Calculating import costs, comparing multiple offers, or trusting procedures to reliable companies guarantees a successful operation
Here are some common mistakes when importing from China:
Lack of Control Over Import Costs
When importing certain goods, it is possible to negotiate with the supplier under CIF or FOB terms. With CIF terms, the seller pays the transportation costs to the destination port, the freight, and the insurance. With FOB terms, the buyer is responsible for the transportation and customs procedures. To decide on one of the systems, you must know the destination port’s tariffs and the transportation cost from the port to the warehouse with FOB and CIF.
Not Comparing Enough Offers
Thoroughly knowing market prices is essential when importing from China. You should not trust the first price a supplier offers or the lowest price. The correct approach is to receive several offers and compare them. When choosing a manufacturer or supplier, consider factors such as the minimum order requirement, the quality offered, delivery times, appropriate permits, and even the distance to the loading port.
Errors in Calculating Costs
In addition to the purchase price and CIF or FOB conditions, other expenses will affect the final cost: maritime transport, tariffs, port fees, taxes, dispatch costs, among others. It is also important to consider that currency exchange rates fluctuate daily, and a small difference in the exchange rate can be significant when making the payment. To reduce risk, it is advisable to take out currency exchange insurance.
Getting Involved with Intermediaries
The commercial world is full of opportunists who try to take a percentage of any operation, increasing the final buyer’s (the importer) cost. To bypass intermediaries, you need a good specialized support in the importing country, like Bull Importer, with offices in the exporting countries and direct contacts with the best manufacturers. Knowing precisely what you want to acquire makes it easier to find the most suitable and trustworthy producer without paying intermediaries’ fees.
Not Requesting Samples Before Importing from China
Cultural differences can lead to misunderstandings. For this reason, before placing an order, it is very convenient to carefully detail all product and packaging specifications, no matter how obvious they may seem. Requesting samples is another highly recommended practice to ensure the quality and finishes match what was requested from the manufacturer.
Not Acknowledging the Exporting Country’s Different Culture
Agreements, schedules, commitments, production calendars, and, above all, building trust in Asia are different from what we understand. A good cultural and business interpreter is essential to avoid surprises in the form of breaches, delays, or mistrust.
Trusting Unreliable Payment Methods
Once the price has been negotiated, a sample has been requested, the shipping method has been decided, and delivery times are known, the last step is negotiating the payment method. The most common options for large orders are letters of credit or bank transfers. The former is the most reliable and advantageous for the buyer. With transfers, there is a certain risk of fraud by the supplier. Hence the convenience of working with accredited professionals with export licenses.
If you want to avoid headaches in your import operations, trust your management to Bull Importer. We have extensive knowledge of the industry and trade with Asia and have highly effective international offices.
