What NOT to Do in the Importation Industry
Many importers are used to articles that tell them about things to do when importing from China. Not many articles address the topic “what not to do in the importation industry”. Sometimes, understanding the mistakes and pitfalls can do more good to your business than you can imagine.
We understand that consuming lots of information about the importation industry can be overwhelming, this is why we want to help you get started on the right note so that you don’t make these costly mistakes that have ruined lots of importers and robbed them of their sanity and hard earned money.
Thanks to China, who has made products more accessible and affordable for importers all over the world. Not only this, they have also helped contribute to the global economy as the major facilitator of importation, dropshipping and other business models around the world. China produces 27% of the world’s consumer products. The products are cheap with standard quality and they are ever-improving on consumer trends.
If you want to be successful in the importation industry, pay attention to this article and understand what not to do in the importation industry.
Not building the right relationship
It is very tempting to ignore this important part of the importation business especially if you are just starting out. But if you want to grow your business, it is very important that you should build the right relationship. There are a few stakeholders in the importation industry that you should consider building the right relationship with. They are: your suppliers, your freight forwarders, your procurement agents, your quality control agents and of course, your customers.
While the reasons for the first few stakeholders are obvious, the last one is very important because the importation industry is ever evolving and if you want to keep selling despite this constant change, you need to build the right relationship with your customer.
Rushing to buy
This mistake has made many importers lose money and sent them back to the trenches. We understand that the adrenaline rush and eagerness to buy once you are ready can be very tempting but if you are not careful as an importer, it can lead to very horrible mistakes and eventually poor decision making. Impatience can cause you not to conduct more research about your supplier.
Patience is a very important virtue as an importer. Take time to engage your supplier. Take time to learn from trusted procurement agents and take time to process your order as well. Don’t rush the supplier because if you do, you give a hint that you are in a hurry and if they are fraudulent suppliers, they may either promise you quick turnaround time or even give you extremely lower prices just to win you over. Be wary of this and take the right steps. Don’t rush to buy.
Not knowing the right products to import
Before starting out as an importer, you need to find out what products you shouldn’t import into your country. Some products are banned from China and if you make the mistake of investing in these kinds of products that are banned in your country, it means you will lose your hard earned money, time and energy.
Hence, it is best to understand the kind of restrictions goods coming into your country have. You can easily find this on the website of the customs institution in your country of residence. For instance, you can find it via Nigeria Customs Prohibition List. Here are some of the goods you can’t import into Nigeria:
- Meat, poultry, and animal by-products
- Seeds
- Fruits and vegetables
- Cosmetics, medical products, and pharmaceuticals
- Any flammable fabric
- Tobacco products
- Explosives
- Precious metals
- Any branded products, real or fake
- Alcohol (without proper licensing)
- Boats or motor vehicles of any kind (without proper licensing)
- Ammunitions
Choosing the wrong supplier
Even though we have mentioned this in the first point, it is important to emphasize this again. Choosing the wrong supplier is the worst thing that can happen to your importation business. You could lose money within a twinkle of an eye. It is advised you go through a procurement agent especially if you are a newbie importer or if you don’t have enough knowledge and experience importing from China. In the importation industry, “cheapest” doesn’t always mean the best deal or quality. If a product is very cheap but the quality is poor, it is a waste. Do your due diligence before deciding to deal with an importer. If you are not sure, go through a trusted procurement agent.
Not having proper/incomplete documentation
This can be a bit difficult if you are a new importer but when you work with the right partners, this challenge can be easily surmounted for you. You must know the right documents for your business and ask your freight forwarders for this when you are working with them. Some important documents you may need are:
- Packing lists
- Certificate of origin
- Bill of lading
- Customs bond
- Commercial invoice
- Customs Invoice
- Special permits etc.
Your freight forwarder should be able to help you secure these documents and carry you along when doing so. This is one of the benefits of engaging Naiyuan Mart Freight Forwarding Services
Going ahead to make payment based on goodwill without asking for a sample
The importation business is very volatile. At every point you have to be very careful so you don’t get swayed with cheap words from suppliers encouraging you to pay immediately. Avoid paying on your own conviction without doing due diligence. If you are buying in large quantities, what you must not do is pay without a due diligence report from your procurement agent after inspecting the sample of your product(s). If the supplier is hesitating to give you a sample or is not answering your questions or is rushing you to pay for any reason. Don’t AGREE!
Not knowing your cargo type/choosing the wrong shipment
Not choosing the right shipment for your order is as bad as not choosing the right supplier. The right cargo delivery or shipment will help you secure your goods from damage on transit. Using a trusted freight forwarder can put your mind at ease when it comes to choosing the right shipment.
You should also know what is in your boxes so you can justify the shipping fees. You can either ship as a Full Container Load (FLC), which is using an entire shipping container, or as a Less than Container Load (LCL) which is sharing space with other shipments. The FLC is cheaper if you have a large enough load to make it worthwhile. If shipping by sea, make sure that you allow plenty of time for arrival by being patient.
There can be delays due to customs hold-ups, the vessel not sailing on time, or any number of reasons.
Also realize that there will be a day or two interval necessary to get cargo from the factory to the port, and another couple of days for regular customs procedure.
There you have it. The 7 things not to do in the importation industry. We hope this article helps you to pivot your importation business. You can check some of our resources below or contact us.
Helpful tools and resources:
Verified Suppliers List
This list is designed to help you 10x accelerate your PLM journey by saving you the time, money, energy needed to start looking for and verifying suppliers. We have done all the work for you by putting together the list of verified Chinese suppliers in different industries. The list is not free, because it took us a lot of time and other resources to find these verified suppliers to commit. You need this list to find you a manufacturer for your products. All you need to do is order for the list here.
Private Label Manufacturing Guide
This guide is a comprehensive step-by-step approach to help you get started with Private Label Manufacturing. It is a free guide but only made available to you as a bonus if you ordered the verified suppliers list.
Contract Template
A contract template is a legal agreement between you and your supplier. Again, this is necessary to make sure that your business transaction is protected on both ends. You can download the template here.
Expert Importation Guidebook
This is a starter guide to help you if you are a new importer. This free eBook is designed to take you from a beginner to pro level. Get it for free here.