Importing Wholesale Products
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China provides more than 20% of total U.S. imports year after year making them the largest U.S trading partner. Although there have been shaky relations between the two countries the trend shows little deviation over time. There is no sign that business will slow down and because of that, new wholesale importers should think about a few things before they do business with China.
First, you need to think about whether or not the products you are importing are marketable here in the U.S. For example, what makes the product you are importing from China unique? What are the product’s benefits and economical properties? Does the product you are importing from China have sustainability? Try to stay away from things like electronics, baby items, digestible items, things that are complex, inherently dangerous, and products with a patent or trademark.
Secondly, you need to think about profitability. Make sure you run your financials and strategize before making any payments to China. What is your landed cost per unit? What does your import from China sell for in the U.S.? What is your profit margin and return on investment? If you do not think about these things and “know your numbers” your business will fail. Prepare before you purchase.
Lastly, ask yourself if the products you are importing will be able to sell. Know your target market demographics. Know where your imports will sell best. Know why your imports will be successful. Make sure your imports from China are competitive. If you have any hesitation with any of these things you need to re-evaluate what you are importing.
Importing wholesale products from China is a smart way to make good money if you do it right. It is easy to overlook the small things and doing so can really hurt a business. Take these things into consideration and really think about all the financial details before giving yourself the green light.