Importing over the Internet? Challenges, Opportunities, and Hedging Your Bets!

Is it possible to source products from the Internet without ever stepping foot in China? The answer is yes! I am a proven example of this fact. It may surprise many, but there are reasons why sourcing remotely may be your best bet.

Navigating China and the language is as difficult and vast as the Great Wall. You will need a tour guide or a representative from the factory to take you around. I say tour guide because the factory rep will not take you to the other factories you need to visit (unless you bring a lot of RMB). If you do make the trek to China, you will need to use the Internet to at least make a list of good candidate factories. You can use an intermediary or trading company to locate these companies before your arrival as well.

There is without a doubt no substitute for being in China, do the face to face with the factory and get a good feeling for product quality. This face-to-face is my primary reason for visiting before buying. Shopping on the Internet can have its hazards. For more information on why an intermediary can also be useful, please read the SourceJuice article Beware the Middleman and Seek the Intermediary.

I have successfully sourced and imported, from start to finish, a wide array products with lucratively positive results. It is important to remember that with any business there will be bumps in the road; importing from China is no different. If you fail once, research and then try, try again. The statistics in United States are that out of 10 businesses, only a single one is destined to succeed. For this reason, I recommend importing multiple containers of different product at one time. This increases your likeliness for overall success (like diversifying your portfolio). Of course you’ll need to have the buyers set up!

If you import two containers, one may break even in cost and the other makes. If you had only imported one container and it was the break even one, you might stop importing all together, thinking that there is no profit potential. To maximize your chances for success, read Digging Deeper series for some solid information on extra costs to expect, based on my successes and failures.

Let’s look at some of the challenges that sourcing from the Internet has:

Time zone difference (12 hours or more depending on Daylight Savings in the US)
Zero responses to communications from most factories or trading companies
Outdated and unavailable product models on websites
Lack of product samples available
NO WEBSITES at all!
Poor photography of products
The items you are looking for are available, but their presence on the Internet has possibly not yet made a debut.

The list is endless…….

What can you do to help wade through the challenges?

Signup for the Pro version of Skype, get a long distance calling card and get familiar with dialing +86 phone numbers.
Befriend a Mandarin speaker in the US to use on phone calls. Use all the resources you have at your disposal.
Get an Intermediary or reputable trading company contact
Meet every international trading entrepreneur you can, as experience is the best teacher. Losing money on an import venture is the second best teacher.
Get in the local trading circles of small import shops (they are everywhere and you have absolutely no idea until you stumble upon them). In Atlanta there are shops importing granite, sanitary items, furniture, lighting, doors – come on…. EVERYTHING. Each of these shops usually has company names completely unrelated to their business. I spent a lot of time at these locations trying to bring their inventory back to the Internet, working partnerships, etc. Learning how someone else runs his or her business is essential for your success. The best teachers are the failures. I have seen more full warehouses with no customers/sales than you can even imagine. I have seen huge warehouses with no inventory system or uniform model number scheme.

Here is your short-list of small import shops in the Atlanta area:

Panda Kitchens and Bath: http://www.pandakitchen.com/ : Cabinetry

United Corp Intl: http://www.unitedcorpintl.com : Highend spa/steam rooms, Jacuzzi tubs, lavatories and bath cabinetry (Chinese modern pedestals and classic wood cabinetry)

Homeware Building Supplies: http://homewaresupplies.com/ : a little of everything – cabinetry, copper, glass and granite sink bowls, lighting, hardwood flooring, modern Chinese pedestal sinks.

Stone City, Inc : http://www.stonecityinc.com/ : cabinetry

Don’t get frustrated when talking to owners of above businesses – I am certain now that I am in China that their job is to discourage you from stealing their profits.
The best advice I can give is finding a good customs broker, they are worth their weight in gold. You do not know everything there is to know about logistics and customs regulations, but they do. In addition, they have lots of contacts with people importing a broad range of items – ask them to make some introductions. It gets no better than Encore Forwarding out of Jacksonville, FL. Even if you are not clearing goods at the Jacksonville port they have offices that work in concert on any port you need. Encore also works with a logistics company Triple Eagle for a turnkey import transportation and customs solution for your goods.