Importing items from Hong Kong and other cities in China will provide you with many low cost items, but it is important to keep an eye on the other costs. These additional costs could be substantial and what might have been a profitable deal quickly turns into a loss. It is important to protect yourself from these potential pitfalls that can cost you serious time and money.
Simple Steps For Saving Valuable Time and Money
Since most people use the internet to search for export companies it is important to know what to look for. You will not have the opportunity to visit the company and view their operations, so your impression of the company will be based, initially, on their web offering. Here are a few points to help you avoid the potential losses.
1. Don’t get caught up in manufactory vs. supplier
Many China export companies will claim to be manufacturers of the products they sell and may even show a picture of their factory on their website. This is not true in most cases, and even in the few cases where it does hold true, it doesn’t matter. Price is the most important consideration. So, if the price is good it doesn’t matter if they are a manufacturer or not. Don’t assume that simply because they call themselves a manufactory that they will have the lowest cost.
2. Don’t waste time with One-Hit wonders and wandering charges
If a site only shows one price for one item, or only a price for a fixed quantity (e.g. US$11 each up to 1000 pcs) don’t waste your time. If you want to buy a different quantity you then have to contact the company and each time you want a different quantity you will have to check back with them. There goes the convenience of a website. You also have to watch out for “location” charges. You may get a higher price due to your location. Many companies don’t have a fixed price, they may give one price in the morning and a different price, on the same product and quantity, in the afternoon. Many China vendors are looking for the “Big Fish” so they will quote the price needed to hook you and then change the price depending on the size of the order or your location. If the website doesn’t offer a good price break down by quantity, so you feel comfortable ordering right from the site, move on to a different vendor.
3. Don’t Forget Shipping Costs
Don’t get caught in the trap of only comparing the cost of the item. Some vendors will give you a very low per item cost, but they will make it up in the shipping charges. An item that costs US$25 for 50 pieces might be a great deal, but if it costs US$75 to ship it then the total cost per item goes from US$0.50 to US$2 each. That same item from another vendor who charges US$35 for the 50 pieces but only charges US$30 shipping will save you US$35 on the total order.
4. Variety is the Spice of Life
Don’t waste your time with a company that only offers a few products. You want a company with a good selection of products. This shows that they have an established business and have connections to many manufacturers. It also shows that they will take the time to find the right product for your needs. Look for groupings of similar products from different product lines, this shows that the vendor has established a good trade with multiple manufacturers. The variety of products available also makes your job easier. You can shop all of your needs at one site instead of wasting time going from one site to the next looking for all of the products needed.
What Should I Do to Avoid the Pitfalls?
Since the goal is finding a reliable exporter with low cost items and low shipping and handling charges that will save you time, as well, it is important to take the proper steps.
* First, look at the cost of the products. Don’t worry if the company says they manufactured it or if they are simply a vendor. The cost is what matters in the end.
* When looking at vendor websites, find ones that can display multiple pricing levels based on the different quantities being ordered. This saves you the time of calling the vendor each time you want to order a different quantity.
* Ask the shipping cost when getting prices. This can make a big difference. A quick note here, Hong Kong doesn’t have an export tax, like other cities in China. Many China vendors will ignore this export tax to keep prices down but the items may never make it to you because they get held up in China customs or customs in your country. Another positive to Hong Kong shipping is that they have a well-developed international transport system, resulting in cheaper and more reliable shipping.
* Look for websites rich in the products you are looking for. If you are seeking PC accessories or electronics find a site with a large variety of these products to choose from. This saves you from having to scour the web looking for each piece that you need.
* Another aspect that will save you time is the ability to order directly from the website (using a shopping cart or checkout function.) Displaying simple shipping and handling fees, instantly, on the website helps also. You will know before the order goes through what the shipping charges will be, so you don’t get blindsided with a large bill later.
It is important to know what you are looking for when seeking an exporter from China. But, even more important, is knowing what to look for in an exporter. This will save you time and money in the long run. Since most people seek products from China for the potential profit, it makes sense to get the best product at the best price with as little effort as possible.
Cliff Lee is the sales manager of Cross Mark Co., a company which deals with China wholesale products. On the company’s website, www.cross-mark.com, you will find more information regarding their offer.
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