Free Guide on How to Import from China and Earn $2000 on eBay
Profit by Importing Directly from china
You should be able to find a new business opportunity or profit growth by directly importing products from china. It may sound complicated, but it will pay off in both immediate profit and long-term success. The process has becoming easier and easier thanks to the trend of globalization and advances in international trade technology.
Today, everybody is interested in making some profits either by selling merchandise through your small shop or perhaps through eBay. If you were to source your goods in your country and then sell them through eBay in your country, then your profit margin will be small. If you want to earn $2000 or even more on eBey in just a single day, then you should source your merchandise from other countries. Where there are the markets, there are the low-cost commodities made in developing countries. Try sourcing from, say China, and you will see yourself making 300-plus percent. You may ask, Why buy so low price things from China? The answer is low cost.
Wholesale Price in China is Too Low
China, which has 1.5 billion people, is a large country. As well as there are many cheap labour forces. China is the workshop; no other country can be mentioned in the world. There are varied qualities of goods in China meant for different markets - what you ask is what you get. You may get accustomed to buy the Chinese cheap things. The wholesale price from China is decimals or centesimal or maybe even less. Who is the biggest winner in the whole distribution? Is it the producer or the consumer? No, it's you, the seller.
Assuming you now has identified a good supplier of your merchandise from China or other countries, then how do you go about making payment so that your merchandise can be shipped? Do you send a cheque to your supplier and expect them to send the merchandise to you or do you tell them to send the shipment and expect you to make payment after you have received the goods? Either of these is not secure to you or to the supplier and you will be surprised that it often will not work.
Irrevocable Letter of Credit
Then how do you go about this? And because you will want the economy of scale, the merchandise you will be importing will be large and worthy $5000, $10,000 and sometimes as much as $100,000. With this kind of money, you will need to be secure otherwise you may end up losing your hard earned money. To do this kind of transaction you will need a Letter of Credit which will provide a secure means of carrying out this kind of transaction. Most letter of credit nowadays are irrevocable, which means that once your conditions in the letter have been agreed by the supplier, they constitute a definite undertaking by your bankers and your supplier's bankers and can not be revoked.
The Author’s page is designed to help beginners and average readers make some money as an extra income to supplement what they may be earning elsewhere - details of which you can find in My Page, if you will.
Map of China
Imports from China
Import from China and Earn $2000 on eBay
1. If you already do not have a bank account, open one with one of the major clearing bank in your country.
2. Decide on the form of your business. It can either be a sole trader or a limited company. If you carry your business as a sole trader, you will usually trade under your own name though you can also use a business name.
3. Obtain a printed letterhead and all your correspondence should be properly typed. If you have a computer an internet, then you can have all these in your computer at no cost.
4. Search for the products you are interested in. Exercise personal preference and make use of common sense. Use Google search and Google should give you hundreds of manufacturers whom you can contact. Establish a relationship with the manufacturers. Choose a few manufacturers to communicate with and finally you will have a product and the price list.
5. Obtain product samples by post. Usually this is given free. If not ask for a small sample order. Discuss shipping and payment terms with your supplier. A sample order is very important and should be kept to the minimum possible so that if anything goes wrong, the loss is minimal.
6. Understand import trading terms like free on board (FOB) cost insurance freight (CIF) and Cost and Freight (C&F). Before placing any order, you need to understand and confirm with your suppliers about shipment and payment terms. You need to have a good estimate of the landing cost before you make your order. Landing cost equals cost of the goods fob plus transport costs by forwarder plus import duties (if any) plus local transport costs plus cost of service providers (inspections, agents).
7. Rule of the thumb: if the fob price is $x and you find your customers can comfortably buy your product at $3x, then you will do well with your pricing.
8. Check on import compliance regulations regarding your imports. Government authorities like US Customs and Border Protection, USDA, FDA. Pay particular attention when you import textile, hides, skins and food product into USA.
9. Get yourself a clearing and forwarding agent and let them know what you intend to do. They will tell you one or two things that will be very helpful
10. In some countries, it is mandatory an importer has to appoint an inspection company to check your goods on site in the factory, and give you a detailed report. This is usually done a few days before the expected shipment, so you can address any issues that would be raised. This will allow you to avoid receiving defective or non-conforming goods. Information about how to appoint an inspection company should be provided by your clearing and forwarding agent at no cost.
11. Track the transportation and customs clearance. Your forwarder and customs broker should take care of your transportation and customs clearance. However, you also need to track the process and assistance, such as providing additional products information and endorsing air waybill or bill of landing.
12. Once you receive the products, compute the final cost per unit.
13. Finally, take your products to eBay, sell them and make money.
14. It may sound difficulty but once you are through with the first order, then future orders are easy and it's just a procedure.