How do I start importing from China? This is frequently the first question asked by people who wish to begin importing from China. However, I think this question can be misleading, and could qualify better as the second question one needs to ask when starting an importing business. Starting something that you really should not have tried doing in the first place, can land your story into one of business school’s case studies for bright future entrepreneurs to learn from.
The first question based on my years of experience and knowledge of the importing process, should be this:
How do you know if it’s feasible to import from China?
Starting an importing business without knowing if it is suited to your business operations or needs, is much like a good athlete getting involved in the wrong sport. So what is it that you should do to know if your business will do better with a decision to import from China?
As a rule of thumb, I suggest that a minimum order of $20,000 on a shipment is a safe bet. This means the additional costs of moving goods from a distant source, can be offset by the costs you save sourcing them from China at a lower cost. The volume of the goods you import means the amount saved per unit of product, more than makes up for the additional costs per unit incurred in transporting them.
If you believe that this is a tough climb for your business, don’t give up yet. I have another threshold that is a much lower hurdle to overcome. Six thousand dollars’ worth of goods is the minimum that can get you over the top. At this level, savings gained from the lower per unit costs are significant enough to justify importing from China. Generally, savings will be around 30 to 50 percent when your goods are sourced directly from a manufacturer.
After which, the next steps to take would be to compile detailed specifications of your goods, secure the right amount of funding you would need and look to have a prototype made. In my experience, prototypes can be made more efficiently if they are sourced locally, and not from China.
Finally, it may seem obvious but this is most of the time overlooked, goods are traveling much further when importing from China. Don’t forget that lead times will change. It is safe to assume that you will be accepting deliveries of your goods, at least three months after you finalize your order.
I hope this helps you in your decision to import from China or not. I invite you to visit our website: www.chinadirectsourcing.com.au. At ChinaDirect Sourcing Services, we don’t keep secrets. We delight in seeing entrepreneurs gain success in doing business with Australia’s largest trading partner, China. To prove this, just visit our website and get a free feasibility check! It’s that easy!
At ChinaDirect, we won’t let you jump blindly into importing. With our services, we don’t just ensure that you start importing from China, but more so import from China successfully!