Discover the 5 mistakes new importers make when they are importing products from China.
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First mistake importers make when importing products from China: Assuming that shipping by sea will be the cheapest option
A lot of new importers think they will save money if they ship by sea rather than air. On the surface it seems cheaper as importers usually pay around 60 cents/KG when shipping via sea, compared to the $7/KG when shipping by air courier.
Unfortunately what they don’t realize is that the reason it’s that cheap is because when shipping via sea, you ship via container, and you need to rent an entire container. They are very large and require you to be shipping hundreds of KGs to be making it worth your time.
If you are an Amazon private label seller, you are unlikely to have enough stock being shipped to fill a container by at least 60-70% so it will be cheaper to ship by air.
When shipping by air, you have two options:
1) Air freight
2) Air courier
Air courier is when you have your items shipped door-to-door. It is the easiest but the most expensive per KG (although in smaller quantities it is cheaper).
Air freight is when you have your items flown from one airport to the other. You will need to organize other additional services:
* Having the items delivered to the airport
* A customs broker
* Having the items delivered from the airport to the final location.
There are a lot of fixed fees with this which means it becomes cheaper to use air freight with larger quantities. To figure out which option will be cheaper for you, I recommend using Freightos.
Second mistake importers make when importing products from China: Not using the Metric system
In China, they use the Metric system and not the Imperial system. So be sure to use KGs instead of lbs and CM instead of inches. It’s important to remember that when working with Chinese suppliers that they expect you to work on their terms and their timeframes.
It can be frustrating, but it’s worth it for the cheap Chinese products you import!
Third mistake importers make when importing products from China: Using Less than Container Load for shipping
When shipping by sea, you have two options:
1) FCL which stands for Full Container Load
2) LCL which stands for Less than Container Load
Inexperienced importers fall for the trap of shipping with LCL because they see that the price are extremely cheap. What they don’t realize is that these LCL companies have special deals with the ports to charge you extremely high Destination Service Charges. The LCL companies then make their money in the form of a “rebate” which is essentially commissions/kickbacks.
Destination Service Charges are usually priced per-container and cost between $500-$1000 per container for ports in the USA. But when shipping by LCL you end up paying a high fee per cubic meters. It means that you often end up paying a fee comparable to shipping an entire container.
Don’t fall for this trap: If you can’t break even with FCL, then ship by air.
Fourth mistake importers make when importing products from China: not calculating the correct duties you will need to pay
When you import products from China, you will need to pay duties at the border. If you don’t calculate the correct rate you can get a shock if it comes back as more than you expected.
Duties can be a bit complicated to work out because there are a lot of variables. For example, if you imported woolen jackets, you need to consider which country the wool came from, as some countries (like Israel) have duty-free agreements over wool, which would reduce the duties you had to pay. On the other hand if synthetic fibres were used instead of pure wool, then your duty rates would be higher since there are higher duties applied to synthetic fibres within the USA.
To figure out what your duty rate is, find out what the HTS (Harmonized Tax System) code is for your item. To find this, ask your Chinese supplier as they will most likely know. You can then go through the HTS manual and find what the duty rate is for the HTS code of your products.
Fifth mistake importers make when importing products from China: being afraid to make mistakes
And finally - don’t be afraid to make mistakes. Through making mistakes you learn how to overcome them the next time and make even more money. Mistakes are apart of entrepreneurship. Learn from others - and learn from your own as well!
+Wholesale Ted I will have a look.. but I wonder why out of all the ones I am watching you come up with the other side of the positives always..not sure if its a mix a match for them "youtube" but ... i will check your library since you suggested
I don’t like your video. First of all I’m half Jamaican, Canadian,native Indian ,Chinese, Italian and American so I already know it’s expensive but I thought it’s easy because I need money. I’m
Born with microcephaly similar to aurtisum so I can’t go to college and my friends can help me but my brother is from japan and my other brother is from china . Not everything is mistake dumby.
By LCL Custom can be cheap on ur end if you use under invoice (like 10$ product show in invoice 2$).
we are trade company in china we do sells and forwarding goods for amazon sellers by FCL, LCL, Air cargo carries and express carries like (DHL FedEx UPS EMS door2door)
Sarah, as usual, you are a STAR. This video was so informative and i believe any one watches it owe you and your friend a thank you statement as we are learning from paid mistakes by others. In addition, I just must say that I am in love with the accent :) what a gr8 accent. I guess a discovery trip to New Zealand is a must now :) Thnx Sarah
It sounds to me like shipping by air via a standard courier has relatively little hassle. Seems to be the way to go. Sure, I might be able to work the numbers just right and get a couple of pennies off by shipping another way, but it's really not worth the hassle.
WOw~ great video, worth 1000 AUD. Unfortunately, I've made mistakes for my first importing from China to Australia. Yes, you can imagine, I've got all of the fees due to LCL for 7L and commissioning fees and more and more.
Now I couldn't sell those products due to higher prices. Who's gonna buy those products with highest prices. My bad, My learning. Who's making money from who's lost money.
I'm gonna try next one soon with other solution.
Hi, Thank you so much for your information. QUESTION Sarra, what is considered the cut-off, line. 500 units, 1000 units?
I am about to do my very first order at 500 units. My product is about 3 pound. Do you feel I should go air or sea?
Any opinion will be greatly appreciated.
Thank You so much, Sarra. You are Awesome 👍🌎
Sara! Thank you! You're amazing. I learn so much of your videos here on youtube. I'm only few steps of launching my first store. Thank you very much one more time.
Every person who is here and complaining about content you're publishing here for FREE (!), should just go and leave you alone. I'm very grateful to you. Thank you, Sara and all of your team!
"If you can't fill a container by 60-70% then it's usually cheaper to ship by AIR. "
NO it isn't.
If you can get 4+ cubic meters of goods LCL (Less than container load) is significantly cheaper than air. The biggest issue you will have is customs clearance and managing lead time.
1. Get a good customs broker - they take care of the invoicing, clearances etc. and streamline a relatively fragmented proess
2. Allow 6 weeks for arrival.
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Dear thanks for your information.
Can you make video on Indian supplier?
As quality is much better as compared with China supplier and duty also will be lower as compared with China in USA .
Do think on this issue and help sellers in USA to make money by selling quality products .
Im interested in buying four dining chairs from Alibaba. The salesman that I've spoke to can deliver four pc to a delivery cost of 405 dollars. In this the company says its delivered ''sea to door''. They also say that ''It is delivery to door( your address ), not to seaport . Cause package is very large , only by post office sea to door is the cheapest way. You dont have to do custom clearance due to its not delivered to your seaport, but to your door.'' ''China Mainland Logistic cost to agent is 49 us dollar for 4 chairs. Shipping cost to your door 89 us dollar. So if need 4 chairs, total cost including shipping cost is 99*4+49+89*4=801 us dollar.''
They say that ''The shipping cost that we quoted you is by post office to door , through China land logistic then to sea to your nearest seaport ,then by land logistic in your country to your door. Everything is included in the 405 dollar shipping ( only import taxes not included ).''
Does this sound believable or is there more to it? I have absolutely no experience concerning these matters, but I live in a city in Sweden, where we have the biggest seaport in the nordic countries. The chairs cost 99 dollars/pc.
Thank you for your help.
We are a professional outboard motor and accessories manufacturer in China. We have a strong team which is able to design and develop and provide after-sales service. Our products are reliable in quality and reasonable in price, sold in Britain, America, Japan, Italy and South East Asia, also well appreciated by their purchasers. I sincerely hope that we can have the opportunity to cooperate with each other.Or I can help you purchase the items you need in China.You contace me with Email:[email protected],Wechat id 775239501.
if i was to ship some slavery good i would surely get them over by plane as shipping is very cruel... why should my purchasers have to wait. don't be cruel peeps, use air. i am very excited to be using an air car soon, a flying car will surely help the economy and so the good of the world. anything except natural things, as they fall apart when added to earthy places. look forward to more blessings of the methods to get the chinese workforce to cooperate with us for even less pay though work quicker prease as we are saving the purchaser from having to wait for things they [email protected]!!!!!... don't be evil, support captialism, share love 💚🌈🥑 (i used an avocado symbol as it is fatty, it's the next big fad and that is nice for sitting around on my hips waiting impatiently for things made in china to arrive to my important purchasers).
ps, i love you ✗✓ which one?
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