In order to make a large profit when selling an item, you need to buy at a low cost so that you can offer a lower price than your competitors. When looking for items to sell, many people turn to drop shipping companies as a way to buy products for cheap. While drop shipping companies do sell items for cheaper than retail value, it is not an effective sales strategy. To receive good deals on products, one must learn how to import from China because buying true wholesale items directly from the manufacturer in China is the best option. Buying Chinese products wholesale means you can eliminate the middleman, earn a higher profit for yourself and still manage to stay competitive.
Since the economic downturn of 2008 it seems that everybody is struggling to make ends meet and in the current economic climate, most of us still need to make some extra money. In fact, I don’t know of anyone, unless they are very lucky indeed, who doesn't need to make a little extra cash every month.
Whatever type of business you are in, there will always be competitors. As a business owner, you’ll definitely be happier when your business is on top of others. But you’re also worried when others are getting their way up to your position.
Competitors employ different strategies in business. When you notice a competitor selling the same items at prices less expensive than yours, your competitor will definitely be on top of every customer’s list. This has been made possible because your competitor has obtained a good wholesale price. Through this, both of the competitor’s sales and profits will increase.
We all have extra expenses every month and on top of that, the price of everything increases constantly. Unfortunately your salary does not increase incrementally with inflation and there is therefore a persistent need to have more money. Most of us have extra expenses every month; some of us would like to buy things that we cannot afford right now, or go on a holiday so we need to save our money. Most of us simply need to pay off our debts and stay slightly ahead of the rising costs.
If you’re a new seller, making massive orders may not seem like an advantage at your end. Large investments are needed which might make you hesitant. However, if you can do it, then give it a try. Doing so will really increase your sales since taking on massive orders is actually cheaper. This should be your goal. When you say massive orders, you will usually be buying in bulk costing over $1,000. Buying single items which sell at approximately $100 is not good at all. Your $1,000 is not actually a bulk order. Plus, you don’t even get the best wholesale price at all. But if you can get an item at $4 each, then $1,000 is already worth it to get a good arrangement.
To do all of this we need extra money
Luckily there are many ways to supplement your income, even if only in small ways; you can complete surveys, you can blog, you can cut lawns in your neighborhood or do a host of other odd jobs. These methods will all bring in a little money, however, there is a way to make money, and continue making money, and all this with $20 or less.
Are you curious yet? I bet you think this is some kind of “get rich quick” scheme. Actually, this is a very legitimate business idea and if you’re interested, you too can make money buying wholesale from China and selling for a profit. And if you’re smart you’ll find a supplier who offers free shipping, decreasing your outlay even more!
Here is how it works.
Connect with suppliers
Top sellers don’t just get the best wholesale prices over night. Instead, they work hard for it. Aside from obtaining massive orders, top sellers also connect with their suppliers. First time sellers should really do this as a good relationship between the seller and supplier is really an important element in any business. As a new seller, it’s best that you call them frequently. Discuss about new products and your future plans. By doing so, they can see that you really are interested in building and upholding a relationship with them, whether at present or in the future.
- No matter how small or meager the amount is, nearly all suppliers still give high regard for your business. 99% of online retailers started out like these. They started out with a smaller amount and eventually got bigger and bigger in business while retaining their loyal customers. In turn, suppliers will also try their best to know you and keep you happy as much as possible so you will keep them as your suppliers in the future. As much as possible, both you and your suppliers have to be able to rely on each other. Whatever actions they show you, you must take these into consideration. When they give time for you, make the most of it by telling about yourself, you family and your future plans for your business. These actions and other means to get to know each other is actually very important so both you and your suppliers will uphold a good relationship in the near future.
- Out of the ordinary treatment for overseas suppliers. In dealing with overseas suppliers, language can be your hindrance from getting acquainted and making friends with them. However, you should never give up. Instead, you should try even harder to make friends with them by giving an out of the ordinary treatment. You could send your supplier with local treats that are unique only to your country. Include also written information tackling about you and your business. This is a better idea since non-native speakers find it easier to read than talk.
Prepare a few things:
- You need money because buying from manufacturers entail buying in huge bulk or approximately 1,000 units per order. Since you’ll be taking on massive orders, you also have to prepare a storage unit, transportation and an arranged shipment as well.
Decide On A Budget:
- Decide how much you are prepared to spend, be it $10 or $100. This money is an investment so consider it your “seed money”. Don’t jump in and spend a lot of money from the onset, start small and then increase your outlay as you get more confident and gain experience. Don’t get greedy; it’s the surest way to loose all your money and get yourself in trouble.
Choose Where You Want To Sell Your Goods:
- There are many different places to sell your wares. You can sell online, on auction sites; you can sell from your home, at school, among your friends, at your place of work, etc. Do some research, ask around and see who is interested in what you've got, then take it from there.
Choose A Product To Sell:
- It is important to find something that people want or need; remember you are providing a genuine service, not ripping people off. You also don’t want to sit with stock that no one wants to buy simply because you don’t know your market very well.
- Once you have chosen where you want to sell your goods, find out what that market needs, needs more of, or needs at a cheaper price than what is currently available.
- You can choose anything from Mp3 players to PC Tablets to Pokemon cards. All these can be purchased for a fraction of the price from China.
Find A Reliable and Cheap Supplier:
- Finding a cheap, and at the same time reliable supplier is of the utmost importance, as you only want the best goods at the lowest possible price. They should also be honest, reliable and fast. Some of the suppliers have a dubious reputation so you should be careful with your choice and it is best to start with a small purchase to test the waters and see how reliable and fast they are. Once you feel comfortable with your decision, then you can proceed to the next step.
- One of the best known names in the industry is everbuying.com. All their products are extremely cheap and as an added bonus, come with free shipping, so no extra expenses for you!
Buy It Cheap And Sell At A Profit:
- The beauty of buying from suppliers like Everbuying.com is that you can buy items at a really good price, sell them at a profit, and still make it a bargain for your customers to buy. They will be thankful that they got reliable goods, cheaper than they would get otherwise and if you do it right, they will be coming back for more.
Repeat The Process Every Time And Increase Your Profits:
- Once you have sold all your stock, use your profits to buy more (or different) products and repeat the process. In this way, you can turn your initial $20 into hundreds and even thousands of dollars in profit.
- Drop shipping with free shipping directly from the wholesalers in China is one of the best and easiest ways to make extra money and as an added bonus; your friends, colleagues and customers will love you for it.
How to Import from China
With 90 percent of the world's goods being manufactured in China and more than 80 percent of goods imported worldwide from China, it only makes sense for entrepreneurs and businesses to import from this high-growth country. Low labor costs and cheaper production inputs allow for a higher profit margin than if importing from other countries. Thanks to the high manufacturing capacity, the transit times of import products are much faster coming from China.
The first step to importing is selecting the imported products. Your business depends on the products it sells, so do some research and choose wisely. Some products commonly imported from China to the United States include:
- Apparel
- Toys and games
- Furniture
- Electrical machinery and equipment
- Optics and medical equipment
After the product has been chosen, find an import supplier that you can trust. Decide on whether you want to go with a manufacturer or a third-party supplier — there are pros and cons to both. While manufacturers are quicker during the product development process, third-party suppliers can meet a broader range of needs throughout the supply chain process.
It's important to vet potential suppliers by finding out as much information as you can about them. While you can communicate online, it's better to meet with suppliers face to face, assuming you can travel to China. Ask them about their companies, and get a list of other clients if possible. Once you've confirmed what they told you, ask for product samples to evaluate the quality of the suppliers. Though you may pay for transaction costs associated with samples, it's a good way to see how the supplier works and familiarize yourself with their shipping and payment terms. Don't rush into choosing a supplier — there is plenty of time. The product will always be available, and proper research may help you find a better deal.
At this point, you should start researching the landing cost, which is the sum of the cost of the goods' FOB (Free On Board), transport costs by forwarder, import duties, local transport costs, and cost of service providers, i.e. inspections, agents, etc. There are a number of hidden fees, and an import management company can help minimize the landing cost. Consult a freight forwarder for a cost breakdown.
The final (and often toughest) stage is negotiating trade terms with your supplier. Discuss shipping terms and payment terms with your supplier, as well as a down payment. Import management companies can help negotiate these terms, though a common arrangement is to pay 30 percent at the time of the order and 70 percent when the product ships. Never pay the full purchase price upfront — if there's a delay in the shipping or problem with the product, it is likely you will never see that money again. Walk away from any supplier who demands you do so.
Tips for Importing from China:
- Inspect the factories if possible.
- Plan on a late delivery and higher landing costs, which are both likely.
- Check the import regulations and be familiar with the government agencies involved. Compliance issues may vary depending on the product.
- Check the quality of your product by appointing an inspection company.
- Keep your records and documents regarding all transactions, including transportation and customs clearance.
- Double check your shipments for damage or improper manufacturing.
- Here’s one important tip for negotiations. If you have a business partner, let him do the negotiations for you. It’s better to have someone else negotiate for getting the best price instead of the person who’s trying to build a relationship with the manufacturer. On the other hand, manufacturers also have an employee tasked to do this job for them.
- Be mindful of the costs and benefits of using an import agent to buy wholesale from China vs finding and building a relationship with the supplier on your own. An import agent will handle the hassles of finding a supplier and working with them for you on a commission basis, but this leaves you with less control over the import process and no direct communication with the supplier. This may be an issue when you are working to develop new products or change existing designs.
Warnings
- Make sure you verify the identity of suppliers in China to ensure you are not dealing with scam artists. Verification techniques include requesting to view government registration documents and checking to see whether the phone number provided from the supplier is registered in the same area where they claim their factory is located.
No comments:
Post a Comment
Please don't spam. Spam comments are not approved