You’re gonna be surprised at how easy it is to import goods from China to the USA. I’ve been importing for the past 15 years, and in this article, I’m gonna tell you exactly how to do it. By the end of this guide, you’ll know how to import from China and be one step closer to starting your own e-commerce business, being your own boss, and working your way toward financial freedom.
If you’re new to importing, let me guide you through the process. Follow these 10 easy steps, and you’ll be on your way to importing goods from China to the USA:
Step 1: Find a China Supplier
First, you need to find a China supplier, which could be a factory or a trading company. If you need more details on how to find one, refer to my video guide on how to find a China supplier.
Step 2: Negotiate and Work with Your Supplier
Once you’ve found a supplier, negotiate and work with them on all the details of your product and order. This includes discussing production, tooling and setup costs, samples, packaging details, minimum order quantities, FOB price, payment terms, lead times, quality specifications, and inspection requirements.
Step 3: Place Your Purchase Order (PO)
After finalizing the details, it’s time to place your first purchase order (PO). Send a formal order to your supplier using a simple PO template in PDF format. Request a pro forma invoice (PI) from the factory, which will provide payment instructions for a deposit based on your negotiated terms.
Note: Be cautious when wiring money and ensure you’ve done thorough due diligence to avoid scams.
Step 4: Find a Local Freight Forwarder
While your products are being manufactured or even earlier, find a local freight forwarder near you. It’s recommended to choose a local forwarder whenever possible, as it allows for personal visits and better due diligence. Google “China import freight forwarder near me” to find options. Alternatively, you can explore online platforms like Flexport (flexport.com) for a modern approach to importing and exporting.
Step 5: Set Up with Your Freight Forwarder
Work closely with your freight forwarder to get set up and ready for import. They will guide you through the setup process and ask questions to gather necessary information. Provide details about your manufacturing location, the port in China from which your goods will depart, the delivery destination, and whether your warehouse has loading docks. Your freight forwarder will also require information about the goods being imported to assign the correct HS or HTS code for import duties and tariffs.
Note: Depending on your import frequency, your freight forwarder may require a standing bond, which they will explain and help you with.
Step 6: Introduce Your Freight Forwarder to Your Supplier
Once you’re set up with your freight forwarder, introduce them to your contact at the China supplier. This establishes direct communication between them and the factory, facilitating a smooth process when your products are ready for shipping.
Step 7: Ensure Order Completion and Inspection
Push your factory to finish the order and conduct any necessary inspections to ensure product quality. Once you’re satisfied, give your freight forwarder the green light to proceed with the shipping process.
Step 8: Settle Payment with Your Supplier
Depending on your negotiated payment terms, settle the bill with your supplier. Since you likely paid a deposit, the remaining balance is often negotiated to be paid within 7 to 10 days after sailing and upon proof of the Bill of Lading (BL). Confirm with your freight forwarder that the product is on the ship and moving, and arrange to pay the balance accordingly.
Note: Payment terms can vary, so refer to your negotiated terms for guidance.
Step 9: Wait for Shipment Arrival
Now, the waiting game begins. Shipping times can vary, especially given current supply chain challenges. In normal times, a container usually takes 3 to 4 weeks to arrive at a US port. Your freight forwarder will keep you updated and arrange for the shipment to reach your final destination after clearing customs. Stay patient and maintain communication with your freight forwarder for updates.
Step 10: Arrange Delivery and Unloading
The last step is arranging the delivery of your goods to your final destination. The trucking company will usually contact you directly to arrange a delivery date. Keep in touch with your freight forwarder as they are your point of contact. Once the truck arrives, unload the container at your warehouse within the specified free time. Avoid delays to prevent extra fees.
Congratulations! You now know how to import goods from China to the US. As promised, you’re one step closer to starting your own e-commerce business, being your own boss, and working towards financial freedom. Remember to consider pricing your product for optimal profit margins. Watch my video on setting margins to grow a multi-million dollar brand to avoid common pricing mistakes.
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