China—commonly called “the factory of the world” is an industrially developed country, no matter which country or region you are in, you can always find products produced and processed in China. Chinese products are not only of good quality, moderate prices, but also stable in delivery time, and have a good reputation all over the world. As an importer, brand owner, distributor, or even a small shop, importing goods from China is a good choice.
But as someone who has never imported from China, the first time is always very tough. This article can give you an overview of the procurement and import process.
Step 1: Select Products to Import
By sourcing Chinese goods and selling them in your retail store, you can get a wider range of products at a lower cost. This can help you grow your business and improve your profits – but it’s important to choose your products wisely.
Here are a few things to consider when making your decision:
- Minimum order quantity (MOQ)
Chinese products are generally small profits but quick turnover, so the minimum order quantity will be set. - Customize or Universal
Customized products: This usually requires more MOQ, and the price will definitely be higher than regular products.
Branded products: Some branded products may have exclusive distributors in your area, and generally will not accept exports. - Import duties
Most products are subject to import duties (often called duties or duties), which are subject to these taxes in addition to federal and local sales and use taxes. Duty rates are organized in the Harmonized Tariff System (or HTS), which classifies imports by category and assigns a taxation percentage. The U.S. International Trade Commission hosts an interactive database that can help you find the HS (Harmonized System) code and estimate the duty rate for any product you’re considering. - Lows & Permisions
There is no law against selling them in your state or country. A small number of products require an import license from your country to be imported (special attention is required).
Step 2: Find Chinese Suppliers
Once you know which products you’re sourcing (or have an idea of the qualifications they need to meet), you’ll need to find a trade partner to supply them.
The majority of Chinese suppliers you’ll encounter are either factories or trading companies.
Supplier Type | Business Model | Pros | Cons |
---|---|---|---|
Trading Company | Does not primarily produce goods but rather sources a variety of products (from one or more factories) that they keep in stock | – Higher levels of quality control – Wide assortment of products – Lower minimum order quantities (MOQs) – Best for sourcing a variety of products – Customer service and sales support are usually robust | – Higher prices – Buyer has less control over design, materials, and production |
Factory | Primarily manufactures goods from raw materials | – Lower prices – Buyer has more control over design, materials, and production – Best for sourcing custom products | – Smaller assortment of products – Higher minimum order quantities (MOQs) |
The difference between these two models matters most for importers seeking a custom product and those looking to buy a range of goods for their inventory. For solar products, trading company like TrueWay Tec is a really good choice. We can help you gather all solar related products togerther and share latest products.
Aside from those details, the process of importing items from your Chinese supplier will be very similar, regardless of their business model. So if the offer is right, don’t get too hung up on whether the supplier is a factory or trading company.
Step 3: Purchase Products
At this point, you need to clarify all order information. Includes all of the following:
- Product Information
Including model, size, quantity, packaging, brand, etc. - Payment Method
- Transportation
Order fulfillment time, shipping method, shipping location, etc
Step 4: Arrange Cargo Transport
Depending on the shipping terms of your order, you may need to facilitate inland transport, including export customs clearance and loading. But more often than not, orders placed with new suppliers will be on FOB (as explained above)—in which case these steps will be handled by the supplier.
Freight shipping is also dependent on Incoterms, but for most orders, it’s up to the buyer to book and manage it. You can ask your supplier to arrange freight transportation for you and simply bill you for it, but this leaves you with minimal control over the cost, speed, and security of the shipment (and they may tack on a surcharge for their assistance).
Here’s a breakdown of your options for cargo shipping methods:
Transport Method | Description | Average cost | Weight guidelines | Average door-to-door time(includes customs and inland transportation) |
---|---|---|---|---|
Air Courier (UPS/DHL/FedEx, etc) | Door to door (Usually for sample, Courier helps customs) | $10+/kg | ≤150 lbs(68 kg) | 2–5 days |
Air Freight | To airport (Need to do customs at airport) | $5–$7+/kg | 200–500 lbs(90–225 kg) | 4–11 days |
Sea Freight | To sea port (Need to do customs at seaport) | < $1/kg | 500+ lbs(225 kg) | 22–50 days 50-80 days(South America, Africa, etc) |
If shipping via Air Courier, we will provide a trackable tracking number so that you can track the progress of the shipment in real time on the website. After shipping, you just have to wait for the goods to arrive and clear customs.
Bottom Line
Importing goods from China is a great way to increase profitability while drawing from a wide and diverse pool of products. Despite the cost of tariffs, transport, and customs, the low prices you’ll get on Chinese imports makes the procurement process more than worthwhile.
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