In recent years, China has taken the top spot in the global production of consumer goods, with yoga products taking a large part.
For enterprising business owners, the opportunity to yoga products import can be lucrative.
Affordability is a key factor in importing products or manufacturing materials made in China, but research is necessary before embarking on this strategy.
Importing is a complex process that requires planning and relationship building.
Not having a plan leads to delays, missed deadlines, and lost profits.
Know Your Rights
The first step in becoming a commodity importer is to determine if you have the legal right to import a particular commodity.
The country of destination for the Chinese goods you export may impose guidelines for certain items and it is best to be aware of the restrictions that may apply.
China has its own set of regulations, restricting exports of goods such as counterfeit clothing, handbags and animal by-products.
Familiarize yourself with the import and export laws of China and your own country to avoid any legal problems.
The following are products that are generally banned from export in China and should be avoided:
Meat, poultry and animal by-products
seed
Fruits and vegetables
Cosmetics, medical products and pharmaceuticals
Any flammable fabric
Tobacco products
explosive
Precious metal
Any branded product, real or fake
Alcohol (without proper permission)
Vessel or motor vehicle of any kind (without proper licence)
Identify your product and find a supplier
One of the most critical parts of your business is finding an excellent product to resell.
Do some research to see what sells well, and if you have some knowledge of the item, even better.
That way, you can sell your product with confidence.
Check the profitability of your preferred product and make sure there is a market for it.
Calculate the cost of the purchase and what you can reasonably sell it for.
Be sure to do your due diligence to find out what can be legally imported.
Remember, many items have limitations; Be careful to avoid these.
Failure to do so may result in fines and loss of product. (Illegal products will be detained or destroyed).
Once you decide on a product, make a list of suppliers in China who can get that product for you.
Exporters often look for foreign partners through trade websites and online forums.
You can find purchasing catalogs online, or you can find professional purchasing companies.
For beginners with no experience dealing with Chinese exporters, purchasing companies may be a better choice.
This allows you to network with trusted sources and puts you in touch with vendors you might not be able to find on your own.
Keep in mind, however, that this will cost a broker’s fee of 3 to 15 percent of your purchase price
Examine the Product
When you find a supplier, ask them for product samples and information about the manufacturing facility.
They should be willing to provide this so you can get an idea of the quality of the product.
While price is important, you also want to ensure quality so that you can confidently stand behind your product.
Classification and Calculation
Now that you have a product, the next step is to classify it with a 10-digit tariff classification code.
With this, you can calculate import duties.
This figure can be added to the product price and shipping price to determine how much profit you will charge the customer.
It’s important to estimate this number — you probably won’t have an exact number until your first shipment arrives.
By staying as close to cost as possible, you will avoid losing customers or revenue.
Just be prepared to check the actual cost against the estimated cost after the first shipment… It is normal for costs to fluctuate due to unforeseen expenses
Placing an Order
Minimum orders and shipping agreements will vary from company to company.
Most companies in China will require an order of at least 10,000 pieces.
For Chinese exporters, a down payment of 30-50% is usually required to start production. The balance is due upon delivery.
You can choose one of two ways to ship your items.
Airmail is fast, but is better for small orders and is expensive.
Sea shipping is ideal for larger items or transportation that is more affordable.
You can ship using full container (FLC) or less than full container (LCL), sharing space with other cargo.
FLCS are cheaper if you have a large enough load.
If it is by sea, be sure to allow plenty of time to arrive.
Delays may occur due to customs holdup, unscheduled departure of ships, or any other reason.
Be aware, too, that it takes a day or two to get goods from the factory to the port, and another few days to go through regular customs formalities.
Prepare and wait for shipment
You can simplify the process by hiring a customs broker.
This professional will complete and file the necessary paperwork, estimate costs, browse regulations, and otherwise make the process run smoothly.
If you do this yourself, make sure you submit the import security file… Documents required for shipping.
You will also need to submit initial import documents.
These include:
Packing list
Certificate of origin
Bill of lading
Customs bond
Commercial invoice
When the order arrives, be prepared to pay import duties and arrange to pick up and ship your product.
Inspect the damage and contact the supplier to inform them that the goods have arrived.
While the initial process can be a little daunting, importing and selling Chinese products can be a lucrative business.
Be sure to do your homework and be prepared for some bumps along the way.
Take it one step at a time and don’t be afraid to engage with people and ask them questions.
You have to start somewhere, and with a little experience, your business can thrive
Making Payments to China
An important part of importing is paying suppliers the right amount.
Recently, the Chinese government has allowed its currency to appreciate.
This means that if you buy yuan and use those yuan to pay your suppliers in China, you will find yourself in a much stronger position to negotiate better deals.
You give Chinese suppliers a currency that is not only stronger, but also usable in their own country.
Buy yuan today and get some fantastic results in your next trade negotiation.
