Checklists for Sourcing Products from China
China is so called “the world’s factory”, lots of successful stories tell you that there are tremendous advantages to source products from China. However, it’s not that simple, before you start, it’s recommended for you to follow good practices. In following, we provide some good checklists I learn from my long-time experience.
1. Check whether you have the rights to import
It is vital to check whether you have the legal rights to import certain goods with not only ease but also without incurring excess expenses (such as anti-dumping duties). You should confirm whether you need a license, as in many countries, and acquire one before buying the goods.
2. Know the goods you want to import
This is the basis of importing goods from China. Identifying the ideal goods to import have a significantly great impact in both the import process and your business plan. You should carry out a research on the specific products by taking on reviews and other statistical sources so as to be sure about what you are going to import.
3. Do a calculation of the landed cost
Before you can order the goods, it is important to classify the goods and approximate the total cost to your premises. The landed cost will include the EXW cost of the product, the transportation fee, customs duties, the taxes, sales cost and other expenses.
4. Find right suppliers
There are lots of ways to find suppliers from China, such as trade shows, B2B websites (such as Alibaba, Global Sources, Made-in-China), Google, business forums, and so on. In fact, it’s not difficult to find dozens of suppliers, but it’s tricky to verify the suppliers and select the right one.
If you are not sure about how to find the right suppliers, it’s recommended for you to hire a trustworthy sourcing company for help.
5. Check the samples
Before you commit to an order, you should get samples and check the quality, usability, artistic and salability, not only for product itself, but also for packaging.
Also, you should make sure the samples are in compliance with legal/standards. If you are not sure, you may consult a testing lab.
6. Place your order
After you confirm the samples, you are ready to place an order. You should make sure to give detailed information about the product you want, packaging, marking, required ready date, shipment terms, payment terms and as more details as you need.
7. Organize cargo transportation
Shipment could be costly and troublesome. It’s recommended to ask an FOB price from China suppliers, and then hire a forwarder based in your own country to calculate the landed cost, and arrange cargo transportation, including sea or air shipment, customs clearance, payment of duties on behalf of you, and transportation to your premises.
If you follow the checklists properly, you can start to import the goods you need from China with much ease.