Perhaps you've wandered into a luggage store in a local shopping mall and thought about where these people get their stuff. Or, you shop on-line for a portable air conditioner and see many sites with impressive product lines, and you think "how do they acquire these products, and how much money are these people making?" Chances are good that the sellers got their items from China at a very low cost and are making a decent profit on each unit sold. If you know how to import goods from China, you are one step ahead of your competitors.

Certain imported items like cell phone batteries can be sold in the U.S. for roughly five times the cost, whereas more expensive items like plasma TVs will get about a 10-15% profit margin. If you have a retail business going or plan to create one, you must explore the opportunities found in China. Whether it's the right move or not depends on the product(s) you want to sell and your stomach for working with a foreign entity.

The first thing to consider before you decide to import goods from China is whether there are more cost-effective alternatives to getting your merchandise. Keep in mind that there are manufacturing operations for many types of goods right here in the U.S. The advantages are obvious: no language barriers, legal protection, great infrastructure for shipping, and so forth. The big drawback is the relatively high cost of labor/ manufacturing, which will force you to sell your US made product at a higher cost. Not a good thing considering all the Wal-Marts of the world. Retail is a cut-throat industry - you must be price competitive, or you better have a unique item with few competitors (a very rare situation, indeed). So, the savings in money and time from importing should be significant enough to make it worth the effort. At a minimum, you must be able to determine, with a high degree of certainty, that you stand to benefit from importing a certain good from China before proceeding.

Before you begin an import export venture, understand that there are potential pitfalls associated with importing goods from China that you need to avoid, such as the chance of mis-communication with the manufacturer; running into an unscrupulous manufacturer who has a per unit price that is too good to be true; and difficulties dealing with quotas, taxes, other import restrictions. Most people start by working with an import-export consultant, but this cuts into profits. As you become more familiar with the inner workings of importing, and depending on what you import, you will eventually need to consult legal and tax-related publications to ensure all bases are covered.

Doing business in China, an unfamiliar country for most people, can be very intimidating. However, if you want to gain a competitive edge, you will need to break out of your comfort zone, and China presents a very good opportunity for you if you intend to engage in retail business. The Golden Rule that trumps everything and that should direct any business relationship is common sense: Chinese and American cultures are different in many ways. Don't assume that things are done the same way in China as they are here in the U.S.; this can cost you time and money.

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