How and Where to start.
Starting a business with China, you need to weigh all the for and cons. Since China has its own legislative activity, it will be necessary to study in advance information concerning negotiations with foreign suppliers, to follow the norms of the law. All this is necessary in order not to be trapped. For example, you already need to send cargo from China, and all the necessary documents are not yet prepared.
Legislative aspects of business
In order to legally sell imported goods imported from China, it is necessary:
Register with the tax authorities
To enter into a supply agreement with the Chinese side and Purchase goods from a Chinese supplier you can only do this with invoice.
To formally secure and clear the cargo, also to issue certificates for imported goods you need to give samples for examination.
Where to get the goods?
Many entrepreneurs are thinking: how to start a business with China from scratch? It is necessary to understand that the business will be profitable only if you come up with an idea how to sell the product and this product is really high-quality. The businessman should estimate the approximate amount of expenses for the purchase of goods.
Where to start looking for suppliers? It is best to look for them at exhibitions, on the Internet or by contacting companies that conduct analytical calculations and can share their ideas. You can find a Chinese for him to translate information on various sites.
Electronic appliances and appliances can only be found in southern China (Shenzhen), shoes and clothing are better purchased in Guangzhou. It is worth visiting Chinese factories, getting acquainted with the management and their ideas. You will buy the goods in batches, and for this it is better to get to know the owners to prevent force majeure situations.
Negotiating rules and psychology
Where to start is with quality negotiations. You may need to hire an interpreter. If you find out all the details about the future supplier. Make sure that all licenses and product certificates he has then can negotiate.
The Chinese are used to doing business based on trust. The personal relations of Chinese citizens are valued very highly. If a Chinese supplier sees you as a reliable partner for whom the idea is important, they can agree to terms that are not particularly beneficial to them. The Chinese can not be pressured, they are very thin and vulnerable people for the most part, but at the same time very cunning and dexterous.
The treaty must be drafted in Chinese and your own official Language.
Organizing business with China requires generating ideas, investing in energy, time and small amounts of money. Among the schemes worked out are:
1. Standard:- Purchase for aliexpress.com, alibaba.com, taobao.com, 1688.com or directly from a Chinese supplier.
2. Dropshipping:- In this scheme, you do not need to buy goods, it is enough to advertise those products that have already been purchased by another buyer. You only get a percentage of the sale.
3. Joint purchases:- This scheme is a collection of orders from people who have the opportunity to wait. And then make a purchase at a wholesale price, the difference between the wholesale and retail price is your profit.
Overview of the top range of Chinese goods.
Highly profitable products include:
* Mobile phones
* Children’s toys;
* Board games
* Household appliances
* CCTV systems
* Medical equipment
* Industrial machines
Pros and cons of joint business with China
Due to the fact that in China the labor of workers is not particularly paid, to produce goods is easy to obtained at a low cost. It will be possible to resell the products with a mark-up of 50 to 1000%.
A wide range of goods. In China, you can find even something that is not yet anywhere else in the world.