1. Know about your potential suppliers. It is best if you have information of whether your potential suppliers are third party suppliers, exporters, or actual manufacturers in China. Keep in mind that in international trade, business transactions between exporters and manufacturers have their respective or distinct benefits and drawbacks. Many prefer to deal with manufacturers as they can respond to client requests much faster when it comes to issues concerning the products. Another advantage of dealing with manufacturers is the factory direct pricing. On the other hand, dealing with third party suppliers can have its benefits too. Firstly, they have great connections. In fact, professional exporters have broader connections and channels in almost all kinds of industries. This means that they can cater to all of your needs when it comes to various products in China. Manufacturers tend to have less experience when it comes to dealing with issues regarding international trade. However, professional exporters can save you a lot of time and money as they can easily help you with concerns regarding regulation compliance, logistic coordination, quality inspections, and others related with international trade.
2. Just like in all business transactions, establishing good relations with clients, business contacts, and the management is a necessity. Many businesses flourish due to good personal and professional relationships built and established between two business parties. This is also something that you must strive to achieve when doing business in China. A word that is most popular in China, “Guanxi”, means relationship and it is most observed among businessmen in business transactions.
3. Being a good businessman entails that you are familiar with landing costs. Knowledge about it or having a good estimate can be very beneficial for you before placing any order with suppliers. You would already know what landing cost means if you have done your homework as a competitive businessman. Be aware of all the fees that you would have to pay and the fees that you don’t have to shell out for. There might be hidden costs as this is a common occurrence but it is best if you consult with professional companies that deal with import management. To be familiar with all these things, you can try to do a small test order.
4. Know the importance of import duties. In general, import duty assessments depend on the country, destination of the goods, and the HS code of the products. Your business contacts will definitely know about these but you must also be knowledgeable of all the details to ensure a smooth transaction.
5. As for payment terms, it is common practice to use a letter of credit. Ask your bank about it and don’t forget to get detailed information.
6. Did you know that there are two kinds of exporting companies in China? Well, there are and you must also have some idea about this. The actual exporter is the people that they merchandise directly, whereas the export agents are the people hired by the manufacturers.
7. To avoid additional costs, you must always fulfill product compliances. Believe me you can save a lot of your time and money by strictly doing so.
8. While there are various ways to meet potential suppliers, attending business fairs can be most effective and lucrative.
9. Be familiar with your packaging. That includes the materials used, dimensions, requirements, and certifications. It is also wise to know about the requirements for packages entering your country such as fumigation.
10. Finally, availing of professional help can sometimes be the best way to handle things.
