You may be able to find a new business occasions or profit growth by directly importing baby products from China. It can be difficult, but it can pay off in both instant profit,easy to make many and long-term success. The process is becoming easier and easier thanks to the trend of globalization and advances in international trade technology.

1. Find the products you’re interested in
2. Establish a relationship with potential suppliers.
3. Narrow down to the supplier that you really want to work with
4. Understand trade terms and use them.
5. Understand payment terms. Somewhat common is to pay 30% at time of order, and the remaining 70% when the product ships. The down payment gives the manufacturer/supplier funds necessary to begin production.
6. As the Importer of record, you (not the supplier) are legally responsible for making sure that goods brought into the country meet all national regulatory requirements.
7. Select a forwarder and customs house broker.
8. Place a trial order with a written purchase order if everything goes well.
9. Appoint an inspection company to check your goods on site in Chinese factories, and give you a detailed report.
10. Track the transportation and customs clearance. Your forwarder and customs broker should take care of your transportation and customs clearance. However, you also need to track the process and assistance, such as providing additional products information and endorsing bill of landing. You need to issue a power of attorney to your broker and purchase customs bond for your importation.
11. Receive the products and keep the records. Now you can go to your next step to sell your products and make profit.
12. Do not order counterfeit or branded imported products, unless the supplier can prove they are an authorized reseller. You can contact the brand owner to confirm the supplier is an authorized reseller.

There is no question that doing business in the modern world is a truly global concern. Your customers, suppliers and, depending on your industry, even your employees, may well be based in a different country.

Recent years have witnessed China‘s rise as a major economic power on the world stage. China‘s economy has posted consecutive years of economic growth-often in excess of 8% per year-an unimaginable growth record for China‘s competitors in the West. China‘s continued rise has seen it become a hot destination in terms of doing business, whether with regard to imports or exports. However, for domestic companies look to import Chinese goods, what are some of the key factors to take into account?

The first thing to bear in mind is that China’s export mechanisms are somewhat different to those in the West, so it is not simply a matter of just transposing basic practice from one to the other. Companies dealing with imports will also face issues such as import duties, various customs compliance regulations and the issue of international logistics.

Examine the nuances of the various companies you are dealing with, especially with regards to the exact nature of the business they are engaged in. For example, are they a third-party import supplier or an actual manufacturer? Each variant will have its own associated advantages and disadvantages. Manufacturers, for example, will generally respond more quickly to product requests and production arrangements, whereas import suppliers are likely to have more connections and channels, thereby offering you greater diversity of choice. Also, entities such as professional exporters in China can be very helpful in terms of dealing with such intricacies as customs compliance (which can be a minefield in a foreign market), import duties and logistics.

When discussing terms and researching such companies, it is important to remember certain cultural pointers that should be observed in order to avoid misunderstandings, smooth through any potential problems and, perhaps most importantly when forging any business relationship, establish goodwill.

In China, doing business is forged on relationships, or “guangxi”, so remember to forge good, close relationships with the key members of staff in the companies you deal with.

Remember also that China is very much a “face” culture, so be sure to keep your temper as even as possible when talking to Chinese manufacturers or suppliers while meeting about importing from china-especially in the event of any problems. Losing your temper will result in “losing face”, and will adversely affect your overall relationship.

Be sure also to get a good estimate of the Landing Cost before placing your order, and take into account also that there may also be certain hidden import costs in the chain, so get advice before ordering. Pay close attention also to import duties and the terms of payment, as any misunderstandings can lead to delays on either side that can have knock-on effects not only on the business side, but also on future dealings and goodwill with the company involved. Try to get information in writing, if possible, as certain agreements may initially enthusiastic (and vague), as saying “yes” when asked to do something is seen as polite in Chinese culture. Do not be afraid to gently probe to ascertain whether or not something, a delivery date, for instance, is really possible, as any vagaries can cause real problems later down the chain.

More and more companies are buying their products and importing from China. This month we spent weeks interviewing SMEs who have been successful in buying from China and present in this article tips and secrets to buying from China.

Sources goods from China First establish who the supplier is! It seems obvious but there are many routes to buying products in China through agents, trading companies, wholesalers and factories or any number of “back door” sources. Agents operate on a commission basis whilst trading companies include costs in the quoted price, most wholesalers and factories do not have export approvals so have to operate through a registered agent or trading company to export to you at all.

Many SMEs tell us that people that they meet in China who are not the owner of the business has shown interest in either setting up on their own by “stealing” his employer’s customers and product designs or simply doing their own deals on the side through friends, contacts or family. On the internet there are many scams and dubious “traders”. But accepting that you are lucky or diligent enough to find a legitimate agent/trading company, you will find that Chinese business ethics are very different. Most Chinese believe that “cheating” is the name of the game for people in business.

In street purchases in China you may well think that you have done well to reduce the price first quoted by 20% or more (often the normal negotiating “add-on” is >50% in street markets) this figure can be very much higher if you do not speak Mandarin. Whilst the situation may be quite a bit different for more formal purchasing the principals are much the same. Then there are all the “extras” like packing materials, printing and minor changes, inland costs etc which can be used to hike the price back up, or a possibly a worse scenario is the practice of cutting corners on materials and quality to regain the lost margin.

Having a good feel for the all inclusive price from a number of suppliers for the specif product you want gives you the purchasing power to negotiate and buy the right product from your selected supplier at a reasonable price hopefully without any “extras”.

Payment terms are more often than not 30% down payment with the residue on completion of manufacture. But beware the requests for payment in full with a money order through Western Union, these payments are to individuals and generally are not traceable once made.

Are the prices quoted ex-works, FOB, CIF, delivered warehouse – what has been agreed and who pays and at what stage? Who raises the shipping documents, packing list and commercial invoice and will these documents enable you to clear the goods at the port of destination, assuming the goods exist in the first place never mind whether they are of merchantable quality when they arrive?

Developing long term relationships with a few suppliers who you know well pays dividends etc that will help you while importing from china. Getting to this point with a new supplier needs extreme caution no matter what their pedigree until a personal relationship has developed but even then be careful. The supplier’s staff may also be offering your products to your customers or competitors at lower prices if they can find out who they are.