HOW TO IMPORT FROM CHINA

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6 steps on help you import from China

As a business, when cost of production keeps increasing in the domestic market it pushes us to make a decision on importing product from overseas. Importing product from another country can be very complicated and sometimes may require a personal visit to the Country of origin, so it becomes impossible for a lot of business’ and business owners. I created this blog on “HOW TO IMPORT FROM CHINA” to guide you through the importing processes and how Bespoke Trading Pty Ltd can help you make importing easy and worry free.

The question I get asked most is; “Why import from China?”

China is the largest country to export goods to USA/EUROPE/CANADA markets. China has a well-established export manufacturer market. Manufacturers in China cover every aspect of the products you are looking for. The price of the labour is relatively cheaper than most western countries which means your production costs will be more price competitive.

Move onto the 6 steps of how to import from China.

1.Decide on what products you want to sell and get to know your importation rights

There are hundreds of products being listed daily on Amazon, eBay & Esty etc. that you can look at to find what products really interest you and what is your expected profit margin on those products you want to sell. Creating your own brand /design is a great idea, especially if you could get them made at a low cost. A lot of successful boutique brands are designed in Australia and made in China because of the lower manufacturing costs. Before jumping in to search for products from overseas, you need to know the exact specification of the product you have in mind including the details such as materials, dimensions, weight as well as safety requirements for some products in the destination Country. Also knowing your import rights is very important. Branded products such as; Chanel, Gucci, apple are protected by Law. If you see ® or ™ you should avoid them if don’t have permission from the owner of the brand. Government regulations must also be followed, for instance; some food products imported to Australia will need a quarantine permit. Government regulations can be found from www.business.gov.au website.

2. B2B (business to business) platform/ Chinese import websites.

There are a lot of trade exhibitions held in China every year. You could personally go there to visit and find your suppliers there. The famous ones are Canton Fair and Yiwu trade show. For the majority of business owners, it is very difficult to make time to personally go there and find the right suppliers from the hundreds displaying. Therefore, the B2B platforms have become very popular in recent years, I have listed the 2 most popular Chinese import websites and there comparisons below.

Alibaba.com

Alibaba lists a wide range of products and suppliers. It is a little bit difficult as a new importer to identify the product you are looking for at the beginning. Most of the suppliers here have minimum order quantity (MOQ) requirements (usually from 50-500 units). There are ways to reduce those quantities, please check my blog on “HOW TO REDUCE MINIMUE ORDER QUANTITY”. Alibaba offers Trade Assurance which gives a bit of protection to buyers, but make sure you find legitimate suppliers otherwise DON’T make the payment. The overall environment in Alibaba is good but there are always spams and traps you need to watch for.

GHgate.com

GHgate is a Chinese online wholesale website with a variety of vendors to choose from. It usually doesn’t require any MOQ. The price of products is usually in US dollars and price of are relatively higher than Alibaba. Because the sellers could be either factories or wholesalers, the second order may not be the same quality or same colour as the first order. Recommended for buyers of one-off purchases of existing products. This sight is not suitable for buyers looking to make their own design.

In comparison to the above-mentioned websites Bespoke Trading Pty Ltd offers;

Upfront face to face communication with customers to understand your requirements better with no language or culture barriers from you through us to Chinese suppliers. Better, more reliable suppliers and more secure payment options from you to suppliers. Bespoke trading will assist you throughout whole sourcing and purchasing process and can even organise your logistics and Customs clearance. Let us know how we can help.

3. Getting samples

It is very important for to get product samples. Particular areas you need to check for the sample are product colours (we recommend using Pantone colour code), barcode printing (a lot of suppliers prefer to get barcode in pdf to minimise error in later mass production), product quality and logo layout. Then make any adjustments before starting mass production.

4. Organise payment

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There are upfront payment requirements before suppliers will start manufacturing your product. The upfront payment could be from 30%-50%. The balance to be paid after products leave the factory depending on agreed purchasing terms: FOB (Free on board), CIF (cost insurance and freight), etc. Using Bespoke Trading Pty Ltd will assist you in deciding which purchase option will be better suited for your product and negotiate better payment terms including the upfront payment amount which can help with your business’s cashflow. There are a few payment options you can choose from: bank transfer, PayPal, western union, third party handle (Bespoke Trading will monitor the transaction), secure payment (Escrow on Alibaba), letter of credit.

5. Logistics

In some cases, the product price will including shipping cost (CIF). Other times it could be difficult to find right shipping option. You will need to find the nearest port to your manufacturer and organise the goods to be picked and dropped off to the port, loading products, monitoring where the products are and estimated arrival time. If you are new to importing, we recommend you start with a well-known logistics company such as DHL to start off. The price of logistics needs to be included in your budget before the final purchasing. Alternately you can use Bespoke Trading Pty Ltd, we are experienced in international logistics and we have a access to bulk shipping rates that our clients benefit from. We will handle the whole lot for you.

6. Custom clearance

Once the products get to the destination Country your Customs clearance documents will need to be prepared and submitted. The documents required will be based on your products. Documents you need to prepare include; CO (Country of Origin), International trade agreement certificate, etc. You will also require an Import Tax Calculation. Some goods may require quarantine inspection.

In summary, importing products from oversea can be very cost effective for your business if done correctly from the beginning. I hope this 6-step guide is helpful and provides you with a bit of an understanding of the import process. If you need further help or information on importing don’t hesitate to contact Bespoke Trading Pty Ltd. Our lovely team will assist you with every step and make importing worry free for you.