Considering Wholesale Importation From Asia? 7 Factors You Must Know

Wholesale importation seems easy. You Pick up the phone, place your order and wait for the delivery guy.  Right? Not quite!  But that doesn’t mean it’s not worth it.

First, however, the truth: wholesale importing is hard at times, frustrating at others, probably scary and even – let’s face it – painful.  But for many, it’s the absolute key to a long term success. Do it right, and your business is able to minimise cost and increase its profit . Not less than 7 of Australia’s top 10 wholesale import markets are all at the Asian pacific regio and it’s not hard to see why.

There’s the geographical proximity to Australia, production and labour costs that are lower, raw materials that are a lot cheaper and available in bulk, sky high competition and a huge range of products and services.

Sounds like a no-brainer but as explained, that doesn’t mean wholesale importing from China is EASY.Here are 7 necessary factors to surmounting challenges associated with importation.

  1. Choose your product

Of course, it’s very likely you’ve chosen the product you’re going to import already.  If not, you’re in for a treat – you can choose one that is pretty much guaranteed to be profitable.

The safest bets are products that are lightweight, simple and affordable for the customer.  That way, you save on shipping, minimise defects, and tap into the huge market for ‘middle class’ products.

  1. Do your research

There are many locations in the Asian Pacific that are great for wholesale importation – but you need to do your research to pick the right one.  Because for every business and every need, there is a best market. And each has its strengths and weaknesses.  For instance, many are developing countries.  Some have unstable political systems others are great but also full of scammers.

  1. Know the risk

Where there are wholesale importing benefits there are also risks associated.  But with careful planning to assess the feasibility, a successful path can be found and negotiated.

As we suggested, there are governments with uprisings and economic instability, countries with free trade agreements, and others with sanctions imposed upon it.  There are different trade restrictions, legal requirements and permits – and more. Once those risks are factored the rewards are definitely worth it.

  1. Consider a broker

As wholesale importing is full of risks, rules and regulations – consider a broker.  As much as you may know already, you don’t know as well as an expert everything about the market you’re considering and the pitfalls and challenges of getting your goods through customs , an expert is inevitable to your business.

  1. How’s your transport?

Transport can sometimes be an afterthought – but don’t fall into that trap in this wholesale importing game.  Why?  Because there are many transport options, and only one will perfectly fit your business, your budget and your customers.

Too many people think it’s all about just getting your stuff from A to B by picking a sea or air transportation option, without considering the ports and freight services, cargo insurance, duty taxes and other charges. Once the transport is not planned for, you could be left with late goods, no goods at all, or non-existent profits.

  1. Reduce your costs

Never forget that the essence of going into wholesale importation from the Asian giant (China) is to minimise your cost and maximise profit. But it’s very possible to take all of those savings and let all the hidden and unconsidered costs gobble them up.

For instance, while you may save on labour and materials, have you really thought about all those other costs like bank charges,GST,Packaging, Warehousing, agent and inspection fees. And if you think that’s all, revert to tip #2 and Do Your Research.

  1. How’s your currency?

Currency fluctuations must be properly put into cosideraton before getting into the wholesale markets in Asia. But anyone who regularly buys and sells across international borders knows the problem.  The first step is picking a good currency to trade in for the contract – and it may be up to you.  If you do have that power, the Aussie dollar is a good bet.

Step 2 is to consider what bank you will use – and whether a bank is even right for you at all. Take the Commonwealth Bank as an example.  If you don’t compare those CBA exchange rates with those of a specialist FX provider, you could be missing a trick.  That’s because specialist providers can provide better services, higher expertise, and – crucially – generally much better rates.

In Conclusion

If these factors highlighted above are carried out to the later, then your wholesale importation business from China becomes successful and very profitable.



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