Starting your importing from China can seem overwhelming at first, but it doesn’t have to be. Follow below methods, you can successfully import products from China and resell them for major profits online.

1. Finding a Target Market

Before worrying about what kind of products you are going to sell, your website, or the factory you will order from in China, you need to focus on your niche.

This is the narrow target market that you are going to serve. Instead of going wide, be very specific about this.

For instance, instead of focusing on the muscle building market, focus on the paleo market. This allows you to compete without going up against major brands that have a better reputation and can outspend you until the end of time.

To identify your niche, ask yourself what kind of hobbies and interests you already have. It will be much easier to create your marketing once you understand your market.

Once you have identified a specific niche, you are ready for the next part of your importing journey.

2. Selecting a Product

Now that you know the kind of people you will be targeting, you need to decide what you will sell.

There are a variety of free and paid tools to see what kinds of terms are trending. This includes Google Trends, Google Keyword Planner, and more.

Make sure your product has at least 5,000 hits per month or you may risk going into too small of a market to turn a profit.

3. Finding a Supplier

Once you know your market and the product you want to sell, you need to find someone who will sell it at a wholesale price.

This is easier than it sounds. Most Chinese factories have a presence on a site called Alibaba. You can simply browse for those who create the product you’re looking to import and contact a few of them.

The negotiating process is the next step, and this requires more nuance than the previous steps. If you don’t approach it the right way, you could end up overpaying.

4. Arranging Your First Shipment

To make sure you get the best price for your product (and have room to make a profit from it) you need to contact multiple manufacturers. This is the first and most important part of your negotiating strategy.

The reason that contacting so many suppliers is essential is that you can play them off of each other. Because you have a choice, you will have leverage. You can always walk away from the deal if you don’t like their terms.

So, reach out to three to five of your favorite prospective suppliers and be sure to mention that you are talking to multiple vendors. Ask them for their best price and present your case as to why they should give you a great price.

Include reasoning such as a long-term partnership and high-volume orders in the near future once you take off with your product online.

5. Warehousing and Logistics

Don’t feel the need to house the products in your garage.

You can pay other companies to keep the inventory for you and even ship the units out to customers.

They will want a small cut, but it is well worth it for not having to spend your time dealing with all of the ingoing and outgoing packages.

6. Marketing

Now that you have the products in place and ready to be shipped, you can start your marketing efforts.

The first thing you need is a quality website. It should reflect the personality of the brand you’re going for. In a world where most e-commerce companies are buying their products from China and reselling them, you need to stand out with unique marketing.

Invest in quality photographs and videos if you can afford it. Also, keep in mind that your copywriting is one of the most crucial aspects of the marketing you do. You need to sell with your words.

7. Testing Sales

No importing business is ever finished once you have the site up and start making sales.

The reason is that you could be leaving money on the table. The testing phase is now in full force.

You can start testing different ads, landing pages, and even email funnels. Test every part of your marketing to see where you can create more profits.

The best part of this is that it is free (or very cheap) to use marketing software to collect this data and continually improve your margins.

8. Innovation

Congratulations, you now have your first successful online business by importing cheap products from China and marking them up for a major profit.

However, don’t stop here.

The main characteristic of any great entrepreneurs is the ability to take their results and duplicate them. So, use what you have learned and repeat the steps on a different product.

This can be something you came up with, or simply a similar product that you also want to import. The point is to create systems so that you are free to focus on the higher-level creativity.

9. Paying your Chinese Suppliers

There are a variety of regulations when it comes to sending money in and out of China, so you need to carefully set yourself up for success now that you’ll need to regularly pay your Chinese suppliers.

One of the best options is to actually open a multi-currency account in Hong Kong.

Because there is so much trade between Chinese suppliers and Western businesses, many Chinese companies a) choose to deal in USD and b) have their business accounts in Hong Kong. Due to highly regulated cashflow restrictions in China, having a Hong Kong business account makes a lot of sense for Chinese suppliers who work with international brands.

The same goes for you. If you have a USD account in Hong Kong, that means that when it comes time pay your suppliers, you simply have to initiate a local transfer from your USD account to theirs, which is fast and convenient.

What’s more, incorporating a company and opening a business account in Hong Kong can be far simpler than doing so in China.

Conclusion

When it comes to running a great online business, it is never easy. However, it doesn’t have to be impossible. If you approach things the right way, you can enjoy a highly profitable business without taking as much risk as you think.

But be sure to go through all the steps above. Otherwise, you risk running out of money, time, and patience.

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Elksourcing：Things to Consider When You Import from China to EU

Apr 20, 2021 Elksourcing, importing by 露露

When you consider importing goods from China to Europe Union, getting started is the most complicated part of the process. It is crucial that you follow all customs requirements and do not make any assumptions when it comes to importing goods. A small mistake can be a costly one when it comes to importing goods from anywhere in the world. When you are first starting out, make sure you know the rules and regulations inside and out.

While just about anyone can develop a business plan and start importing goods from China, it is still hard to get started if you don’t know what to do first. Here are 10 things you need to consider to help you get started and move ahead with your business plan as you import goods from China.

1. Know your product

When you make the decision to start importing goods from China, you need to know your product inside and out. Once you decide to import a product, it will be difficult to go back and change your mind. Get it right the first time by choosing carefully and only purchasing items in an industry you are familiar with.

2. Research Distributors

Exporting goods is a big industry in China, and just like here in EU there are companies that are good to do business with as well as less favorable businesses. For the best experience, find a reputable dealer that you can trust. A good distributor will also make the entire importing process easier.

3. Make the Right Connections

In order to ship goods out of China you are going to need a shipping agent that is skilled and familiar with the shipping process.

4. Attain the Correct Documentation

This is a big part of the customs process when shipping goods from one nation to another, and China to EU is no exception. By attaining the help of a skilled shipping agent, you can ensure all documentation is completed correctly.

5. Know the Rules and Regulations

China is not the only country with shipping regulations. EU has its own laws when it comes to customs and importing goods. Make sure that you are following all protocols for both nations; otherwise your goods will not be delivered as planned.

6. Learn the Costs

You are going to pay customs duty, shipping costs and fees to those helping with the importation process. If you are caught off guard and are unable to pay a fee the importation process will come to a halt.

7. Start Small

Importing goods is expensive, and you are going to have to pay fees on top of the purchasing and shipping costs. While you might think that you will be able to sell a large quantity of product, it is better to start with a small order and test the water before jumping in.

8. Find a Reseller

Have your business plan in set before the product arrives in EU. If you plan on using a reseller, sign a contract with that seller beforehand. If you are going to sell the product yourself, attain all proper tax documentation for your business endeavor.

9. Contact the Service Port of Entry

Find out any additional regulations that pertain to your specific location. Know who your local contact will be, and if the service port has any stipulations regarding pick up and transportation.

10. Arrange Transportation

If your product is especially large, then you are going to need transportation to move it from point A to point B. Know where you are going to bring your product, when you will be delivering it and how it will be getting there.

Once you have all of these steps in order you are ready to make your order and get going with your business endeavor. Remember that organization is key. The more prepared you are before the process starts, the more likely your experience importing goods from China will be successful.

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Elksourcing：Valuable Tips for Importing from China

Apr 20, 2021 Elksourcing, importing by 露露

If you are importing from China, pls keep in mind some important aspects and good knowledge. In this article, we have listed some valuable tips we learn from our experience.

1) Investigate the specific rules and regulations

When you import a particular product, you’ll need to research the regulations with which you’ll have to comply. The number of rules will depend on the type of product you’re importing. This is always a requisite for any import, but in the case of China, you’ll need to be especially clear on the matter. That’s due to a large number of Chinese suppliers not manufacturing products that comply with such regulations. In some industries, only about five percent of Chinese export suppliers meet the usual standards and regulations of the European Union.

Among those products that are especially sensitive and subject to greater regulation here – and that are also among the principal imports from Asia – are: toys and other products for children; food and food containers; vehicles, motors, and their components; electrical and electronic products and components; lighting; textiles and footwear; furniture; chemicals; cosmetic and hygiene products; construction materials; and all types of packaging in general.

2) Choose reputable Chinese suppliers

This point is crucial for various reasons. First, you must know that the importer is entirely and solely responsible for the products that he imports. Any compliance irregularities with regulations and certifications can lead to serious legal problems for the importer if it results in him being sued because the product causes injury to a consumer.

Second, if your supplier issues a false certification, your products may be held up at customs. Do note that this actually happens often in China. It will, at the very least, bring you logistical headaches and extra costs (in terms of storage and delays), and port authorities could end up keeping the goods and absolutely prohibiting their entry into the country.

In this sense, it’s important not to trust just any supplier who tells you that they comply with regulations; it’s advisable to go and get to know the factory and the products in person. It also helps to be accompanied by a specialist who understands the technical problems that can arise in relation to the product and which specifications apply in order to comply with regulations.

3) Sign a firm sales contract

Once you’ve thoroughly researched all the certifications that your products need and you’ve found a trustworthy supplier who complies with them, it’s equally important to draw up a sales agreement in which everything is absolutely spelled out. That’s especially so for the specifications of the product and the conditions of return and compensation if the received product doesn’t comply with the agreement. This will save you many problems in the long run and is the point on which most importers fall short: when importing from China, you cannot pay enough attention to details.

In terms of the specification of the product, you must draw up a document that details every feature. You must do this in a way that leaves no room for subjective interpretation and that can be accepted internationally and in different cultural contexts. So, if you’re talking about colors, specify the Pantone number; if you’re talking about materials, specify the density, hardness, composition, and texture and surface finish.

4) Choose right Incoterms

Incoterms are international commercial terms that govern responsibilities related to international transport established between purchaser and supplier. There are numerous Incoterms and purchasing under one or another can change the total amount of the purchase substantially. Because of this, it’s highly recommended that you resolve this before you place your final signature on the sales contract. If you’re unsure of which Incoterm to choose, do read our post on how to choose a competitive and safe Incoterm.

When importing from China, suppliers want to carry out shipments under Incoterm EXW (Ex Works), because it is the most advantageous for them. It places the maximum obligation on the buyer, and the minimum on the seller, who is responsible for nothing more than having the goods ready.

For buyers, it is highly recommended to choose Incoterm FOB (Free On Board), as this is the best way to control the freight handling and shipping cost.

5) Keep buffer time in mind

When you’re importing from China, time is a decisive factor to keep in mind for a successful campaign. I usually recommend that you plan a transport from China a minimum of two months in advance.

The approximate transit time from China to Europe or America via sea is between 25 and 35 days. This can vary according to the port of origin and the connection to the goods’ collection point. But you also have to keep in mind there could be unexpected delays, so it is better to leave two weeks buffer time.

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Elksourcing：Reasons of Source Products from China

Apr 20, 2021 Elksourcing, Top5 hotsale goods 1688 by 露露

As a wholesale distributor, retailer or a business owner, it is important to manage supply chain costs efficiently in order to maintain a reasonable margin and optimize profitability. Sourcing for the right suppliers and products is a crucial element from your business plan to help you achieve your goal quickly.

So, where should your business look for suppliers and products? Many businesses are turning to China, the world’s leading manufacturer and exporter of goods, to manufacture or source products and this is for good reasons.

1) Lower costs

China is the world’s leading manufacturer and exporter of products; with an increasingly competitive and transparent marketplace, it is becoming more and more important for businesses to manage costs in the ir supply chain as efficiently as possible.

With a population of more than 1.4 billion, China has access to a huge and low-cost labor force for manufacturing. Although wages in China have been rising, the labor force is still cheaper compared to developed countries.

Products that are labor-intensive, especially, enjoy cost advantages to manufacture in China.

2) Huge supplier base

The high competition between Chinese factories has a positive effect on your business.

They often over deliver, accommodate your product specifications request, or even offer you a quicker fulfillment time.

3) High quality

The level of manufacturing technology and skill in China is relatively high. This combined with a strong work ethic in Chinese culture makes it possible to get world-class products manufactured.

Moreover, the infrastructure within China is in consistent development making it a key focus of their economic development plans. This results in improvements in roads, rail networks, ports and airports for better connectivity in the country, which benefit businesses from transporting materials and finished products more efficiently and at reasonable costs.

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Elksourcing：What Can a China Sourcing Agent Do for You?

Apr 20, 2021 Elksourcing, sourcing agent by 露露

After frustrations of dealing with China factories directly, more and more importers realize it is necessary to use a China sourcing agent on the ground to many daily matters and make their life easier. What specifically can a China sourcing agent do for you? Here are some main areas.

1) Search suppliers

Many people know how to visit online sourcing platforms such as Alibaba, Global Sources and Made in China to search suppliers, however, it is very time-consuming work, there are hundreds of suppliers all claiming making the same products, but most of them are traders and some of them are not good. It’s a daunting job to communicate with the suppliers and find out the good one.

This is exactly what a sourcing agent can help. The professionals have rich experience and solid sourcing background, so they can find out the best suitable direct manufacturers in the right area, with good quality and fair price.

2) Verify suppliers

‍Once a shortlist of suppliers is there, the sourcing agent needs to verify their credentials, including:

Whether they are indeed direct factories not traders.
Whether they have the technical expertise and production capability to deliver what they say they can deliver.
Whether they have good quality system.
Whether they own adequate capacity.
Whether they have healthy financial status.

3) Source products

A professional sourcing agent can source products based on real connections during their working experience, they only use verified direct manufacturers and keep everything transparent. The professional will try to find out products that are both affordable and high quality to meet your needs, they possess this kind of expertise to help you.

4) Make samples

When a supplier is selected and you want to proceed with a project, it is important to create samples or prototypes to prove the concept works and the quality is good. It is very risky to place an order without checking the samples.

In some cases, the samples do not meet your requirements, China suppliers usually will explain like “they are just samples, mass products will be good” and so on. Be cautious about the explanations and try to look deeper, it is better to get 2nd round of good samples before you invest lots of money. A good sourcing agent will monitor the sampling process and try to get good samples before they leave China, so as to save your time, and provide extra assurance to quality.

5) Arrange payments

Scheduling and coordinating payments are tricky tasks for people who are new to sourcing business in China. Also, it is time consuming and costly if you need to arrange multiple payments to various suppliers. Then, you can ask for help from a sourcing company, the organization can do multiple payments on behalf of you and handle all communication work to make the whole process in an effective and efficient manner.

6) Do quality inspection

If you pay for quality goods, then you deserve to receive good quality products as promised by China suppliers. Therefore, quality inspections are crucial to your success. Some manufacturers cut corners when dealing with foreign firms if there are no 3-rd party inspectors to monitor them. Make sure you always emphasize to your suppliers that you will use a professional sourcing company to check the quality before production, during production, and before shipment.

7) Consolidate products

A good sourcing company has combination of product range and experience. When you need a variety of products, you need many suppliers, then, it is very difficult to manage the logistic because to collect the products from various areas (considering China is such as huge country!) and arrange sea shipment. But it is manageable for a sourcing company, as they have associated warehouses and networks to arrange land transportations, collect products from different factories, consolidate them and put in the same container. Lots cases prove that by doing this way, the clients can save much money, time and hassles.

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Elksourcing：Factory Audit and Quality Inspection

Apr 20, 2021 Elksourcing, reliable dropshipping supplier 1688 by 露露

In the practices of sourcing from China, it is crucial to find good suppliers, and control the product quality. To achieve the goals, factory audit is needed to verify the suppliers, and quality inspection is necessary to assure product quality.

Factory audit refers to an onsite factory inspection that is carried out on behalf of an importer at the premises of the manufacturer before placing an order to a new manufacturer. Factory Audit is aimed at avoiding getting involved in a bind working with the wrong factory.

During the Factory Audit, the auditor records data and takes pictures of all the essential aspects for the importer’s reference for them to have an in-depth feeling and sense about the factory before any contract is signed.

Factory Audits are often the last step in the sourcing process. It usually takes place after screening a group of potential suppliers down to the serious ones.

It is important to get to the factory to confirm if the key managers will be available on the desired date. Surprise audits can only be carried in certain situations.

Some are also known for child labor, degradation of the environment and poor working conditions. Thus, you need to research your manufacturer, pay a visit to their premises and ensure that they are checked out before entering into any business agreement.

Quality inspection refers to the measures that are targeted at checking, measuring and testing the various product characteristics and then relating the results to the requirements to comply with laid down regulations.

The process is usually conducted by specialized personnel and cannot be handled by production workers. Products that are not in line with the specifications are rejected or returned for improvement.

The three major purposes of quality inspection include:

Identification of the problem with the quality

Provision of information to managers

Removal of the problem by managers

There are two forms of quality inspection namely final inspection and in-process inspection. Final inspection is carried out at the end of the production process while in-process inspection is carried out during the process of production.

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Elksourcing：A Step by Step Guide for Buying from China

Apr 20, 2021 Elksourcing, shopify order fulfillment by 露露

Buying from China has proven a successful tactic for many businesses. However, it is not an easy task, especially for the newbies. The importing process can be extremely complex, confusing, and costly. Expected gains can often be erased by long transit time, fluctuating shipping cost, unexpected delays, and quality issues.

1). Make sure you can legally import your chosen item

Most items will be allowed, but there are certain guidelines that must be followed for some types of items. The United States imposes stricter guidelines on agricultural products, for example. Additionally, Chinese laws may prohibit the export of certain items, like animal by-products or fake designer clothes and accessories. Check with the laws and regulations of both countries before making an order.

2. Identify the goods you want to import

You make money by selling products. Choosing the wrong products means you are losing time and money. If you’re going to be a successful importer, you need to choose the correct products for resell.

You’d better gather as much information as possible about the goods you intend to import. Obtain descriptive literature, product composition information and, whenever possible, product samples.

This information will be crucial when it comes time to determine the tariff classification. The tariff clarification number (HS Code) will be used to determine the rate of duty that will be applied to your goods.

3. Calculate the landed cost

The 10-digit tariff classification number and the Certificate of Origin are used to determine the rate of duty you must pay when importing. Then you can do the calculation for landed cost.

Pay attention to the Incoterms and calculate the total landed cost before you place your order. For example, FOB means adding the following three costs together:
Product cost,
Shipping cost,
Customs clearance, duty & tax, land transport to your premises.

4. Find right suppliers in China

You need to find the right supplier in China. Mostly commonly, you can visit B2B websites such as Alibaba, Global Sources to search the suppliers. Be aware that many traders pretend themselves as “manufacturers”, do background check and due diligence as much as possible. A reputable supplier should be able to provide you with client testimonials and references.

You can also visit trade fairs such as Canton Fair and HKTDC show. The good thing is you can personally feel the samples and have first impression about the supplier by face to face talk; negative things are travelling cost & time, also you have big chance to find trading companies than direct manufacturers.

If you don’t have much experience dealing directly with Chinese suppliers, another option is to seek the help of a commission-based China sourcing agent. The agent fee can range from 3 to 10% of the order amount.

5. Place an order

Request information regarding the experience of each factory in producing your particular product. You should also ask for samples of the product. Unless you will be manufacturing your own new product, the supplier should be able to provide you with samples of the product so that you can get a better idea of the quality and know ahead of time exactly what you are paying for.

Cost is not the only the consideration when choosing a supplier; quality may be just as important, and the manufacturer’s experience can be a good indication of the quality of work.

Place your order with the vendor and identify incoterms and shipping terms that will be used.

6. Do quality inspection

Quality is very important to your success; however, this is neglected by many importers, they assume product quality is assured by the manufacturer, but it usually is not the case. Most Chinese manufacturers are too busy in daily production, they are not available to do thorough quality inspections as the salesman claimed to. Also, they do not have incentive to do strict quality inspection as it increases cost to rework all issues – they usually classify them as “minor” issues.

So, it’s highly recommended to using a professional inspection company to do pre-shipment inspection for you. If the order is large or of high value, it’s also necessary to arrange an online inspection, so as to catch any issues before production is 100% completed, which means it’s too late to rectify.

7. Arrange cargo transportation

Once you have selected your supplier, request a packing list and a commercial invoice for your prospective purchases to include HS code, description, QTY, weights & CBM, and value per item.

There are many costs associated with shipping goods, including container fees, packaging, terminal handling, and broker fees. In order to get a complete picture of shipping costs, each of these factors should be considered.

8. Obtain your shipment

Shipping goods internationally takes time. For example, goods shipped from China, on average, take around 20 days to reach the West Coast of United States or 30 days to reach the East Coast.

During the time, check your commercial invoice, packing list, the bill of lading, and other related freight documents. If problems arise that you need to troubleshoot, you should know the steps your goods go through when being cleared by customs of your country.

When the goods arrive, you should arrange for your customs broker to clear them through customs. If everything goes well, you will get your shipment, and hopefully do a successful selling.

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Elksourcing：Main Benefits of Buying Products Directly from China

Apr 19, 2021 Elksourcing, shipping and tracking upload by 露露

Many people may hear that buy direct from China is the way to go, but do you really know what makes it the best choice? In this article, I’d like to share you the main benefits that you get by buying products directly from China.

1. Quality products at cheap price

Who doesn’t want to buy quality products at reasonable rates? China offers a wide range of products which you can buy for relatively low prices, but you don’t have to comprise in quality. The huge immense wholesale industry in China and inexpensive manpower used for manufacturing are the two main factors that contribute to the low prices of products that you get from China. Regardless of what type of products that you’re looking forward to buy, you will always get them for a discounted price China. If you’re buying products in bulk, then you will get them for much lower prices.

2. Trending products

Since China is the manufacturing and wholesale giant of the world, almost all types of products are being available here. Any slight update in the particular trend starts here, with which you can avail those latest products directly from China. China conducts lot of trade fairs throughout the year where different manufacturers showcase and discuss their new products. By doing so, the whole market catches up with these new products, which you can buy directly from China. It’s the biggest advantage that you can get if you buy direct from China, since you can lay your hands on the products that are still not available in other countries.

3. Great Infrastructure

China has been developing the infrastructure exponentially which makes the business much easier. The number of highways, trains, and other transportation facilities have risen by leaps and bounds in the last twenty years. This phenomenon has led to the revolution in the way business is conducted in China. If you’re going to buy direct from China, the superior infrastructure helps you in getting your products shipped much faster. Not only the speed of delivery, you will also get your products much safer, thanks to the upgraded Chinese infrastructure.

I frequently hear the stories about importers who take high risks by not doing any quality control and end up with bad results. In my opinion, the most under-rated tool to reduce risks in China is certainly running a background check on potential suppliers. Also, it is recommended using a verified sourcing company to help you to do quality inspections on the ground.

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