Perhaps you've wandered into a suitcase outlet in a local shopping mall and wondered where these people get their stuff. Or perhaps, you search on-line for a portable air conditioner and find many sites with impressive product lines, and you think "how do they get these items, and how much money are these people making?" Chances are good that the merchants got their products from China at a really cheap price and are making a decent profit on each unit sold. If you understand how to import goods from China, you are one step in front of your competitors.

Some imported items like cell phone batteries can be sold in the U.S. for about five times the cost, whereas more luxury items like plasma TVs will have approximately a 10-15% profit margin. If you have a retail business going or plan to establish one, you must take a look at the opportunities found in China. Whether it's the right move or not relies on the product(s) you plan to sell and your stomach for doing business with a foreign entity.

First thing to consider before you make a decision to import goods from China is whether there are cheaper alternatives to getting your merchandise. Keep in mind that there are manufacturing operations for many types of products right here in the U.S. The strengths are obvious: no language barriers, legal protection, great infrastructure for shipping, and so on. The big disadvantage is the pretty high cost of labor/ manufacturing, which will push you to sell your US made product at a more expensive cost. Not a good thing considering all the Wal-Marts of the world. Retail is a cut-throat industry - you need to be price competitive, or you better offer a unique product with few competitors (a very rare situation, indeed). Hence, the benefits in money and time from importing need to be significant enough to make it worth the effort. At a minimum, you must be able to measure, with a high degree of confidence, that you stand to benefit from importing a particular good from China before proceeding.

Before you embark on an import export venture, understand that there are possible risks connected with importing goods from China that you need to avoid, such as the chance of mis-communication with the producer; running into a dishonest manufacturer who offers a per unit price that is too good to be true; and problems dealing with quotas, taxes, other import restrictions. A lot of people begin by working with an import-export consultant, but this cuts into profits. As you become more familiar with the inner activities of importing, and depending on what you import, you will sooner or later need to consult legal and tax-related guides to make sure all bases are covered.

Doing business in China, an unfamiliar country for most of us, can be very intimidating. But, if you want to gain a competitive edge, you will have to break out of your comfort zone, and China presents a very good prospect for you if you want to engage in retail business. The Golden Rule that trumps everything and that should drive any business relationship is common sense: Chinese and American societies differ in many ways. Don't think that things are done the same way in China as they are here in the U.S.; this may cost you time and money.

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