Feasible To Import From China?
Even though China is a cheap option with great savings to be had, you still need to consider the feasiblility of
the project you wish to undertake.
Things to consider:
- Project Schedule
- Do you know what you want?
- Will you save money Importing from China?
- How many do you want?
Project ScheduleNot all manufactories will have excess stock; if they do, it may not be what you are after, so they will need to produce it. Either way, make sure you allocate 4 months to start Importing from China. Have a new or complex product? then you will want to up that to 4 months or more.
Do you know what you want?Ensure you know the product you want, this includes but not limited to dimensions, material, colour, functionality and you will need photos, drawings or a means to show the manufacturer what they will need to produce, at what quality and sure that no interpretations into how it should be is needed by the manufacturer.
Will you save money Importing from China?Are the cost savings of sourcing direct from the factory in China exceed the fixed costs like freight, customs, duties and your investment in professional assistance for importing.
For example, if you only wanted $5,000 worth of goods, it may be cheaper and less time consuming for you to buy this product locally, as the on-costs of international trade can add up to this amount alone.
Importing is only feasible after you require a certain volume, or value level. As a rule of thumb, if your order is a minimum of US$20,000 to purchase from a factory/importer/wholesaler/retailer in a Western country, it should be feasible for you to purchase directly from the manufacturer in China.
Firstly, find out what it costs to buy your product locally. Getting a local quote may also help you understand what materials, labour and production charges are involved.
This can help you when getting quotes from China, as you may now have the ability to specify materials in more detail, and have a better understanding of the manufacturing process.
And don't forget to get quotes on packaging, if applicable.
When buying direct from the manufacturer, it helps to have a good understanding of your product manufacturing process, and be able to use manufacturing terminology.
For example, people are sometimes unaware that tooling or die charges may apply.
How many do you want?Chinese Manufacturers have minimal order qualities (MOQ), this is the minimal number that can be ordered and is due to factors such as production setup, costs and wastage. The minimal order quality will also be specific to a manufacturer and product, so do not expect the same minimal order quality across the board.
Feasibility CheckYou can do a feasibility check by getting container quotes, Duties, and possible wharf charges for your product, or simply do our complimentary Feasibility Check here, and find out if it's feasible or not.
|Next: What specs do I give potential Chinese suppliers?|