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Importing goods from China and marketing them in the U.S. or in foreign countries has been an attractive product sourcing choice for merchants, from the small time business to the titans such as Wal-Mart. The comparatively low-cost labor and manufacturing charges in China can result in a much greater profit margin as compared to what a retailer may get if he sourced his products in the U.S. (wholesale as well as straight from the company).

Even so, merchants must understand that the cheaper the manufacturing costs of your products, the more your risks. This goes along with the old saying "you receive what you pay for." Chinese manufacturers are known to accept rock-bottom prices for their products and services, but what they won't tell you is that quality will need to be compromised, in the form of substandard quality of raw materials and/or level of craftsmanship. There is a trade-off between cutting down your prices anyway, and the overall risks you are taking. Finding the right medium is the most primary concern in the import export business.

Maybe you've been aware of good and bad points regarding the import export business, like being able to obtain products made at 1/10th the cost as in the U.S.; top quality products like handbags which could easily be marked up to 500% in the U.S.; and highly rated producers with quality control similar to U.S. factories; and also vanishing containers, stolen intellectual property, substandard items. The adverse incidents could be averted entirely by carrying out your research: mentoring under an experienced importer; reading books and trade publications on the subject; taking classes in your local community university; and talking to an import export advisor who has experience on how to import goods from China.

The main advantages of outsourcing your goods to China are manufacturing charges are cheaper as compared to in the USA; Chinese manufacturers are usually very creative and adaptive; and if you're successful, you may ultimately own your own factory, offering you the cheapest manufacturing costs possible.

The main issues of getting your goods sourced in China are that lifestyle, language and business procedures are quite different from those in the U.S. and so are not simple to understand and learn; so as to attain the price point you wish,

You might be needed to purchase a higher quantity of products than you would from a US dealer; and of course, importing and also any other new business, needs a solid, well thought out business plan.

Your ultimate decision on whether or not to supply your products in China has to take into account these four points: (1) The actual costs of importing your goods ; (2) A precise monthly sales projection; (3) Cash Flow forecasts; and (4) Profit

Margin Assessment; and (5) if your business could manage the time lags involved in importing, since you may get out of stock for some products that your clients demand.

If you calculate that the overall savings realized if you import goods from china are 35-45%, then it is really worth deciding on it. If you are not obtaining more than 30% savings in comparison to your current costs, first get back to your current distributor(s) or dealer(s) and see if you're able to negotiate a better offer. It will save you time, energy and money. You may always reconsider importing later on. Important thing: if you determine that the savings from outsourcing your items to China definitely justifies the price, the fact remains that if you do not practice it, your competition will (or is already doing it) and will ultimately lead your market. Typically, the overall savings are worth deciding on it. If you find this to be the case, make importing from China a premier priority.

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