Disclaimer: This is not a comprehensive guide to importing from China. If you are truly serious about importing from China read this first.

Suppose you come up with a product idea or think you have market channels for certain products, and you want to find a supplier in China because of the low product development cost and low production cost there. If you Google the product name or concept, you will find tons of China suppliers/manufacturers. However, you still think you have not got one, because you want to find a capable and reliable one that would satisfy your specific needs and have a strong desire to do business with you. Many people get frustrated because they have been communicating with suppliers in China for months, but fail to move forward. The reason, most likely, is that they did not find the suitable one at the beginning. To successfully find a suitable China supplier, you need a strategy. This strategy will consist of awareness, knowledge and a good amount of homework. Below are some practical steps to find a suitable Chinese supplier for you.

Steps

1. Understand what you need. You need to first know what is available and have a way to categorize the information. Here are some categories to help you think about Chinese suppliers: manufacturer vs. 3rd-party supplier; Big corporation vs. small family-owned; 3rd-party supplier with in-house product development capability vs. 3rd-party supplier that just buys-in and sells-out; vertically integrated manufacturer vs. assembly-based manufacturer; etc. Properly categorizing the suppliers will help you understand what you need. For example, if you need to import products in a narrow range, you may choose a manufacturer other than a 3rd-party supplier. If you are a small business and need dedicated attention, you may want to develop a good relationship with a small family-owned business.
2. Do some preliminary Internet research to further develop your category system towards your specific needs. Create a data table to help you record the search result, so the job can be done more efficiently and effectively. The table should include columns like company name, contact information, business scale and scope, category check boxes (important), and notes.
3. Use search engines to search information related to your product name. The first 100 results would be the most relevant websites related to the product of your concern. You can also find your competitors’ information and develop a better sense of market segment and marketing channels.
4. Use popular business directory websites to obtain very structured information for Chinese suppliers. The directory websites are also excellent resource to obtain industrial knowledge.
5. Narrow down the the list of suppliers you want to work with to a manageable amount. At this stage, you may already know what your real needs are and what is available. Initiate contact with the suppliers you want to work with, and further develop relationships with them. Eventually, you will find the one. The process can be fun and a friendly experience.

Tips

• Analyzing the types of suppliers has strategic importance. It will help you to understand where you are, what kind of results to expect, and what are the things you need to take care of in the mutual cooperation. You may want to have an experienced person help you to analyze the information. In your strategy, you will also need to include the consideration of the future contracting and operation. You may seek advice from Chinese professionals who understand the Chinese mentality, culture and business practices. You may get the incorrect interpretation if you visit the supplier’s English website, or you could omit data that contains key information.
• Just because a site is ranked higher in Google search listing, this does not necessarily mean it is a more serious business. Some very good Chinese suppliers are not well-versed in having their website listed highly, while some other Internet guys can have their website listed very highly. Use your industrial judgment.
• Information comes from seemly insignificant data, for example, the email addresses may reveal useful information about Chinese suppliers. However, do not judge an address too quickly. You never know where good information can come from.
• Be aware that while the decision-maker may not speak any English, establishing good relationship (guanxi) with the top management is crucial for long-term success.
• Email is good for exchanging product specifications, catalogue and price list. To establish a deeper relationship, a phone call is 10 times better than email. A personal meeting is 100 times better than a phone call. Many people want to start a business, so you have to show you are more serious. As long as your contact person uses English, you can just go ahead and give that person a phone call. It does not matter how much you and that person can understand each other; you can always follow up with an email.
• Work with suppliers that have already exported their products to Europe or the US. Pay attention to the agent relationship. Many manufacturers may have their products exported to the US in good quantity through a third party supplier without an exclusive supply agreement. They may want to have direct channels to the US, and that might mean more business for you.
• Consider accessing the U.S. customs records for your supplier to get an independently verified list of their shipments to the U.S. This will tell you who their customers are, how loyal those customers are, as well as the volume capabilities of your factory. Import Genius offers these hard-to-find customs records at affordable rates.
• A visit to your supplier production site in China is the only reliable way to truly know its capabilities, to check that the data you have collected on the company is 100% correct, and that ISO & Quality principles are applied: Check the factory organization, its process flows, the quality of goods produced, the packaging, the workers’ training level, the overall working conditions, equipment maintenance, etc. This will give you an indication of how the company is managed. A face-to-face meeting with the supplier’s management team will also give you an idea of their experience and willingness to embark on your project. You will also be able to create a friendly relationship, which is crucial for your project!

Warnings

• If you send out inquiries you will get tons of replies from suppliers of all kinds. Some guys may continuously send you product info for years, and are able to pass through all sorts spam protection. You may not want to use your primary email account to register with these sites.
• Be careful with suppliers sub-contracting your order! When facing a backlog of deliveries, Chinese suppliers usually sub-contract them partially or in full, without taking the precaution to inform their clients! Most of the times this leads to sub-standard deliveries
• Beware of cheap electronic products sellers from China. Many online sellers of electronic products in China are fraudulent sellers. Unless you are buying in bulk and the products are shipped legally passing through custom checks, then most likely you are buying the product from retailer or wholesaler who do not have export license. This means there is no way to know whether the product is Real or Imitation unless you are an expert. Famous brands will not allow their supplier to sell below their normal selling cost, therefore the suppliers are either selling illegally or it is actually an imitation.

Article provided by wikiHow.

Disclaimer: This is not a comprehensive guide to importing from China. If you are truly serious about importing from China read this first.

If you want to import some products form China, one of the main points that you have to take into consideration is how to deal with your product freight. Even if you apply CIF terms, to avoid your lost and make maximum profit, you’d better know how to deal with shipping by yourself.

Steps

1. Decide whether you want to find a forwarder in your country or find a local forwarder in China.
2. .Obviously, finding a forwarder in your country is much easier, but the service charge in developed countries is much higher than in China.
3. .The lower labor cost, lower exchange rate and other factors make Chinese forwarders’ service charge much cheaper.
4. There are a lot of Chinese freight forwarders, but only a part of them are large, reliable and are able to offer high quality service.
5. Post a topic on an international business website.
6. You will definetly receive a lot of inquiries.
7. Carefully evaluate those forwarders.
8. Get in touch with the forwarders you have chosen.

Tips

• Generally speaking, the service charge of Chinese forwarders are much cheaper. So you don’t need to pay much attention to it.
• However, you should carefully evaluate the forwarder’s credit, reliablity, and ability.

Warnings

• Don’t assume the products freight of Chinese line as a matter of course. There are some special factors that are very different form other lines, such as ORC, SPS, THC,political rules etc.
• Believe that freight forwarders are professional, who know more than you about product freight.

Article provided by wikiHow.

Disclaimer: This is not a comprehensive guide to importing from China. If you are truly serious about importing from China read this first.
If you’re starting a retail business and looking for products to sell, you’ll need to find reliable wholesale suppliers. Sourcing wholesale products can be challenging, and there are certainly lots of pitfalls that business owners need to look out for. This serves as a guide with some helpful tips for finding the right wholesale product sources for your business.

Steps

1. Decide what you’re going to sell. There are many ways to go about this. You want to choose products that are going to sell well, but that the market isn’t completely flooded with. In that case, you would need to be ultra-competitive in order to get sales. Perhaps you make your own items to sell (like handmade jewelry or crafts), or you want to sell fashion accessories or clothing. To determine what kind of items are selling well, you’ll need to look at trends. If you’re opening up a physical store in your area, you’ll need to do some research into local trends. If online selling is your game, then your potential for sales will increase exponentially. You can use one or more of the many online tools available to check out selling trends. eBay Seller Tools, for instance, are very robust and easy to use and allow you see product trends over a period time.
2. Choose your supplier type. Depending on what kind of business you’re starting (online vs. brick and mortar), you’ll need to decide on the type of wholesale supplier you want to use. Here are the types to consider:
   • Manufacturers: Most times buying direct means a high minimum order. Usually manufacturers will have smaller retailers buy their product through one of their local distributors. You can find this information either on the manufacturer’s website or by contacting them directly.
   • Distributors: Usually distributors tend to carry a large variety of products in a certain category (say pet products) from several manufacturers. Their prices are slightly higher than buying direct, but minimum quantities are usually low and you have the convenience of purchasing products from different manufacturers on one purchase order.
   • Liquidators: If you are flexible about your product needs, this is a fantastic way to get a real break on price. Many times you can purchase a bulk load of product for up to 75% off the original wholesale price. Consider your purchases carefully because once a product is sold out it’s usually gone for good.
   • Importers: If you plan to sell specialty products from another country, you’ll likely have to go through an importer to get them.
   • Drop Shippers: If you have an online business, drop shipping is one of the best ways to supply products for your business without worrying about manufacturing processes or warehousing costs. Drop shippers are basically distributors in that they buy from manufacturers or other distributors, but they will ship orders directly to your customers for you, as orders are placed.
3. Where to look. The most common place to look is online. You can use general search engines like Google and Yahoo, or you can use wholesale-specific search engines, like goWholesale, Top Ten Wholesale, or Wholesale Central. There are also trade lead sites like Alibaba and Global Sources, which allow you find suppliers all over the world. However you can also check print publications (such as The Closeout News and Retailers Forum), print directories and attend trade shows (such as China Sourcing Fairsand Cantonfair where vendors get together to showcase and demonstrate their products).
4. Do your research. This cannot be stressed enough. There are many scams, fakes and just plain bad businesses to watch out for. There are a ton of resources available for free, so use them! The first place you can check is the supplier’s website. Check out all of their policies (returns, damages, backorders), and make sure they have their contact information and physical address posted on their site (not just a contact form – this is a big red flag). Your best source of information is the supplier themselves – call or email them and ask questions about their products, policies, and terms. You may even be able to ask them for customer references. Don’t forget to use online forums—they are a great place to get references and ask questions, but beware of members who are simply trying to self promote. You can also check your suppliers out through the Better Business Bureau, Hoover’s Online, and even the FBI.
5. Contact the vendor and place your order. Many vendors have online payment systems set up, but beware of suppliers who aren’t giving you true wholesale pricing. Real wholesale suppliers normally deal with businesses only (not the general public) and require tax IDs to do business. While requirements vary from state to state, here is a list of things that may be necessary for you to have before beginning to buy and sell products:
   • Local Business License: Typically, the city or county where you are operating your business will require that you have a local business license. Just call or visit your city hall to find out what the requirement is in your jurisdiction.
   • State Business License: Unless you are selling products such as alcohol or cigarettes, you probably won’t be required to have this license. You can find out your state’s requirements by simply calling your local government offices.
   • Sales Tax License:If you live in a state that collects sales tax, you will most likely need this license. Having it will allow you to legally charge sales tax to customers purchasing your items. By calling your State Franchise Tax Board you can find out how to get this license.
   • Federal License:This license really only applies to a very small portion of businesses that are selling products or services that are highly regulated by government agencies (i.e., if you are selling firearms or offering investment advice). If you think your business falls into that category, you can call your state government offices for more information. However, if your business is required to have this type of license, it may be best to hire an attorney to make sure you are complying with every law and have all the necessary licenses, permits and documentation.
   • Seller’s Permit (also referred to as a reseller’s permit or sales tax permit):This permit is typically required for businesses that are purchasing wholesale products for resale. Usually your State Franchise Tax Board is the agency that grants this permit. You can also set up payment terms and arrange credit with your suppliers, so make sure to ask them what kind of options they can offer you.
6. Develop and maintain a positive relationship with the wholesale supplier if all goes well so far. You can have more than one supplier, especially if you sell a wide range of products. This can be beneficial, because you’ll have more product options, possibly better prices, and lower risk in case something happens with one or more of your other suppliers.

Tips

• Find good suppliers. We found a free on line wholesale magazine called Retailers Forum that has great articles and wholesale merchandise suppliers. We found it at www.RetailersForum.com and have used it to buy for our store.

Article provided by wikiHow.

Disclaimer: This is not a comprehensive guide to importing from China. If you are truly serious about importing from China read this first.

You may be able to find a new business opportunity or profit growth by directly importing products from China. It can be complicated, but it can pay off in both immediate profit and long-term success. The process is becoming easier and easier thanks to the trend of globalization and advances in international trade technology.

Steps

1. Find the products you’re interested in. There are many sources to find your products. The internet is the easiest one to start with. There are many web listing services, you can register your username, post the products of your interest, and you will receive tons of products supply information and perhaps a price list.
2. Establish a relationship with potential suppliers. Select a few potential suppliers to communicate with. Narrow down the ones that you really want to work with. Discuss the price and trade relationship. Obtain product samples and review them (and their packaging, instructions, and any other collateral) for quality - you may have to pay a nominal fee. Discuss shipping and payment terms. Gather all necessary information to prepare for placing a trial order. When placing the purchase order, include as many details as you can think of.
3. Understand trade terms and use them. Before placing any order, you need to understand and confirm with your suppliers about shipment terms. Most popular are “fob” and “cif”, as well as payment terms. These are closely related to your landing cost calculation and risk assessment. You can consult an import management company and a freight forwarder for detail break-down on the costs and risks. You can also use an import management company to negotiate the trade terms.
4. Understand payment terms. Somewhat common is to pay 30% at time of order, and the remaining 70% when the product ships. The down payment gives the manufacturer/supplier funds necessary to begin production. These terms are negotiable.
5. Do your homework on compliance issues. You need to understand the relevant import compliance regulations beforehand. Besides US Customs and Border Protection, other government authorities like USDA, FDA, DOT, and ATF also regulate the importation. Pay particular attention when you import textile products from china. Go to the websites of these agencies to understand, register or download the forms. Compliance issues can be very complicated for some products. It is highly recommended to consult a good customs house broker before placing any order.
6. Select a forwarder and customs house broker. Go to your local international trade organization/association and customs office to find the list. Visit them, and select the one you like. For the first time importer, use more individualized services, because you need more attention than you would expect.
7. Place a trial order with a written purchase order if everything goes well. In the purchase order, besides typing out a detailed description of the products and trade terms, list all needed shipping documents.
8. Appoint an inspection company to check your goods on site in the factory, and give you a detailed report. This is usually done a few days before the expected shipment, so you can address any issues that would be raised. This will allow you to avoid receiving defective or non-conforming goods.
9. Track the transportation and customs clearance. Your forwarder and customs broker should take care of your transportation and customs clearance. However, you also need to track the process and assistance, such as providing additional products information and endorsing bill of landing. You need to issue a power of attorney to your broker and purchase customs bond for your importation.
10. Receive the products and keep the records. Now you can go to your next step to sell your products and make profit.

Tips

• Pay attention to the kind of business of your supplier; are they manufacturers, or 3rd party suppliers? Compare the advantage and disadvantage. Manufacturers may have a faster response in the process of product development, while 3rd-party suppliers have broader channels that can satisfy your other needs in the future. Working with 4th-party suppliers is not recommended.
• Establishing healthy personal relationship with the key employees of your supplier is very important when doing business with Chinese people. Learn the term guanxi (gwan-shee), which loosely means relationship, and keep in mind that saving face is very important for Chinese people.
• You need to have a good estimate of the landing cost before you make your order. Landing cost = cost of the goods fob + transport costs by forwarder + import duties (if any) + local transport costs + cost of service providers (inspections, agents, etc.). There may be many hidden costs and you can consult an import management company, but the best way to avoid bad surprises is by making a first order of a small quantity, and collect all costs and fine tune your landing cost estimate.
• Pay attention to import duties. Import duties depend on hs code of the goods you import, the countries of origin (China) and destination. If your Chinese supplier has some export experience, he shall know what is the HS code for your product, but do your homework and check the product description of the HS code corresponds to the product you import. Definitions are sometime vague. A wrong HS code may delay the custom clearance of your shipment.
• A letter of credit is commonly used in trade with China. Go to your bank to get detail formality and cost.
• Export agents in China are very commonly hired by Chinese exporters. Some of these export agents are also 3rd-party suppliers, others just provide export services.
• Neglecting compliance can be very costly. This may force you to pay expensive and unexpected customs duty, such as anti-dumping duty, as well as risk delaying your customs clearance. This will cost you expensive storage fees at a railway station or container yard.
• Visiting trade shows is a great way to see suppliers face-to-face.
• If solid wood packaging material is used, talk to your broker. Sometimes pallet packing is necessary to reduce the transportation cost during the process of loading and unloading. Talk to your forwarder for details. All wooden packaging for export must follow the nimp15 treated wood specifications. If your supplier is using wooden packaging, make sure he delivers a nimp15 certificate with other export documentation.

Sources and Citations

• How to Import from China A comprehensive guide that will step you through everything you need to know and avoid when importing from China.

Article provided by wikiHow, a wiki how-to manual.  All content on wikiHow can be shared under a Creative Commons license.

Disclaimer: This is not a comprehensive guide to importing from China. If you are truly serious about importing from China read this first.

China is indisputably the largest source of all our consumer electronics, producing more hi-tech products than any other country. Sellers know the power of being the one carrying new products, or even better are unique products. If you’re sourcing electronics direct from the source in China you will be ahead of the pack, and could even be the only person in your country selling certain models.

Steps

1. Choose a reliable worldwide courier for small or urgent shipments. Talk to forwarders in China or Hong Kong for assistance setting up larger shipments via air containers or sea freight.
2. Since many suppliers require large first orders in the range of thousands of items, and commitments to buy more, establish a relationship with a professional Chinese wholesaler.
   • An alternative is dropshipping. You can advertise the products you’ve found from Chinese suppliers, but only pay for them when you receive orders. The Chinese dropshipper then delivers straight to your customer. You keep the profit without the risk, and without the hassle of handling and packing goods.
3. Arrange a secure payment method that minimizes your risk, such as Paypal. Paypal offers total protection for buyers, and dealing with their approved online electronics wholesalers will give you extra peace of mind.

Tips

• You can rely on a Trading Company in China which can insure for you the supplier research, quality control and shipping of your goods (door to door).

Article provided by wikiHow.