which will allow for the highest mark-up. Some guidelines to follow when selecting your product include:
Choose a product you love.
Passion will keep you motivated and it is contagious, so others will fall in love with your product more readily, when they can see your passion for it.
Think about the shipping costs.
China Products, which can be shipped in large quantities, can be far less expensive than those that cannot. Think carefully about the size of your product and how much you can fit into one shipment.
Consider the uniqueness of the item.
When producing a product that is not very unique, you may run the risk of having someone else begin mass producing it.
Make a list of Chinese exporters, or suppliers, who can provide you with your product. You can find suppliers using online outsourcing directories or professional sourcing companies. Some good
places such as www.ciqem.com,alibaba,madeinchina may be your sources.
Contact each supplier on your list.
Once you have a list of exporters, you can begin asking questions in order to narrow it down to the supplier who is right for you. Some things you will want to
ask each exporter to provide you with include:
Client references.
A reputable supplier should be able to provide you with client testimonials and references. Once they do, check them!
Business licensing information. You want to be sure that any company you do business with is properly licensed and in compliance with all applicable trade laws in order to avoid future legal
problems which may affect your business.
Manufacturing and staffing information. Be sure you understand the exporter’s relationship to the manufacturer, i.e. do they manufacture the product themselves, and if not, do they get paid by
the manufacturer as well, or do they only work for you?
The name and location of the factory producing the product. If an exporter refuses to provide you with the name and address of the factory where the product is manufactured, they may not be a
reputable supplier.
Information regarding the experience of the factory in producing your particular product. Cost is not the only the consideration when choosing a supplier, quality may be just as important, and
the manufacturer’s experience can be a good indication of the quality of work.
Samples of the product.
Unless you will be manufacturing your own new product, the supplier should be able to provide you with samples of the product so that you can get a better idea of the
quality and know ahead of time exactly what you are paying for.
Negotiate a deal with your favorite supplier. Remember that business interactions with Chinese exporters are governed by Chinese culture and customs, and different negotiation skills and tactics
may be required. Some things to keep in mind when negotiating with Chinese suppliers include:
The focus is on relationships.
Chinese do not do business with companies, they do business with people, and each business deal creates a new relationship with the other party. Chinese exporters
are therefore not likely to jump into a deal until they have had the opportunity to get to know you a little.
Reliance is on moral influence, not legal practice. Chinese executives tend to rely more on a party’s moral obligation, rather than its legal one. This does not mean you should ignore the wise
business practice of having a signed contract, but you should let your desire to get a signature on a contract take a back seat to building a trusting relationship where each party will feel
morally obligated to perform, even if they did not have a signed contract.
Hierarchy is important.
Shaking the hand of a low ranking executive first or calling a high-ranking executive by his first name can jeopardize interpersonal relationships and affect a Chinese
executive’s willingness to negotiate. Pay close attention to how executives address each other and follow their lead.
Locate U.S. resellers.
Locating resellers for a product can be a difficult and time-consuming process, but you can increase your odds of success and decrease the amount of time you spend by following some simple steps.
Contact each potential reseller by telephone and introduce yourself and your company to the decision maker. Ask if they would like to receive some information via e-mail and verify their email
address.
Send a brief e-mail with a professionally designed attachment, which describes your company and your product.
Follow up with a phone call a few days after the e-mail and ask for a meeting. At the meeting, sell your product and get a signed contract so you can begin ordering product.
Begin placing your orders.
Each company will have a minimum order amount and a basic shipping agreement. The most common types of shipping arrangement for Chinese exports to the U.S. include:
Express Mail Service (“EMS”).
EMS is a worldwide shipping service that works with the United States Post Office (“USPS”) to deliver goods from various countries to the United States.
DHL International (“DHL”).
DHL is a global shipping company providing shipping services commonly used by Chinese suppliers to ship goods to the Unites States.
Free On Board (“FOB”).
FOB is used for freight shipping, in conjunction with a port of loading. This means that the seller is responsible for paying transportation costs of the goods to the
indicated port of loading, or shipment, as well as loading costs. The buyer is then responsible for paying the costs of transport, insurance, unloading, and transportation from the arrival port. In
this type of agreement the buyer owns the goods as soon as they leave the port of shipping.
Get your product through U.S. Customs and Border Protection (“CBP”) and pay your duties.
For help with this, contact a service port of entry near you. Ask to speak with a CBP import specialist
assigned to the product you are importing. Import specialists can provide you with product specific requirements, advisory duty rates, answer your questions about filing an entry, and can assist
you with preparing and filing the required paperwork. You can locate a port of entry and its contact information by visiting the CBP’s website at http://cbp.gov/xp/cgov/toolbox/contacts/ports/.
Arrange for pick-up and transport.
Contact a commercial cargo company to arrange to have your shipment picked up at the port of entry and shipped to your warehouse or local resellers. Cargo
companies can be located by consulting your local yellow pages or favorite online phone book.
Make sure you or the company you are buying the product from files the ISF (Import Security filing) If should be done 24 hours before shipment sets sail. If this is not done by either you, your
broker or the shipper, you may have to pay a $5,000 fine.