In this article we will discuss the issue of finding business opportunities with China . There are some high-demand products that can be imported from China to your country. We will see the steps to determine business opportunities with China : demand, identify suppliers in China, and market imported products.
China Business Opportunities 1. Demand
The first step is to identify the product demand or need in their city (ie, finding the business opportunity ). We need to “see” and identify a product in high demand for greater chance of success. This identification is done through observation of consumer behavior and shopping. For example, going to a mall and identify products that are taking more interest from customers, regardless of whether new technology (mp3, appliances, etc.) or low-tech (ceramics, gifts, etc..)
China Business Opportunities 2. Quotes
The next step is to find a supplier to China and request a quote. This part we see in detail in the following items:
1. How to import from China in small quantities
2. How to do business with China (insurance providers)
China Business Opportunities 3. Profitability
Once we receive the quotes and shipping costs, we can determine the profitability of importing the product and sell in the city.
The steps for this is:
1. Set the price: competitive price estimates for the product
2. Estimate costs: sum of all costs, are generally the product cost, shipping, taxes (16% in Mexico), import taxes, if applicable (depending on product), selling expense (whether you have to repack, add another free product , the seller’s commission for selling the product, etc)
3. Calculate the profit per product: it is PRICE – COST
4. You have to estimate how many products intended for sale a month, to define the monthly utilities:
EARNINGS PER PRODUCT X NUM. PRODUCTS TO SELL THE MONTH
If you have further costs, like rent a facility, the payment of salaries or expenses must be subtracted. In general, each entrepreneur defines the margin you expect from your work, but the bottom line rule where a percentage is less than 5%, the business is not profitable.
China Business Opportunities 4. Import
At this point, if you plan to import in small quantities, I recommend you check the course of CIC, as imported from China . I will teach the process to import in small quantities.
If you are importing in medium or large quantities, say from 3 to 1 container boxes, it is advisable to go to a customs broker to process the import it. The customs broker is the person who sees the whole aspect of dealing with customs. Likewise, the more amount, you have to consider using other logistics services that reduce the cost of shipping, can be sent from China in a consolidated container, ie the boxes are sent to various logistics service customers in a single container reduce costs.
China Business Opportunities 5. Marketing
Finally, some recommendations for marketing the product in your city with your business opportunity are:
1. Try selling the product before importing in larger quantities, sometimes “believe” that the product is in demand, however the reality may be different. It is advisable to import as “sample” or “sample” 1 product, trying to market and see if you have demand.
2. It is important to find the barriers to import X product. There are products in your country may be prohibited or regulated too. The latter case happens a lot in the importation of cell phones, clothing and paint. Therefore, please consult with a broker before importing in large quantities.
4. Check the laws of your country if the public sale of the product is allowed.
5. Test the quality of products before importing them in large numbers. There are reliable suppliers that send good quality products, and likely less than 1% of defective products in your order. There are other very different, which send up to 25% of defective or failed, and this affects their costs and the trust of its customers.