Importing goods from China and selling them in the U.S. or in foreign countries has been a full blooming product sourcing alternative for retailers, from the small mom and pop shop to the giants such as Wal-Mart. The relatively cheap labor and manufacturing charges in China may result in a much greater profit margin than what a retailer could get if he sourced his goods in the U.S. (wholesale as well as directly from the manufacturer).
Even so, merchants should be aware that the lesser the production costs of your goods, the higher your risks. This goes along with the old saying "you receive what you pay for." Chinese manufacturers are recognized to settle for rock-bottom prices for their products and services, but what they won't let you know is that quality will need to be compromised, in the form of inferior quality of raw materials and/or level of craftsmanship. There is a trade-off between lowering your costs anyway, and the overall risks you are taking. Determining the best medium is the most basic concern in the import export business.
Maybe you've been aware of negative and positive aspects about the import export business, such as being able to get products manufactured at 1/10th the price as in the U.S.; top quality products like bags which could easily be marked up to 500% in the U.S.; and top notch factories with quality control comparable to U.S. factories; and also evaporating containers, stolen intellectual property, defective items. The adverse occurrences could be avoided altogether by doing your research: mentoring under a professional importer; consuming books and trade publications on the subject; taking classes in your local community university; and speaking with an import export business advisor that has experience on how to import goods from China.
The primary benefits of outsourcing your goods to China are making costs are cheaper as compared to in the USA; Chinese companies are often very creative and adaptive; and if you're successful, you can eventually own your own factory, providing you with the cheapest production costs possible.
The primary issues of getting your items sourced in China are that lifestyle, language and business practices are very different from those in the U.S. and are not simple to understand and implement; in order to attain the price point you wish,
You could be needed to order a higher volume of merchandise than you would from a US dealer; not to mention, importing as well as any other new business, needs a good, well thought out business plan.
Your ultimate decision on whether or not to source your goods in China has to take into consideration these four points: (1) The actual charges of importing your products ; (2) A precise monthly sales projection; (3) Net income forecasts; and (4) Profit
Margin Assessment; and (5) if your business can handle the time lags involved in importing, as you may get out of stock for a few items that your clients demand.
If you estimate that the overall savings realized if you import goods from china are 35-45%, then it is truly worth going for it. If you are not getting more than 30% savings compared to your current costs, first get back to your current provider(s) or supplier(s) and see if you're able to negotiate a better offer. You will save time, energy and money. You may always reconsider importing later. Bottom line: if you calculate that the savings from outsourcing your items to China absolutely justifies the costs, the fact remains that if you do not practice it, your competitors will (or is already doing it) and will ultimately dominate your market. In most cases, the overall savings are worth going for it. If you find this to be the case, make importing from China a premier goal.
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