When we think of starting a business, the first thing that comes to mind is to sell products. But if we do not manufacture ourselves (as in the case of crafts), what do we do?
Where can we buy them? And most importantly, in what places they sell all kinds of items that are at cheap prices so that we can resell?
In this post, you will learn how you can become the owner of an import business with a very low investment, and everything you need to know to get it going.
How it works; an import business
Before getting into the thick of this article, it is important to know the basics of importing. How can you make money in the business of “buy and sell”?
Simple: buy something (such as watches) at a low price, and then sell it for a higher cost to generate profits. The rule of thumb here is to buy low, sell high.
Until recently the problem was that if you were the owner of a small business, you had to buy the items in bulk from a large intermediary importer who stayed with most gains.
That is: a watch factory (for example) those products sold in China is a major importer for $5; this importer was selling these watches at a small owner like you for $10, and that small owner if each watch sold for $ 15, only $ 5 of profit is earned.
But that has all changed now with the Internet. Today, an entrepreneur like you can buy the products directly from China factory, eliminating the major importer as an intermediary, and increase your profits.
If you’re wondering why import from China and not from another country, this is the reason: as you know, most products are manufactured today in Asia, particularly in China.
Toys, household items, computers, phones, and even Apple iPads are made in China today. If you do not believe me, take 3 or 4 things you have around you, and look at their labels.
The shirt I’m wearing now, the keyboard with which I write these words, and my cell phone, everything is made in China. China is one of the cheapest producers worldwide for its low production costs and labor.
And as a result, many of the big brands you know (Apple, HP, Louis Vuitton, etc.) make their products through contract factories in China.
How to sell imported products?
Once you’ve spent the entire process and have the goods in your hands, it will only be the easiest part: sell.
If you already have a physical store, or you’re thinking of hiring a local to establish your own business, you can do there. But if you have enough budget for it, open an online store and sell your products imported there.
You can even open a Facebook page and start selling; that means if you have no knowledge to open an online store, or if you want to set yours quickly.:)
Do you need to start importing from China?
To join this new group of entrepreneurs who are already generating huge revenues to imports, you only need the following:
- A computer with Internet access
- A valid mailing address in your home or your office in your country where you send the goods
- A bit of money in your bank account (we will talk later in the article)
That is all! This means you can buy, order and import all products you want to sell from the comfort of your home or your writing desk. Note that a post is not a valid address to send you the products.
Importing from China: key questions
I’m sure you’re excited and you will rush to enter this world of importation; but before you sit at your computer and buy what you need, you should learn seven major keys to success in this business.
After reading these seven key, you know what is the best and most reliable places are to buy your items, how to confirm the quality of the products, payment processing, and many other important aspects.
1. Where to buy?
The following websites are you most recommend to be the best markets that sell products at lower prices.
Aliexpress has become the preferred site for many entrepreneurs to import products from China on a small scale. It is a page belonging to the Alibaba group, which dominates the Chinese market on the Internet.
Alibaba Group launched Aliexpress in 2010 as an online shopping service made up of small vendors offering products online to customers. It has more than 20 major categories of items and sells to users and buyers from over 220 countries worldwide.
DHgate is also an online marketplace dedicated to connecting small and medium-sized Chinese enterprises with buyers from around the world. This company opened its doors in 2014.
This site offers user support via online chat, email and telephone.
2. How do I pay for the product?
Through simple online payment systems, the two websites I mentioned above offer a variety of payment methods. You can make a simple bank transfer or pay with your credit card or debit.
Yes, you can use the same methods that you use in your everyday life. Credit card, Debit Card or Bank transfer. Quick and easy!
3. What happens if they cheat?
Scams and frauds have been a major concern in online transactions for a long time. What if the items you receive are false or not as they described in the ads/site?
What if you pay for them, but never get to send them to you? How can you make sure you get the exact products for which you paid?
Very good questions! The two websites have recommended earlier in this article; they have a program called “buyer protection” included in the payment process.
This mechanism, called Escrow, works like this: instead of paying them directly to the seller Aliexpress and DHgate “freeze” that payment until you receive your products.
Once you received, if you are satisfied with the goods, you confirm that everything is correct, and your payment arrives and frees vendors. It is a simple process that ensures that the buyer (you) will never be ripped off, and receive what you have paid for.
4. How to find good products and vendors?
This is one of the major concerns that need to buy products in China not think that these items will be of low quality. How do you know if what you are buying is quality and buyer is reliable in Aliexpress and DHgate?
Through the opinions and the scoring system. In every product you buy, there is a tab called “Ratings” where you can see what other buyers have reviewed this particular article.
So when you find something you want to buy to sell, I would strongly advise that you always look at these valuations, and buy only those vendors with an average score of 4 or more points, and 90% positive feedback.
5. How do they ship the products?
Some products on these two pages have service included “free shipping” to many countries. Although this option is very attractive, it is also the most time entails: normally between 15 to 60 days to reach you depending on your country.
Apart from all this long time, it may also be impossible to know where your package and when it is sent.
Other shipping options common in the two webs is shipping by private companies such as DHL, EMS and Fedex. They are more expensive alternatives, but will be sure to receive the items more quickly and more safely.
6. What products are most popular?
Both have DHgate and Aliexpress as the most popular and best-selling products on the Internet.
Some of these are clothing and accessories (both male and female), electronics (cameras) and mobile phones and accessories (helmets for smartphones, chargers, batteries …). In recent months, the hair extensions are gaining special importance.
Although clothes, cell phones and extensions are very popular, it is best to investigate the market around you and you analyze what is the profile of your ideal client to know what that person better sells.
7. How much capital do I need to start?
As you have and see if you visit Aliexpress or DHgate, many of the products they sell are really cheap. Not all, but most have very low prices.
In fact, the more units you buy the same item, the cheaper it will cost for the benefits of wholesale. And remember that the less you pay, the more benefits you get.
Use this to test the viability of your business idea and gain confidence in yourself. For most products amounts, you can generate between 50% and 75% profit if you find the right buyers to sell to.
When you earn more income gradually, you can start testing with other goods that cost a little more.
IDEA! Avoid the temptation to invest a lot of money initially by exciting the idea that you feel unless you already have a business with a good base of customers willing to buy your imported products.