How do I know if it’s feasible for me to import from China? (Video)
Today I will discuss with you the topic: How do I know if it’s feasible for me to import from China?
In this video, you’ll learn about determining whether it’s feasible for you to import from China.
After taking all the costs of importing into account, we generally save our clients 30% to 50% on their current costs by importing from China.
Results for a client importing a 40-foot container load of ice cream cups:
|Cost for client to purchase from a local wholesaler:||$256,200|
|Landed cost, buying direct from the factory:||$63,932|
|The client saved:||$192,268|
|Saving: Approx. 75%|
What would savings like these mean for your business?
- Boost your marketing
- Employ extra staff
- Finally take that long-overdue holiday
Remember, money saved is money in the bank.
First, you need to find out whether the cost savings of sourcing direct from the factory in China exceed the fixed costs like freight, customs, duties and your investment in professional assistance for importing.
For example, if you only wanted $5,000 worth of goods, it may be cheaper and less time consuming for you to buy this product locally, as the on-costs of international trade can add up to this amount alone.
Importing is only feasible after you require a certain volume or value level.
As a rule of thumb, if your order is a minimum of US$20,000 to purchase from a factory/importer/wholesaler/retailer in a Western country, it should be feasible for you to purchase directly from the manufacturer in China.
Firstly, find out what it costs to buy your product locally.
Getting a local quote may also help you understand what materials, labour and production charges are involved.
This can help you when getting quotes from China, as you may now have the ability to specify materials in more detail and have a better understanding of the manufacturing process.
And don’t forget to get quotes on the packaging, if applicable.
When buying directly from the manufacturer, it helps to have a good understanding of your product manufacturing process, and be able to use manufacturing terminology.
For example, people are sometimes unaware that tooling, dye charges, mould charges may apply.
You can do a feasibility check by getting container quotes, Duties, and possible wharf charges for your product, or simply do our complimentary Feasibility Check, and we’ll let you know if it’s feasible or not.
From myself and the team at ChinaDirect Sourcing, thank you for watching this video series.
If you like what you see and hear, and want to know more about it, contact ChinaDirect Sourcing, see details below.
If you need any assistance or buy the book and DVD, import from China from www.importingfromchina.com.au written by me, and good luck with your importing from china! Enjoy the program!