Import From China Business
A practical guide for starting a small business
2010-
Import from China
Sell on eBay
Sandra Kell
Ontario, Canada
Baby Products
Profit This Year: $10,400
“I started with $1,000 and began importing baby products from China. I sell them on eBay, Facebook and in my local stores. After 8 months, I am earning $400 a week. I finally quit my day job!”
Learn How
China Manufacturing Companies
Where Did You Get That?
China Manufacturing Companies which supply goods to international markets are the life blood of the import from China business. For the small business owner getting into the import from China business, the common question is how do I go about getting that “Made In China” widget from China? You will have to systematically research, evaluate and select your list of potential China Manufacturing Companies.
Finding China Manufacturing Companies Leads for Import Products
Presourcing
Presourcing is the process of getting agencies involved early and giving them the responsibility of designing an item.
- Draft a Sourcing Letter -
Begin by drafting what are your specific objectives, what you are looking for, and when would you like to receive it by. Include pictures, drawings, specifications, and samples to overcome any language and culture barriers. Write a proposal letter in English and then have it professionally translated into Mandarin. Use this to introduce yourself when you meet a potential Chinese supplier. - Find Information in Your Own Country -
Use the Internet and Chinese Trade Associations in many major cities to find potential local people who can connect you with someone in China. - The Telephone Introduction -
Use your local contact to make connection with the other party in China. If your local person is also fluent in Chinese as well as English, that's a bonus. If your North American friend only speaks a little Chinese, then you'll likely need to hire a translator. You may need to conduct a conference call with everyone involved.
Preselective Sourcing
This method utilizes a leads list of prospect suppliers that has been preselected based on its capabilities and cost. Typically, you can generate such a list from:
- Networking -
Try to talk to knowledgeable people who have successfully imported from China. If they have imported cameras, and you are interested in computers, you may actually end up using the same supplier. You should always talk to your potential competition. The worst thing that can happen is they won't tell you anything. If the market is big, and there is plenty of room for more than one competitor, you'll be surprised how helpful small business importers can be. - Backward Search -
You buy the product and take it apart to look for clues. Check out the packaging, the product parts, and specification sheets to give you an idea to the origin of the China exporter. - Research -
You can use public sources to identify the China exporter and preselect based on years in business, public reporting of revenue and employee sizes to create a prospect supplier's list. - The most effective preselective sourcing method is still the old fashion networking.
This is particularly effective if you can participate in an American-
Chinese or Canadian- Chinese Business Association.
Nonselective Sourcing Method
This is a mass approach similar to cold calling. You'll literally develop a list based on the yellow pages, association directories, government sources etc. Apart from the name and address, you'll likely not have much more information.
- Canton Fair (China Import & Export Fair)
This is the ultimate trade show which has been running since 1957 and takes place twice a year in the Spring and Autumn in Guangzhou (Canton), China.
In the past, there have been over 200,000 buyers from over 200 countries in attendance. So you will not be alone. You will need to hire translation services which is available at the show. This huge event will allow you to visit the booths and make contacts with potential suppliers. You can create your prospects list accordingly.
The top 3 categories represented have been machinery and electronic products, light industry products and textiles and garments. If you are serious about getting into the importing from China, this show is a must.
www.cantonfair.org.cn - Working the Chinese Telephone Book -
You'll need to hire a translation service to comb through the Chinese phone books for prospects. Start with a city that has a large number of the potential suppliers. - The Internet
The WAND business to business directory offers a select number of suppliers from China.
http://www.wand.com - Hong Kong Trade Development Council (HKTDC) -
This is the global marketing arm for Hong Kong- based manufacturers, traders and service providers. Their website helps to connect over 120,000 suppliers verified by renowned authentication companies. hktdc.com attracts over 900,000 worldwide buyers to source products and services provided by China, Hong Kong, and Asian suppliers since its conception in 1966.
http://www.hktdc.com/
Selecting the Source -
- Can the supplier produce and deliver the quantity of goods to you according to your specifications within the time frame that you expect and the price that you are willing to pay? Beware of over promise and under deliver problem. Some suppliers see the American buying as a golden ticket to riches. They will say yes to everything but in the end they cannot deliver.
- Do their plants look clean and organized? How do they test for quality if they do at all? What is their price? What actions do they have in place to ensure that they are a low cost producer? How is their attitude? Do they listen politely but don't hear any of your suggestions or requests? Do they seem trustworthy? Can they give you references from other buyers?
- Be careful of ISO certification. Some suppliers will do anything to get certified but they do nothing to maintain the standards.
- As a Small Business owner starting out in importing from China, you don't want to begin with a bad supplier relationship. Unlike your own country where you can take a partner to court for not living up to a business contract, you just don't want to go down that path in a complex international legal environment.
