Buying in China: What are the most common mistakes when importing on your own?

Importing from China is an experience that brings great benefits to your company. As we all know, China is the world's number one exporting country, chosen by well-known brands for the many commercial advantages it offers.

Whether your company is a regular importer or planning its first purchase in the Asian giant, you must take into account certain key points that may determine the success of your operation or its failure if you operate without planning.

What are the most common mistakes when importing?

Not understanding how the Chinese do business

There are several factors to consider when negotiating in China, because Eastern culture is very different from Western culture. For the Chinese, security is essential and they are not open to doing business where it is missing. Respect and punctuality are also key to earning their trust, which is harder considering that the time they offer is limited.

Earning their trust at the beginning of the conversation is a real challenge. That is why it is essential to be accompanied by experts in negotiations with Chinese partners, especially if you do not speak the language, which makes mutual understanding more difficult. Without good communication it is hard to close a deal with all clauses agreed.

Negotiation is so important that part of every successful import depends on how agreements are closed. You will not only negotiate prices, quantities and quality with the suppliers; you will also have to agree on the purchase terms: Incoterms, delivery times and payment methods.

Negotiating with unreliable suppliers

To reach an agreement with suppliers, you must take precautions: research and verify each candidate manufacturer. Confirm contact data, documentation, registrations and licenses to find out whether they are legally established and reliable.

Before signing a contract with a new supplier, make sure you have investigated thoroughly. This means getting to know their facilities, production process, materials and quality standards, even talking to other importers who have purchased that type of product or from that supplier directly.

The best option is to visit the factory in person, and if you cannot, you can rely on our offices in China to outsource this essential part of the process. If you are not an expert in the product you are importing, consider including our specialists who already understand the production process in the visit.

This point is critical because you are responsible for the products you import, meaning you are the one who must respond in case of any incident when your goods are in the customs clearance process. If they are held at customs or arrive defective and you cannot sell them, it will mean a huge financial loss for your company.

Not managing sample reception

This step is indispensable. First, it is necessary to verify whether the manufacturer can produce your goods to the specifications and requirements you require: materials, components and standards. Skipping this step exposes you to misunderstandings and conflicts with the supplier. Requesting samples also helps you discard fraudulent suppliers; in general, when they avoid sending samples it is because they have something to hide.

Not knowing the current regulations for your goods

If you are already a regular importer, you should know it is essential to understand the regulations that apply to your products and ensure that the Chinese suppliers you negotiate with comply with international standards. You must be aware of the regulations that affect your products as well as those of the country where you import, to demand the specific certificates required. Research and stay up to date with any changes to avoid customs holds, delays and unexpected costs that would alter your budget and logistics chain.

Choosing the wrong Incoterm

Choosing one Incoterm or another can make a major difference in the profitability and security of your import. The right decision depends on several factors; your experience as an importer and your relationship with the supplier will define which one suits you best. Each Incoterm has its advantages and disadvantages: analyze them carefully before moving forward.

Planning international freight with little notice

Booking and contracting transport without time inevitably translates into delays in your logistics chain. Depending on the Chinese port of origin and the destination port, transit times vary considerably. You must also consider not only air or sea transit but also inland transport. The same happens with customs clearance: organizing it three months ahead of the date you need the goods gives you margin to handle unexpected issues.

The best you can do is to be supported by foreign trade experts. MingTa Group will manage your international purchases with excellence. Contact us and we will take care of your next import.