China Import & Business News: June 2010

Ezine article series 6 : A Lesson in Import Export Trade For Beginners

Importing and exporting are ways that can improve one's life forever. There is often a situation when a person wants to start a business in this area but can't due to lack of sufficient knowledge and expertise. They are the beginners who need to learn about the ways of business world models on export and import. In this article the basic concepts, models and terminologies of this sector of business will be explained.

Basic Concepts

Import means to supply a product (or service) to one's own country from any other, while export means to supply a product (or service) from one's own country to any other. Trading is the basic need and development of society because it is by default that one region or group or culture can not produce everything.

So this type of business is not new; in fact it dates back to the advent of human civilizations, although it has grown more sophisticated through years of civilizations. Introduction of modern technology and science has made it possible to import and export even from the furthest corners of the world.

For example, think of modern life without perfumes from Paris, electronics of South Korea, China and Japan, beer from Germany, cotton from Egypt and bananas from Alaska. In a year alone the US export-and-import reaches $1.2 Trillion with like 150 countries in total.

International Trade Models

There are several import export business models of economics that describe or try to describe) the international trades. The most popular one is Richardian model, which focuses on comparative advantage, meaning that countries specialize in goods. It also says that labor is the only primary input to production. Other models are Heckscher-Ohlin model which focuses on productivity of popular productions of specific goods. Others are new trade theory and gravity model.


Even experienced internet entrepreneurs can be baffled with the technical terms used regularly by economics experts in the field of business, let alone the newcomers. Importing and exporting are such a sector that includes some alien but basic terms such as availability (the probability of finding a good at any one place at a time), manufacture's representative (salesperson specialized in a line/type of products), distributor and wholesale distributor (an organization buying your stuff and selling it to the other side), representative (salesperson who sells the products to distributor), retailers (tail end of business-chain) and others.

The various types of importing and exporting companies are Export Management Company or EMC (that handles overseas business for a domestic company), Export Trading Company or ETC (that hunts down which products foreign buyers are willing to buy and then find the domestic organizations that make that product and then they export) and an import/export merchant, who is free agent i.e. an entrepreneur.

Beginning import export needs some import export training and some import export advices. A newcomer on the field will do good to remember this.

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Ezine article series 5 : China Imports to the United States

China has built up a huge reputation as a manufacturer of low cost goods, which are popular in consumer markets around the globe.

The biggest overseas market is the United States of America, China's pre-eminent trading partner. Trade has been increasing steadily between the two countries and despite the impact of the global slowdown in trade, it is set to continue strong for the medium and long term. Freight forwarding between the two countries is therefore well established and customers can expect a streamlined and efficient service from their chosen shipping company. Any logistics company worth its salt will be expert in providing information and advice to facilitate freight transport between the two trading partners, including advice regarding customs and the issues relating to transport.

The market for China imports in the Unites States is massive.

The country exported nearly $300 billion worth of merchandise to the United States in 2006, up 18% from 2005 and up 130% over the previous 4 years.

Meanwhile, China imports from the U.S. rose 32% to $55 bn in 2006 and were up 150% since 2002.

So what products make up the majority of China imports to U.S by international freight?

Of the $287.8 bn worth of China import into the United States in 2006, the following types of products were the most important, accounting for the bulk of freight transport requirements. Computer accessories, parts and peripherals made up 10% of all China import to the United States.. Computers themselves accounted for a further $17.4 bnof international freight between China and the United States. Miscellaneous household goods such as clocks were worth $26.5 billion. Toys & sporting goods such as bicycles were worth $22.2 billion of the overall international freight moving from China to the United States. Other significant China imports include household furnishings & clothing, Video equipment such as DVD players, household furniture, footwear and telecommunications equipment.

Meanwhile, the fastest-growing Chinese exports to the United States are zinc, nickel, lumber, mining and oil processing equipment, all of which have been seeing rapid growth and so there is a clear upward trend in freight services for these items.

And what of the trade in the opposite direction? What are the main American exports to China? Well, of the China import from the United States in 2006, the following products were the most important, accounting for the majority of freight forwarding.


Civilian aircraft


Plastics, raw cotton and industrial machines were each sectors worth around.

Other important exports from the Unites States are copper, computer accessories and aluminium.

whilst the fastest-growing exports from U.S. to China are currently un-manufactured tobacco, corn, food oils and precious metals.

The international freight industry has developed over the years to service the needs of these two giant trading partners with both shipping companies and freight services now able to offer world beating standards of efficiency in export and import between China and the United States.

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Ezine article series 4: Importing From China - Advantages and Pitfalls

The main advantage for anyone planning to import from China is that pricing is extremely competitive and you are likely to achieve far greater profit margins than would be the case if you were dealing with a UK supplier. However, negotiating prices with any potential suppliers is not something you will have to undertake yourself, as any import or export agent worth their salt will take care of this for you. If you want to import from China but are new to the business of direct importing, it is generally advisable to start cautiously with a limited range of goods, as order quantities are generally higher than those from suppliers based in the United Kingdom. In fact, some Chinese companies will not consider shipping quantities smaller than a container load. However, the majority of Far Eastern operations will ship out lesser quantities and this means that your order will be consolidated with other orders for the same destination.

It is important to remember that if you intend to import from China, the logistics can be somewhat complex, especially when compared to doing business with a UK based supplier. One thing to bear in mind is the lead time - not only the time taken between ordering and despatch, but also the time taken between despatch of the order and its arrival in the UK. Lead time is affected by quantity, specifically when dealing directly with a manufacturer, rather than through an export agent. This is because manufacturers make to order; in other words, they do not carry stocks of finished goods. They also work on the premise of "first come, first served", as they will have an order book and previous orders will have to be finished before they can start work on fulfilling your order. If you plan to import from China for Christmas or some other seasonal event, it is essential to allow as much time as possible for production. Imagine the disaster of receiving your order for ten thousand artificial Christmas trees in mid-January!

Importing from China and the Far East can be a very lucrative business, as long as you do your research and use a reputable import/export agent. Importing "blind" over the Internet can be asking for trouble, especially if a cash advance is called for. Also watch out for hijacked email accounts, using free email addresses. Payment by letter of credit is standard when it comes to importing from China and so cash demanded in advance (unless this is in payment of samples) should automatically set alarm bells ringing. A letter of credit is not perfect; for example, an exporter could fill up boxes with paper and you might not realise the goods are not there until after your bank has honoured the letter of credit. However, most scammers do not go to such lengths to hoodwink suppliers in this way, as the paper trail left by this method could be traced by the authorities. Trade fairs or personal recommendations are generally the safest way to establish contacts and validate the credentials of a supplier.

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Ezine article series 3: Is it Legal to Import Brand Name Merchandise From China?

With all the business education you can find today with just the click of a mouse, I am still amazed at some of the unrealistic expectations people have when it comes to product sourcing. Those who have chosen product marketing as a business model are naively under the impression that most wholesale suppliers will be able to provide them with just about any popular retail product, affordable to them at any price. Reality, however, always seems to get in the way of our ideals. Most current, in vogue, branded merchandise usually have restrictions on the way it is distributed. For example, LV Handbags are never sold "wholesale to the public", or to just anyone who has a resale certificate. And while there are exceptions, you will never see too many "half off" sales of Louis Vuitton Handbags even at the retail level.

In addition, unsold inventory is not passed along to wholesalers or the secondary surplus market. Excess product that is damaged, is sent to their corporate service centers to be repaired. What cannot be sold or repaired is destroyed. In terms of online retail sales, the only web portal that markets LV handbags is Moet Hennessey, one of the leading luxury products group owns as well as the rights to sell a number of additional products under the Louis Vuitton monique. Moet Hennessey also owns most over the counter retail stores that distribute Louis Vuitton merchandise. Not all brands are as restrictive, but some corporate buying policies can still provide barriers to entry in different ways.

Both Nike and Reebok do not confine the sale of their product to wholly owned corporate retail, or online stores. They distribute their brands to retail giants like Footlocker and will supply most independent clothing or sporting goods stores if they have the infrastructure and the funding to meet their monthly, or yearly purchasing minimums. Most small business start-ups do not have the finances to endure the costs of carrying popular branded merchandise. However, a limited amount of Nike and Reebok merchandise can find their way into the secondary surplus and wholesale market. But, that is mostly shoe or sneaker products that maybe one to two years out of style. You will never find current Nike or Reebok sneaker styles being carried by any wholesale distributor.

Despite some of the strict purchasing obstacles that corporations can provide, it does not prevent some people from giving up on the search for the branded merchandise of their choice. Some will try to bypass a company's wholesale distribution chain or corporate purchasing restrictions by searching for the original equipment manufacturer. Since most popular retail clothing, apparel, sneakers, and electronics are manufactured overseas, the ever-vigilant Entrepreneur will usually turn to importing as means of securing items that have popular retail status here in the United States.

Take for instance Shenzhen, China. In Shenzhen, there is an enclosed shopping mall called Luohu Commercial City. The mall is six stories tall and sells a wide range of items, including handbags, brand name clothes, shoes, audio-visual products, souvenirs, and digital video discs. All can be had for a price that is about half to one third of what you would pay here in the United States. Some DVD's can be purchased for four Hong Kong dollars, which translates to fifty cents in United States currency.

The biggest problem with all of the merchants selling their wares within this megaplex of retail activity is the undeniable fact that most of it is counterfeit. And, like the never ending parade of fakery that is part of the Luohu retail environment, finding your way to the authentic manufacturer or wholesale distributor of a particular branded item is like searching for the proverbial needle in a haystack.

Paperwork, does not make it authentic! There is a prevailing wisdom among some brand seekers that receiving a certificate of authenticity from a brand name overseas manufacturer will provide assurance that the article is genuine. Supplying paperwork to overseas customers as "proof of purchase" for branded merchandise is basically a fallacy. Any labels, tags, paperwork, or certificates of authenticity that assures the buyer of brand certainty can be faked right along with the product itself. The only individual or businesses that are required to have proof of authenticity, are those who are authorized to resell the branded item, or the original equipment manufacturer (OEM), of the brand in question.

If there is a legal challenge to the authenticity of the product they are selling, then paperwork can be provided to confirm that they are legally sanctioned to sell or manufacture a particular brand name product. To my knowledge, no wholesale supplier of brand name merchandise, either overseas, or in the United States, will offer their customers paperwork stating proof of authenticity. The proliferation of counterfeit items within the People' Republic is staggering. The replication industry in China, as well as other Asian countries rely on the production of counterfeit merchandise and has become an industrial staple. It is estimated that 8.5 % of the Chinese GNP involves the production of counterfeit merchandise.

In addition, if you are thinking about importing brand name merchandise through online trading forums such as and, than I have some less than encouraging news for you. A majority of the trades leads on both forums require extensive research and a working knowledge of the importing business before you ever think about doing business with any of the listed companies. However, I don't want to be totally negative about trade lead forums. I think that they serve their purpose in terms of finding leads for non-branded general merchandise, manufacturer leads, and industrial equipment purchases. But, I would be very skeptical of anyone who presented themselves as the original wholesaler or manufacturer of American brand name merchandise.

Trying to forge a relationship with someone who claims to have the genuine article can also be a financially dangerous endeavor. Most overseas business to business suppliers require payment in the form of wire transfer or telegraphic transfer (T/T). The purchasing minimum that some suppliers ask for is a shipping container load of merchandise. Wiring cash into an overseas business account can be a recipe for disaster. Once the money leaves your account it is gone forever. If the seller does not deliver, you basically have no legal recourse in terms of getting your money back. The only way to recoup any funds would be for the seller to rewire the cash back into your account. You are basically at the mercy of the supplier.

The bottom line is this. If you want products like Nike Air Jordan, you have to go to Nike and find out how to purchase their products. The same is true with just about any name brand merchandise you want to buy. If you cannot afford a particular product, well, then sell a non-branded item. There are plenty of product niches out there that you can explore. With that being said, I am not the last word when it comes to importing brand name merchandise. Please do your homework and consult the appropriate legal, business and import-export resources.

Did you know that the average person spends at least a month or more searching the Internet for products that they can buy and then resell? Most, give up trying to find wholesale suppliers for their particular product of interest altogether. Are you frustrated by the search for products to sell? The Ultimate Guide To Products For Resale has over 600 wholesale and surplus supply sources in 12 different popular product categories.

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Ezine article series 2: Learn How to Import Products From China to Sell on eBay

Chinese wholesalers can give you incredible amounts of cash saved on deals - if you're not being scammed. It is so easy for an overseas dealer to scam you and it is so hard for the United States or Ebay to protect you when it happens.

So first of all, how do you separate the scammers from a legitimate wholesaler who is offering you great goods. After that we are going to discuss where you can find the best!

First of all, how do you separate the scammers from legitimate wholesalers?

Well first of all, if it sounds too good to be true, it usually is, so be sure to watch out for all the weird offers that have you wondering "how do they actually make their money?"

In order to know a scammer sometimes you have to think like one. Do not be fooled if the websites look professional, professional scammers do professional things. They can have great websites, a great look, and even a catchy slogan.

Also, just because their advertisements in a popular search engine "like google" does not mean they are legitimate. A legitimate Chinese wholesaler will be evident because it will have tons of user feedback.

What you want to do is to go to a scamreport website and type in the name of that specific Chinese wholesaler, if nothing shows up, you're halfway there.

Another thing you can do when you find a Chinese wholesaler that you think is offering great prices is to type in the "name of their company + review" - if you see good reviews come up then you can invest with much more confidence.

Who-Is Database - this is an excellent way to find out who exactly you are dealing with, the who-is database will give you exact details on who owns the website, when they got it, and even their address. It's a great way to deal with scammers so that you won't lose a great deal of cash.

Just try not to get scammed; you have to be extremely careful when dealing with the online world; otherwise you can find yourself in extremely bad shape.

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Ezine article series 1 : How to Import Products From China

Are you looking to learn how to import products from China? Just not really sure what way to go and how exactly you set about doing this? Well you have come to the right article. Today I will be discussing exactly that and will give you some great advice on importing.

Firstly, you are doing your business a favour by looking to source products at a much cheaper price than possible. You really need to know a few very important things that might potentially save you or someone you know from being scammed online.

You can not buy branded electronics from China. Chinese scammers can read your mind in terms of reselling items for profit. They are fully aware that you are interested in importing apple iPhones for cheap or the Sony PlayStation 3 and even the top brands like Gucci or Chanel. The truth is you will get scammed. Stay away from branded goods. These manufacturers produce in thousands and the quality of each item is not even taken under consideration.

Many people are looking to find out how to import cheap products from China. This is certainly possible but not if you are buying fake items. It is imperative to know that buying counterfeit goods can lead to legal action being taken against you or massive fines. I am sure that's the last thing you want. Wholesalers and the brand suppliers directly are the way to go.

Make sure you also stay away from Chinese DVD box sets. They are counterfeit. DVDs from China are poor quality and you will be unable to resell these online.

There are many other products, all branded products are fake, clothing, electronics, the list goes on.

However there are also some very reliable suppliers that you can make a solid business from. The kind of products I am referring to are toys. Remote control cars, remote control helicopters are both a good example of products that can be sourced relatively cheaply and imported from the Chinese market place. Also another quality item that can be sourced is Christmas decorations and the Chinese supply these very cheaply.

So what exactly should you be looking for?

Make sure the company is reputable and has been around for a while. Also make sure that you type the name of the business into Google and research from there. Others will write about their experiences, more so if they have had a bad one. There are many online forums where these posts can be found. However, remember just because one person had a bad experience does not automatically mean that will you will have a bad experience. The best method is to type into Google or the search engine you prefer most, the company name + scam. This is an excellent approach to take.

There is a lot to learn online and remember that you are not stuck with sourcing from just suppliers in China, there are better ways to getting hot products from fully reliable suppliers. You just need to know how. I hope you now feel more confident and feel you now know how to import products from China.

Make money on eBay with the best eBay suppliers and best drop shipping companies that will eradicate even having to know how to import products from China.

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