Jose Wells9
Member
21 messages
joined May 2009
I have been working with China for three years now, and I wanted to share everything I have learned during this time:
1. NEVER be just an online shopper!!! Seriously, if you intend to do business—whether you are looking at apparel, motorcycles, electronics, or anything else—put in the effort and invest a little bit of capital to actually travel to China and see exactly what you are buying with your own eyes . You need to ensure that the company isn't some fly-by-night operation so you don't end up throwing your money down the drain or being left completely blindsided by terrible quality. This is truly the most critical step. It is only right that importers make an effort to ensure the goods they bring in aren't absolute junk; you shouldn't just focus on squeezing out the maximum profit. You also need to consider that you won't have headaches with the products later and that you can maintain a clean reputation with your customers.
Similarly, if you are already sourcing goods from China, at least buy the highest quality available from major, reputable manufacturers. Even though many people might find those names unfamiliar, Google and Yahoo can be incredibly helpful tools for research. It really isn't worth buying cheap, low-grade items just to flip them here for a massive markup. Instead, buy the premium product and offer a fair price. Value isn't solely about the bottom line; quality matters immensely. A great resource here can be the Chinese Embassy; feel free to send them an inquiry, and they can provide their perspective on the companies you are considering working with.
2. If you are purchasing products that come with a warranty, make sure you negotiate those terms very carefully beforehand. This is especially vital for technical equipment, engines, and similar items, because a warranty in China is a vastly different concept than a warranty in the United States. Furthermore, double-check your purchase prices; in many cases, you will find they are trying to sell to you at the same retail prices they charge locally in China. If you are a skilled negotiator, you can secure a much better deal. That is why it is absolutely crucial to negotiate directly with the MANUFACTURERS and avoid any middlemen or third parties. Dealing with intermediaries often leads to a "broken telephone" situation where information gets lost. Always, always insist on dealing directly with the manufacturer!!!
This is also extremely important regarding import documentation, such as invoices, price lists, and certificates, because U.S. Customs will not accept pricing provided by a middleman. Also, try to ensure your invoices are marked DDU for whatever specific U.S. city or port you are using—be it Los Angeles, New York, or wherever—as this can save you a significant amount of money. Additionally, make sure the invoice includes all possible technical specifications of the goods so you don't run into any bureaucratic nightmares later.
3. Verify whether China actually permits those specific companies to export their products to other countries. Check for all necessary certificates, permits, and various other requirements mandated by U.S. law for importing goods.
4. Logistics and transport organization: you will frequently encounter situations where LCL (Less than Container Load) shipping ends up being five times more expensive than simply booking a 20-foot container. Honestly, it is much better to just book a container and fill it up; even if you have to pack in five extra items, it pays off much better than messing around with consolidated shipping that costs you five times as much. Plus, you won't be stuck wondering if your cargo is sitting idle for ten days in a warehouse in Long Beach or Savannah.
One more thing regarding freight: look into AIR FREIGHT, specifically airport-to-airport service. It is not the same as using DHL or FedEx, and the rates are significantly cheaper. While the goods won't arrive in 3 or 4 days, they usually show up within 7 to 10 days, which is perfectly acceptable. In fact, there have been several times where this method turned out to be even cheaper than ocean freight.
5. Freight forwarders—well, that is a whole topic in itself. Every company has its pros and cons, but I simply cannot understand how some firms can charge 50-60% more for delivery than others. Take my last import, for example: for quotes on 40ft HQ containers, I received offers of $2300, $1650, $700, and $530!!! It should be pretty obvious which one I chose, and everything arrived safely in the States without a single issue. To be honest, the Chinese suppliers were a bit frustrated because they ended up paying $100 for loading instead of the expected $50, but I couldn't care less about that. At the end of the day, be persistent and haggle over every little detail as much as you possibly can.
