China import mistakes are common but it is a major opportunity for those that know the formula as it is the manufacturing capital of the world. There are so many factories in China so it can be a complicated process if you don’t follow the right advice. These are of risks when sourcing from China as there are a variety of qualities available which can lead to substandard products. With the right guidance, these pitfalls can be avoided.
When sourcing from China you can not rely on verbal agreements as communication errors in China can lead to very costly mistakes. It is imperative that you have everything in writing and create contracts with all parties when importing from China. It is advisable to get legal assistance so that the contracts are legally binding.The law is different in China so you need a lawyer with knowledge of the Chinese market to avoid costly mistakes.
Contracts in China don’t always have as much power as they do in the western world, but having an airtight contract is still fundamental protection.
The specifications must be outlined in full and in writing with everything in a signed contract. Slight discrepancies can lead to major problems when your products arrive in Australia. You really need a to be at the factory in person before manufacturing begins and at the factory to do the final inspection before dispatch. A container of slight defects is a very big headache in Australia.
Too many China import novices are too focused on getting the cheapest price as the lower the price, the higher the potential profits. Chinese manufacturing is cheaper so by trying to get the lowest price in China, you will normally get a poor quality factory that may use harmful materials or manufacture poor quality. There is an old saying that if it sounds too good to be true then it normally is. It is important that you get a sample first and that the quality of the sample is in contracted for mass production.
Importing novices do not normally vet factories adequately by checking certificates and arranging a meeting with management to check the financial viability of the factory. Importers really need to visit the factory and check which companies the factory supplies. If you can prove they actually supply international companies by proving the quality in person then this is a major guarantee. Suppliers at trade fairs and over the internet can bend the truth to acquire business so be careful and do all your checks first.
Boots On The Ground
Doing business in China and not understanding the culture can be a minefield and can be a logistical disaster waiting to happen without being in China to put out the fires out before they become a major problem. A China sourcing agent when importing from China can avoid the costly mistakes that often occur. The China wholesale agent must speak Chinese to assist with quality control inspections and any emergencies with logistics or manufacturing. Business owners believe they can manage the import remotely but the value of having an agent with boots on the ground cannot be underestimated.
Importing from China can be very profitable if it is done correctly so get in touch with at MyShipper if you need some advice.
Also, Visit Australian Border Protection for information on all the importing rules and restrictions or contact us and we will simpify it all.