How to start a business with China
10-15 years ago, Chinese goods were not of high quality - they were the cheapest disposable consumer goods. Today the situation has changed radically - modern products from China are no different in quality from well-known European and American brands, while their prices are 2-3 times cheaper. That is why the business of selling goods from China is profitable and promising: you will sell quality items at a competitive price and will be able to quickly occupy local markets.
How to work
There are several schemes for doing business:
- Dropshipping. This method allows you to start earning without investment, so it is ideal for novice businessmen. The principle of dropshipping is simple - you find people who need a product, get paid for it and place an order with a manufacturer. The manufacturer sends the product to the customer, and you get your commission. Its size can be different - on expensive goods it is usually 25-35%, on cheap - 200-500%. The only drawback of such a business is that the client needs to wait a couple of weeks for the goods to arrive by mail.
- Joint purchases. This business is well developed in topic groups or communities. The main idea of this scheme is to reduce the price of a wholesale purchase. A simple example - a manufacturer sells sneakers for $ 30 per pair, while retailers list them in stores for $ 60. The manufacturer does not deal with single orders - he has a minimum selling lot of 10 pairs. Your task is to collect 10 people, having received a certain percentage from them for their activities (usually 20%). Additionally, your group will save on delivery - its cost will be split into 10 parts.
- Wholesale trade. The principle of trading is similar to classic dropshipping, but with one amendment - goods are sold in bulk. Many stores will gladly purchase goods at a low price with a short delay - you just need to properly organize the work scheme.
- Creating your own online store or platform. To do this, you need to either understand information technology, or hire a person to make a website for you. It will generate a steady income if you offer customers low prices, quality service and a good range. You can work according to this scheme both in the classical way (by purchasing goods and selling them from the warehouse), and by the dropshipping method, warning people that delivery will take some time.
Earnings without investment
How to properly organize a resale business with China without investments, so as not to burn out and reach a more or less stable income? It's simple - work according to the first scheme (dropshipping). Pick a specific type of product that you are going to sell, find thematic groups on social networks and forums to study the need for it, find a good supplier, explain to him that you want to work on the principle of dropshipping, and start earning.
Please note: parcels worth up to 1000 euros are not taxed and do not require "customs clearance", so you can safely work with most types of goods. If your parcel costs more than 1000 euros, you can always ask the supplier to lower the price for smooth customs clearance.
Another good sales option is to create a one-page website. This site will have a selling page with a description of the product and reviews about it - you can create it yourself using a template. These sites sell products well and require minimal investment.
What to trade?
We recommend that you trade in whatever you know a little about. Selling lingerie and cosmetics to a man will be quite difficult, since any product has a lot of nuances.
It will also be useful to study the statistics of online sales in order to understand what exactly consumers are interested in.
- Tablets. In recent years, tablet sales have come out on top - their turnover takes up to 30% of the total Internet market.
- Smartphones. People very often order phones over the Internet, especially newer models. This niche occupies up to 20% of the total market.
- Computer hardware. Basically, small and start-up stores sell small accessories: flash drives, headphones, mice, keyboards, etc.
- Shoes and clothing. This market is developing successfully in Russia - more and more people prefer to buy high-quality and cheap clothes in China, rather than from local sellers.
- Jewelry. Quite a promising direction - the volumes of jewelry sold are constantly growing against the background of jewelry becoming more expensive.
- Themed goods. You can target specific niches by selling a themed product. This can be clothing for fishermen or trekking, camping knives or lanterns, collectible figurines or special tools.
It is necessary to understand new business ideas in China for the most part are not “new” for a long time, but most likely these ideas are already actively used, because this is a large market and they work here in all possible directions, this is why it is worth chasing new products. Then you need to conduct marketing research in order to study the market and understand what products are in great demand. For research, you can hire professionals who will not only do a full analysis for you, but also draw up a business plan for your future company. When a niche is selected, you can safely start looking for potential Chinese partners. Not sure where to start, here is a list of 21 ideas for small cities that can be easily implemented if desired.
Searching for an idea for business with China
The most optimal and profitable option for you would be to visit the manufacturer of the products. Thus, you will avoid various markups from intermediaries. If you liked the valuable and products, the next step will be to study the manufacturer's documentation (certificates, constituent documents, etc.). Such business with ideas is very profitable, but you need to be able to search for them correctly.
If everything is in order, then you can already start negotiating the planned volumes of orders.
Other supplier search options:
Such options also have a place to be, plus they are that it is much easier to do it, but the minus is that this is work through intermediaries. That is, you will overpay 5-10% to the intermediary for the same product that you could buy from the manufacturer.
Pros of business ideas from China
For most, the Chinese market is interesting because the cost of products from this country is 50-60% less than analogues in domestic markets. These interesting business ideas from China are not limited to. This country is famous not only for its low cost of goods but also for its high productivity. In addition, any product is produced in China, from pencils to medical equipment. This, in fact, is beneficial to cooperation with the Chinese market.
business ideas from China
Below we will tell you about 4 business ideas from the Chinese market, which are based on the simple principle of “buy and sell”, most of them do not require large investments. Each idea is profitable and you choose the price for sale yourself.
# 1 Trade in branded footwear and clothing
Chinese goods today occupy a large part of the market worldwide. In Russia, for example, this share is 80%. This is due to the fact that products from the Middle Kingdom have become cheaper, more varied, of high quality and functional than several decades ago. And therefore, you can build a good business on goods from China.
Even if you have never been in sales and do not have entrepreneurial skills, you have every chance to start your own business and make a profit. Many enthusiasts have already seen this. It is enough to have a desire, interesting ideas and a little start-up capital.
The essence of the business
In principle, the business scheme is no different from the usual sales of any product. All work will be reduced to three main points:
1. Search for the cheapest product in China.
2. Organization of its delivery.
3. Sale at a surcharge. Celestial products are very cheap, and you can make a tenfold wrap on them. Hence, we can conclude that the most profitable business is goods from China.
Where to start for an inexperienced merchant? Eleven consecutive steps will tell you what to do.
th step - explore business models
There are several ways to sell products. You can combine them or use only one that is more suitable for you.
1. Dropshipping. This is an option for a business without investment. The bottom line is that you become an intermediary and get a percentage of it. Customers place an order with you, you pass the application to the supplier, and he sends the package to the customer's address. Everything is good, but people rarely agree to make an advance payment and wait for the goods indefinitely.
2. Wholesale. You again act as an intermediary, only sell the goods in large quantities. You can find partners on free classifieds sites or on social networks. All you need to do is mark it as "wholesale".
Everyone knows about Chinese products today. Everyone knows that goods directly from suppliers provide significant savings. It is important to know where such purchases are made.
Goods from China were associated with low quality, outdated technologies, second-rate raw materials, but today companies have moved to a high level of production.
Chinese enterprises and sites of foreign firms are located in the country. Among them is the well-known Apple brand. Despite the fact that the development is carried out in the United States, the famous equipment is assembled in China. Thousands of companies have established business with this country. The main reason for choosing is economy.
Earnings and cooperation with China
Many people order goods for themselves, relatives, friends. Someone does not know about their existence. What to do for those who want to buy Chinese products, but do not know how?
There are two options. The first is to refuse to buy goods abroad and consume a domestic product. Cons - limited selection of products, overpayment. The second option is purchasing through intermediaries. They have established business with suppliers and sell products to a Russian buyer.
Every year the number of finished and component parts of Chinese products is increasing. Prices remain low. Therefore, Russian entrepreneurs prefer this kind of business. It is important to decide correctly what to sell, how to do it. Then cooperation with the Celestial Empire will open up opportunities for the development of the business.
Dropshipping is a simple, popular, practically no investment option for organizing a business. Direct delivery is a young business. It began to develop along with the opening of online stores.
Make a deal with a manufacturer or a foreign online store. The order is made after payment for the goods. The buyer pays, you transfer funds to the seller. After receiving the required amount, the Chinese partner sends the parcel to the addressee. Having adjusted the work, you do not lose anything and get a percentage of the transaction. This scheme has been on the market for several years.
China is currently one of the main suppliers of various kinds of goods around the world. Product manufacturers are constantly working to improve the quality of products, and, at the same time, the price for it remains low in comparison with similar products produced in other countries.
Due to these factors, starting a business with China to resell goods in Russia is a great idea, bringing high profits and increasing every day. In addition, it is quite possible to start selling such goods without investing funds, which is very important for those who do not have start-up capital.
Is it realistic to make money by reselling goods from China? Where to start
So, how does a business with China work on resale without investment? Already at the moment, Chinese-made products for some types of goods on the Russian market account for about 70% of the total volume of goods sold. And, although there is competition in this type of business, under certain conditions, choosing your niche and applying certain efforts to make money with this type of activity is possible.
All the necessary actions in order to start a business of this kind from scratch are reduced to the implementation of the following steps:
- Search for goods in China at a low price. In this case, it is important to remember that the buyer often wants to get a quality product, paying as little as possible for it. Of course, you are unlikely to find such an option, but you should not immediately rush to order products, coveting at its low cost - first study the reviews about the product and only then make a decision;
- Delivery of goods to the Russian Federation. The choice of delivery method can significantly affect its cost. Here you will have to decide what is of higher priority for you - fast delivery or, nevertheless, a lower price;
- Selling goods with a surcharge to the end customer.
As a result, such business ideas from China bring profit almost in the amount of the markup you put on the product. Of course, if you are going to conduct a legal type of activity (which is preferable to prevent problems with the tax inspectorate and other regulatory authorities), then a certain part of the income will go towards paying existing taxes, which will depend on the volume of sales and the chosen tax system.
How such a business works Step by step instructions
We will consider with you in more detail and deeply all the necessary steps and answers to questions of how to start a business with China, what needs to be foreseen, what is better to sell and many others.
How and where to find suppliers of goods for retail and bulk purchases
First of all, you need to decide - with what volume of sales of goods you want to start your activity. There can be only two options:
- Bulk purchases. In this case, you will need to go directly to the manufacturers of the goods or distributors. It should be noted that this way of doing business is practically impossible without an initial investment, in addition, you may need to make a visit to the country for negotiations;
- Retail purchases. This option mainly involves the purchase of products on intermediary sites - the price of the product, of course, is slightly higher than the manufacturer's cost, but the possibility of buying any thing in a single copy is worth it.