Importing products from China—commonly called “the factory of the world” due to its enormous manufacturing infrastructure, skilled population, and wealth of industry experience—can boost your store’s profitability by increasing your margins and making customized products more accessible.
This guide gives all of the information you need to get started importing from China—finding products, choosing and negotiating with suppliers, purchasing, and figuring out the best way to ship your items. We also discuss common shipping terms you need to know and give an overview on import costs from China—duties, taxes, and other fees.
To get started:
PROS
CONS
$1,500 - $5,000+ for buying inventory A registered business, license, or permit*** A sales channel* United States residency An EIN, SSN, or Importer ID Number** Knowledge of Chinese languages*Such as an online store, an Amazon Seller Account, or a shop
**An Importer ID can be obtained by submitting this form.
***For most goods
Here’s everything you need to know about importing products from China in six steps.
Sourcing Chinese goods for your retail business gives you access to a wider range of products at significantly lower costs. But it is imperative to select your offerings wisely. If you’re developing a new concept or aren’t sure what to sell, read our guide to the best products to import from China.
From a profitability standpoint, the products you choose to import should have:
Aside from those basic attributes, consider the following factors when selecting goods to import:
There are laws and regulations implemented by the U.S Customs and Border Protection (CBP) that prohibit or restrict some product categories to safeguard consumer health. Failure to comply with these regulations can result in fines, delays, confiscated merchandise, and even legal penalties.
It’s important to know if these stipulations apply to any of the goods you plan to import before partnering with suppliers and making your first purchase.
Some examples of import regulations include:
For a full list of commodity regulations and restrictions, refer to the CBP’s Importing Guide. Try searching the document for keywords that relate to your selected product(s).
If you have questions, contact your local port of entry.
The US is one of the most import-friendly countries in the world, and in most cases, individuals and businesses do not need a license to import.
That being said, importing certain commodities require a special permit or license issued by one of the government agencies that works with the CBP. These categories include:
For a full list of license and permit requirements, refer to the CBP’s Importing Guide.
If you have questions or need help with permits and licensing, the CBP recommends hiring a customs broker. The basic role of customs brokers is to assist importers in meeting federal requirements—but we’ll cover their services in-depth down below.
Use the CBP’s free tool to find a customs broker near your local port of entry.
Nearly every product imported from China are subject to import taxes (often called tariffs or duty) that are charged in addition to federal and local sales and use taxes. If you plan on importing a more valuable shipment, tariffs should be a consideration when sourcing your products. The average US duty on imports from China is currently 19.3%, but certain products are taxed at different rates. We talk more about import taxes in the sections below.
Once you know which products you’re sourcing (or have an idea of the qualifications they need to meet), you’ll need to find a trade partner to supply them.
The majority of Chinese suppliers you’ll encounter are either trading companies or factories.
PROS
CONS
Greater quality control and wide product selection Higher prices Lower minimum order quantities (MOQs) Less control over design, materials, and productionPROS
CONS
Lower prices Smaller assortment of products More control over design, materials, and production Higher minimum order quantities (MOQs)The process of importing items from your Chinese supplier will be very similar, regardless of their business model. So if the offer is right, don’t get too hung up on whether the supplier is a factory or trading company.
Here’s a list of helpful resources to source wholesale suppliers in China.
Supplier directories are platforms that host information on thousands of factories, trading companies, and other vendors. You can search by product, category, location, price, or apply filters to see a range of possible trade partners. Once you shortlist your possible partners, you can reach out to them through the directory’s messaging service or listed vendors’ contact info.
Wholesale marketplaces, on the other hand, serve as B2B ecommerce sites that mainly specialize in import and export trade. They can be used to buy merchandise from suppliers in bulk.
Here are some of the top supplier directories and marketplaces for importing goods from China.
Alibaba and AliExpress are the most notable supplier and product directories for importers and dropshippers alike. These web sites are the easiest places to get started with access to suppliers around the world, and they offer amenities to simplify the process for beginners.
However, the platforms receive a fair amount of fraud reports because of the lack of vetting process for vendors, and many of the vendors are unnecessary intermediaries. Perform due diligence when doing research for possible suppliers.
Read our guide to using Alibaba and AliExpress to learn more about how each platform works.
Global Sources is a large trade show exhibition based in Hong Kong and has expanded to provide a vast online supplier directory that’s available year-round. Global Sources is known as the go-to resource for electronics and fashion apparel, but its sellers usually have higher MOQs than other directories.
The platform operates similarly to Alibaba but is geared toward the more advanced buyer. It is strictly a B2B wholesale directory and employs a much more involved vetting process for its suppliers.
A search on Global Sources returns 1,600+ Chinese watch suppliers and allows buyers to filter by business type, company certificates, product certificates, liability specifications, MOQ, sub-category, location, experience, and more.
DHgate is similar to AliExpress in that it serves as a wholesale marketplace more so than a supplier directory. This means it’s product-centric, making it a good choice for beginners and casual importers.
The platform is known for hosting competitively priced merchandise, but buyers frequently report disappointing quality. Generally, products on DHgate are available at considerably low MOQs.
One major advantage of DHgate is its payment handling system, which secures funds until the buyer confirms receipt of the goods.
The best way to get connected with high-quality trade partners is to visit trade shows. Chinese trade shows are mostly free to attend and generally seasonal—usually early May and November). If you can’t attend in-person, many virtual options are available.
With the easing of zero-COVID restrictions, China-based trade shows are expected to raise considerable international interest. Pre-pandemic, these exhibitions draw large, international crowds where English is commonly spoken, but translator can be hired for about $15 per day.
Here are the biggest trade shows to source Chinese products and suppliers.
Also called the China Import and Export Fair, this event is the largest trade show in the country and widely considered to be the most important trade exhibition in the world—drawing anywhere between 20,000 to 60,000 vendors.
The Canton Fair is held in Guangzhou, China, twice a year and occurs in three phases—electronics; consumer goods, gifts, and home decor; and textiles, garments, shoes, and office supplies. Most suppliers who attend the Canton Fair are experienced in exporting to American and European buyers, so they have the infrastructure and know-how in place to facilitate transport.
For more information (plus a directory of exhibitors and products), check the Canton Fair website.
Taking place twice a year in Hong Kong, the Global Sources Trade Show is strategically scheduled to occur just before the Canton Fair, so that attendees to easily visit both exhibitions on the same trip to China. It is considerably smaller than the Canton Fair but attracts a greater number of suppliers in certain categories, such as electronics and apparel.
It also provides a host of educational services during the event, including a conference on how to run a successful importing business. Prominent ecommerce entrepreneurs from around the world attend the conference to speak and learn.
Visit the Global Sources Trade Show page to learn more.
The East China Import and Export Commodity Fair (ECF) take place in Shanghai every March. ECF vendors primarily specialize in fashion accessories, consumer goods, art, decor, and housewares, and the fair is divided into four categorized exhibition areas.
While it is a smaller event, the majority of ECF attendees come in from foreign countries. This leads to a low language barrier and focuses on import/export infrastructure.
For more info, visit the East China Fair website.
Unlike China’s popular trade shows, the Yiwu Wholesale Marketplace is open every day of the year (except for national holidays). The city of Yiwu is actually known as China Commodity City (or CCC) and serves as a hotspot for consumer goods trade. Aside from the primary trade center, there are multiple marketplaces around the city that specialize in various merchandise.
Most vendors are trading companies that work closely with factories in neighboring provinces. You can work with them to arrange transport and future reorders, or you can choose to hire a local agent (who also aids in negotiation and purchase agreements).
Products sold in Yiwu are generally very inexpensive and have the reputation of being low in quality. Many products don’t display any branding, and the majority of those that do are counterfeit. This is why it is a popular sourcing destination for retailers seeking cart-stuffers and filler items for their stores. These products can be useful for cross-selling or offering “free gift” promotions.
Most suppliers in Yiwu primarily do business with Indian, African, and Middle Eastern buyers. The import laws in these countries vary dramatically from that of the U.S., so do not expect Yiwu suppliers to comply with safety, trademark, and labeling regulations automatically.
Be sure to know which regulations and restrictions apply to your product categories before purchasing. To avoid risk at customs, avoid sourcing these goods in Yiwu:
To get more information and see a variety of the products sold in Yiwu, visit the Official Website of the Yiwu Market.
You can also check which supplier your competition is working with by checking public import records.
When imported shipments enter the US, the government retains a copy of the bill of lading—which includes the importer’s name, the supplier’s name, and shipment details—and makes it available for public access. This information is limited to shipments that have arrived via boat, but that still accounts for roughly 10 million records per year.
Obtaining these import records is perfectly legal but it’s that easy. To get it from the customs bureau, you have to request the information, pay a fee, and wait multiple weeks for processing.
As an alternative, you can use these third-party tools to eliminate the waiting period and simplify the process:
Once you have names of potential suppliers to pursue, search the internet for contact info and try getting in touch. We feature tips on initiating contact below.
If you already work with a reliable Chinese vendor but seek another product they don’t supply, try using them as a resource. It’s standard for suppliers to have tight networks and happily refer clients (they often make a 5%–10% finder’s fee).
Tip: As you curate a shortlist of Chinese trade partners, look for suppliers that:
Before working with a new supplier, try searching SupplierBlacklist.com to see if other importers have filed any reports.
Once you’ve identified potential suppliers, the next step is to initiate contact.
If using an online resource, begin a dialogue with many prospective suppliers at a time, then refine your search as you go. Try sending an initial email or message that introduces yourself and requests any basic info that wasn’t covered in the product listing. To get started, reference our template below.
Hi, (supplier name).
My name is _____, and I’m a buyer for _____, a store in (your country) that sells (product offering). We are interested in carrying many of the products that you have to offer.
Specifically, I would like to get pricing and availability for the following items:
If you could send more info, as well as your product catalogs, and MOQ requirements, I would greatly appreciate it.
Thank you,
_____
MOQs are often strict and vary greatly from supplier to supplier, so this is an important detail to iron out early on. Startups and small stores may be limited by the MOQs they can manage.
If you receive a response that seems promising, proceed to establish key info, such as:
Some Chinese suppliers are not fluent in English, so remember to write in short sentences without using complex words. Keeping your message brief and using bullet points will make your email easier to digest.
Many suppliers also prefer to communicate on WeChat. Once you’ve established a relationship you may receive replies faster on WeChat than email.
If the supplier’s prices and terms are sufficient, you can “test” their goods by requesting a sample. This is a great way to preview a few products, but keep in mind that the samples you receive are likely hand-chosen and may not be representative of the supplier’s stock as a whole.
To get a more accurate picture of the vendor’s regular output, try placing a trial order. Many suppliers allow new buyers to make one purchase under the normal MOQ. By ordering a small but sufficient trial order, you can test the true quality of the supplier’s product.
Once you’re satisfied with your new supplier, you can attempt to negotiate before making a full purchase. Of course, high-volume businesses have more bargaining power, but even small operations may be able to negotiate price, freight terms, deposit terms, and packaging details.
Whether you’re initiating a new business relationship or maintaining an existing one, visiting your suppliers in China can be a worthwhile investment of time and money.
Gianluca Boncompagni of Off Road Tents recalls that visiting his trade partners in China improved their relationships dramatically. “Communication totally changes; they put a face to the name, they realize you are for real and legit, and they know you are prepared and not joking around.
“They know you want a long-term relationship, so they are more open and willing to work with you. It helps negotiating perhaps not always price, but certainly minimum quantities, cost of demos, and even changes and adjustments they wouldn’t normally do to their production line.”
With the legwork of sourcing out of the way, you’re ready to place an order with your Chinese supplier(s). When placing your first order with a new supplier, it’s typically best to start with a low initial quantity before you know how a new item will perform.
Transaction details are laid out within purchase orders and invoices. In addition to a purchase order, it’s important to agree with the supplier on a product specification document to ensure you’re getting what you pay for.
These documents should clearly define all details of the transaction without leaving any room for misinterpretation. This includes basics (like item specifications, unit quantities, pricing, and packaging) but should also cover shipping terms (also called Incoterms) and payment terms.
Incoterms (International Commerce Terms) are 11 standardized freight terms that must be agreed in writing between the supplier and buyer, or no air or ocean carrier will accept the shipment.
According to the International Trade Administration, the Incoterms® 2020 rules have been updated and grouped into two categories reflecting modes of transport—seven for any transport method and four for sea or land or inland waterway transport.
When importing from China to the USA, these Incoterms are commonly used:
Although the International Chamber of Commerce (ICC) recommends using Incoterms® 2020 beginning January 1, 2020, vendors and buyers can agree to use any version of Incoterms after 2020, they just need to clearly specify the chosen version of Incoterms being used (such as Incoterms® 2010, Incoterms® 2020, or any earlier version).
Chinese suppliers typically require a 30% deposit prior to shipping, with the remaining 70% is paid once the goods are received. This helps to mitigate the risk of theft on both sides. You don’t need to worry about currency conversion, as U.S dollars (USD) is the primary global currency, and majority of Chinese suppliers accept it.
You can send payments through the following methods:
Telegraphic transfer (TT) payments are a standard electronic transfer of funds between banks, incur a smaller fee than other options, and are accepted by all Chinese suppliers. TT payments lack protection against theft but is still most recommended by import professionals, saying security can be better assured by doing your homework and personally vetting new suppliers.
A Letter of Credit (LC or LOC) is fund transfer that includes a level of insurance. You pay your bank, which then issues an assurance to the supplier. After your bank confirms that the exact quantity of items in your order has arrived at the correct destination, the vendor is paid.
The added security is helpful but might not be worth it because of the sizable fees. It’s very unlikely that a vetted supplier will take your money and run—the bigger risks that importers face are problems with item quality and shipping delays. An LC provides no protection against either of these possibilities, so it’s commonly used for very large transactions only.
Alibaba offers a payment processing option that works similarly to getting an LC from your bank. You submit the payment to a designated Alibaba account (with the Singapore City Bank), then it’s released to the supplier once shipping is confirmed.
Unlike LC payments, Alibaba Trade Assurance will refund your money if the shipment is delayed beyond a specified date or if the quality of the goods is not compliant with the agreed product specifications.
This method requires both parties to have an Alibaba account, but it is free to use. The only fee that incurs is the cost of processing your initial payment to the Alibaba account.
This option is secure and straightforward—but not commonly used by importers. PayPal charges very high transaction fees, and many suppliers don’t have PayPal accounts to accept the payment.
When it is used, PayPal is usually reserved for small, introductory purchases—such as samples and trial orders.
Unlike domestic US dealings, having a hard-and-fast purchase contract isn’t particularly helpful when importing from China. As mentioned earlier, contracts don’t carry the same weight that they do in the US.
It does, however, help to include clearly defined product specifications that your supplier signs and agrees to. This document isn’t legally binding, but it greatly decreases your chances of winding up with a batch of low-quality, misrepresented products.
Along with your purchase order and invoice, submit a checklist or spreadsheet stating the product’s specs—such as weight, dimensions, color, material type, fabric thickness, component manufacturer, and labeling requirements. It also helps to create visual references when applicable (the more clear and straightforward you can be, the better). Here’s an example.
Item: Women’s chino pants, size medium
Fabric: Organic cotton, 200 gsm
Fabric Color: Pantone 443
Design: As specified in product_listing_image.png attachment
Dimensions: As specified in product_measurements.png attachment
Care label: As specified in label_design.png attachment
Zipper: YKK
California Prop 65 Compliant: Yes
CPSIA (US) Compliant: Yes
In the News: Postal code required for imports from China
As part of the Uyghur Forced Labor Prevention Act, which took effect on June 21, 2022, importers must specify China postal codes in their shipments from March 18, 2023, to prove that goods have not come from the Uyghur region.
Depending on the shipping terms of your order, you may need to facilitate inland transport, including export customs clearance and loading. But more often than not, orders placed with new suppliers will be on FOB (as explained above)—in which case these steps will be handled by the supplier. It is recommended to use a freight forwarder, such as Flexport, to handle import shipping.
Freight forwarders specialize in the logistics of cargo shipments—such as facilitate scheduling, tracking, insurance, and more. They can save you money by consolidating LCL (Less than Container Load) cargo with other deliveries. They also have access to volume discounts through partnered shipping companies—so they’re able to offer highly competitive rates.
When it comes to transport rates, sea freight is quoted by volume, whereas air shipments are quoted by weight. Using an air courier is the most expensive method, while booking air freight costs about half as much and choosing sea freight costs about 10% as much.
Here’s a breakdown of your options for cargo shipping methods:
Air Courier
Air Freight
Sea Freight
Weight Guidelines
≤150 lbs (68 kg)
200–500 lbs
(90–225 kg)
500+ lbs (225 kg)
Average Cost
$10+/kg
$5–$7/kg
< $1/kg
Average Delivery (port-to-port)
N/A**
1–5 days
12–16 days (west coast)
30–42 days (east coast)
Average Delivery (door-to-door)*
2–5 days
4–11 days
22–50 days
*Includes customs and inland transportation
**Express air courier freight service is door-to-door
Air courier shipping is typically a door-to-door service, meaning your goods are shipped straight to their final destination. DHL, FedEx, and UPS are commonly-used air courier services. If your goods are valued at $800 or more, these carriers will provide customs brokerage services to get your shipment cleared for entry—although it usually incurs an additional surcharge.
Air and sea freight methods are booked from the port of origin to an airport or seaport near you. From there, you’ll need to arrange shipping to your final destination. This can be done by your freight forwarder or scheduled yourself using a freight broker. We recommend NTG (formerly FreightPros) as the best freight broker for small businesses.
Customs clearance is a critical part of importing from China. If you don’t provide the correct documentation and follow the right procedures, you run the risk of having your goods detained and/or examined—both of which result in delays and hefty fees. In the worst-case scenario, your merchandise is seized by CBP and destroyed or sold at auction.
To obtain clearance from the CBP, you must take the necessary entry, examination, valuation, classification, and clearance measures. The customs process, costs, and requirements vary depending on the value of your shipment, as shown below.
Import tax (duty) applies
‘Formal entry’ documentation and process required
Customs bond required
Customs broker advised
Subject to potential holds and examinations
<$800
✖
✖
✖
✖
✔
$800–$2,500
✔
✖
✖
✖
✔
>$2,500
✔
✔
✔
✔
✔
Here’s a breakdown of each of these factors.
Duties—also called tariffs—are paid at the time of import by the importer of record—which can be you, the exporter, or another party that you designate (like a customs broker). Import duties are to be paid to the port of entry, prior to release of your cargo. Accepted forms of payment include US currency, personal checks, government checks, money orders, and travelers’ checks. Some ports also accept Visa and Mastercard.
To calculate your import taxes, identify your products’ Harmonized Tariff System (or HTS) classification. Once you find their corresponding HS codes, you will know the tariff rate associated with that product. The code will then be listed on the commercial invoice.
Refer to the government’s Harmonized Tariff Schedule to estimate duties for your shipment. For the most accurate information on what tariffs to expect, contact your local port of entry or hire a customs broker (which is an option we’ll explore below).
What is the Harmonized Tariff System?
Duty rates are organized in the Harmonized Tariff System (or HTS), which classifies imports by category and assigns a taxation percentage. The U.S. International Trade Commission hosts an interactive database that can help you find the HS (Harmonized System) code and estimate the duty rate for any product you’re considering.
What is an HS Code?
An HTS/HS code indicates whether or not the U.S. has a trade relationship with any country for specific product imports. The U.S. International Trade Commission (USITC) classified tariff rates into three categories:
China falls under the “General” category, meaning the countries do not have a trade agreement in place. As such, no special treatment is given on imports of goods from China to the U.S.A.
As your merchandise reaches the United States, it will need to be filed for either informal or formal entry.
Shipments valued at less than $2500 don’t require formal entry—they are processed through informal entry, which can be done on the spot.
The shipping company can clear them through customs on your behalf—although it often incurs a charge. Alternatively, you can process the entry at the port yourself or authorize another party to do so for you. For more info on these options, contact your carrier company, or refer to the CBP’s website.
Some products are restricted from informal entry regardless of value. These include goods subject to quota, anti-dumping, countervailing, or high-risk regulations—including many foods products. See the CBP’s guide to importing to check on your product’s eligibility.
Cargo with a value of $2,500 or more must be filed as a formal entry. This requires a hefty amount of documentation as well as a Surety bond (which we’ll explain below).
Once notified, it’s your responsibility to file an entry with the port director at the port of entry (or to hire a broker to do so on your behalf).
You’ll need to have the following documents prepared:
If your goods are restricted or regulated by a PGA (Partner Government Agency, such as the FDA), they may require additional forms or documents. Check the CBP’s Guide for Commercial Importers to ensure that you have everything you need for your goods to enter.
To speed up the customs process and ensure things go smoothly, work with your supplier on the following tips:
If your shipment is a formal entry, you’ll also need a customs bond.
A customs bond is a legal contract between you (the principal), a surety company, and CBP. Its purpose is to guarantee that the importer complies with customs regulations and that CBP is paid for applicable import duties, taxes, fines, and penalties.
If the principal doesn’t pay up, the CBP will collect from the surety company that issued the bond. From there, the surety company can use legal means to collect what is owed to them. When a bond is required, Customs will not release the goods until the bond is posted and regulatory requirements are met.
To obtain a customs bond, you must go through a surety licensed by the U.S. Department of the Treasury—which includes many customs brokers. To get more information and a full list of sureties, visit the CBP’s webpage on customs bonds.
Using a customs broker is not legally required during import shipments. It is, however, strongly recommended by both CBP and industry pros when importing formal entries.
Overall, customs brokers are extremely savvy in import and export laws and are actively regulated by the government agencies they work with. This makes them a vital resource to have while navigating your first formal entry.
The cost of customs brokerage varies depending on the agent and shipment, but expect to spend somewhere around $100–$200 for their services. Alternatively, many brokers are available for consulting on an hourly basis.
Use the CBP’s free tool to find a customs broker near your local port of entry. You can also contact the CBP Broker Management Branch by emailing brokermanagement@cbp.dhs.gov.
In an effort to improve the security of the supply chain, CBP can select certain shipments to examine during customs. This results in delays, and the responsible party is charged an examination fee.
Highly confidential algorithms are used to evaluate the degree of risk for each shipment entering the United States. If your cargo is flagged as potentially risky for any reason, it may be selected for a customs exam.
While it’s impossible to know what exactly goes into the CBP’s algorithms, it’s accepted that these factors increase your chances of being selected for an exam:
Ultimately, even if your shipment is totally benign and you follow every precaution, your cargo may still be included in the 1%–3% that are randomly chosen for examination.
Multiple types of exams may be done. The least invasive is an x-ray that takes two to three days and costs around $300. “Tail Gate Exam,” another possibility, will break the seal of your container or packaging to inspect its contents visually; this takes five to six days and generally incurs a $350 charge.
The most dreaded and intrusive exam requires your shipment to be transported to a Customs Examination Station, where it is thoroughly inspected and sometimes laboratory-tested. This process takes anywhere from a week to 30 days or longer and incurs thousands of dollars in fees (including drayage charges).
The best way you can avoid being selected for customs holds and examinations is to ensure your paperwork is complete, provide accurate valuations of your goods, and work with well-vetted suppliers.
Once your goods have been cleared through customs and all parties have been paid, the cargo needs to either be retrieved or transported to its final destination.
You’ll also be provided with a Cargo Control Number that serves as a unique identifier for your shipment. These details can then be used to pick up or ship the imported goods.
Hiring a freight forwarder is the most common way to handle transport to your final warehouse, office, or retail space. Depending on the distance, this can require delivery by train, air, truck, or a combination of modes. Expect to pay $100 or more for this inland shipping. Alternatively, you can use a broker such as NTG to book inland freight.
If you choose to retrieve your goods personally rather than have them delivered, you can bring your vehicle to the port or warehouse. Be sure to carry a small amount of cash ($25–$75) to pay potential parking, loading, and/or dock fees.
If your goods are not picked up within 15 days of arrival, they’re sent to a General Order Warehouse, where storage charges are assessed on a daily basis. In order to retrieve your merchandise from the G.O. Warehouse, those fees will need to be paid. After six months of storage, unretrieved goods may be discarded or sold at auction.
When your imported goods reach the end of their journey at your warehouse, store, or office, the final step is to process them for sale like you would any other merchandise. This usually involves:
Selling imported goods requires a few slight differences in your operation. Be sure to consider these final and ongoing tasks when importing goods from China:
Product quality is a common pain point importers struggle with when buying from new suppliers, and it’s always best to detect discrepancies early on.
When you first receive an imported shipment, check the order against its invoice to verify that the quantity is correct. Then, thoroughly evaluate the goods you received against your agreed-upon specification checklist.
If the product you received is not what you expected, start by identifying who is at fault. Did you accidentally overlook a crucial detail in your specifications or design illustrations? Or did the vendor simply deliver a misrepresented product?
If the supplier is at fault, there are a few courses of action you can take.
The best way to approach quality issues is to avoid them in the first place by thoroughly vetting your new suppliers and placing trial orders.
If you were satisfied with the supplier(s) you initially worked with, continue negotiations with them as you place future orders.
Remember that price isn’t the only factor subject to negotiation—you can improve transport costs, Incoterms, MOQs, sample sizes, packaging, payment terms, and more by forging a relationship with your supplier.
Here’s an example of negotiation strategy over the course of a budding trade partnership.
Order
Feature
Negotiation
1st
Minimum Order Quantity
750 units from 1,000
2nd
Incoterms
FOB from EXW
3rd
Unit price
$2.71 from $2.84
4th
Deposit terms
20% from 30%
As you sell and reorder imported goods, monitor your processes and costs closely. Be sure to keep track of your procurement, freight, insurance, handling, duty, and inland transportation costs—as well as the charges involved in hiring a customs broker and/or freight forwarder.
These expenses can be rolled into the core item cost to accurately measure profit margins, which is a metric commonly called landed costs.
As you analyze the performance of your products and operation as a whole, identify ways to improve profitability and promote growth. To learn more, read our guide to retail analytics.
If your imported goods are a hit, it only makes sense to reorder as stock depletes. But when your suppliers are on the other side of the world, replenishing inventory can take months.
For this reason, it’s vital to properly forecast demand, calculate stock, and consider lead times when selling imported goods from China. Consider having a buffer of safety stock on hand.
Additionally, keep a calendar of Chinese holidays in consideration when forecasting your upcoming orders. Celebrations throughout the year will affect lead times, but Chinese New Year is the biggest obstacle to work around—it halts business dealings for the majority of a month every year.
In addition to smart forecasting, some retailers find it beneficial to use two different suppliers for each item that they sell. This way, if one manufacturer can’t provide a product due to material or labor shortages, there’s a backup source to ensure your stock never runs dry.
Yes, you can. COVID-19 restrictions have eased in China since early December 2022 and have positively impacted supply chain logistics. In fact, U.S. imports from China went up 6.3% from 2021 to 2022, according to the Commerce Department, despite rising political tensions.
No, you don’t. The U.S Customs and Border Protection does not require a license or permit, but other government agencies may require a permit, license, or certification, depending on the product being imported.
Costs vary depending on the type and quantity of an imported product. There are fees involved in each step of importing from China to the USA. You need to pay import tax, other duties–such as Section 301 tariffs, anti-dumping and countervailing duties—, and fees like merchandise processing and harbor maintenance fees.
Shipping costs vary. However, the cheapest shipping option for Chinese imports is via sea freight.
Importing goods from China is a great way to increase profitability while drawing from a wide and diverse pool of products. Despite the cost of tariffs, transport, and customs, the low prices you’ll get on Chinese imports makes the procurement process more than worthwhile.
Estimated reading time: 11 minutes
Are you looking to expand your business by importing bags from China? If so, you’re in the right place. In this Detailed guide, we will walk you through the process of importing bags from China step by step. From understanding the Chinese bag market to establishing relationships with reliable suppliers, negotiating pricing and payment terms, ensuring bag quality, navigating legal compliance and regulations, handling shipping logistics, and even incorporating sustainable practices – we’ve got you covered.
Exploring and Analyzing the Bag Market in ChinaTo successfully import bags from China, it’s essential to have a deep understanding of the market landscape. Researching market trends and analyzing consumer preferences will help you make informed decisions about which types of bags to import.
Market trends are leaning toward functional, stylish, and durable bags. Urbanization and increased tourism have also played a part in driving demand for luggage bags. Additionally, the rise of local and regional vendors offering specific application products for varied end-users is a notable trend. The global luggage bag market is expected to grow with a CAGR during 2022-2028, indicating a positive outlook for the bag market in China as well.
The bag market in China offers a wide range of options. You can find everything from backpacks and handbags to travel bags and luxury designer bags.
China is home to several major bag manufacturing hubs. Understanding where these markets are located can help you plan your sourcing trips more efficiently. These are the more famous bags wholesale cities in China:
One effective way to connect with reliable bag suppliers is by attending trade shows in China. These events bring together numerous manufacturers and distributors under one roof, offering an excellent opportunity for networking and finding potential business partners. Here are the bags trade exhibitions we have found for you:
Visiting local markets dedicated to bags is another way to find reliable suppliers. These markets often have a vast selection of products at competitive prices. Take the time to explore different stalls, compare prices, and assess the quality of the bags on offer.
If you’re unfamiliar with the Chinese market or find it challenging to navigate sourcing on your own, consider hiring a China sourcing agent like Owlsourcing. These professionals have extensive knowledge and experience in sourcing products from China and can help you find reliable bag suppliers.
Before finalizing any deals, please verify the authenticity and reliability of the potential bag suppliers. Conduct thorough background checks, request references from previous clients, and ask for samples to assess product quality. This step ensures that you establish partnerships with trustworthy suppliers.
Negotiating with Bag Suppliers in ChinaResearch market prices beforehand, set your budget, and be prepared to negotiate with suppliers to secure competitive pricing for your desired bag quantities. Engaging in price negotiations with Chinese wholesale suppliers can yield cost-effective deals, especially when purchasing China bags or handbags wholesale in China.
Discuss payment terms and conditions with suppliers before making any commitments. Determine whether they require full payment upfront or accept partial payments. It’s also important to clarify any potential additional costs such as shipping fees or import duty on handbags in the USA. Understanding the complete cost structure when importing from China to the USA will provide a clear picture of the overall investment required.
Customization can add value to the bags from China you import. Discuss design options, branding opportunities, and material preferences with your handbag suppliers wholesale. Whether you are looking to import designer bags from China or create your bespoke designs, product customization will help in achieve a unique market position.
Work closely with your supplier to create unique designs that align with your brand identity. Consider adding custom logos or labels to differentiate yourself in the market. Utilizing the services of China bag manufacturers for designing and branding can result in distinctive China designer bags that resonate with your target audience.
Specify the materials you want your bags made from and define quality standards that must be met. Clearly communicate these requirements to ensure that the final products meet your expectations. Engaging with China bag wholesale suppliers who have a reputation for quality will be crucial in receiving bags in China that align with your specified material and quality standards.
Ensuring Bag Quality in ChinaImplementing robust quality assurance practices is crucial when importing bags from China. Insist on product samples before placing bulk orders, conduct regular inspections during production, and insist on third-party testing if necessary.
Consider hiring third-party inspection services to ensure the bags meet your quality standards. These independent inspectors will assess product quality, check for any defects or deviations from specifications, and provide you with detailed reports.
Ensure that the bags you import comply with international laws and regulations. Familiarize yourself with requirements regarding materials, safety standards, labeling, and certifications in your target market. Understanding the specific compliance requirements of the bag market can help avoid costly errors and legal issues. Compliance assessment is an essential step, especially since less than 10% of manufacturers have the compliance capability.
Identify potential risks associated with importing bags from China and develop risk management strategies accordingly. This includes understanding customs procedures, intellectual property protection, and legal considerations.
When importing bags from China, adhering to the textile and leather labeling regulations is imperative. The labeling requirements are governed by the GB/T 5296.4-2012 standards and the Product Quality Law of China. A comprehensive product label should encompass:
Every article of foreign origin entering the U.S. must be legibly marked with the English name of the country of origin unless an exception from marking is provided for in the law.
cbp.gov
For leather products, the labeling requirements might vary based on the importing country’s regulations, so it’s prudent to research and adhere to these regulations to evade any compliance issues.
Adhering to the labeling and safety regulations not only ensures the compliance of the bags import from China but also mitigates risks associated with regulatory non-compliance. Collaborating with professionals familiar with China’s regulatory landscape can be advantageous in effectively maneuvering through these intricate regulations.
Handling Bag Shipping and Logistics in ChinaNavigating customs procedures can be complex but crucial when importing bags from China. Familiarize yourself with import duties, taxes, and documentation requirements, and work closely with shipping agents or customs brokers to ensure a smooth clearance process.
Understand the tax implications of importing bags from China. Consult with professionals who can guide you on applicable taxes such as value-added tax (VAT) or customs duties.
Consider logistics aspects such as warehousing options and distribution channels within China. Proper storage facilities combined with efficient distribution networks will support your operational needs effectively.
Setting Bag Pricing and Payment Terms in ChinaDetermining the appropriate pricing for your bags in the Chinese market is essential. Conduct thorough market research to understand the competitive landscape and set competitive pricing strategies accordingly. Additionally, establish clear payment terms with your retailers or distributors to ensure smooth transactions.
Suggested reading: What is a Sourcing Agent
Sustainable SourcingEngaging in sustainable sourcing entails a deliberate selection of suppliers and materials that adhere to environmental and ethical standards. This includes opting for eco-friendly materials like recycled Polyester (rPET), recycled Nylon, organic cotton, or cruelty-free leather alternatives.
Embracing sustainable sourcing demonstrates a brand’s commitment to corporate social responsibility (CSR), which can enhance brand reputation and appeal to environmentally-conscious consumers.
Adopting eco-friendly packaging solutions is becoming increasingly important, especially as some states in the USA have enacted regulations targeting packaging waste. Eco-friendly packaging extends beyond recycling, encompassing innovative and creative methods that contribute to a circular economy and address waste prevention.
For instance, utilizing biodegradable packaging materials that decompose within a reasonable time frame is a viable option, as seen with UPS China introducing biodegradable packing bags that degrade within 180 days through composting. Moreover, engaging with packaging suppliers who offer solutions like degradable PE additives can also contribute to environmental sustainability.
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Final thoughtsIf you are also interested in importing bags from China but are not proficient in Chinese, you might consider collaborating with a sourcing agent. The journey to identifying the right supplier can be quite challenging given the myriad factors to be considered.
Additionally, the process of importing from overseas can present a labyrinth of procedures. Hence, align yourself with a supplier who is forthcoming with every minor detail and possesses a solid grasp of the business landscape in China, as this insight will prove invaluable down the line.
Use this detailed guide as your roadmap to success and embark on an exciting journey into the world of importing bags from China!