Opportunities Abroad:
China Sourcing for Home E-Biz
FEATURED COMMENTARY
By Chris Malta Home EBiz Product Sourcing Expert
China has, in recent years, gained prominence as a manufacturing
center to the world. Their ability to produce a wide scope of
goods at competitive price points has made them a global go-to
source for importers. Even small, home-based online sellers are
profitably sourcing from China suppliers. Several recent
developments, working in conjunction, have made China sourcing a
simpler, more straightforward process than it’s ever been before:
Many trade barriers have been removed, and China has joined the
World Trade Organization. Both travel to and shipping from China
are now faster, cheaper, and more dependable than ever. Simple,
safe payment methods are increasingly in place. The number of
China manufacturers who are implementing merchant accounts and
online payment solutions, like PayPal, is growing rapidly.
Rising competition among China manufacturers is forcing factories
to bring products up to western standards. Many Chinese
businesspeople speak and understand English, making the language
barrier less of an issue.
According to George Bailey, Sales Manager for Chinavasion.com,
these combined circumstances create an enormous opportunity for
Internet retailers. Advises Bailey, The key is finding reliable
suppliers for your own e-business. It’s critical that you’re
dealing with legitimate companies, so you don’t get burned.
Finding REAL Manufacturers Multiple resources are available to
help you locate genuine China suppliers: trade magazines,
international trade fairs, and Business-to-Business (B2B)
websites. Because many B2B sites allow anyone to advertise there,
you need to ensure you’re only sourcing from companies that have
been validated by the portal service. These vetted suppliers
usually have an identifying mark or seal of authentication.
While there are many excellent China vendors that will deliver
quality goods, there are also many scammers, advertising popular
branded merchandise (Sony products, Apple iPods, etc). Even though
these goods may be manufactured in China, their distribution is
tightly controlled by their parent companies in the U.S. Any
overseas supplier claiming they can provide you with these brand-
name products is either selling defective or gray-market goods.
The former, you can’t resell; the latter won’t make it past
Customs and may cause you legal troubles, as well.
The Wholesale Alternative Another option for newcomers is to start
with an import wholesaler, like Chinavasion.com or
GlobalSourcesDirect.com, which allows you to purchase goods in
small, affordable quantities. In some cases, you may even have
products drop shipped directly to your customers, just as you
would with a domestic wholesaler.
Although your wholesale prices will be higher than your factory-
direct prices, that additional expense is off-set by a number of
factors:
You’re not responsible for import taxes. You’re not the party
legally responsible for guaranteeing your goods meet Customs
regulations, so you’re taking considerably less risk. The
wholesaler is handling quality control, so you don’t have to worry
about products not being up-to-par. And in the unlikely event that
you’re unhappy with a product’s quality, you have a much better
chance of working out a return agreement than you would working
directly with a foreign manufacturer.
To determine the best source of imports for your eBiz, you need to
evaluate what level your business is at, and what kind of
responsibility you’re prepared to take on.
Room for More The opportunities in China are massive: whether
you’re a new or experienced importer, it’s a good time to take
advantage of the great benefits sourcing from China offers.
Encourages Bailey, Online sellers have barely begun to tap into
the products that are available. There’s room for a huge explosion
of start-ups and one-man businesses to make a major dent in their
markets just because they’ve found the sources to make it work.
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