Pit Falls of Purchasing from China

Everyone loves saving money, whether you’re the owner of a business empire or just running a local electronics store when it comes to purchasing items for your business you’d always have an itch of saving the extra buck. One potential strategy is to buy things in bulk for your vocation. Buying in bulk brings down the cost per unit and can minimize how much you can pay in the long run on products and supplies.

With almost 90% of the world’s goods being manufactured in China and more than 80% of goods imported internationally from China, it only makes sense for entrepreneurs and businesses to import from this high growth country. Low labor costs and inexpensive production inputs allow for higher profit margins than if importing from other countries. But this may not always be the case as time, customs and authenticity of the product may be some of the factors to consider when importing items in bulk from China.

Delineated below are some of the pitfalls of buying from China:

Shipping Time:

Time is of the essence if you’re running a business that thrives on selling imported items. Business owners want their products delivered on time so that customers won’t have to wait to get their hands on the latest gadgets, toys, apparel or any other merchandise.

Shipping takes time and a great deal of patience. Shipment from China usually takes about two weeks to one month to reach the destination. Also, cross-border purchases typically mean a more complicated process and a longer waiting time which may lead to poor sales if your competitor has already had their products displayed while you’re still waiting for your product to arrive. Of course, as with all other things this time can be lessened, and you can get fast shipping done, but that involves an overhead cost which can cut your profit margins significantly.

The Authenticity of the Product:

The biggest con, first to look out for when importing from China, the one that gets most people burned is buying branded goods. No matter what the product, what brand, you are not always able to source authentic goods from China.

Because of the trademark laws in China, manufacturers can copy well-known brands and can sell them within their country with minimal to no legal consequences. Unfortunately, some whole Chinese sellers try to sell these copied products to businesses in other countries quite frequently and with a high success rate. So, you need to be observant of your supplier to ensure that you are getting an authentic product.

Customs Fees:

Another big let off of buying in bulk from China is the high customs fees you’d have to pay before getting your product cleared. If the manufacturer or you, as the buyer, don’t have a customs agent, you can find your products stuck in customs which can cost you a lot of time and money which not only lessens your sales but can also cut your profit margins.

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