How to successfully buy product in China
China is still growing where other countries are stagnating or receding .
One of the reasons of China's phenomenal growth is its cheap work force and its tremendous exports.
When trying to make money from this trend by importing from China, keep in mind the following pointers:
You will be offered brand name products for sale but they are fake: no real Versace, no real Sony, no real Porsche. That a product has a fake label does not mean that its quality is not good. If you deal in fake products, the trademark owner can stop your shipment at the border and your goods will not enter the country. Your goods will be stuck in customs and you will have difficulties having them released. Since branding costs a lot of advertising money, owner's of expensive brands whether Chanel or Nike will defend their trademarks and you will lose. Not only will your shipment be stuck in customs, you might as well be fined and sued.
Which products should you import ? Any product you purchase in China and which is manufactured in China will be cheaper there than here. The most important issue with Chinese imports is quality control. Have samples sent to your business, and
insist on independent quality control. You are better off, paying some money to reduce risk and profits, than gambling it all away with a low quality product. One of the most important issues to solve is the question of quality. The best price does not help
if the quality is not up to par. Your first step of course is to have samples sent and not rely on pictures and written descriptions. These little steps will minimize risk and are part of your due diligence. Once you pay your seller, you will most likely get little assistance in fixing defective goods.
Focus on the Chinese company and try to find an entity that has been doing business for a long time and consistently provided quality products. In case you need help with translations , someone suggested to pay Linden dollars (that is the currency used in the virtual world and multiplayer game of second life) for translations. The same<a href=" http://blog.cubeofm.com/how-i-reduced-translation-costs-of-200-articl"> author</a> claims that he reduced translation costs of 200 articles from $9000 to $46 this way. For translations performed by players of an online game with varying degrees of education, there might be a problem of understanding. Did the translator understand Chinese sufficiently to translate and did he speak English well enough to communicate his understanding. If you understand what your translator says you are probably ahead of the game, even though I would not trust legal documents to be translated that way.
Finally, do not pay up front. Typically, you will have to make a small downpayment or better, you pay via letter of credit. (You can ask all your questions on <a href="http://www.letterofcreditforum.com"> letters of credit</a> here.) Letter of credit transactions are not really complicated: Your house bank (or the bank your house bank chooses to represent it in China) will pay the seller once she presents commercial invoice, packing slip, insurance documents and a bill of lading at the bank's counter. Even though the concept is so easy, the details of the documentation make the transaction difficult. You should ask your bank (or people at the forum) before you take any action.
One of the reasons of China's phenomenal growth is its cheap work force and its tremendous exports.
When trying to make money from this trend by importing from China, keep in mind the following pointers:
You will be offered brand name products for sale but they are fake: no real Versace, no real Sony, no real Porsche. That a product has a fake label does not mean that its quality is not good. If you deal in fake products, the trademark owner can stop your shipment at the border and your goods will not enter the country. Your goods will be stuck in customs and you will have difficulties having them released. Since branding costs a lot of advertising money, owner's of expensive brands whether Chanel or Nike will defend their trademarks and you will lose. Not only will your shipment be stuck in customs, you might as well be fined and sued.
Which products should you import ? Any product you purchase in China and which is manufactured in China will be cheaper there than here. The most important issue with Chinese imports is quality control. Have samples sent to your business, and
insist on independent quality control. You are better off, paying some money to reduce risk and profits, than gambling it all away with a low quality product. One of the most important issues to solve is the question of quality. The best price does not help
if the quality is not up to par. Your first step of course is to have samples sent and not rely on pictures and written descriptions. These little steps will minimize risk and are part of your due diligence. Once you pay your seller, you will most likely get little assistance in fixing defective goods.
Focus on the Chinese company and try to find an entity that has been doing business for a long time and consistently provided quality products. In case you need help with translations , someone suggested to pay Linden dollars (that is the currency used in the virtual world and multiplayer game of second life) for translations. The same<a href=" http://blog.cubeofm.com/how-i-reduced-translation-costs-of-200-articl"> author</a> claims that he reduced translation costs of 200 articles from $9000 to $46 this way. For translations performed by players of an online game with varying degrees of education, there might be a problem of understanding. Did the translator understand Chinese sufficiently to translate and did he speak English well enough to communicate his understanding. If you understand what your translator says you are probably ahead of the game, even though I would not trust legal documents to be translated that way.
Finally, do not pay up front. Typically, you will have to make a small downpayment or better, you pay via letter of credit. (You can ask all your questions on <a href="http://www.letterofcreditforum.com"> letters of credit</a> here.) Letter of credit transactions are not really complicated: Your house bank (or the bank your house bank chooses to represent it in China) will pay the seller once she presents commercial invoice, packing slip, insurance documents and a bill of lading at the bank's counter. Even though the concept is so easy, the details of the documentation make the transaction difficult. You should ask your bank (or people at the forum) before you take any action.
you can ask all your questions about letters of credit here.
Helpful hints about doing business in China and living and teaching in China.