Are you planning on importing to China?
Importing from China isn't simple and is certifiably not a feasible alternative for everybody. There is a steep learning curve when importing from China or any other country. It is a phenomenon that we frequently observe when speaking with businesses, and many people struggle to comprehend the complexities involved. In fact, we frequently come across companies that have attempted to import without prior experience or knowledge, and the results have clearly been negative.
Risk in your business arises from a lack of understanding. You can avoid making mistakes if you take the time to research potential problems and learn how to avoid them.
Since 2004, JOG International has been assisting a global client base in product sourcing and supply chain services from China and we've seen a wide range of issues that many businesses face and, in most cases, are unable to resolve successfully. These complications are not always limited to small businesses. Importing products from China can cause a variety of issues if you lack proven experience in this area.
Problems arise when the process is not left in the capable hands of a strategic sourcing professional, allowing the entire international purchasing process to be successfully completed. As a result, you can avoid making those mistakes when wholesale from China or purchasing products manufactured by Chinese manufacturers. That’s the reason why JOG International created the list of mistakes gathered from our experience in serving multiple customers since 2004.
There is no comparison between one provider and another.
Most new importers who want to import from China begin their research on B2B sites like Alibaba. However, while such sites can be beneficial, you should never choose the first one that is recommended to you or that you come across. Instead, compare them and filter the best supplier for your company. Small and obvious differences can be overlooked in many cases, especially when individuals are sourcing for new products with which they have not previously worked.
When choosing suppliers, you must also think strategically. Suppliers who offer products or services that match – or exceed – your company's needs are the most effective. So, rather than simply paying for what suppliers want to sell you, it's best to be sure of your business needs and what you want to achieve by buying before looking for suppliers.
2. The urgent- order disorder
One of the most common mistakes people make when importing from China is the urgent order syndrome. This occurs when a person is so eager to get started that they rush through the process of locating a supplier, negotiating terms, and meticulously reviewing order details. Rush orders frequently result in poor quality control procedures and a reduction in production time so that your order can be delivered to you as soon as possible. Furthermore, due to rushed orders, a company may miss out on a good supplier who actually provides quality products simply because another poor supplier promises to meet delivery deadlines.
In many of these cases, suppliers will quote a shorter delivery time to close the sale and may still take the same amount of time; in other cases, they may skip processes to speed up production, which can lead to quality issues.
3. Sourcing without Sending Product Specification Documents
You must understand how Chinese manufacturers operate if you intend to import from China. They produce their goods in accordance with the specifications provided by the buyer.
It is critical that you describe your product's exact specifications in writing so that your supplier can create it and meet your expectations. If your specifications are not as clear as possible, there is a very good chance that you will not get what you pay for.
Failure to send the product specification documents may now result in poor quality products. Even if you have the most dependable supplier, if you do not provide clear product specifications, it will lead to misunderstanding.
4. Not Taking Landed Costs Into Account
This is a very common issue when first starting out importing, and it is caused by the nature of international trade. Businesses concentrate on the per-unit cost and ignore everything else.
The obvious costs, such as product cost, logistics, and inspection, are frequently used by new importers to calculate their costs. However, there are other unnoticed costs that affect a product's profit margins. These can be for unexpected contingencies such as the cost of random customs inspections at port of loading or port of destination or planned contingencies such as cost of expected returns.
If you fail to account for these costs, you could go from making a nice profit to losing money. That is why it is critical to breaking down total cost calculations in order to get a sense of how much you are likely to spend on a given order.
5. Orders are not being maximized
When importing from China, this is a difficult one for any importer to get used to. This is also important when determining your product's landed cost. The first question you should expect to be asked when requesting quotes from Chinese factories is about your quantities.
Before you place your first order, you must first understand the complexities of international shipping. When you place an order, it may pass through three or four hands before arriving at your warehouse. As a result, it is critical that you maximize orders and avoid wasting space.
Shipment containers should be filled to maximize your time and lower long-term landed costs. If you don't maximize orders, your costs will rise and your profit margins will shrink.
6. Working without the help of a sourcing partner
When starting a business, it is critical to seek advice and support from the appropriate experts. Failure to do so can expose your company to serious risks such as fraud, product quality issues, and legal liabilities.
JOG International Ltd. is well well-versed in all aspects of sourcing products from China. Working with a reputable product sourcing and supply chain services company can help you accelerate the selection of the right supplier, negotiate the best price, and shipping order. Because JOG International Ltd. is based in China, they can not only conduct a visual inspection of the manufacturer's facility but also ensure a fair deal while developing a strong relationship with the local supplier.
JOG International Ltd. can help keep communication lines open between you and your supplier by being involved in every step of production, ensuring your order stays on track.
In the event of a misunderstanding or conflict, JOG International Ltd. can also assist in covering any real-time delays while leading arbitration. They can also assist you in finding a more suitable replacement if you decide to part ways with the Chinese supplier.
Have you had any experiences as an importer where you wished you could go back in time and do things differently when you first started importing from China?
Share your thoughts and experiences below.
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