Gone are the days when China was only considered as the land of emperors and ancient civilizations but now it has become a giant economy after overtaking Japan. It holds the second position after US through manufacturing products of different ranges and quality to serve the people according to their needs and requirement. It seems to grow 10-15% every year and if it continues like that only then China would be the world’s largest economic giant soon.

There are several reasons which influence the opinion of people regarding Importing from china such as Chinese products can easily compete with the products manufactured in other countries and that too at affordable rates. One of the most popular products which have taken the Chinese market to the great heights are Toys. It is a misconception in the mind of people that these products are not so qualitative but the manufacturers have clarified it that most of the importers mention the standard and quality they want for their customers so they can not be blamed for anything.

There are a large number of businessmen who have imported products from China which are manufactured from the best quality material and under strict standards. You might be wondering why Chinese products are quite cheaper than others so you must know that there is a specific reason behind it that cost of living in China is lower. Moreover, it has a population of over 1.5 billion so workers do not ask for high wages like the workers of other countries and it reduces the manufacturing cost of the products thereon that’s why importers from various countries can easily makes money through high margin of profit by importing from china. Previously, Chinese government imposed certain restricts on Chinese factories for international trading but in 2001 it has joined hands with World Trade Organization which helps this country in trading with international buyers and sellers.

If you are also interested in Importing from china then you must go ahead and make a profitable deal after buying Chinese products either for personal usage or for selling it to the prospective customers.

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.