Is it Profitable to Import from China?

Is it Profitable to Import from China?

2022 May 26

Have you ever wondered why most people import goods from China? Well, the answer is pretty simple. Shipping from China comes with a lot of benefits, lower prices being one of them. People import goods from China for resell in their countries. This can be an online business or not. Either way, the profits will be high. Importing goods for resell is mainly about profit margins. The goal of every business is to get an increase in the profit margin.

The cost of manufacturing goods in China is lower compared to other countries. There is also a variety of goods and high volume production of products in China. This is one of the reasons for cheaper rates.

China is well known for being the greatest supplier of goods all over the world. Some of the top countries that import goods from China include:

  • Japan
  • South Korea
  • United States
  • Australia
  • Germany
  • Canada
  • United Kingdom
  • Brazil
  • Indonesia
  • Singapore

The top products imported from China include:

  • Electrical and machinery equipment
  • Power generation equipment
  • Toys, games, and sports equipment
  • Furniture
  • Footwear and parts thereof
  • Apparel, knitted or crocheted
  • Apparel, not knitted or crocheted
  • Plastics and articles thereof
  • Vehicles, excluding rail

Is it Profitable to Import Goods from China?

Yes, importing goods from China is very profitable. Many people imports goods from China to sell them online, on Amazon and eBay. The profits experienced are very high. A product can cost $3 when purchased from China and is sold at $40 on Amazon. 

Many items are imported from China but the profits for different items vary. An importer should therefore make sure to get the most profitable items. To get the most profitable items, an importer should:

1. Do thorough research

Research is actually the key thing when starting an import business. When conducting research, some of the things you need to find out include:

  1. Custom Clearance. it is crucial to identify what is needed during customs clearance when importing goods from China. For example, you can research about the documents required.
  2. How easy it is to ship the items. shipping can either be easy or complicated. It all depends on the type of items to be shipped. Some goods have been regulated and require permits to ship. The process can be intricate.
  3. The business culture in China. Researching the business culture in China is important so that you can understand how to communicate and have great relationships with suppliers. Having a good relationship with a supplier can increase profitability.
  4. China's geography. Manufacturing industries are located in different parts of China. Knowing the geography will enable you to identify where you will produce your goods and how you will ship them. It is best to locate a place where the shipping cost from China to your country will be lower.

The most important thing in conducting research is to find out the prices of items in China, how high or low the demand is, the quality of the goods, and if the customers will be satisfied with the products. 

2. Find a reliable supplier

Every importer has certain requirements and expectations regarding the kind of services they want to receive from the supplier. Since finding a supplier is a very crucial decision to make in business, you should take time and choose the supplier carefully, instead of just rushing to get any supplier. So, how do you find a good and reliable supplier in China? Well, there are several places to find them, including:

  1. Google. It is possible to find suppliers online since most of them have websites and also have social media accounts.
    The Canton Fair - this is an import/export convention that anyone can attend for free. It is conducted virtually and it takes place twice a year.
  2. B2B Marketplaces. Some of the online places you can find suppliers online include Alibaba, Global Sources, and Made in China. However, this can be a bit daunting due to the high number of scammers. Also, after identifying a supplier on these platforms, you should request some samples to make sure that you get quality goods
  3. Sourcing agents. Instead of looking for suppliers directly, you can get a sourcing agent. Their role is to visit the manufacturing industries and ascertain the quality controls.

3. Ensure that the goods are of high quality

There is no bigger nightmare than importing goods and later realizing that you cannot resell them, you will lose investments, or rather you have to return them because they are of low quality. To ensure that you get high-quality goods:

  • Request for samples before making orders
  • Get a trusted third party inspection company to take a look at the goods first
  • Be exhaustive when giving details on the items you want. 

4. Identify the most ideal shipping method

It is important to compare the shipping methods and choose what is most suitable for shipping your goods. The shipping methods available when shipping from China includes:

  • Air Express
  • Air Freight
  • Ocean/Sea Freight 

Also ensure that you have all the documents required, including the Bill of Lading, Commercial Invoice, Packing list, etc.

5. Order goods in bulk

Buying a large number of goods at once is far much cheaper per unit compared to shipping small amounts of goods.

As an importer, it is important to know that the buying price of the goods is not the only cost incurred. Other costs include:

a) Shipping costs 

The shipping cost from China will depend on several factors. One of these factors is the shipping method. Air express is the most expensive shipping method from China, while sea freight is the cheapest. Air Freight shipping prices are lower than air express but more than sea freight. Another factor that affects shipping costs is the weight and volume of the shipment. The more the shipment weighs, the higher the shipping rates.

Also, shipping time has an effect on shipping costs. For faster delivery of goods, you will have to pay more. Other factors include shipping season, container shortages, government action, etc.

b) Local transportation fee

You have to pay the transportation fee from the factory to the port of loading. Also, when the goods reach the airport of delivery, you will pay the transportation fee to the final destination.

c) China export clearance

You will also incur some charges when clearing goods.

d) Insurance

It is important to get insurance for your goods. Goods can be stolen, lost, or damaged during the shipping process.

e) Document delivery

f) Port charges

g) Customs Bond

Importing from China is Economical

Importing goods from China for resell in other countries is very economical, hence the reason for the high number of importers from China. The reasons that make importing goods from China economical include:

1. Cheaper Prices

The cost of production in China is very low, hence the products are cheap.

2. Quality goods

There are all kinds of products in the Chinese market and most of these products are unique and will definitely satisfy customers. Getting high-quality goods at low prices is the main reason why several people import goods from China.

3. High-profit margin

The aim of every business is to make a profit. Since the cost of products in China is low, you will be able to make high profits by selling in your country. One thing you can be assured of when doing this business is getting customers, due to the high quality and unique products that are manufactured in China. The profit margin for your business will therefore increase resulting in the thriving of your business.

4. Customization of goods

As an importer, you may want to customize your goods. Importing the goods and then customizing them later can be expensive. To save on cost, you can have your goods customized in China at a certain price before they are shipped. This makes the importation of goods from China economical.

To ensure that importing goods from China is even more economical, you can work on reducing the costs incurred when shipping. Some of the tips you can consider include:

  • Choose the right shipping method for your goods. For light goods, use air freight, and for heavy goods use sea freight. 
  • Ship many goods at once. This way, it will be cheaper than shipping a few goods several times.
  • Get a freight forwarder. A freight forwarder will help you in shipping making decisions and generally in the whole shipping process.
  • Freight forwarders understand more about shipping since they are experienced.
  • Make the right timings. You should ship your goods at a time when the cost is low. Avoid shipping during the high season.
  • Ensure that you use packaging materials that do not add too much weight and volume to your goods.

Most Profitable Items to Import from China

Here are the most profitable items to import from China.

1. For all over the world

1.1) Makeup Product

The buying price for a makeup product can be $3 and the selling price $40.

Some of these products include makeup mirrors, makeup brushes, and all other beauty products. These products are highly profitable due to the high demand.

1.2) Kitchen Products 

Kitchen products include serving spoons, rubber gloves, bread knives, kitchen scissors, etc.

For rubber gloves, the buying price is at most $1.3 and the selling price is $20.

1.3) Sports products

Some examples of sports products include exercise bikes, sports water bottles, spin bikes, and sports shoes.

For a sports water bottle, the buying price is about $3 and the selling price is $15.

1.4) Phone accessories

They include mobile phone bags, screen protectors, phone holders, back cases, etc.

The buying price for a screen protector, for example, is at most $1 and the selling price is $13.

1.5) Fashion accessories

They include jewelry, bags, hair bands, clothes, etc.

The buying price for a hairband is $3 and the selling price is $1

2. For Canada

  1. Wireless chargers
  2. Video doorbells
  3. Hydrocolloid patches
  4. Phone screen protectors
  5. Ring lights
  6. Backpacks
  7. Water shoes
  8. Beauty products

3. For the USA

  1. Wireless phone chargers. Expected profit: $959 per piece
  2. Video doorbells. Expected profit: $3898
  3. Wi-Fi repeater. Expected profit: $1700
  4. Air fryer. Expected profit: $6499
  5. Digital Camera. Expected profit: $3399
  6. Professional cosmetic brush set. Expected profit: $1409
  7. Selfie ring light. Expected profit: $1279
  8. Men's grooming kit. Expected profit: $4444

4. For European countries

  1. Electronics
  2. Books
  3. Foods, Cosmetics, and Pharmaceuticals
  4. Furniture and home goods
  5. Clothing and Footwear
  6. Jewelry
  7. Beauty Products
  8. Kid's Toys
  9. Glass phone screen protector

5. For Asian countries

  1. Cosmetic brush sets
  2. Nail polish
  3. Air fryers
  4. Meat thermometers
  5. Phone screen protectors
  6. Wireless phone chargers
  7. Ring lights
  8. Wi-Fi repeaters
  9. Jade facial roller tools

FAQ

Q) Why is it cheaper to import from China?

A) Shipping from China is cheaper compared to shipping from other countries because of the low cost of production. Also, in China, large amounts of goods are produced within a short period.

Q) Can you import from China?

A) Yes, you can import from China. There are all kinds of goods available for import from China.

Q) Is it easy to import from China?

A) If you decide to do the importation by yourself, you may experience many challenges. To ensure that shipping is easy, it is advisable to get a trusted, reliable, and experienced freight forwarder.

Q) What to import from China

A) You can import any item as long as it is not prohibited in your country. When deciding what to import, you need to go through the rules and regulations in your country to know what is restricted or prohibited. 

Q) What is the cheapest way to ship goods from China?

A) Sea freight is the method with the lowest shipping rate. If you are shipping bulky goods, you should choose sea freight. Air Express and Air Freight are cheaper when shipping light goods.

Q) What products are in high demand in China?

A) The products in high demand are clothes, jewelry, makeup, beauty accessories, vitamins, fresh produce, seafood, packaged healthy food, trendy snacks, juice, wine, baby accessories, sporting goods, and gadgets.

Q) What are the cheap products to import from China to sell?

A) Some of the cheap products include toy products, mobile phones, kitchen appliances, electronics, clothing, sunglasses, leather goods, tea products, etc.

Conclusion

Importing goods from China for resell is profitable. If you are thinking of starting such a business, you should go ahead.