The biggest challenge of importing from China
Imported from China? If you want to learn about the biggest challenges and opportunities when importing from China, you've come to the right place.
We sat down with Jorge Mora, an import expert consultant from China, the world's largest exporter, and author of the Import from China blog. In this article, he explains toTJ chinafreight what are the main challenges importers face when dealing with China, and tips on how to overcome them. We'll also provide advice, best practices, and common misconceptions to clarify your concerns about importing from China.
You have over 10 years of experience helping SMEs import products from China. When importing from China for the first time, what do you think are their main problems?
I think the main problem that all companies, big and small, face when importing from China for the first time is how overwhelmed it can become. Most of them don't know the difference between FOB and CIF Incoterms. Nor do they know the specific documents and/or licenses they need to import from China. They often encounter difficulties negotiating with Chinese suppliers and are overwhelmed with ensuring product quality. But these challenges are perfectly normal, especially when you're dealing with something so complex for the first time.
What advice do you have for SMEs to minimise risks and potential problems?
These will be basic common sense advice, such as requesting samples before placing an order. Or choose small items such as LCL from the beginning when everything is still unclear. If all goes well and you feel that you can trust your supplier, you can continue to use FCL.
Throughout the process, your interactions with Chinese suppliers should give you a clear idea of whether you are dealing with an experienced and honest supplier. Watch for the following signs:
- Slow and sluggish responses to emails/phone calls
- Sudden price increase after reaching a certain price
- Sample shipping costs are too high
- Unconventional payment methods
If you encounter any of these situations, you should pay extra attention and be extra careful to avoid surprises during the import process.
Is it possible to import from China without meeting the supplier and seeing the product in person? How important is this visit to the success of the import process?
Yes, of course it is possible to import from China without going to China. Many of my clients have never set foot in China. No more traveling 10,000 kilometers to meet suppliers and validate their products. There are plenty of other quality control companies out there that can do a better job than you fly to China.
That said, when you import a product that requires a lot of investment and/or has to be customized, I recommend visiting China. These include, for example, specific types of machinery or new furniture collections. This is where the physical presence of a company designer or engineer comes in handy to make sure everything goes according to plan.
Would you say that there are a large number of importers who have been defrauded of importing from China?
No, I think scams are rare. There are many rumors about Chinese imports. These include containers that ship with empty boxes, footwear suppliers who send only one side of the shoe to force you to pay for the other side. But that's just hearsay. If you think about it, it doesn't make sense to change the line to make only one side of the shoe.
There have been cases where importers received merchandise that did not meet their expectations. But this is more the result of miscommunication between the supplier and buyer than an attempt to defraud.
