Category: How To Import From China

How To Import From China

Elksourcing：How to Wholesale from China?

Apr 11, 2021 , by 露露

Before you start to wholesale from China, you need to figure out below issues.

1. Who are the right wholesale suppliers?

Many people think real manufacturers in China will give a lower price than middleman when purchasing from China. But, things are not like that. All of the manufacturers in China have MOQ (Minimum Order Quantity) requirement that Chinese suppliers will not produce products for you if the quantity on your purchase order cannot reach their lowest quantity requirement. And most of Chinese suppliers set different price for different quantity level. For example, MOQ 100 PCS, the unit price is 10 USD, however, MOQ 500, the unit price is 9 USD.

For most of small business owners, they always hire a Chinese agent as their purchasing partner in China. For the people who cannot visit China in person but know how to import goods from China, they would rather source products through a buying office or purchasing partner in China which can help them save time and money. What important is that a sourcing partner also can introduce some sources that your competitors will never discover.

2. Flow for buying wholesale and importing from China.

After selecting the type of wholesale supplier, you need to search the real supplier. For example, you need to verify manufacturer if you choose a manufacturing company as your business partner in China instead of a purchasing company or sourcing partner. But, whatever type of purchasing wholesale supplier you are planning to select, you need to learn some knowledge about flow for buying wholesale and importing from China. 

Wholesale from China can help you make more money if you are from a high cost country, such as the United States, Canada, Australia, and UK. If you are an American and want to import some products from China to US, you should know how to import goods from China to US, no matter by express, air freight, or sea.

a. Delivery goods via international express.

Delivery by express is high cost due to packages are shipped by airplane and can delivery to any corner of the world within 48 hours (It is quite possible in the future). For small size package or sample, people always like to ship via express. In China, you can ship goods to overseas without customs clearance if the value of package is less than USD 500. Small size with large value and some urgent MRO products can be shipped via this method.

b. Import goods by air freight.

It is a long shipping time when shipping by sea, however, for some urgent purchase orders, customers need to get them in a short time, such as the lead time is one week. In that case, you should consider air freight. The freight is lower than ship by express if the weight is more than 100 kg. If you choose shipping by air freight, both you and your wholesale supplier need to do customs clearance work.

c. Ship goods by sea.

Shipping by sea is the most common way to import from China. And most of importers select ocean shipment as their first shipping method when buying wholesale from China. It is the cheapest way to ship your goods or products to the destination. However, this is longest delivery time during those shipping methods. Truck your product to port of departure, customs clearance, loading and set out, arrive the destination port, customs clearance, pay import duties from China and VAT, truck goods to your warehouse. This is the simple flow for importing from China. If you are a new importer or your company didn’t have import export authority, you can hire a third-party services company to help you.

d. Import tax from China.

Import from China is not like domestic business, you need to pay more tax, such as customs duties and VAT. Whether you need to pay those tax when importing from China depends on your local government and product item. You can check them by using HS code via internet or government. All we know, some products are encouraged to import, however, some items are limited.

What to import from china?

Now, you have known how to find buy wholesale suppliers in China. And you also have some knowledge about how to import from China. The next step is to learn what to import from China. If you are a dealer who specialize in some certain fields, you should know what to purchase. But, in order to stay competitive, you need to know what is hot products imported from China.

Products you are interested in or specialize in should be the first consideration to import from China. As a sourcing agent in China, we know that most of the factories or manufacturers in China didn’t have an exclusive dealing agreement with customers. As an overseas customer, you should maintain a good relationship with your buy wholesale suppliers in China. Maybe, you will get some information about what is hot in China at the first time. Visit some B2B sites such as Alibaba and made in China, you will discover some hot searching products.

Buy wholesale from China or outsourcing to China is easy if you can discover reliable supplier or partner. I believe you can find a good wholesale supplier in China if you are really planning to import from China. 

How To Import From China

Elksourcing：4 Reasons Why It is Hard to Find a Chinese Factory

Apr 11, 2021 by 露露

Even though China has a reputation as a country that manufactures everything, it is often surprisingly hard to find a factory in China. Here, our experienced China sourcing agents discuss some common reasons why finding a reliable, suitable Chinese factory can be so challenging.

1. Language and Cultural Barriers

It is one of the more obvious reasons, but it bears mentioning: There are huge language and cultural barriers that separate western businesses from Chinese manufacturers. While English proficiency is rapidly growing in China, there are still many small and mid-sized factories that have no employees who can speak fluent English. Beyond this, you also have to deal with other, more difficult to define, cultural barriers.

2. Many Chinese Factories Do Not Market Themselves Well

In the grand scheme of things, China as a global manufacturer power is still a relatively new phenomenon. Many Chinese manufacturing companies are still in their early days. These mid-sized and smaller Chinese firms, which offer manufacturing services that are well-suited for many Western companies, do not yet know how to efficiently market themselves to westerners. Indeed, there is no comprehensive ‘database’ that you can search on Google to find the right Chinese firm. When working with Chinese companies, you still need to have strong connections on the ground.

3. Your Products are Unusual, Specialized or Customized

It is not equally difficult to find the right Chinese manufacturer for all types of products. This is true for many different reasons. If you are importing products that are made frequently in China, such as t-shirts, you will have many more manufacturing options to choose from than if you are seeking to get a specialized product produced. Notably, many of China’s largest manufacturing firms focus solely on mass producing common consumer products (like t-shirts or shoes), meaning that smaller manufacturing firms handle more specialized or unique products. Of course, these smaller firms are inherently difficult to find.

4. You Do Not Know Whom to Trust

Finally, for those without connections on the ground in China, there is a huge trust issue to manage. Put simply, it is hard to know which Chinese companies are truly reliable and can make quality products for your business. This inherent lack of trust and difficulty in researching firms creates friction in the trade process. This is an area where an experienced China sourcing agent can prove to be extraordinarily valuable.

How To Import From China

Elksourcing：6 Things to Look for in a Chinese Manufacturer

Apr 11, 2021 , by 露露

Do you want to get your products made in China? If so, there are many Chinese manufacturing firms that offer services that are well suited for your needs. However, finding the right manufacturer in China can be an extremely difficult process.

Indeed, we have heard horror stories of Western business people who have had products made in China on their own, only to end up very disappointed with the subpar results. Before you commit to a Chinese manufacturer, you need to know what to look for to find the right partner for your business.

(1) Industry Experience:

When working with a Chinese manufacturer, it is best to work with a firm that has extensive experience working within your industry. Regardless of your products, from clothing to tools, it is imperative that you seek a firm with relevant industry experience.

(2) Experience with Similar Products:

Additionally, you should also work with a company that has experience making products that are highly similar to the specific product that you are seeking to have manufactured.

(3) Quality Control:

Unfortunately, there are many low-quality manufacturers in China. These companies will accept all orders, and they will simply pump out cheap products as fast as possible. You need to avoid working with firms that have insufficient quality control.

(4) Overall Suitability: 

Beyond relevant experience and quality control, you should also consider other general suitability issues. For example, if you have a particularly large order, you should be sure to work with a sufficiently large Chinese manufacturing firm so that major delays can be avoided.

(5) Trustworthiness and Reliability:

Integrity is incredibly important. Not only must you look for a manufacturer that is reliable and can meet all important deadlines, but you also need to work with a trustworthy firm that will not steal your product designs and ideas.

(6) Cost: 

Finally, as with any business decision, overall cost cannot be overlooked. You need to find a firm that gives you a fair price point for the manufacturing services that you desire.

How a Professional China Sourcing Agent Can Help?

To find the right Chinese manufacturer, it is a best practice to work with an experienced China product sourcing agent. Doing the required due diligence to find the right Chinese factory is not easy. This is particularly true if you are seeking to get specialized or customized products made. We understand the key to trade with China: Strong relationships on the ground. While there are a seemingly endless number of Chinese manufacturing companies, few will truly be a good fit for your business. Not only do we have a deep understanding of the process and legal requirements, but we have trusted partners on the ground in China to ensure that we can find the right manufacturing firm for you.

How To Import From China

Elksourcing：How to Develop Good Relationships with Chinese Suppliers?

Apr 11, 2021 , by 露露

When importers decide to source from China, they must invest in developing good relationships with potential and existing Chinese suppliers.

Three aspects are essential to implement a good supplier management strategy in China:

(1) Know your suppliers inside out. 

Identifying and knowing your suppliers is important for building an enduring relationship. There are no shortcuts in this kind of relationship building.

Visit suppliers and see their technical capabilities and capacity with your own eyes. This includes their machinery and equipment, their process technologies, the number and qualifications of their employees, and the like.

A bid is no guarantee of a supplier’s willingness and ability to meet your volume and quality requirements or future competitiveness.

(2) Develop strong relationships with fewer suppliers.

Identify a few suppliers that are willing to commit to a long-term relationship and to jointly creating a competitive advantage.

To avoid fragmentation of the supply base, stop bidding out each part and dropping suppliers anytime another company offers a better deal.

The dangers include shifts in the supplier’s strategy or customer base, and deteriorating performance.

These problems could go unnoticed until crucial shipments are missed, costs mysteriously escalate, or quality suddenly nose-dives.

(3) Work jointly with your suppliers on continuous improvement.

Focus on developing suppliers’ capabilities and advancing their competitiveness over time. Set ambitious but realistic targets for better performance in cost, quality, delivery, or innovation, and work with your suppliers, not against them, in achieving those goals.

Successful continuous improvement requires agreed-on objectives, transparency of current and anticipated costs and processes, and the sharing of improvement ideas.

Large customers often have internal knowledge about advanced concepts such as lean manufacturing that many low-cost suppliers have not yet developed.

How To Import From China

Elksourcing：5 Basic Steps for Sourcing from China

Apr 11, 2021 , by 露露

Sourcing From China is more and more popular for online sellers, however, it’s daunting many new importers. Below are 5 basic steps I have learned from my 20-year experience in sourcing industry:

1. Conducts an initial research

This is the first stage where you decide what your primary activities are, what are the needs of your clients and who your competitors are. These steps help you to determine your business goals and your position in the market. You and your sourcing partner need to design a business plan to determine the performance measurement system and primary work strategy.

2. Evaluate supplier and market

Your sourcing partner, which offers global sourcing service helps you to make a supplier selection benchmark. When you have the list of criteria, you can make further changes in the sourcing strategy and determine the final cost. Given the fact that you already have information regarding clients and prospective markets, you can identify the economic and operational benefits of the project and decide, if you at all want to source from a foreign base.

3. Select suppliers

You can create a request for inquiry and send it to your selected suppliers. After you get back the quotations from suppliers, you can make a final list of suppliers. Then, you can conduct a price negotiation depending on the final supplier list and determine how much you can save.

4. Implement decisions

In this stage, you have to create a performance analysis schedule. Your sourcing partner is going to be a part of the implementation team where you will have to decide resources, shared supply and logistical arrangements. You should keep an account of the performance of every supplier in case of more than one supplier.

5. Monitor supplier performance and take necessary measures.

You must make sure that you, along with the company offering global sourcing service carries out regular performance check and reports it. This will assist you in realizing whether the suppliers are sending products as per your requirements or not. You will also get to know if the suppliers are following your criteria of quality and safety or not.

How To Import From China

Elksourcing：How to Get Quality Goods from China?

Apr 11, 2021 , by 露露

For China sourcing, it’s crucial to receive what you order, according to specification and on the time agreed upon. In order to get quality goods from Chinese suppliers, you will need to consider below 3 main areas:

1)   Select the right supplier;

2)   Manage quality control system;

3)   Put in place the right inspection plan.

1. Select the right supplier

I like to summarize the importance of supplier selection in three sentences.

You will NEVER get quality from a supplier that is not properly equipped to make it. Suppliers need to have the right equipment, skills and experience.

You will OCCASIONALLY get quality from a supplier with the right equipment and skills but with poor processes in places.

You will get INCREASING quality from a good supplier with equipment, skills and processes and which is also willing to cooperate with you for continuous improvements.

2. Manage quality control system 

When an inspector rejects a delivery because products are below standard, the good news is that it prevented defective goods from being sent to you. But the bad news is that you do not get any goods at all.

It is better to work upstream to further reduce the risk of getting goods below standards instead of just filtering them at the end of the process.

Most buyers purchasing from Western suppliers will “delegate” all quality control activities and planning to the supplier. But in China, it is dangerous to do so. Quality remains the responsibility of the supplier, without doubt. But it is necessary to dig in the details of what actions the supplier has implemented to fulfill this responsibility.

After you select a good supplier, you will want to review the quality control system the supplier is using as a routine. The review is used to make sure that all aspects are covered.

When some areas are not covered, it is common practice to ask the supplier to add a few control items to the plan. In most case it is really not a problem to have additional controls and to receive reports on the results.

It also allows you to explicitly highlight quality requirements and expectations. Many misunderstandings will be avoided during this step.

3. Put in place the right inspection plan 

Once the two previous areas are covered, you can think of pre-shipment inspections. The main purpose here is to avoid that the supplier makes sub-standard products, not only to catch poor products before shipment.

When you focus only on catching poor products, it is like subscribing to a full coverage car insurance policy but continuing driving recklessly which leads to lots of accidents.

Beside catching poorly made products, pre-shipment inspections also can have a strong preventive role. When the supplier knows that the products will be strictly inspected by buyer, they will be more serious on production quality.

In addition, discussing the inspection plan with the supplier is the best way to avoid misunderstanding.

The role of the inspection should include:

Review of the supplier routine QC documentation and reports;

Do again a range of tests on a sample of the goods;

Possibly performing additional tests (material, destructive tests or non-destructive tests).

Conclusion

In our experience, there is no shortcut to these three areas. The difference between very good suppliers and others is that the process will be faster and more straightforward. But skipping one step leads to problem one day or another. 

How To Import From China

Elksourcing：Step to Step Guidance to Importing Products from China

Apr 11, 2021 , by 露露

Whether you need hardgoods, electronics, machinery or home appliances, virtually anything can be found in the world’s leading producer, China which presently acts as the “world’s factory”. 

However, for the newcomers, it can be a difficult task. In order to buy products from china, there are five basic steps to follow. Following these basic step-by-step procedures will not only save your money but will also save your time.

1. Identify your rights.

Various countries have different regulatory policies. These regulations could be meant to reduce imports of certain products into the country. Sometimes they may serve to fight against smuggling and such activities. Heavy tax policies induced by the government on the customs may also affect how you are going to import the product to your country. It is, therefore, vital to check whether you have the legal rights to import certain goods with not only ease but also without incurring excess expenses. 

You should confirm whether you need a license, as in many countries, and acquire one before buying the goods.

2. Identify your products.

This is the basis of importing goods from China. Identifying the ideal goods to import have a significantly great impact in both the import process and your business or personal use. Remember that import tariffs vary considerably with regards to the type and kind of goods. 

Electronics imported from China, for example, differ in rates from textile products. If you are a business person, you would want to make profits from reselling. Choosing a product that will provide a wider profit margin after tariffs would be essential. 

You should carry out a research on the specific products by taking on reviews and other statistical sources so as to be sure about what you are going to import.

It is important for you to get the samples and carefully review and test the samples. Make sure it passes all the rules and regulations of your country.

3. Find a suitable supplier.

Finding a suitable supplier can be very tricky. Many importers choose their suppliers from a sample shown at a trade show. This is not a good idea.

You better run a background check on your supplier. If he claims to own a factory then you should pay a visit. Get some customer references too.

Once you have selected your supplier, request a Preformat Invoice for your purchases. Remember that your PI must show the weight and the packed dimensions.

4. Do a calculation of the landed cost

Before you can order the goods, it is important to classify the goods and approximate the total cost to your home. The landed cost will include the initial cost of the product, the transportation fee, customs duties, all the taxes, currency conversion and other expenses. Generally, it is an account of what your pocket will have to incur. A tariff classification of each goods you wish to import is important as it determines the tariff duty required. 

You can contact the responsible individuals: the supplies, shipping agents and the custom check officers for this information. This is important for ensuring efficiency and minimizing errors of insufficiency when the goods has started its journey.

5. Place your order

You can then locate the supplier and make your order. Communicate with both the vendor and the shipping personnel to identify the terms of the transaction including shipping. 

You should make sure to give detailed information about the product you want. This will reduce cases of confusion and receiving the wrong item. Do not always opt for the cheap product. Cheap may turn expensive due to quality and quantity issues and the risks that may be involved. To reduce costs, you can inquire if the vendor will agree to ship in the nearest port. 

6. Ensure product quality:

It’s important to make sure that your supplier met your product specifications. A visit to the factory by you or a reliable QC company will better ensure the product quality.

The most type of quality control used by many vendors is a final random inspection. Professional inspectors from a reliable QC company should visit the factory and draw random samples from an entire batch, and conduct thorough function and appearance check.

7. Organize your cargo for transport

Shipment could be a little costly. But with proper plan and negotiations, you will freight your goods easily. You may have to pay for packaging, container, brokerage and terminal handling. It is essential that you choose a goods logistics provider. This will ensure a smooth flow of operations and ease of coordination and communication. It will also reduce the delays in the port that do normally happen for about two to three days. As soon as these arrangements are through, sit back and wait for your goods. You may have to wait for some time since traveling by ocean is quite slow.

8. Track your shipment

Water transport, though convenient, is much slower since it takes a couple of days before arriving at the shore. You will have to give it some time before you can expect your goods. During this period, you should process your freight document and ensure that the shipment will have an easy procedure at the port. The bill of lading, packing list, and commercial invoice are among the documents required as soon as the ship docks.

9. Collect your cargo

Contact the customs brokers to help you clear at the customs office. You will need to submit your documents for customs clearance. When you are cleared, you can then transport the goods to your desired destination.

With these simple guidelines, you can import the goods you need from China with much ease. Make sure to follow these steps before you start negotiating with potential suppliers. Doing this will not only benefit you but will also let them know that you are a professional buyer.

How To Import From China

Elksourcing：Best Way to Start Sourcing Products from China

Apr 11, 2021 , by 露露

Sourcing your products from China becomes a key challenge, as China can be difficult to navigate, especially for new importers. Mistakes in the early stages of importing can drastically impact the future potential of your business.

The best way to mitigate the risks of improper procurement is working with a sourcing agent.

What are the options for procurement, and why is a sourcing agent your strongest opportunity for growth?

There are four major options for procurement: direct purchasing, commissioned agent, trader, and sourcing agent.

1. Direct Purchasing

Purchasing direct from a manufacturer means that you handle all interactions with the supplier yourself. You find the supplier, choose the products, negotiate price, draw up contracts, handle claims and disagreements, perform quality inspections, build relationships, request samples, and more.

A number of new sellers mistakenly think this is the best avenue because they can maintain full control of their supply and aren’t charged a fee that cuts into their margins.

However, this is also the riskiest method. Unless you’re an experienced pro in the manufacturing industry, you make yourself vulnerable to scams, costly processes, and other inefficiencies by purchasing direct. Plus, you have to learn the entire industry yourself, which takes a significant time investment. Without the appropriate resources, you’re often trying to blindly navigate a complicated world.

2. Commissioned Agent

You can hire an individual agent to help you find suppliers for your product.

These agents are usually overseas and have a large network of partners and resources. They’re also low cost and fast.

However, they are very rarely professional and offer very few services. The agent will find you a supplier, but then you are on your own. They usually don’t help you build long-term relationships with these manufacturers or provide other consulting services. Agents tend to keep their resources locked up, giving you very little visibility or access to your own supply chain.

Plus, the majority of agents get a commission from the supplier. This means they’ll usually defend the

supplier in the case of negotiations, error, or disagreements. They usually aren’t looking out for your

interests.

3. Trader

A trader is like a middleman for locating applicable suppliers. They will help you find a manufacturer and they’ll handle payment.

This is not popular for procurement because it’s the most expensive option for the lowest return. Traders take a percentage of your margin on every order, which can heavily cut into your revenue. They also maintain total control over your supply chain with little transparency.

4. Sourcing Agent

A sourcing agent is the strongest option for almost all importers. This is a third party that

works with you, not for you. This builds a partnership to help you find suppliers, assess products,

negotiate price, build contracts, handle claims, and build supplier relationships and communication.

The only con to a sourcing agent is that it can be an upfront investment. However, in long-term, working with a sourcing company is the most efficient and profitable solution.