Where to start a business with China selling goods. Business with China for resale from scratch
The Internet opens up almost limitless opportunities for users, among which trade stands out especially. But where to start your own online business? In this article you will learn how to set up business with China from A to Z.
Relevance of business on the Internet
Many people mistakenly believe that the online trading niche has been occupied a long time ago, and the average person simply cannot survive among the huge competition. But, as practice shows, business on the Internet is only gaining momentum every year. So why not take this chance?
Thousands of users all over the world are looking for unique and inexpensive products. But not everyone can independently place an order in a foreign online store. Correspondence with the seller often causes difficulties, and payment for goods seems to be something very difficult. That is why intermediaries appear every day who are ready to buy goods in the Middle Kingdom with a minimal markup
Business with China from A to Z: where to start?
For a newbie, finding a wholesale supplier and successfully delivering the goods may seem like an overwhelming task that requires certain skills to complete. In fact, everything is much simpler. But before starting the practical part, you need to draw up a business plan.
The basis of planning will include start-up capital, the direction of activity (topic of goods for sale), the formation of a customer base, the choice of delivery method and the establishment of a markup. You need to think through every detail, because the success of the business depends on it. You should also consider the average per capita income in your area. After all, you must admit, few people will be able to buy mobile phones for 20 thousand rubles at 15 thousand rubles. Look at the situation realistically.
Choosing a direction
Financial independence is what drives people to build their own business. Goods from China will be an excellent start on the path to creating a stable income. But how do you know which products will be in demand?
To do this, you need to carefully study the market of the locality in which you are going to organize your business. Analyze what goods residents lack and what they would like to see on store shelves. After all, not in all cities and towns of Russia you can find stylish clothes, unique cases for smartphones, unusual children's clothes or inexpensive equipment.
It is very important to provide the population with exactly the product that people need most. At the same time, greater risk will accompany small businesses in China, which are characterized by a narrow focus. Choose consumer goods. This will allow you to quickly create
Do you need equipment for business from China?
The big advantage of organizing an online store is minimal costs. This is especially true if the supply is provided by China. Equipment for small businesses on the Internet at the first stage is limited only to a computer with access to the World Wide Web. Everything else depends only on the scale of the case.
If you plan to provide home delivery to your customers, then you need to resolve the issue of transport or hire a courier. A large online store with an assortment exceeding a thousand items will require an office and several employees. After all, registering orders from customers is quite difficult to cope with alone.
We arrange the supply of goods
Where to find a wholesale supplier? This question perhaps confuses many novice businessmen. After all, at first glance, it is not so easy to contact Chinese sellers and agree on the regular supply of a certain product. Distance also plays a role, but everything is much simpler than it seems.
Today, there are many marketplaces where sellers from China list electronics, clothing, accessories and much more. Thanks to the system, anyone can place an order even without direct communication with the supplier. Such resources, as a rule, have a Russian-language interface and convenient payment in electronic currency. And buyer protection allows you not to be afraid for your money in the event that the package does not arrive.
Search for clients
Business with China from A to Z includes such an important point as searching for potential and direct buyers. After all, it’s one thing to purchase a batch of goods and create a website. It’s quite another to attract customers and get them to make purchases.
In this case, social networks come to the rescue. After all, that’s where it’s concentrated great amount solvent population of any age. By creating a group or community, you can attract specifically the residents of your city by targeting
The social network allows you to create photo albums of the goods being sold, attach descriptions and communicate directly with customers. In addition, this method does not require any financial costs, unlike creating a personal website. But the latter cannot be avoided if you have a fairly solid customer base and a wide range of products.
Organizing a business with China from A to Z on your own is quite possible. After all, this requires only a well-thought-out plan and minimal time and money costs. Believe me, you will receive your first profit very soon. After all, people on the Internet are always looking for something new and interesting. And you can become an intermediary between the manufacturer of such a product and the buyer. The main thing is not to be afraid of difficulties and only go forward.
For Chinese entrepreneurs, 2017 was a year of lower prices for imported raw materials, reduced economic pressure from the United States and, as a result, an increase in foreign trade. Exports to Russia alone increased by 22%, and overall growth was almost 26% compared to the previous year. Experts say that 2018 will be just as favorable for China, and therefore Russian entrepreneurs can expect new interesting products, convenient logistics schemes, good discounts and improved quality standards for Chinese products.
Pros and cons of purchasing in China
The main part of export transactions between Chinese and Russian businesses is the supply of equipment (about 60%) and small wholesale trade in clothing and footwear, plastic products, furniture, leather goods, jewelry and toys (about 30%). Of course, similar goods can be found in Russia, but often their cost is so high that the reseller is not able to make a markup that will cover all pre-sale costs and also provide an opportunity to earn money.
The average small wholesale markup for the Russian manufactured goods group is about 30%, for the Chinese group - 200%.
It is obvious that any businessman who knows how to count money will invest in a scheme with Chinese supplies. But it is not only the possibility of colossal markups that makes the Chinese export offer attractive.
Important advantages of implementing business ideas from China are:
- huge selection a relevant and innovative product (as many new products as in China are not produced in any country in the world);
- the ability to bargain with Chinese sellers until a very significant reduction in the original cost;
- convenient, fast and cheap logistics (already today there are dozens of consolidation warehouses operating in Russia, and their number will only increase).
The weakest point of Russian-Chinese commercial schemes is the difficulty of translation. There are often situations when the parties seem to have agreed on the same terms of a transaction, but in fact the Chinese partner begins to fulfill its obligations with a significant deviation from the agreements. And only when the circumstances are clarified, it is discovered that the Chinese kept silent about something or joked about something, but the Russians did not clarify it in a timely manner.
In order to avoid these problems in the first stages of organizing trade with Chinese suppliers, it is recommended to hire a reliable consulting agent for the first three to five transactions. He will teach you how to properly negotiate with the Chinese side and correctly consolidate agreements on paper. The cost of such an agent’s services is about 10% of the transaction.
Business with China and laws
Any commercial activity between Russian and Chinese entrepreneurs must be regulated by an appropriate agreement drawn up in writing. Of course, if you order 100 watches on Aliexpress, pay for the goods through the payment system of the online resource and wait for the watch to arrive at your warehouse, you do not need to enter into any additional written contracts.
But if you directly contact the supplier or manufacturer, transfer money yourself through the bank and organize delivery, then you cannot do without a written two-sided document, sealed by both parties.
Do I need to pay customs duty for the import of goods purchased from Chinese online stores?
Customs duty must be paid on supplies worth from 1 thousand euros or more or weighing 31 kg or more. The billing period is a calendar month. These standards are established only for mail sent to individuals.
Accordingly, if an individual receives parcels from China in his name per month in the amount of up to 1 thousand euros and up to 31 kg, he is exempt from paying import duties and taxes.
If cargo is transported across the border by a legal entity or individual entrepreneur, completely different customs rules apply to such an operation.
Legal entities (including small enterprises and individual entrepreneurs), when importing goods into the customs territory of the Russian Federation, are required to pay duty, VAT, excise tax, and also pay for customs clearance services.
The total cost of legalizing a consignment of goods from China is 45.15% of the declared contract price of the product.
After a product is legalized, it can be sold on the territory of Russia, paying taxes according to the tax system under which the entrepreneur operates.
If you are just starting to work with China, you should not immediately get involved in commercial supplies. Work for several months as a private individual, evaluate the prospects of the direction in which you are working, and only then enter into commercial contracts. Moreover, newcomers to the Chinese market are not recommended to immediately invest more than 500 euros into the business.
Ways to bypass paying fees
As practical experience shows, attempts to save on customs duties can be very expensive and put an end to your entire entrepreneurial career. Therefore, if you decide to sell a current product and mark up 150 - 200% of the cost, do not save 45% on paying all the necessary duties. You risk being left without goods, without money and with a damaged business reputation.
But if you have an adventurous spirit, you like to fool the system, and you don’t want to share your earnings with anyone, then you can try to bypass paying duties in the following ways:
- negotiate with the supplier to understate the contract value of the goods in invoices (there is a risk of not receiving the goods, and claims for the return of the advance payment can only be made within the limits of the invoice, which you deliberately underestimated);
- involve several partners in the business, in whose name you can receive parcels without exceeding the monetary and weight limits (1 thousand euros / 31 kg).
If you don’t want to deal with duties, customs clearance and delivery at all, then the best option is to hire an intermediary who will look for a good product for you in China and deliver it. Intermediaries publish a complete list of services and their prices on their websites. On average, cooperation costs 10% of the cost of the batch.
How to start trading with Chinese suppliers
The main thing you need to get started is a great desire! A person who wants to do something looks for all possible ways to realize his intention. He tries, makes mistakes, tries again and achieves his goals.
Who can do business with China
If we analyze the success stories of Russian entrepreneurs who have built a legal and profitable business with China, then most of them initially had a merchant instinct and an economic education.
Yes, they had already traded goods of Russian, European, American origin and knew how to build relationships with suppliers. They, with their skills, simply entered another market with a cheaper product and the possibility of a higher margin.
Therefore, if you are currently involved in trade, working with Chinese suppliers will not be strange to you.
Those who understand the latest products in the electronics market, spare parts, car accessories, as well as gadgets of various types and modifications can earn good money.
Those entrepreneurs who can predict fashion trends for future seasons also have a chance of success.
At the stages of introducing new products to the market and during their promotion, manufacturers offer buyers the most comfortable conditions for cooperation (low prices, free delivery, free trial samples, etc.).
Experts note the cyclical nature of the Chinese goods market. The cycle is approximately 3 years. There is a high probability that this year some product items that were actively selling out three years ago will be popular (with the exception of gadgets).
Business with China in 10 steps
If you don’t know where to start trading Chinese goods, you can use the ten simple steps method. Here's a simple step-by-step plan:
- Find capital of 1 thousand euros (it’s better to own your own; it’s difficult to raise money with borrowed money).
- Select the five highest-rated products (ratings can be tracked using the functionality of the Aliexpress website).
- Find the suppliers most loyal to wholesale buyers.
- Depending on the conditions offered by suppliers, choose the most profitable business model for the operation.
- Order trial copies of product items.
- Determine the target audience who will be interested in this particular product.
- Build a post-sales communication strategy with your target audience.
- Calculate your markup percentage.
- Place the first order with the supplier (the price of the first purchase should not exceed 50% of the initial starting capital, and better - 30%).
- While the order is in progress, begin collecting applications for implementation according to the chosen scheme.
These steps must first be worked out on paper, adding details as they are implemented. This diagram should always be before your eyes, and then you will be able to restore the logic of your actions at any time if you feel that some processes have begun to get out of control. To correct the situation, it will be enough to return to the point where the mistake was made and work through it again.
Business visit to China
A business visit to China for one person costs approximately 1.5 thousand US dollars for 3 days (including visa and air travel in both directions). This amount does not include the services of a translator and business consultant, without which it is initially difficult for a Russian entrepreneur to manage. If you are bringing specialists from Russia with you, multiply the cost of the trip for one person by three. A Chinese translator and consultant will cost several times less, but you need to negotiate with them and sign a contract while still in Russia.
If you plan to come to China and look for help there, then most likely you will simply waste your time and will not be able to solve the business problems that were planned.
Obviously, a business trip to China is an expensive undertaking, especially for a novice entrepreneur, so it is recommended to organize such a visit only after several months of work and only with earned money.
Experts advise setting aside up to 20% of earnings from each operation in a business development fund and using this money for travel, organizing negotiations with Chinese manufacturers and expanding your own business.
Where to go in China:
- to exhibitions (Shanghai International Spring Exhibition, Beijing Exhibition, Shenzhen Exhibition, etc.);
- to fairs (Canton Fair, etc.);
- to manufacturers interested in direct cooperation;
- for themed sales.
It is quite difficult to track these events on your own, so, again, at first you will have to use the services of consultants.
It is believed that the most valuable advice that the pros can give to beginners is: don’t be afraid to start! But this advice doesn’t work well if you don’t really know where to start. Therefore, we have collected several business recommendations on what you need to do to feel confident in the market from the very first steps:
- order marketing research on the group of goods that you want to trade (the opinion of a third-party specialist will expand the scope of your ideas about the business you plan to engage in);
- undergo motivational training specifically on Chinese business topics;
- find a like-minded person on online platforms (forums, social networks, offline);
- approach each of your transactions as if it were your life’s work (carefully study your suppliers, demand from them all the necessary documents for the goods, negotiate delivery dates in detail, study the calendar of Chinese holidays, etc.);
- always be prepared for the fact that your partners may turn out to be unscrupulous (you shouldn’t fall into total distrust and paranoia, but you should always agree in advance on the conditions for exiting a failed deal);
- form a reserve fund (at least 10% of profitable operations);
- From the first purchase, keep your own extended statistics (the more accounting items you track and analyze, the more thoughtful your every entry into the market will be).
Classic beginner mistakes
Let's name three main mistakes that prevent beginners from starting a business with China on their own:
- Lack of a business plan. This is not only about financial indicators, but also about the fact that any business endeavor must have a goal. The best goal for a startup is to increase trade turnover, register your own company and expand the scope of activity.
- Lack of specific deadlines (if you are looking for start-up capital, then a specific deadline must be set - no more than six months, and preferably three months).
- Reluctance to learn new things. The business technology market produces updated formulas for successful sales every six months; if you do not study and use this information, you will not be able to adequately compete in your niche.
Unfortunately, universities, colleges and academies do not teach the intricacies of organizing business supplies from China. Yes, in academic institutions you can get basic knowledge in economics, logistics, financing, etc., but you need to gain practical experience on your own.
Or you can pay successful practitioners to share their work. Today, several well-known specialists work in the field of teaching trade with China:
- Dmitry Kovpak;
- Evgeny Guryev and Vasily Noginov;
- Alexander Martynov.
All trainers provide online training, publish books, and also provide individual consulting.
The average cost of a book is about 500 rubles, an online course is about 10 thousand rubles, and individual consulting is about 200 US dollars per month.
Before purchasing a course subscription or arranging for consultations, read a book written by a trainer. The material in the book will give you the opportunity to understand how well the author of the course understands his business, whether he explains in detail to his clients the nuances of setting up a business, and whether he is ready to share truly successful schemes.
Determining your resources
Correctly determining your starting positions is perhaps the first important step towards building a business strategy. If you overestimate your capabilities, you will quickly find yourself in the minus; if you underestimate, there is a high probability that you will never reach a leadership position.
Is it possible to start a business in China without investment?
Of course, it is possible to organize a business without any investment, but with such a start it will take you a very long time to increase your turnover.
Yes, you can order two watches on Aliexpress for 300 rubles, wait a month for delivery, and then resell them for 1000 rubles. With such a scale, your monthly earnings will be 1.4 thousand rubles. To earn 30 thousand rubles on the same watch, you need to ensure a turnover of twenty times more.
If you want to organize a resale business without investments, you must understand: although you really won’t have to invest money in purchasing (since all purchases are made with the customers’ money), you will still have to promote your site and collect orders with your own money.
Even if, say, you are an Internet marketing guru and you yourself can organize powerful promotion of your project on the Internet, then in any case you will invest your efforts and time in this matter - a resource that you could profitably sell to customers.
Yes, perhaps a few years ago some active businessmen managed to make money out of thin air, but today the market for Chinese goods is very saturated, and in order to make money on it, you will have to give your all.
How to determine your niche in business
If you have a small starting capital, up to 1 thousand US dollars, and absolutely no experience as a reseller, then it is safest to trade goods with a purchase price in the range from 300 to 500 rubles. The advantage of doing this:
- the opportunity to receive wholesale discounts;
- in the average price range there is not so much risk of getting a product of very low quality;
- large sales market.
Stay in this segment until you can invest up to $5 thousand in purchases. With such investments, you can switch to higher quality goods and sell them not only through social networks and one-page websites, but also through shops and retail outlets in your city.
As for choosing an assortment, trade in the product that you understand, that you feel and that you can evaluate as a specialist. You must know and be able to tell a lot of useful and interesting information about what you are trading. If you already have such a product in mind, start with it.
Effective business models for trading Chinese goods
The main tasks of an entrepreneur who wants to do business with goods from China:
- minimize the risk of purchasing product items that are not in demand on the market;
- buy a quality product inexpensively;
- cheaply and quickly deliver it to the end buyer.
The ideal scheme looks like this:
- a reseller finds a cheap product in China;
- interests potential customers;
- sets its own high markup;
- collects orders;
- arranges purchases from a Chinese manufacturer;
- the manufacturer directly ships their purchases to customers;
- Products arrive to customers of the required quality and within the agreed time frame.
This scheme has one drawback - it is very difficult to implement. But nevertheless, you can get closer to it. Moreover, today there are a number of business models operating in the market that bring trade in Chinese goods as close as possible to an ideal intermediary scheme.
This model is for entrepreneurs who want to start a business with China from scratch. As part of this project, the maximum you can do is receive wholesale discounts from suppliers for single purchases. Chinese manufacturers give wholesale discounts from 20% to 50%.
To implement this model, you need to find partners who also want to save on wholesale discounts. It is best to look for co-customers for joint purchases on local forums or in regional social network groups.
You can organize a face-to-face meeting with partners from your city, make sure of their trustworthiness, and thereby minimize the risk of fraud.
There is no need to worry that by organizing a joint delivery to one city, the partners are thereby creating competitors for themselves.
If the product is really worthwhile, you will in any case be able to sell it quickly and at a good price.
Organizing retail dropshipping from China is almost impossible, especially at the initial stage of business development with minimal investment. And that's why.
The dropshipping scheme assumes that the manufacturer himself organizes delivery to customers, and the dropshipper acts only as an intermediary (looks for customers for the manufacturer and provides him with delivery addresses).
The functionality of Chinese purchasing sites (Aliexpress, Alibaba, Taobao, etc.) does not allow any delivery other than to the buyer’s address.
But if you still find the idea of dropshipping the most attractive for yourself, you can purchase a ready-made online store operating under a franchise of Chinese trading platforms.
Such franchises are sold today by the same Aliexpress, Taobao, Alibaba. The essence of the franchise is that a Russian entrepreneur buys a ready-made showcase site on which goods from Chinese manufacturers are posted, promotes this site, promotes its advertising and generates orders to China through his showcase.
The cost of such a site starts from 1 thousand dollars.
Wholesale sales
Wholesale trade of Chinese goods is a less risky business than buying a storefront website. The wholesaler's task is to search for the most profitable product and subsequent sale of wholesale quantities to smaller retail outlets.
This scheme can be implemented if you have business experience, official registration as a business entity and a purchasing capital of at least 300 thousand rubles. With such a purchase you can get good wholesale discounts.
The advantage of this scheme is that you will not have to spend time on retail sales. By investing in large wholesale and selling all the goods in one go, the entrepreneur has the opportunity to speed up the turnover of goods. By investing 300 thousand rubles and spinning them three times in two months, you can earn a million rubles.
The complexity of this scheme is the search for reliable small-scale wholesale customers. Usually, at first they agree to the deal, but when they need to pay money for the goods, they begin to doubt and refuse to cooperate.
To prevent this scenario, immediately conclude sales contracts with your customers and take an advance payment from them. Then, even in case of refusal, you can minimize your risk.
Search for business partners
You can look for partners in China when your business is officially registered, is focused on foreign economic activity and has a turnover of at least one million rubles per month. This result can be achieved in two months of active work, provided that you started the business from scratch.
Partners can solve the following tasks:
- help the Chinese manufacturer comply with delivery conditions (consulting partner);
- set up production of products to order (you agree with the Chinese manufacturer that he will manufacture the product specifically for you);
- produce goods for you (according to your specifications and under your brand).
Finding a conscientious assistant in China is not at all easy. But if you find it, then consider yourself ahead in the competition.
Helping Partner
Most often they work independently or on behalf of a large consulting company. Contacts of two or three consultants in China can be obtained from companies that organize business trips to the Middle Kingdom. But in any case, you need to look for these contacts at the stage when you no longer want to be limited to purchasing from online stores and you have a desire to make a business offer to Chinese manufacturers.
What can a Russian businessman offer to a Chinese one:
- an interesting idea in a cheap implementation;
- a good percentage of the sale of a batch of finished products;
- repurchase of draft blanks (with their subsequent refinement in Russia).
The difficulty is that at the stage of developing an idea, you not only do not know Chinese, but also do not have up-to-date information about:
- what is the cost per unit of product produced in a Chinese workshop;
- how much do raw materials and resources cost?
- How truly new and relevant is your idea?
A business consultant in China will give you answers to these and a number of other important questions. He will also compile a list of the most reliable manufacturers with a good reputation and organize the most convenient route for delivering goods to Russia.
To make sure that your assistant truly fulfills his obligations in good faith, at the stage of pre-contractual negotiations, ask him for contacts of his clients who can give recommendations.
Supplier search
If you plan to switch to wholesale purchasing in China as soon as possible, you need to look for a reliable supplier from the first days of work.
Even when making small purchases on Aliexpress, enter into business negotiations with sellers for further cooperation. Yes, most likely 80% of your negotiations will not be successful, but even having three reliable suppliers will allow you to establish a profitable business.
Look for large manufacturers with about 1 thousand employees. Cooperation with such companies is the least risky and more promising in terms of developing your own business reputation.
The disadvantage of working with a large company is that the purchase price of the goods is higher than in small workshops that use cheap labor and outdated equipment.
To check whether your Chinese partner (intermediary, manufacturer) is trustworthy, test it using the following checklist:
- Availability of your own website (in Chinese and English).
- Date of creation of the site and information about its owners. This information can be verified using special identifying services (one of such services is http://whois.domaintools.com).
- Unhindered provision of company registration documents.
- Link in correspondence to business contacts.
- The fact that the counterparty does not hide the address of the production facilities (and you can check it on the map).
- The payment condition is the counterparty's bank account.
- The company is not on the black list of scammers.
- Willingness to provide product samples.
- The counterparty’s willingness to provide you with an invitation to obtain a business visa (even if you are not planning to go to China yet, ask about the possibility of assistance from that party in obtaining your entry documents).
- Information about the supplier on the Internet. Use Google search, check all the data that you know (company name, legal and email address, names of contact persons, etc.).
And, of course, before purchasing, you need to carefully study the reviews of real customers about the products and the manufacturer on electronic trading platforms.
Where and how to buy goods in China wholesale and retail
Alibaba, 1688 and Taobao sites are designed for wholesale deliveries from China, and Aliexpress for retail deliveries.
Taobao and 1688 provide information only in Chinese. Aliexpress today is available in many languages of the world, including Russian.
Despite the fact that many experts in purchasing on Chinese online platforms claim that today it is almost impossible to find high-margin goods for resale online, these conclusions are not entirely true.
Yes, today it is much more difficult to open a super-profitable business than five to seven years ago (even on the American Amazon, some groups of goods are sold at the same prices as in China). But, for comparison, if the average retail markup on goods from Russian manufacturers is 50%, then the minimum markup on goods purchased on Chinese wholesale sites is 100%.
And then, the prospects of working with the Chinese are much more attractive than with a Russian manufacturer, since with increasing turnover and long-term cooperation, Chinese companies are ready to double or even triple the discounts on their goods, and a domestic manufacturer is unlikely to agree to such concessions.
A little about the psychology of Chinese businessmen
As already mentioned, we poorly understand the mentality of Asian peoples, their laws and business customs, so the most reliable option for starting a business in Chinese territory is cooperation with a business consultant. But if it is not possible to pay for the services of such a specialist (approximately 300 US dollars per month), then you must learn to independently navigate the peculiarities of building relationships with Chinese partners. And here are a few rules:
- Learn English and at least start learning Chinese.
- Always be friendly and calm, but never take someone’s word for it.
- From the very beginning of building joint plans, demonstrate your professionalism and seriousness of business intentions (study the documents in detail, make your suggestions and adjustments, be attentive to details).
- Be open with your partners (provide all your registration documents), but do not reveal your future business plans (in case of questions, it is better to prepare some clear and simple wording without details).
- Ask for advice from a Chinese person, but follow this advice with extreme caution, as the Chinese are very fond of making fun of Europeans (this step will allow you to better understand whether you are dealing with a prankster or a truly conscientious partner).
- Fix all agreements on paper, and first consult a lawyer about what a legitimate agreement should look like under Chinese law.
Starting your own successful business
The most important moment for a businessman is to find a product , which suits both the price, the quality, and the terms of delivery. If you find one, then consider that very soon your small business will turn into a large profitable project.
What products can you make money on - TOP 10 products from China
First of all, look for something new and not yet promoted on the RuNet among the following product groups:
- pet supplies;
- goods for children (literally all items, from diapers to bicycles);
- inexpensive haberdashery;
- car accessories.
Advantages of trading these groups of goods:
- they are in demand all year round;
- cyclical demand (even if you did not sell the entire batch immediately after purchasing, there is a high probability that after a couple of months the demand for this product will become active again);
- long shelf life;
- Possibility of sales through offline outlets with a higher margin.
By purchasing a batch of such goods for 30 thousand rubles, you can earn at least 50 thousand rubles.
30 cent items from China for resale
Products with a purchase price of up to 20 rubles per piece sell very well in markets, in trade stalls and in supermarkets. Such purchases are best made by entrepreneurs who already have their own retail outlets and want to diversify their assortment.
The most popular product from this category:
- car chargers-cigarette lighters,
- liquid lipsticks,
- disposable tattoos,
- cases for keys and credit cards made of eco-leather,
- hairpins and jewelry,
- keychains and headphone cases,
- magnets and silicone bracelets.
The average cost of goods purchased at 20 rubles per unit on the market is at least 100 rubles. Wholesale selling price is about 60 rubles per piece.
So it turns out that having purchased a batch for 200 thousand rubles (10 thousand pieces), the entrepreneur will immediately earn 400 thousand rubles. And this is a real business that today operates in every city and small town.
New ideas
Promoting new ideas of Chinese light industry in Russia is a profitable business, but very risky. It can only be done after gaining experience in the Russian and Chinese markets.
But if you still want to promote such a new idea, then it is better to do this not through online stores, where buyers come for goods they already know, but through landing pages and one-page pages. The format of such sites allows you to comprehensively advertise a new product, familiarize visitors with reviews of product owners and provide as much other useful information about the product as possible.
Edible in small containers
One of the new products on the Chinese market is small snack kits in colorful and convenient small containers. Such a set may consist of dried fruits, a bag of tea or coffee, snacks, etc.
It is best to sell kits in bulk to gas station chains, supermarkets, pharmacies, and drogerie stores.
The cost of such containers is from 100 to 500 rubles per purchase. You can sell them at a double markup.
For a fur coat - to China!
You can start a business in fur coats only if you understand natural furs and can evaluate the quality of tailoring, and also if you have the opportunity to personally travel to the Middle Kingdom, select the goods yourself and agree on its delivery with a reliable carrier. In this case, you will be able to sell each fur coat at three times the purchase price (on average, fur coats that are sold in China for 1 thousand US dollars, in Russia go for three thousand dollars).
Almost all types of fur and the most popular models are represented on the Chinese market.
Packaging of goods
Another profitable idea, the essence of which is the purchase of wholesale quantities of semi-finished products in China and their subsequent packaging in Russia. In this format you can trade Chinese tea, seeds, nuts, etc.
Packaging material can also be purchased from Chinese manufacturers.
On average, earnings from such operations are up to 200% of the cost of the initial purchase.
Test purchase and determination of markup
This is a mandatory stage for which you do not need to spare any time or effort. Order 10 units of the product and offer it to retailers for evaluation. If the product is relevant and in demand, the retailer itself will offer a good small-scale wholesale price.
Yes, with such a scheme, there is a danger that while the main product is on sale, the retail buyer with whom you discussed sales options will find another seller or lose interest in your product. But this is your task as an entrepreneur: to negotiate all the terms of delivery so that your partners do not refuse their obligations.
If you resell clothes or any other product, you will make a good profit. You can get rich by selling Chinese goods. It is cheap and has good quality. You just need to contact the manufacturer to receive the goods under favorable conditions. Business with China for resale without investment is suitable for any person. It is successfully practiced by novice entrepreneurs and professionals. The easiest way to do dropshipping.
Today this topic has become quite popular because it does not require any contributions. But this is not the only way to make money when collaborating with Chinese manufacturers without starting capital. There are other more accessible strategies that need to be discussed separately.
In , the entrepreneur must enter into an agreement with the manufacturer and arrange direct deliveries of products to customers. Not many people are still involved in this business. It originated with the advent of online commerce. To successfully engage in it, learn about all the intricacies of cooperation with Chinese manufacturers.
You need to have your own online store. Customers will select products on the website and pay for them. Then you need to find the same product from an eastern partner, pay for it cheaply and send it to the buyer. Only work with trusted partners.
It is better to immediately conclude an agreement with the company. When ordering a small batch of goods, you will not need to pay customs duties. For large orders, official registration is done and all taxes are paid.
Opening a one-page website
For this purpose, you can start creating a one-page website or online trading platform. This resource creates a suitable design. Every little detail is taken into account. Organizers have to use cunning to get buyers to press the coveted keys.
Using a one-page website, you can promote any product. Statistics show that they buy better. At the same time, you don’t need to put a lot of different products. When customers see such a wide variety, they get confused and don’t order anything at all.
A one-page website does not need to be filled with different things. Only one product is presented here and described in detail. The product must be popular in order for it to be in great demand. At the same time, it must be unique. You should not sell TVs or refrigerators. There is a lot of this goodness everywhere.
Important! When creating a website, you need to think about its design and functionality. For a person who does not understand website building, it is better to take the help of a specialist to create a high-quality Internet resource. He will fill it with unique articles. You will also have to negotiate delivery. A postal or courier service can help here. To send large cargo, it is better to contact a transport company.
What's better to sell?
For profitable trading, choose a suitable product. The enterprises produce:
· Electronics;
· Textile products;
· Clothes and accessories;
· Industrial equipment;
· Products for children and others.
When cooperating with the Chinese Republic, it is not necessary to engage in resale; you can organize a small business in China to sell it in your homeland. Manufacturers will supply the necessary cheap equipment. The Chinese can help equip a sewing workshop, car service center, packaging line and other production facilities.
Foreign manufacturers will organize the delivery of technical equipment. They will train staff. Organizing a business in a small workshop is not a problem for the Chinese. They will carry out maintenance and repair of machines if necessary.
Business selling branded clothing
If you resell branded clothing, you can also make a profit. Many well-known brands have factories in the Republic of China. Branded household appliances, clothing, computer components, etc. are produced there. Due to the use of inexpensive labor, any small business can be opened profitably in this country.
For example, America has always been involved in the production of Nike sportswear. Only now these products are manufactured in Chinese factories. All manufactured clothing goes through strict control, so consumers receive good quality products. Simply, due to cheap labor, products have become cheaper in cost. More buyers appeared and, accordingly, this led to an increase in income.
Communication devices
If you don’t know which product is best to sell, choose communication devices. Updates and new products are added annually. Today, selling modern gadgets, headphones, and Bluetooth accessories is very promising and profitable. Demand for these products remains stable. You can sell with a small financial contribution.
Important! Selling Chinese products is very profitable. In addition, you can do without start-up capital. Chinese suppliers supply high-quality products at low prices. It is not necessary to purchase it in large quantities.
Just ten years ago, goods from China were not of high quality. They were produced from second-class raw materials using outdated technologies, so such products were not in great demand. Today, a lot has changed, so on Chinese trading platforms you can easily purchase high-quality products at affordable prices. In this article we will tell you where to start a business with China and how to make good money from it.
Business Features
Nowadays, anyone can open a business with China in 2018. The most popular types of earnings:
- Dropshipping;
- Joint purchases;
- Large wholesale trade.
The easiest way to start a business with China from scratch is dropshipping or direct deliveries. This type of business activity appeared in our country relatively recently, after the first online stores opened. Dropshipping is attractive because it does not require any financial investment, since you purchase the product after the customer orders it from your online store.
To open a business with China without investment, you need to agree on cooperation with a certain manufacturer or supplier. When the buyer pays for the goods on your online platform, you transfer the money to the account of the Chinese seller. After this, your partner sends the goods to the buyer's address, and you receive your commission. This scheme has been working for several years and brings excellent profits.
When ordering goods in small quantities (up to 1 thousand euros), you are automatically exempt from paying taxes or customs duties. Deliveries of products on a large scale require paperwork and taxes. If you have never done this kind of business, it is most profitable to start a resale business with China without investment, that is, dropshipping.
Citizens who are interested in shopping in Chinese online stores can earn good money from this. Organizing joint purchases is a great idea for small businesses from China. Help other people place orders for the purchase of various goods and receive your commissions for it. Many Chinese sellers offer good discounts for bulk purchases. You can earn good additional income from this. Thousands of people around the world save money on joint purchases, so you can easily find customers who want to purchase inexpensive, high-quality goods with your help.
Wholesale trade is a fairly profitable business idea from China, but it requires large financial investments and certain knowledge. In addition, you need to find partners who will buy goods in large quantities. At the same time, this is an excellent option for those who are looking for...
Where to begin?
To open an easy and extremely profitable business with China in 2018, you first need to draw up a detailed action plan:
- Choosing a direction. Before concluding a cooperation agreement with Chinese manufacturers, objectively assess your capabilities and consumer demand in the market;
- Selecting a supplier. Finding a reliable partner in a foreign country is not so easy. At any moment you can run into scammers or unscrupulous suppliers, so before you start work, collect as much information as possible about your business partners;
- Take part in exhibitions. Here you can find new business ideas from China in 2018, choose suitable products and conclude profitable contracts with good discounts;
- Wholesale supply. If you are attracted to wholesale, before engaging in such a business, carefully study the features of organizing the supply of goods in large volumes. In addition, you need to understand the different methods of transporting goods;
- Customs clearance. To avoid any problems with transporting cargo across the border, you need to understand all the intricacies of customs clearance or find an experienced specialist who will help you with paperwork.
What to sell?
Now let's try to figure it out, ? We present to your attention a list of the most popular products:- Clothing and footwear;
- Accessories (watches, belts, bags, etc.);
- Car gadgets (DVRs, audio systems, etc.);
- Mobile phone cases;
- Hygiene products;
- Mobile devices;
- E-books, laptops, tablets;
- Industrial equipment from China for small businesses;
- Dishes and kitchen utensils;
- Childen's goods.
If you can't decide on your own, look at the ranking of the best-selling products on the Internet. This will help you correctly formulate your assortment.
Many aspiring entrepreneurs are attracted. For example, you can purchase special packaging equipment, purchase a batch of loose nuts, tea or dried fruits and start packing them. Such goods can be purchased from Chinese suppliers in bulk at low prices, packaged in beautiful packaging and sold in small quantities to stores, supermarkets or resellers.
Search for a supplier
If you want to open a profitable mini-business with China, you need to choose a reliable, proven supplier who will conscientiously fulfill all its obligations. There are several ways to ensure uninterrupted supply of goods from China:
- Internet. Thanks to modern technologies, you can, without leaving your home, find information about a supplier online, enter into an official contract with him and discuss all the details of cooperation. Reselling goods on the Internet is one of the most... Any person can take up such a business, regardless of his place of residence and education;
- Participation in international exhibitions. Such events are often held in many large cities of our country. Before agreeing to cooperate with a supplier, you can personally verify the quality of the products, as well as communicate with representatives of the manufacturer’s company;
- Trip to China. This is the best way that allows you to visit the production site, obtain the necessary information about the raw materials from which the products are made, the technologies used and the volume of production of goods. But this option is not available to all beginning entrepreneurs, since in order to visit China in person, you need to know the language and have decent start-up capital.
Business benefits
The main advantage of doing business with China is the low cost of products. Thanks to this, you can set attractive prices and beat your competitors. Trading Chinese goods is the best. You can start such a business literally from scratch, selling goods to your family and friends. They, in turn, will tell their friends about your business, thanks to which your business will begin to gain momentum and develop. In order to receive a decent, stable income, you need to create your own online store or open a real retail outlet in a market or shopping center.
The Chinese produce any product, from clothing to computers. This means that you can easily choose any product that will be in demand on the market. If you want to open a small manufacturing business, equipment from China can be ordered at very competitive prices, and the quality is practically no different from expensive European-made equipment.
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In order to work effectively in this direction and earn a good income, you need to study all the nuances of doing business with China without investing. There are many pitfalls that hinder the development of small businesses in China. If you do not take them into account, you may be left without profit or lose all your invested money.
The following factors influence the success of your business:
- Ability to select in-demand products;
- Objective assessment of business profitability;
- Reliable suppliers and negotiation skills;
- Search for sales markets.
To prevent possible risks, follow these simple rules.
More and more entrepreneurs are purchasing goods from Chinese suppliers. In this article we will talk about all stages of working with Chinese partners, about how to avoid translation difficulties, learn to respect other people's cultural traditions and earn a good business reputation.
Why work with the Chinese at all?
If you are asking yourself this question, it means you have not yet tried to work with Chinese suppliers. Why is everyone working? Not just like that: There are a lot of advantages in this cooperation. Let's look at the most important of them.
Low price of goods
China has a huge number of factories, plants and factories where hardworking Chinese work day and night. It is clear that without any markups, the cost of production will be very low. Then the price will increase several times: during customs clearance, when entering retail chains. And only there, in the Celestial Empire, do you understand how much things actually cost.
Huge assortment
Without a doubt, we can say that the Chinese not only pick up all fashion trends, but also create them themselves. Absolutely everything is produced in the country including those goods that will not reach the Russian market soon. There is every chance of finding a literal diamond in the heap.
Quality is up to par
Gone are the days when “Made in China” meant bright plastic stuff with a chemical smell. If you don’t be greedy and don’t buy batches of goods at a frankly bargain price, you will receive goods of good quality.
What are they like, the inhabitants of the Middle Kingdom?
To find a common language with the Chinese, you need to know at least a little about their character. This will help you better understand the psychology of your partners, understand what they are like, what their values are and their attitude towards work.
- The Chinese love to work. VERY. These are real workaholics who really work from morning to night, raising the country’s economy. Accordingly, they have the same requirements for business partners, therefore please comply. If you like to be lazy, are unnecessary and unpunctual, this will be a reason to change your attitude towards work.
- The public is more important than the personal. Family, workers' community, native enterprise - all these are not just words for the Chinese, but the most important concepts in life. He will easily push personal interests aside, if the team requires it. Therefore, when negotiating and concluding agreements with a legal entity in China, remember: in no case should you infringe on the interests of the company as a whole.
- The Chinese are cautious, calm, and do not like extremes. Given a choice between a risky venture and stability, in 99 percent of cases he will choose the second. In Russia, people are more impulsive - both in life and in business, sometimes they are guided by emotions. When communicating with Chinese suppliers, you can forget about this: be patient and calm.
- The Chinese have a hard time saying no. Therefore, if your Chinese partner is not satisfied with your proposal, he will come up with thousands of reasons to postpone the meeting, offer compromises, but is unlikely to be able to refuse outright. This tactic leads to cases being delayed and postponed indefinitely.
- The Chinese are modest and are not used to expressing their feelings. If you tell a bombshell joke to soften the atmosphere, and no one laughs, everything is fine, the Chinese appreciate it, they just don’t show it.
- The Chinese are not used to responding to praise. Don't be surprised if, in response to your compliment about good work, he embarrassedly says that he could have done better. And if you decide to give a foreign partner a gift, offer it several times, because taking a gift the first time means being branded as a greedy person.
Rules for communication with Chinese partners
Don't just call a Chinese person by name- this will be considered disrespect and familiarity. In extreme cases, by last name and first name - yes, yes, in that order, but best of all - with an indication of the position. For example, Manager Wang, Director Li and so on.
Never complain about your work, do not try to discuss with a Chinese his boss, salary, or relationships in the team. The boss is sacred, he cannot be judged or criticized, and colleagues are a real second family for any honest Chinese. The same goes for politics: The Chinese are great patriots and do not tolerate irony about the state structure. And then, you won’t be talking about politics, but doing business.
But your partner will enjoy talking about Chinese culture, traditions, and local cuisine. Be sincerely interested in the traditions of the Chinese people, but do not overdo it - they see through falsehood and flattery very well.
Don’t rush to rejoice if your Chinese partners happily agree with your proposals and nod in agreement. This doesn't mean anything yet: It’s difficult for a Chinese to say “no”, it’s easier for him to agree, and then think about how to avoid an awkward agreement. And if you were told “You need to think about this,” most likely, get ready for refusal.
In turn, soften the wording yourself and do not cut from the shoulder. Adapt to other people's mentality, avoid harsh answers and, if the proposal of your Chinese partners does not suit you, delicately say: “We need to consult with our partners,” “We need time to think about your proposal,” and so on. Believe me, the Chinese will understand the hints perfectly.
Try to enter into written contracts and agreements. What is said in words often means nothing, but before a letter or any business paper, the Chinese have deep respect.
Don't skimp on praise and compliments. The East is a delicate matter, everyone there praises each other, but most often acts in their own way. Accept the rules of the game, allow yourself to be praised and do not forget to lavish kind words in response. It won't be considered flattery- completely normal business communication.
Don't express your emotions too clearly. Of course, Chinese suppliers are accustomed to working with Russians, have read Dostoevsky and have heard a lot about the mysterious Russian soul. But still, you shouldn’t go into someone else’s monastery with your own rules and temporarily pacify your nature.
Don't dress too brightly. Yes, we remember that on the AliExpress website you can find clothes, shoes and accessories in the most crazy colors and styles, but they are produced for import - the Chinese themselves are unlikely to wear this, especially to a business meeting. Dress modestly and discreetly: no stretched T-shirts, torn jeans, a shirt and trousers - this is the ideal option.
Well, the educational part is over, now let's move on directly to business processes.
So, what are the stages of working with Chinese suppliers?
Stage 1. Choosing a niche in the market
This could include clothing, electronics, toys and children's products, replicas of famous brands or a little bit of everything - and see how it goes. Be sure to look at the demand for these products. Or maybe you will be attracted by unusual products that are not yet presented on the Russian market: in this case, you will become a pioneer.
Stage 2. Selecting a supplier
There are a lot of options, so the chance of running into an unscrupulous partner is also great. Study the supplier market, find intermediaries, use word of mouth, scour Chinese product aggregators and start communicating. As an option for the brave - trip to the Celestial Empire and attending offline events: exhibitions, forums, conferences. This way you can personally meet future partners and evaluate the product in person, and not from pictures on the Internet.
Tip: pay attention to the scale of the supplier - An individual entrepreneur is a representative of a small or medium-sized business, a large factory or plant. Medium and large businesses are more reliable - there the likelihood of fraud is reduced to zero, there is the possibility of wholesale purchases, but the prices for products are higher and delivery times may be delayed. Small suppliers often work without a contract, on their word of honor, and sell in small quantities - their turnover is simply not enough for wholesale. It is better to choose, as always, a middle ground in order to take into account the interests of both parties.
Stage 3. Personal meeting
You can, of course, collaborate with partners online, but it’s better to meet the most promising ones in person. China is not that far away - eight hours by plane and you are already there. A personal meeting will allow both parties to be convinced of the seriousness of their intentions, personally assess the prospects for online trading, conclude contracts and discuss further cooperation.
Stage 4. Purchasing consignments of goods, completing a transaction
Be sure to mention the following points:
- production and delivery times;
- possibility of returning goods;
- the supplier has a trading license.
Be careful: We will tell you about the schemes of scammers at the end of the article.
Stage 5. Transportation of goods
Perhaps the most dreary stage, without which, however, the work is impossible. You will have to arrange transportation of goods- in wholesale or retail quantities, correctly arrange customs clearance of goods and, finally, ensure their delivery to your warehouse or office. Remember that if the supplier or seller does not have a license, the cargo simply will not be able to pass customs control. To clear goods through customs, you must pay customs duties and fill out a declaration. You can submit it yourself or use the services of a customs representative and not bother yourself. For small businesses, this is perhaps the best option.
We agreed, ordered, received. And the product is bad!
What to do in this case? If you are not satisfied with the quality of the product, you need to issue a return. It is better to pre-register this clause in the contract to avoid unpleasant surprises. Then returning the goods will be much easier.
In any case, you will have to prepare the following documents:
- an act of complaint regarding the quality of the product, which states the reasons for your dissatisfaction;
- invoices for the transportation of goods;
- act of acceptance and transfer of products.
And here’s another advantage of working with large and medium-sized companies: they have representatives in Russia who will help resolve the issue. With small suppliers, the chances of getting your money back are not that great.
How to recognize a scammer
Unfortunately, in any business there are unscrupulous partners, and the Chinese are no exception. Here are the main scams problems that owners of Russian online stores face.
- Shell companies that simply close after receiving money from the buyer. There is only one way out: carefully check the documentation and enlist the recommendations of others.
- Price increase after prepayment. How many times has this happened: a businessman makes an advance payment, and then they start feeding him juicy Chinese noodles: they say that the raw materials have become more expensive, and accordingly, the price of the batch will increase. If you don't want to pay, you risk getting a product of terrible quality. Agree - you will feel like a fool. That's why It is better to work only with trusted companies.
- Increasing the price of repeat purchases. The first transaction went well: you sold the goods received from China, made a profit and are happy to continue working with this supplier. He, feeling that the fish is hooked, takes it and increases the price. This often happens when the price initially offered is very low, and the buyer simply cannot refuse. What can you do here - do not believe suspiciously low prices, monitor suppliers' offers and look for the optimal price-quality ratio.
- Arrival of low quality goods. We have already written about this. Most often this happens if the buyer does not see the product himself and communicates with the supplier only via the Internet. It is worth remembering the Russian wisdom “trust, but verify,” and putting it into practice.
- Muhlezh with contracts. Even if you personally come to China and test the product, the possibility of deception remains. Sometimes the contract states something completely different, than was promised to the buyer. For example, the supplier promised to send high-quality expensive clothes to Russia, showed samples, equipment, but... cheap synthetics from the “expectation-reality” series arrived in Russia. The thing is that at Chinese customs the goods were declared as cheap consumer goods, and according to the contract, after the goods left the Celestial Empire, all responsibility for it lay with the buyer. They didn’t check, they didn’t look at the documents carefully before signing, they didn’t... There were a lot of things that didn’t happen.
By and large, working with Chinese suppliers is not much different from working with other foreign and Russian partners. Everywhere you need to carefully study the market. Everywhere you need to personally check the quality, and not believe sweet speeches. Finally, there are scammers everywhere. You just need to take into account the local mentality and respect other people's cultural traditions.祝你好运 (we wish you good luck - Chinese)!