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Import from China Mini-Course - Part 1 - Section 3

"Is The China Direction Right For Me?"

Why import from China?

  • Chinese factories make all imaginable types of products, usually much cheaper than anywhere else.

    The world's large companies are still moving more and more of their manufacturing to China... it's about the bottom line. The low manufacturing costs mostly come from low human resources costs.

    Basically, the job market in China is highly competitive while living costs and expectations are relatively low: this means factories can employ hard-working people very cheaply.

    Most factories don't need to pay social security or insurance for their workers, and providing for their living costs isn't too expensive. Absence of bureaucratic red tape, a lower corporate tax burden, quite cheap energy costs, favourable interest rates, abundant cheap real estate, and low construction costs, are all other factors that lower the running costs for a Chinese factory.

    The low production costs leave a lot of room for middlemen in China, Hong Kong, or Taiwan trading the goods even before they reach export markets.

    The closer you can get to buying from the source -- the manufacturer / factory in China -- the lower the price you will get.

    This used to be difficult but now thanks to the internet and more a more open attitude in China, it is possible in many cases for a normal foreign buyer to go to directly the source.

  • Chinese suppliers are heavily geared towards exporting to western markets and are actively marketing their products to buyers like you. Expect Chinese efforts in international marketing to become much more vigorous and visible in the next couple of years.

  • Since the suppliers in China are sending goods to your country, why not get them to send directly to your customers? Have you thought about the possibility of drop-shipping goods directly to international markets which are much less competitive than your market at home? If you already have a reliable supplier and have established a good relationship, you could profit from finding buyers for their products in markets abroad... bought through you of course.

  • Chinese suppliers are not too picky (or loyal!) about who they supply to, and even beginners with no registered company will be able to buy from China. Also, Chinese people have few cultural or religious prejudices - in other words, they are totally open- minded about which nationalities they are doing business with... as long as there is a good relationship sustained... and a reliable flow of cash!!


A key reason I hear from people why they haven't started buying from China is ...

"I don't speak Chinese, I've never been there, and I don't know anything about China".

Let's make this clear now: there's no need to worry.

Chinese companies geared for export are going to have English speaking staff, possibly also other languages, and they're ready to help you build a relationship. Even if you're not an experienced jet-setting business-person, people in China are definitely not going to scorn you for being a beginner to this country.

As far as we Chinese are concerned, of course "foreigners" don't know much about China. ;)

In fact if you visit we will never stop trying to teach you about our 5000 years of history and culture! So the people in China you need to talk to are going to be ready to help you start. Don't be nervous.

You just need to jump in there and start grabbing the opportunities!


Are you still unsure whether a "China direction" is right for you?


How about thinking of it from this point of view:


  • Wholesalers in your own country are probably already buying from China, so why not go direct to the source yourself?

  • If you are selling on EBay or other online auctions / ecommerce stores, it's a certainty that your "power seller" competitors are already buying some or all of their goods from China. Do your sales a favour and get the same or better low priced sources.

  • The wholesale market in your country is probably very saturated with other people like you buying and reselling those same products. Compare that to China, where you could be the only person in your state or even country importing a particular product or from a certain Chinese manufacturer.

  • Importing from China will give you the opportunity to develop your business by finding new products at better prices in the future, especially as your relationships with Chinese suppliers improve. Can you say the same for your suppliers back home?


Read on to learn about a BIG mistake many new importers make.



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