Importing goods from China can be a lucrative business, but it can also be riddled with risks. As an entrepreneur, it’s important to know the common mistakes to avoid to ensure a smooth and cost-effective importing process. In this article, we’ll explore the five most common mistakes and how to avoid them.
1. Assuming That Shipping by Sea is Always Cheaper
One of the biggest mistakes that new importers make is assuming that shipping by sea is always the cheapest option. While it’s true that the cost per kilogram is lower, it’s not always the case for smaller quantities. It’s important to research and compare rates to determine the best option for your specific needs.
To avoid this mistake, consider the size and weight of your shipment, as well as the urgency of delivery. For smaller shipments or time-sensitive orders, shipping by air may be a better option.
2. Not Using the Metric System When Working with Chinese Suppliers
When working with Chinese suppliers, it’s crucial to use the metric system, which is kilograms and centimeters instead of pounds and inches, respectively. This is because Chinese suppliers are more familiar with the metric system and may have difficulty understanding imperial units. Using the wrong measurement system can lead to confusion and errors in your order, causing unnecessary delays and expenses.
To avoid this mistake, make sure to use the metric system consistently in all your communications with Chinese suppliers.
3. Using Less than Container Load (LCL) Shipping
Using Less than Container Load (LCL) shipping may seem like a cost-effective option, but it can lead to unexpected fees at the port that eat into your profit margins. Therefore, it’s better to ship by air or use Full Container Load (FCL) when shipping by sea. This way, you can ensure that your goods are delivered safely and without any hidden fees.
To avoid this mistake, consider the size of your shipment and work with your supplier to determine the most cost-effective and secure shipping option.
4. Not Checking Duty Rates
Another mistake that can lead to unexpected costs is not checking duty rates. Duty rates vary depending on the type of goods you are importing and the country of origin. It’s crucial to calculate duties accurately to avoid surprises at the border. Incorrect duty rates can lead to delays, fines, or even confiscation of your goods.
To avoid this mistake, research the specific goods you are importing and the corresponding duty rates. You can also seek the help of a customs broker or freight forwarder to ensure that your calculations are accurate.
5. Failing to Get a Sample
One mistake that can lead to costly errors is failing to get a sample before placing a large order. This can be a costly mistake in terms of both time and money, as the quality of the product may not meet your expectations.
To avoid this mistake, make sure to request a sample before placing a large order. This way, you can ensure that the quality of the product meets your expectations and avoid wasting money on subpar products.
Conclusion
Importing goods from China has its potential benefits, but it also comes with inherent risks. Knowing the common mistakes to avoid can help make the process smoother, more effective, and more profitable. By taking steps to avoid these mistakes, you can ensure a successful and profitable importing business. Make sure to research the specific trade culture, work with reliable suppliers, and use professional resources to help you navigate the complexities of importing from China.
Remember, entrepreneurship involves learning from mistakes and taking risks to progress and succeed. Resources and support are available, such as the free eBook on dropshipping from Wholesale Ted, to better ensure your success as an online business.