight. While the Carrier mail is more expensive, it is best suited for smaller orders. Sea freight on the other hand is designed to accommodate larger items at a cheaper price.
5. Be familiar with payment methods
Knowing how to go about making payments is a big part of the business. As of recently, the Yuan, or RMB, has appreciated in value, courtesy of the Chinese government.
What this means is that making payments with RMB places you at a greater advantage, allowing you to discuss better deals. This method of paying in currency usable in China has proven more efficacious over the years.
As a wholesaler, importing goods from China for resale is a very profitable adventure. However, you must familiarize yourself with the process before venturing into the business properly so that you won’t lose money and time.