Business with China from A to Z: nuances and features. How to start a business with China: what to sell and where to order How to work with China wholesale

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Business with China means high profits and profitable cooperation. We have collected tips on how to organize a business at home, open a business without investment, and what main directions you should follow.

Just ten years ago, goods from China were not of high quality. They were produced from second-class raw materials and using outdated technologies, so such products were not in great demand. Today, a lot has changed, so on Chinese trading platforms you can easily purchase high-quality products at affordable prices. In this article we will tell you where to start a business with China and how to make good money from it.

Dropshipping. How to open a dropshipping business with China

It is quite possible to open a business with China without investment. The name of this business is “dropshipping”. In English this word translates as “direct delivery”. The idea of a business is that an entrepreneur acts as an intermediary between a buyer and a seller. The scheme is simple: the entrepreneur orders the necessary goods on his own behalf and sends the goods to the buyer’s address. Thus, an entrepreneur can work without leaving home and without spending his money, working on a prepaid basis. All that an entrepreneur takes on is organizational issues. He will need to register on the site, communicate with the seller if necessary, track the delivery of the goods, etc.

Dropshipping has many advantages: the entrepreneur does not risk his own funds, does not need to hire employees and can cope with the volume of work alone. In addition, to operate effectively, it only needs a computer and the Internet.

The main disadvantage of this business model lies in external factors: firstly, parcels from China take quite a long time to be delivered; secondly, there is a risk of loss or delay at customs. Not every buyer agrees to wait that long. It should also be taken into account that the scheme is old and proven, that is, there is a high risk of encountering competition. Despite this, dropshipping remains a fairly profitable business, and the markup on goods ranges from 10% to 100%.

What do you need to start a dropshipping business with China?

Find suppliers. There are thousands of them on the Internet, but choosing suppliers is not so easy. Among all the variety, you still need to find the most reliable and suitable in terms of product quality and price, delivery conditions, assortment, etc. Most often, large online stores are chosen as suppliers, which have a huge assortment and sell it at wholesale prices. Now you can find online stores that are created specifically for dropshipping (Banggood.com, TinyDeal.com, DX.com, Tmart.com, BuySKU.com, LightInTheBox.com and others). It’s even easier to make money with such sites because they often provide partners with various bonuses. You should approach your choice of supplier responsibly, because you are responsible to your customers for the quality of the product and its delivery.

Contact suppliers. To do this, you need to send a letter to the support service indicating that you want to work with them through the dropshipping system. With a 95% chance you will receive a positive answer. The main thing you should pay attention to at this stage is a clear idea of what products you will offer customers and how you will advertise the product. You need to contact suppliers to ensure that they do not use their company logos when packaging your order. After all, it is advisable for the buyer not to know from whom the goods are actually purchased.

Select product. To decide on a direction, go to regular popular online stores and see what products are in demand. It is advisable not to work with electronics - they have much more problems with defects and returns. Therefore, an important criterion for choosing a product is the minimum probability of return. You can take a risk and offer customers something interesting and unusual. You can also make money on exclusivity.

Choosing an advertising method. You can create a group for your online store on social networks. After spending several thousand on actively promoting products through accounts, you will quickly find buyers. Don’t forget about free advertising options – post your products on bulletin boards and auctions. Today there are many online trading platforms: market.yandex.ru, tiu.ru, meshok.net and others.

We count income and expenses. The main cost is spent on promoting your online store. This takes into account the costs of promoting the group on social networks, paying for advertisements for placement in the top and other things. As mentioned earlier, you can do without any material costs at all. However, you must understand that the greater the investment in the business, the faster buyers will appear and the more you can earn.

How much can you earn in business with China through dropshipping?

This question is quite difficult. But not because an unpromising truth awaits you, but because it is impossible to name specific amounts. The amount of your income depends entirely on the quality of your work and the product you choose to sell. On the Internet you can read many stories about how entrepreneurs earn 1 million in net profit from dropshipping in a year and provide convincing evidence of this. Of course, these stories are not a guarantee that the same will happen for you. But this is a good guideline that will encourage you to start your own business.

You can increase your income from dropshipping thanks to one life hack - cashbacks. Everyone has heard at least once about the opportunity to get back some percentage of your purchases using special cashback services. Users actively use them, trying to get back their 50 rubles from a personal purchase. Just imagine how much money you can return if you have a turnover of thousands.

Landing. How to open a business with China through landing page

You can continue the idea of dropshipping, but refine it. And create not a simple online store on a social network, but an attractive, selling landing page. This is the name for one-page websites created to sell one product. The purpose of a landing page is to convert a site visitor to the status of a buyer and encourage them to take a targeted action (purchase a product). The main advantage of landing page is its high efficiency. If regular sites bring in 15% of sales from the total number of visits, then one-page sites can bring in 50%. Therefore, today this method of sales is very popular.

To open a business with China on a landing page, you should follow the following algorithm:

Select a product or service to sell through a landing page. How to choose what to sell? See what others are selling: this may give you an idea or convince you to move away from a niche that is already highly competitive. You can sell anything through landing pages. It is important that this is a unique offer. It is recommended to study the trends of foreign markets - often fashion for goods comes to us from abroad. If you get right with the trend and manage to occupy a niche, you can make good money.

Select a supplier. Everything is simple here: when you have decided on a product, study the suppliers’ offers. Choose favorable conditions, not forgetting about the reliability of the supplier.

Develop a unique selling proposition. Here you need to form a clear understanding: what you are selling, to whom you are selling, why they should buy this product from you. The ideal option for a landing page is that your offer should be unique. This does not mean that you need to sell the latest developments or the rarest goods. The unique selling proposition includes not only the product itself, but also the price, additional services, format of cooperation, etc. For example, you can offer record delivery times, original packaging, the lowest price, or a product that has no analogues on the market. The answer to the question “who is the product sold to?” necessary to set the price. You need to understand what target audience your product is designed for. Often the answer lies in the product you are trying to sell.

Develop a landing page for business with China. Creating a one-page website is a process that will determine 80% of your success. The right landing page is a sales tool in itself. There are two options for creating a landing page: turn to professionals and order a one-page website from them, or use a website builder to create a one-page website yourself. A professional landing page will be effective and optimized. Every little detail is important in a landing page, right down to the color scheme of the site and the placement of buttons on the page. Therefore, we recommend investing in professional development. The cost of a landing page ranges from 10,000 rubles and above. There are studios that ask for 50,000 rubles for their work, but this package usually includes not only the creation of a one-page website, but also assistance in its promotion. If you want to save money and feel empowered to create a landing page, you can use website builders. You can easily find such tools and, after spending 2-3 hours, make yourself a one-page website.

Test the site. The product has been selected, the one-page website has been created - now it’s time to test various methods of promoting business with China in order to choose the best option. The main sources of traffic are: social networks, contextual advertising, search engine promotion, thematic and industry resources. We will not dwell on each of them. Let's just say that each of the tools needs to be tested to find the perfect formula for attracting your target audience.

Purchase goods. It’s not for nothing that this point is located almost at the end of the algorithm. Why is it recommended to purchase goods only after a test launch of the site? In order to avoid mistakes with choosing a product and creating a unique selling proposition. You will spend less money and effort on a test launch of the site than on purchasing a batch of goods. It is better to buy not too many goods in the first batch - it is better to invest extra money in promotion rather than spend it on goods that will be in the warehouse.

Arrange delivery. You can use the services of Russian Post or private courier services. Delivery by Russian Post is cheaper, but the delivery time may slow down your business. Delivery by transport companies is more expensive. But you can include delivery costs in the price of the product or indicate it as an additional fee. payment for its clients.

Expand your business. When the landing page is set up and makes a profit, you can think about expanding your business. Today there are many business projects on the franchising market that have come out of the idea of a landing page.

Business with China on landing pages can pay off in the first month of operation. The average monthly profit is 65,000 rubles. This is a good indicator for a home business.

Chinese equipment. How to make money purchasing Chinese equipment

The idea of buying Chinese equipment is a great idea for small businesses. When taking the first steps in business, an entrepreneur seeks to save on initial costs. In most cases, you can find special equipment and components at a competitive price only among Chinese suppliers. Today, no country in the world can boast of such reasonable prices for business equipment.

The Asian market is able to satisfy needs in any area. Many people note that Chinese equipment is not inferior in quality to European analogues, but at the same time costs several times less.

It is also important that manufacturers provide comprehensive support. They offer supplies of materials for production, set up and adapt equipment, train personnel, provide warranties, maintenance, and, if necessary, even repair of supplied equipment. Such a service will be appreciated in any case, and even more so in a small business. But when choosing this direction, you should also prepare for certain difficulties of cooperation. This includes the language barrier and difficulties in delivery and customs clearance of large equipment. Also, when ordering equipment, you should always check whether it can be adjusted by factory specialists. Some companies do not provide such a service, which can cause difficulties for an entrepreneur.

What equipment is most often purchased from China? Machines for the production of building materials, plastic products or packaging and containers. Analysts also have high hopes for 3D printers, which can be used to produce components, souvenirs, toys, jewelry and even clothing. Among Chinese products you can find a wide range of 3D printing equipment.

How to buy equipment in China?

Algorithm for doing business with China on procurement includes several steps:

Find a supplier search site (Made-in-China, Alibaba, etc.). Check the reliability of the supplier by studying its offer, reviews, and website. All data should be studied in detail: the year the company was founded, the presence of the necessary certificates, annual turnover, assortment, etc.

Select the most attractive companies and send a request asking for a commercial offer for the equipment you are interested in for business. Find out if they cooperate with partners from Russia. After this, you can contact the specified Russian partners and ask for confirmation of the reliability of the partners. Of course, it is not a fact that you will be given a complete resume of the supplier and provided with all the information, but still this point is worth keeping in mind.

Before purchasing equipment, you need to conduct a thorough analysis of commercial offers and choose the most profitable one.

Negotiate with the supplier, agree on the price and configuration of equipment.

Agree on the contract and terms of transportation. The contract is usually concluded in two languages - English and Chinese. After signing the contract, you need to make a transaction passport, after which you can make an advance payment.

Pay for the order. All manufacturers require an advance payment of 30-50% of the order amount. The average production time for equipment is 30-40 days. The balance is paid upon provision of documents confirming the fact of shipment of the goods.

The most reliable method of payment is a revocable letter of credit. Thanks to it, the buyer can save money in the event of an unscrupulous supplier.

Before sending documents, you should ask the Chinese side to send copies of the documents to make sure they are correct.

Before deciding to buy equipment in China, you need to carefully think through and calculate everything. You should start this business only if the savings cover all delivery costs.

Export to China. How to make money by exporting to the Middle Kingdom?

Business with China can be built not only on the resale of Chinese goods. Because the Chinese market is not only huge volumes of cheap products, but also a promising sales market with a potential reach of more than 1 billion people. Therefore, both novice entrepreneurs and already established successful businessmen are interested in doing business with China. What can be supplied to the Chinese market? The most popular products in China are agricultural products, semi-finished products, raw materials for woodworking, chemical, food and light industries, chocolate and candies, and pine nuts. Moreover, the business of the Celestial Empire may be interested even in products that are considered unclaimed in Russia. For example, while domestic poultry farms are accustomed to throwing away chicken and duck feet, in China they are in great demand.

To arrange export deliveries to China, it is necessary to have a declaration, and in some cases a transportation document will be sufficient. The declaration is completed independently or with the help of a broker at customs. Some goods are allowed to be exported only with a specially confirmed permit and certificate.

Before exporting, you must go through the following stages:

Study the Chinese market and pricing procedures.

Find future buyers.

Prepare a contract for export and insurance of goods.

Overcome the customs registration procedure in Russia and customs clearance in China.

For effective cooperation with China, foreign trade participants advise carrying out extensive preparatory work, which includes:

visiting China to study the market;

delivery of goods to China, selection of a warehouse and the optimal method of sending goods;

preparation of demonstration material in Chinese for negotiations with potential clients;

provision of a small batch of products for sale.

Ready ideas for your business

All this requires large financial and time expenditures. But it is worth considering that the export of Russian goods to China is growing every year. The prospects for this direction are very high, and therefore you should consider this option to expand your business.

Checklist for starting a business with China

Business with China is a relevant direction for any entrepreneur. In almost every area, you can optimize costs if you make purchases in China. In addition, reselling Chinese goods is a great idea for a home business, which, if properly organized and promoted, will allow you to earn earnings several times higher than the average salary level. For small businesses, it will be beneficial to purchase Chinese equipment, and for larger companies, you can consider the promising option of supplying their products to China.

No matter how much business with China may seem like a cozy golden shore to which you just need to land, this is not entirely true.
To make business with China profitable, you need to adhere to the following recommendations:

constantly explore the market in search of new business ideas with China;

stick to the selection of a specific product group without trying to cover the entire market;

carefully double-check suppliers;

enter into written agreements for the supply of products;

stipulate in advance the conditions for returning the goods in the event of receiving a defective batch.

The most important thing is that the business you are doing is in demand from consumers and is of interest to you as an entrepreneur. Then your success is guaranteed.

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People who dream of owning their own business can start it right now. Everyone knows that Chinese products can be bought at low prices. If you purchase such goods directly from suppliers, you can earn good money. We will tell you how to start a business with China without money in this article.

Dropshipping

This is the most popular and affordable way to start a business with China. To explain it in simple terms, dropshipping is direct delivery. This type of entrepreneurial activity is just emerging in our country. This was facilitated by the emergence of online stores. The most important advantage of dropshipping is that you do not have to pay your own money for the product. After the client pays for the order, you buy the required products using his funds and send them to the specified address. The difference in prices will be your earnings. This can be found in any city.

Before starting a business with China from scratch, you need to agree on cooperation with a certain manufacturer. You must explain that the order will be processed immediately after payment. If you set up work according to this scheme, you can earn a good income without investing a penny in the business.

For small quantities of goods you will not have to pay customs duty. Businessmen supplying products on a large scale are forced to complete paperwork and pay taxes. This takes a lot of time and money, so making purchases in small quantities is much more convenient and profitable.

Shoes and clothing

If you want to start a business with China from scratch, you can start reselling shoes and clothing. Such products are always very popular, and the low cost of products ensures high demand. Chinese manufacturers skillfully copy products from prestigious brands. They use the highest quality materials, innovative technologies and modern models. Thanks to this, people with average incomes who are not fixated on “big” names of manufacturers can buy excellent things at quite affordable prices.

Let's figure out how to build a business with China? In any case, you need to find a reliable supplier in order to agree with him on direct deliveries. After this, you should open your online store and start promoting it. After a certain time, you will already be counting your profits.

Souvenirs

Another good option for organizing a business with China is selling souvenirs. These can be various interior items, keychains, amulets and other little things. In Chinese online stores, such products can be purchased at bargain prices. Wholesale purchases are even cheaper. You can mark up such a product by 100–500%.

Everyday goods

To establish a profitable business with China, you need to sell a product that people cannot do without in everyday life.

It can be:

Detergents;
Perfumes and cosmetics;
Personal hygiene items;
Plastic dishes;
Packaging materials;
Stationery.

All these products are in high demand at any time of the year and in any economic situation. In Chinese online stores they are sold at a low price, so if you do, you can earn decent money.

Small Business Equipment

To start the production of any product, you must first find a suitable premises and purchase equipment. If you are interested in how to do business with China, pay attention to the machine tools and other machines offered by local manufacturers.

The Chinese market is able to fully satisfy any needs. Here you will find equipment for the woodworking industry, trade and more. Before starting a business with China, find reliable, trusted suppliers who supply high-quality products at affordable prices.

In addition to equipment, manufacturers offer materials, personnel training, and also help with installation and configuration of equipment. In addition, they provide a warranty on all equipment and provide after-sales service. If necessary, you can send the equipment for repair.

Joint purchases

Have you long ago realized how profitable it is to buy Chinese goods and have already become addicted to this type of shopping? Wonderful. You can make good money from this passion. For many enterprising people, business cooperation with China brings stable income. Help your friends and acquaintances place orders in Chinese online stores and receive your commissions for it. On wholesale orders you can get a good discount. In this case, you can also save on shipping. Thousands of people save their money on joint purchases, so there is no need to be shy about earning money from your experience and knowledge.

Wholesale purchases

Surely you have friends who are engaged in trade and buy goods in bulk. Look in Chinese online stores for the same products, but at a lower price. Such a successful business with China will allow you to earn commissions, and your friends will save on purchasing goods.

Packaging of loose goods

A fairly profitable business with China can be built on the packaging of bulk products. You can buy such a product from Chinese manufacturers for pennies, especially if you buy it in bulk. In our country it can be sold ten times more expensive.

Buy popular products on tap or in bulk, package them and sell them at wholesale prices. Thanks to packaging, the cost of the product increases significantly.

You can buy in huge packages:

Chips;
Fish;
Seeds;
Popcorn;
Nuts.

The product is packaged in small portions, a label is placed on it and sold at several times the price. Many entrepreneurs make huge money from this.

Garage business

Some enterprising people who want to open their own business at home purchase equipment for production in Chinese online stores. Some domestic businessmen have managed to make a decent fortune using profitable garage ideas from China.

Communications

Modern people communicate a lot using cell phones and other mobile devices. Technologies in this area are constantly being updated, so high-tech new products are always in great demand. If you want to organize a business through China, pay attention to these products. Buy mobile phones, headphones and other devices and resell them online. This is a fairly profitable idea with minimal investment.

Furniture

You've probably already heard about furniture tours to China? – these are practical, high-quality products that fit perfectly into the interior, and are also distinguished by their strength and durability. Products can be delivered to our country through intermediaries who fulfill any orders according to an established scheme. As you can see, starting a business with China is a reality. Without leaving home, you can earn good money because it is much more convenient to search for furniture suppliers and buyers on the Internet.

conclusions

We figured out how to do business with China without investment. The quality of products produced in this country has recently been practically no different from their European counterparts. You can start a business with any amount without burdening yourself with debts and loans at the start. This is a very profitable line of business that allows you to earn a good income without large investments.

Probably each of us, via social networks, has ever received a tempting offer to buy goods from China at a low price, which is an order of magnitude lower than in city stores. And, probably, each of us wondered at what price the seller purchased the product, if its price is so attractive? In fact, most goods produced in China are so cheap that the manufacturer, the middleman in China, and the final seller benefit from the sale. Besides this, everyone knows that business ideas that are associated with China are very profitable, because they produce counterfeits of almost any world brand, and this applies primarily to clothing.

How to start a business selling goods from China?
Where to find a supplier?
How much money does it take to open a Chinese goods store?
How to sell goods?
Step-by-step plan for starting a business selling goods from China
How much money do you need to start a business selling goods from China?

How to arrange supplies?

More and more often we see popular Chinese goods on store shelves. This is due to the fact that the products of this country are confidently displacing goods from other countries. Just go to the famous online store Taobao and see low prices for popular products that can be ordered from China. Well, if you buy in bulk, the price will be even more tempting. This price difference will make it possible to implement business ideas focused on the resale of Chinese clothing. Every year there is a downward trend in the popularity of clothing markets, boutiques and shops thanks to online stores.

How to start a business selling goods from China?

Where to find a supplier?

First, let's look at the question - how to find a supplier in China and how to enter into profitable cooperation. Perhaps the easiest and most reliable way is to work with the Taobao website. This is a very popular site where you can find a supplier. You can use the Google Chrome browser, where the function of translating the entire page at once is conveniently implemented - this will definitely be required.

There are many intermediaries who organize delivery to the country. There will be no problems finding an intermediary - there are various banners on the site where intermediaries offer their services, which, as a rule, cost 10% - 20% of the cost of the goods. Cargo whose value is below 1000 euros does not need to pay customs duty.

Business organization.

As a rule, parcels reach the recipient in 1-2 months. However, during periods of large volumes of orders, the deadlines may be shifted, since it will take longer to bring goods from China during the holidays. Delivery time is also affected by factors such as weather, transport conditions, customs clearance, etc.

First, using the Taobao website, you need to find an intermediary. After accepting his terms and concluding a contract with him, you need to create your own website or group on a social network. It is not necessary to pre-purchase clothes, since the client will be able to place an order directly on your website.

Clothes from China.

The buyer places an order on your website, for which you have set a favorable price for you. The site or group you created must have a certain popularity, because in a short period of time you will need to collect several orders from clients and send them to an intermediary. The intermediary must receive an advance payment from you, then you give him links to the products that your customers have chosen and pay for delivery in China itself.

Anna Sudak

# Business with China

How to start trading goods from China

Almost every fifth thing in the world is produced in China.

Products from China are very popular. So why not make money from it? How? Our “Business with China” section contains answers to this and many other questions that arise for both beginners and experienced entrepreneurs who have decided to develop their business. But first things first.

How to open your own profitable business and receive a stable income?

Twelve ways to make money selling Chinese goods

Finding a partner (intermediary) living in China and supplying you with products. Agree, having a person on site who can find what you need at any time and when you need it is much more convenient than doing it yourself. Just imagine: going to China, finding a product, buying it profitably (it’s not a given that you’ll succeed the first time), and then bringing it back... It’s expensive, irrational and ineffective. Especially if you are counting on a large turnover.
Joint purchases (or dropshipping). This method is perfect for those who want to try themselves in this business with minimal investment by purchasing a small batch of goods. Today on the Internet it is easy to find people who will be happy to help you achieve your plans.
Supplies of honey to the People's Republic of China. Today it is very profitable to supply honey to the Celestial Empire. Of course, like any other business activity, there are pros and cons. We recommend that you familiarize yourself with them first, and then decide whether this niche is suitable or not for you.
Sales of Russian light industrial goods to China. It has been proven that the Chinese love Russian products. And this applies not only to nesting dolls. We will not touch energy and technical resources. Let's talk about light industry. In addition to honey, the following are in demand in the Celestial Empire: coffee, confectionery, cosmetics, cereals (wheat, flour), flax, mineral water, sunflower oil... Anyone can try to occupy a “convenient niche”. The main thing is to act.
Become an agent. You can also earn money on orders from others by becoming a Chinese intermediary of TaoBao for Russians. To do this, you need to thoroughly know the sites, have contacts in China, and know the language (Chinese is ideal). By becoming an intermediary on TaoBao, you: help customers place an order, choose a size... In general, you guide the buyer in all the intricacies of cooperation with the store. You pass on the information to warehouse workers and receive your percentage of the purchase.
Become a logistician. Most often, a logistician is a person who picks up goods, checks their quality, repackages and forwards them to customers. The work is technical, but not dusty.
Opening your own store on Aliexpress. Since 2016, the procedure for opening your own store on this famous site has been simplified for residents of Russia. Now it is enough to conclude an agreement with Pickpoint - the Russian official partner of Aliexpress, which provides comprehensive support to new sellers from Russia, register on the platform and start trading. But before that, don’t be lazy and read the recommendations that will make your start even easier and more enjoyable. You will understand all the intricacies of the process, see the difficulties that you will have to face and learn how to eliminate them painlessly, quickly and effectively.
Affiliate program for Aliexpress and other online stores in China. This method is suitable for those who want to start a business without investment. The earning scheme is simple. You register in the affiliate program, receive a referral link and post it on social networks, YouTube channel, blog, forums, groups. In general, wherever there is an opportunity. As soon as a person clicks on it and buys the recommended product, you receive a percentage of their purchase.
Resale. Everything is simple here - you buy products cheaper, sell them more expensive. The scheme is old, but working. What products can you make money on? We found out and will be happy to tell you. .
Sometimes the markup on Chinese goods in the Russian Federation reaches 200% or more.
Wholesale purchase of goods without intermediaries. Now any businessman who wants to do business with China can freely purchase products in bulk, without overpaying to intermediaries. Of course, here, like everywhere else, there are pros and cons.
Opening your own enterprise in China. No dancing with tambourines, but only real information about the opportunities presented by the Celestial Empire for Russian businessmen. Opening your own business in China is difficult, but more than possible. And the opening procedure is many times easier than, for example, in the EU. If you are passionate about the idea and are ready to give 100%, the road is open. China gives entrepreneurs the green light.
Opening of our own production in China. This method is available to those who have serious capital and the intention to associate themselves with business for a long time.

The “Business with China” section was created to make your entry into business as comfortable as possible. In it we tried:

collect available earning methods for beginners and experienced entrepreneurs:
explain the complex processes and legal aspects of starting a business;
talk about the difficulties you will encounter at all stages of the development of your business;
show opportunities that open up new business horizons for you.

Did we manage to make the resource as useful as possible for you? We look forward to your feedback to help us become even better for you and your business. Write comments, ask questions. Your opinion, wishes and recommendations are priceless.

For Chinese entrepreneurs, 2017 was a year of lower prices for imported raw materials, reduced economic pressure from the United States and, as a result, an increase in foreign trade. Exports to Russia alone increased by 22%, and overall growth was almost 26% compared to the previous year. Experts say that 2018 will be just as favorable for China, and therefore Russian entrepreneurs can expect new interesting products, convenient logistics schemes, good discounts and improved quality standards for Chinese products.

Pros and cons of purchasing in China

The main part of export transactions between Chinese and Russian businesses is the supply of equipment (about 60%) and small wholesale trade in clothing and footwear, plastic products, furniture, leather goods, jewelry and toys (about 30%). Of course, similar goods can be found in Russia, but often their cost is so high that the reseller is not able to make a markup that will cover all pre-sale costs and also provide an opportunity to earn money.

The average small wholesale markup for the Russian manufactured goods group is about 30%, for the Chinese group - 200%.

It is obvious that any businessman who knows how to count money will invest in a scheme with Chinese supplies. But it is not only the possibility of colossal markups that makes the Chinese export offer attractive.

Important advantages of implementing business ideas from China are:

a huge selection of current and innovative products (as many new products as in China are not produced in any country in the world);
the ability to bargain with Chinese sellers until a very significant reduction in the original cost;
convenient, fast and cheap logistics (already today there are dozens of consolidation warehouses operating in Russia, and their number will only increase).

The weakest point of Russian-Chinese commercial schemes is the difficulty of translation. There are often situations when the parties seem to have agreed on the same terms of a transaction, but in fact the Chinese partner begins to fulfill its obligations with a significant deviation from the agreements. And only when the circumstances are clarified, it is discovered that the Chinese kept silent about something or joked about something, but the Russians did not clarify it in a timely manner.

In order to avoid these problems in the first stages of organizing trade with Chinese suppliers, it is recommended to hire a reliable consulting agent for the first three to five transactions. He will teach you how to properly negotiate with the Chinese side and correctly consolidate agreements on paper. The cost of such an agent’s services is about 10% of the transaction.

Business with China and laws

Any commercial activity between Russian and Chinese entrepreneurs must be regulated by an appropriate agreement drawn up in writing. Of course, if you order 100 watches on Aliexpress, pay for the goods through the payment system of the online resource and wait for the watch to arrive at your warehouse, you do not need to enter into any additional written contracts.

But if you directly contact a supplier or manufacturer, transfer money yourself through a bank and organize delivery, then you cannot do without a written two-sided document, sealed by both parties.

Do I need to pay customs duty for the import of goods purchased from Chinese online stores?

Customs duty must be paid on supplies worth from 1 thousand euros or more or weighing 31 kg or more. The billing period is a calendar month. These standards are established only for mail sent to individuals.

Accordingly, if an individual receives parcels from China in his name per month in the amount of up to 1 thousand euros and up to 31 kg, he is exempt from paying import duties and taxes.

If cargo is transported across the border by a legal entity or individual entrepreneur, completely different customs rules apply to such an operation.

Legal entities (including small enterprises and individual entrepreneurs), when importing goods into the customs territory of the Russian Federation, are required to pay duty, VAT, excise tax, and also pay for customs clearance services.

The total cost of legalizing a consignment of goods from China is 45.15% of the declared contract price of the product.

After a product is legalized, it can be sold on the territory of Russia, paying taxes according to the tax system under which the entrepreneur operates.

If you are just starting to work with China, you should not immediately get involved in commercial supplies. Work for several months as a private individual, evaluate the prospects of the direction in which you are working, and only then enter into commercial contracts. Moreover, newcomers to the Chinese market are not recommended to immediately invest more than 500 euros into the business.

Ways to bypass paying fees

As practical experience shows, attempts to save on customs duties can be very expensive and put an end to your entire entrepreneurial career. Therefore, if you decide to sell a current product and mark up 150 - 200% of the cost, do not save 45% on paying all the necessary duties. You risk being left without goods, without money and with a damaged business reputation.

But if you have an adventurous spirit, you like to fool the system, and you don’t want to share your earnings with anyone, then you can try to bypass paying duties in the following ways:

negotiate with the supplier to understate the contract value of the goods in invoices (there is a risk of not receiving the goods, and claims for the return of the advance payment can only be made within the limits of the invoice, which you deliberately underestimated);
involve several partners in the business, in whose name you can receive parcels without exceeding the monetary and weight limits (1 thousand euros / 31 kg).

If you don’t want to deal with duties, customs clearance and delivery at all, then the best option is to hire an intermediary who will look for a good product for you in China and deliver it. Intermediaries publish a complete list of services and their prices on their websites. On average, cooperation costs 10% of the cost of the batch.

How to start trading with Chinese suppliers

The main thing you need to get started is a great desire! A person who wants to do something looks for all possible ways to realize his intention. He tries, makes mistakes, tries again and achieves his goals.

Who can do business with China

If we analyze the success stories of Russian entrepreneurs who have built a legal and profitable business with China, then most of them initially had a merchant instinct and an economic education.

Yes, they had already traded goods of Russian, European, American origin and knew how to build relationships with suppliers. They, with their skills, simply entered another market with a cheaper product and the possibility of a higher margin.

Therefore, if you are currently involved in trade, working with Chinese suppliers will not be strange to you.

Those who understand the latest products in the electronics market, spare parts, car accessories, as well as gadgets of various types and modifications can earn good money.

Those entrepreneurs who can predict fashion trends for future seasons also have a chance of success.

At the stages of introducing new products to the market and during their promotion, manufacturers offer buyers the most comfortable conditions for cooperation (low prices, free delivery, free trial samples, etc.).

Experts note the cyclical nature of the Chinese goods market. The cycle is approximately 3 years. There is a high probability that this year some product items that were actively selling out three years ago will be popular (with the exception of gadgets).

Business with China in 10 steps

If you don’t know where to start trading Chinese goods, you can use the ten simple steps method. Here's a simple step-by-step plan:

Find capital of 1 thousand euros (it’s better to own your own; it’s difficult to raise money with borrowed money).
Select the five highest-rated products (ratings can be tracked using the functionality of the Aliexpress website).
Find the suppliers most loyal to wholesale buyers.
Depending on the conditions offered by suppliers, choose the most profitable business model for the operation.
Order trial copies of product items.
Determine the target audience who will be interested in this particular product.
Build a post-sales communication strategy with your target audience.
Calculate your markup percentage.
Place the first order with the supplier (the price of the first purchase should not exceed 50% of the initial starting capital, and better - 30%).
While the order is in progress, begin collecting applications for implementation according to the chosen scheme.

These steps must first be worked out on paper, adding details as they are implemented. This diagram should always be before your eyes, and then you will be able to restore the logic of your actions at any time if you feel that some processes have begun to get out of control. To correct the situation, it will be enough to return to the point where the mistake was made and work through it again.

Business visit to China

A business visit to China for one person costs approximately 1.5 thousand US dollars for 3 days (including visa and air travel in both directions). This amount does not include the services of a translator and business consultant, without which it is initially difficult for a Russian entrepreneur to manage. If you are bringing specialists from Russia with you, multiply the cost of the trip for one person by three. A Chinese translator and consultant will cost several times less, but you need to negotiate with them and sign a contract while still in Russia.

If you plan to come to China and look for help there, then most likely you will simply waste your time and will not be able to solve the business problems that were planned.

Obviously, a business trip to China is an expensive undertaking, especially for a novice entrepreneur, so it is recommended to organize such a visit only after several months of work and only with earned money.

Experts advise setting aside up to 20% of earnings from each operation in a business development fund and using this money for travel, organizing negotiations with Chinese manufacturers and expanding your own business.

Where to go in China:

to exhibitions (Shanghai International Spring Exhibition, Beijing Exhibition, Shenzhen Exhibition, etc.);
to fairs (Canton Fair, etc.);
to manufacturers interested in direct cooperation;
for themed sales.

It is quite difficult to track these events on your own, so, again, at first you will have to use the services of consultants.

It is believed that the most valuable advice that the pros can give to beginners is: don’t be afraid to start! But this advice doesn’t work well if you don’t really know where to start. Therefore, we have collected several business recommendations on what you need to do to feel confident in the market from the very first steps:

order marketing research on the group of goods that you want to trade (the opinion of a third-party specialist will expand the scope of your ideas about the business you plan to engage in);
undergo motivational training specifically on Chinese business topics;
find a like-minded person on online platforms (forums, social networks, offline);
approach each of your transactions as if it were your life’s work (carefully study your suppliers, demand from them all the necessary documents for the goods, negotiate delivery dates in detail, study the calendar of Chinese holidays, etc.);
always be prepared for the fact that your partners may turn out to be unscrupulous (you shouldn’t fall into total distrust and paranoia, but you should always agree in advance on the conditions for exiting a failed deal);
form a reserve fund (at least 10% of profitable operations);
From the first purchase, keep your own extended statistics (the more accounting items you track and analyze, the more thoughtful your every entry into the market will be).

Classic beginner mistakes

Let's name three main mistakes that prevent beginners from starting a business with China on their own:

Lack of a business plan. This is not only about financial indicators, but also about the fact that any business endeavor must have a goal. The best goal for a startup is to increase trade turnover, register your own company and expand the scope of activity.
Lack of specific deadlines (if you are looking for start-up capital, then a specific deadline must be set - no more than six months, and preferably three months).
Reluctance to learn new things. The business technology market produces updated formulas for successful sales every six months; if you do not study and use this information, you will not be able to adequately compete in your niche.

Unfortunately, universities, colleges and academies do not teach the intricacies of organizing business supplies from China. Yes, in academic institutions you can get basic knowledge in economics, logistics, financing, etc., but you need to gain practical experience on your own.

Or you can pay successful practitioners to share their work. Today, several well-known specialists work in the field of teaching trade with China:

Dmitry Kovpak;
Evgeny Guryev and Vasily Noginov;
Alexander Martynov.

All trainers provide online training, publish books, and also provide individual consulting.

The average cost of a book is about 500 rubles, an online course is about 10 thousand rubles, and individual consulting is about 200 US dollars per month.

Before purchasing a course subscription or arranging for consultations, read a book written by a trainer. The material in the book will give you the opportunity to understand how well the author of the course understands his business, whether he explains in detail to his clients the nuances of setting up a business, and whether he is ready to share truly successful schemes.

Determining your resources

Correctly determining your starting positions is perhaps the first important step towards building a business strategy. If you overestimate your capabilities, you will quickly find yourself in the minus; if you underestimate, there is a high probability that you will never reach a leadership position.

Is it possible to start a business in China without investment?

Of course, it is possible to organize a business without any investment, but with such a start it will take you a very long time to increase your turnover.

Yes, you can order two watches on Aliexpress for 300 rubles, wait a month for delivery, and then resell them for 1000 rubles. With such a scale, your monthly earnings will be 1.4 thousand rubles. To earn 30 thousand rubles on the same watch, you need to ensure a turnover of twenty times more.

If you want to organize a resale business without investments, you must understand: although you really won’t have to invest money in purchasing (since all purchases are made with the customers’ money), you will still have to promote your site and collect orders with your own money.

Even if, say, you are an Internet marketing guru and you yourself can organize powerful promotion of your project on the Internet, then in any case you will invest your efforts and time in this matter - a resource that you could profitably sell to customers.

Yes, perhaps a few years ago some active businessmen managed to make money out of thin air, but today the market for Chinese goods is very saturated, and in order to make money on it, you will have to give your all.

How to determine your niche in business

If you have a small starting capital, up to 1 thousand US dollars, and absolutely no experience as a reseller, then it is safest to trade goods with a purchase price in the range from 300 to 500 rubles. The advantage of doing this:

the opportunity to receive wholesale discounts;
in the average price range there is not so much risk of getting a product of very low quality;
large sales market.

Stay in this segment until you can invest up to $5 thousand in purchases. With such investments, you can switch to higher quality goods and sell them not only through social networks and one-page websites, but also through shops and retail outlets in your city.

As for choosing an assortment, trade in the product that you understand, that you feel and that you can evaluate as a specialist. You must know and be able to tell a lot of useful and interesting information about what you are trading. If you already have such a product in mind, start with it.

Effective business models for trading Chinese goods

The main tasks of an entrepreneur who wants to do business with goods from China:

minimize the risk of purchasing product items that are not in demand on the market;
buy a quality product inexpensively;
cheaply and quickly deliver it to the end buyer.

The ideal scheme looks like this:

a reseller finds a cheap product in China;
interests potential customers;
sets its own high markup;
collects orders;
arranges purchases from a Chinese manufacturer;
the manufacturer directly ships their purchases to customers;
Products arrive to customers of the required quality and within the agreed time frame.

This scheme has one drawback - it is very difficult to implement. But nevertheless, you can get closer to it. Moreover, today there are a number of business models operating in the market that bring trade in Chinese goods as close as possible to an ideal intermediary scheme.

This model is for entrepreneurs who want to start a business with China from scratch. As part of this project, the maximum you can do is receive wholesale discounts from suppliers for single purchases. Chinese manufacturers offer wholesale discounts from 20% to 50%.

To implement this model, you need to find partners who also want to save on wholesale discounts. It is best to look for co-customers for joint purchases on local forums or in regional social network groups.

You can organize a face-to-face meeting with partners from your city, make sure of their trustworthiness, and thereby minimize the risk of fraud.

There is no need to worry that by organizing a joint delivery to one city, the partners are thereby creating competitors for themselves.

If the product is really worthwhile, you will in any case be able to sell it quickly and at a good price.

Organizing retail dropshipping from China is almost impossible, especially at the initial stage of business development with minimal investment. And that's why.

The dropshipping scheme assumes that the manufacturer himself organizes delivery to customers, and the dropshipper acts only as an intermediary (looks for customers for the manufacturer and provides him with delivery addresses).

The functionality of Chinese purchasing sites (Aliexpress, Alibaba, Taobao, etc.) does not allow any delivery other than to the buyer’s address.

But if you still find the idea of dropshipping the most attractive for yourself, you can purchase a ready-made online store operating under a franchise of Chinese trading platforms.

Such franchises are sold today by the same Aliexpress, Taobao, Alibaba. The essence of the franchise is that a Russian entrepreneur buys a ready-made showcase site on which goods from Chinese manufacturers are posted, promotes this site, promotes its advertising and generates orders to China through his showcase.

The cost of such a site starts from 1 thousand dollars.

Wholesale sales

Wholesale trade of Chinese goods is a less risky business than buying a storefront website. The wholesaler's task is to search for the most profitable product and subsequent sale of wholesale quantities to smaller retail outlets.

This scheme can be implemented if you have business experience, official registration as a business entity and a purchasing capital of at least 300 thousand rubles. With such a purchase you can get good wholesale discounts.

The advantage of this scheme is that you will not have to spend time on retail sales. By investing in large wholesale and selling all the goods in one go, the entrepreneur has the opportunity to speed up the turnover of goods. By investing 300 thousand rubles and spinning them three times in two months, you can earn a million rubles.

The complexity of this scheme is the search for reliable small-scale wholesale customers. Usually, at first they agree to the deal, but when they need to pay money for the goods, they begin to doubt and refuse to cooperate.

To prevent this scenario, immediately conclude sales contracts with your customers and take an advance payment from them. Then, even in case of refusal, you can minimize your risk.

Search for business partners

You can look for partners in China when your business is officially registered, is focused on foreign economic activity and has a turnover of at least one million rubles per month. This result can be achieved in two months of active work, provided that you started the business from scratch.

Partners can solve the following tasks:

help the Chinese manufacturer comply with delivery conditions (consulting partner);
set up production of products to order (you agree with the Chinese manufacturer that he will manufacture the product specifically for you);
produce goods for you (according to your specifications and under your brand).

Finding a conscientious assistant in China is not at all easy. But if you find it, then consider yourself ahead in the competition.

Helping Partner

Most often they work independently or on behalf of a large consulting company. Contacts of two or three consultants in China can be obtained from companies that organize business trips to the Middle Kingdom. But in any case, you need to look for these contacts at the stage when you no longer want to be limited to purchasing from online stores and you have a desire to make a business offer to Chinese manufacturers.

What can a Russian businessman offer to a Chinese one:

an interesting idea in a cheap implementation;
a good percentage of the sale of a batch of finished products;
repurchase of draft blanks (with their subsequent refinement in Russia).

The difficulty is that at the stage of developing an idea, you not only do not know Chinese, but also do not have up-to-date information about:

what is the cost per unit of product produced in a Chinese workshop;
how much do raw materials and resources cost?
How truly new and relevant is your idea?

A business consultant in China will give you answers to these and a number of other important questions. He will also compile a list of the most reliable manufacturers with a good reputation and organize the most convenient route for delivering goods to Russia.

To make sure that your assistant truly fulfills his obligations in good faith, at the stage of pre-contractual negotiations, ask him for contacts of his clients who can give recommendations.

Supplier search

If you plan to switch to wholesale purchasing in China as soon as possible, you need to look for a reliable supplier from the first days of work.

Even when making small purchases on Aliexpress, enter into business negotiations with sellers for further cooperation. Yes, most likely 80% of your negotiations will not be successful, but even having three reliable suppliers will allow you to establish a profitable business.

Look for large manufacturers with about 1 thousand employees. Cooperation with such companies is the least risky and more promising in terms of developing your own business reputation.

The disadvantage of working with a large company is that the purchase price of the goods is higher than in small workshops that use cheap labor and outdated equipment.

To check whether your Chinese partner (intermediary, manufacturer) is trustworthy, test it using the following checklist:

Availability of your own website (in Chinese and English).
Date of creation of the site and information about its owners. This information can be verified using special identifying services (one of such services is http://whois.domaintools.com).
Unhindered provision of company registration documents.
Link in correspondence to business contacts.
The fact that the counterparty does not hide the address of the production facilities (and you can check it on the map).
The payment condition is the counterparty's bank account.
The company is not on the black list of scammers.
Willingness to provide product samples.
The counterparty’s willingness to provide you with an invitation to obtain a business visa (even if you are not planning to go to China yet, ask about the possibility of assistance from that party in obtaining your entry documents).
Information about the supplier on the Internet. Use Google search, check all the data that you know (company name, legal and email address, names of contact persons, etc.).

And, of course, before purchasing, you need to carefully study the reviews of real customers about the products and the manufacturer on electronic trading platforms.

Where and how to buy goods in China wholesale and retail

Alibaba, 1688 and Taobao sites are designed for wholesale deliveries from China, and Aliexpress for retail deliveries.

Taobao and 1688 provide information only in Chinese. Aliexpress today is available in many languages of the world, including Russian.

Despite the fact that many experts in purchasing on Chinese online platforms claim that today it is almost impossible to find high-margin goods for resale online, these conclusions are not entirely true.

Yes, today it is much more difficult to open a super-profitable business than five to seven years ago (even on the American Amazon, some groups of goods are sold at the same prices as in China). But, for comparison, if the average retail markup on goods from Russian manufacturers is 50%, then the minimum markup on goods purchased on Chinese wholesale sites is 100%.

And then, the prospects of working with the Chinese are much more attractive than with a Russian manufacturer, since with increasing turnover and long-term cooperation, Chinese companies are ready to double or even triple the discounts on their goods, and a domestic manufacturer is unlikely to agree to such concessions.

A little about the psychology of Chinese businessmen

As already mentioned, we poorly understand the mentality of Asian peoples, their laws and business customs, so the most reliable option for starting a business in Chinese territory is cooperation with a business consultant. But if it is not possible to pay for the services of such a specialist (approximately 300 US dollars per month), then you must learn to independently navigate the peculiarities of building relationships with Chinese partners. And here are a few rules:

Learn English and at least start learning Chinese.
Always be friendly and calm, but never take someone’s word for it.
From the very beginning of building joint plans, demonstrate your professionalism and seriousness of business intentions (study the documents in detail, make your suggestions and adjustments, be attentive to details).
Be open with your partners (provide all your registration documents), but do not reveal your future business plans (in case of questions, it is better to prepare some clear and simple wording without details).
Ask for advice from a Chinese person, but follow this advice with extreme caution, as the Chinese are very fond of making fun of Europeans (this step will allow you to better understand whether you are dealing with a prankster or a truly conscientious partner).
Fix all agreements on paper, and first consult a lawyer about what a legitimate agreement should look like under Chinese law.

Starting your own successful business

The most important moment for a businessman is to find a product , which suits both the price, the quality, and the terms of delivery. If you find one, then consider that very soon your small business will turn into a large profitable project.

What products can you make money on - TOP 10 products from China

First of all, look for something new and not yet promoted on the RuNet among the following product groups:

pet supplies;
goods for children (literally all items, from diapers to bicycles);
inexpensive haberdashery;
car accessories.

Advantages of trading these groups of goods:

they are in demand all year round;
cyclical demand (even if you did not sell the entire batch immediately after purchasing, there is a high probability that after a couple of months the demand for this product will become active again);
long shelf life;
Possibility of sales through offline outlets with a higher margin.

By purchasing a batch of such goods for 30 thousand rubles, you can earn at least 50 thousand rubles.

30 cent items from China for resale

Products with a purchase price of up to 20 rubles per piece sell very well in markets, in trade stalls and in supermarkets. Such purchases are best made by entrepreneurs who already have their own retail outlets and want to diversify their assortment.

The most popular product from this category:

car chargers-cigarette lighters,
liquid lipsticks,
disposable tattoos,
cases for keys and credit cards made of eco-leather,
hairpins and jewelry,
keychains and headphone cases,
magnets and silicone bracelets.

The average cost of goods purchased at 20 rubles per unit on the market is at least 100 rubles. Wholesale selling price is about 60 rubles per piece.

So it turns out that having purchased a batch for 200 thousand rubles (10 thousand pieces), the entrepreneur will immediately earn 400 thousand rubles. And this is a real business that today operates in every city and small town.

New ideas

Promoting new ideas of Chinese light industry in Russia is a profitable business, but very risky. It can only be done after gaining experience in the Russian and Chinese markets.

But if you still want to promote such a new idea, then it is better to do this not through online stores, where buyers come for goods they already know, but through landing pages and one-page pages. The format of such sites allows you to comprehensively advertise a new product, familiarize visitors with reviews of product owners and provide as much other useful information about the product as possible.

Edible in small containers

One of the new products on the Chinese market is small snack kits in colorful and convenient small containers. Such a set may consist of dried fruits, a bag of tea or coffee, snacks, etc.

It is best to sell kits in bulk to gas station chains, supermarkets, pharmacies, and drogerie stores.

The cost of such containers is from 100 to 500 rubles per purchase. You can sell them at a double markup.

For a fur coat - to China!

You can start a business in fur coats only if you understand natural furs and can evaluate the quality of tailoring, and also if you have the opportunity to personally travel to the Middle Kingdom, select the goods yourself and arrange for its delivery with a reliable carrier. In this case, you will be able to sell each fur coat at three times the purchase price (on average, fur coats that are sold in China for 1 thousand US dollars, in Russia go for three thousand dollars).

Almost all types of fur and the most popular models are represented on the Chinese market.

Packaging of goods

Another profitable idea, the essence of which is the purchase of wholesale quantities of semi-finished products in China and their subsequent packaging in Russia. In this format you can trade Chinese tea, seeds, nuts, etc.

Packaging material can also be purchased from Chinese manufacturers.

On average, earnings from such operations are up to 200% of the cost of the initial purchase.

Test purchase and determination of markup

This is a mandatory stage for which you do not need to spare any time or effort. Order 10 units of the product and offer it to retailers for evaluation. If the product is relevant and in demand, the retailer itself will offer a good small-scale wholesale price.

Yes, with such a scheme, there is a danger that while the main product is on sale, the retail buyer with whom you discussed sales options will find another seller or lose interest in your product. But this is your task as an entrepreneur: to negotiate all the terms of delivery so that your partners do not refuse their obligations.