Recently, with the increasing popularity of the US Internet, the opportunities for importers have also increased. Many Americans are engaged in trading business in opening companies. Most of them are in Guangzhou, Shenzhen, Foshan and Yiwu.
However, not everyone knows the most common questions about the import process. Various products require different quality requirements and certifications. The import process requires various certificates, and Chinese suppliers require different labels. If you are importing for the first time, importing from China can be a daunting task, but in this article, we will guide you through the process of exporting goods from China to the United States.
In addition, in the final section, we will also discuss some of the new ideas for popular American products and their consumption trends.
Part 1: Things to know before importing from China
There are a few things you should keep in mind before importing goods from China.
First, we will discuss the legal licenses required for import.
⇒ You must register your legal entity in the United States. It works for all types of business. For export business, you must include a legal entity in your company or your brand name or company name. You can register for any of the 5 legal entities:
Limited liability partnership
Private limited company
One person company
⇒ You must apply for tax registration of a legal entity. It is also known as the federal tax number and is the state government’s tax number. Even if you don’t import goods from China, you still need this number to sell products in the US.
After registering a US company, each company must apply for a federal tax number, which is unique and is the number that the US company actually operates and must file for tax returns. This tax identification number is used to identify US companies. EIN is one of the materials to be provided after the establishment of the company to open a bank company account and to file tax returns in the future.
If there is no corporate federal tax number, it will be impossible to open an account at a local bank, file tax returns, make money from deposits, or hire employees and carry out a series of business activities, which is necessary for the development of American businesses.
Part 2: Find the best Chinese supplier for your product
There are a variety of ways to find Chinese suppliers. You can search online, you can go to an exhibition or wholesale market, or you can find many suppliers through a purchasing agent, but the problem is that people don’t know how to find the right supplier for them. You can find the right supplier in the following ways.
2.1.China Wholesale Market
China’s main trading cities are Guangzhou, Shenzhen, Foshan and Yiwu. Every city gathers suppliers from neighboring industry belts.
Let us look at the market distribution of these four cities:
Guangzhou has the largest wholesale market for clothing and luggage in China. So, if your business involves clothes, bags or luggage, please go to Guangzhou. This wholesale market is spread throughout the city.
Shenzhen has one of the largest electronics markets, where you can find a wide range of electronics. Most affordable and stylish electronic devices come from Shenzhen and surrounding cities of Dongguan and Huizhou.
Foshan has the largest furniture market, where you can find a wide range of furniture products, most of which are affordable and of good quality.
With more than 70,000 booths, Yiwu is the largest wholesale market in the world. It has five main areas, each with 3-4 floors. In addition, all areas are connected, but the layout of the store is very standard. You can easily find products in this market and compare the quality and price of the products.
2.2 Online supplier
You can also find many suppliers on online platforms such as Alibaba, Made in China, Global Sources, DHgate and Aliexpress.
In Alibaba, you will find many products and suppliers much more than other B2B websites. This is a great website for finding suppliers, but you should be aware of some of the issues related to this website. If you are looking for a supplier, the supplier labeled “Gold Supplier” is not necessarily an excellent supplier. As long as the supplier pays an annual fee of $4,000, they will be marked as a “gold supplier.” Therefore, this is not the best criterion for judging suppliers. In addition, Alibaba’s search ranking mechanism is different from Google. The best supplier to search for products may not be the best supplier, because good rankings are based on expensive advertising rates, Alibaba’s ranking is the bidding mechanism, the higher the bid, the higher the ranking.
2.2.2 ⇒Global Sources and Made in China
If you find that Alibaba is daunting, you can choose Global Sources and Made in China. Although the number of suppliers on these sites is less than Alibaba, it will definitely be better. This is because members have higher auditing standards and fees. So, here you will screen some of the more powerful suppliers and find it more likely to find a direct factory.
2.2.3 ⇒Chinabrands, DHgate and AliExpress
The minimum order quantity for these three sites is very small and you can place orders at a reasonable price. However, when you order again from the same supplier, the product may differ from your first order. Since the suppliers of the three websites go to many factories to buy the same products, they cannot guarantee your quality. Therefore, if you are engaged in long-term business, you should avoid obtaining products from these websites. Many suppliers of Chinabrands, DHgate and AliExpress sell their own branded products. In addition, they focus on the quality of the product. The only problem is that other people also buy from these sites. Therefore, you are no different from the products of your other competitors.
2.3 Exhibition in China
You can also buy products from exhibitions and fairs in China. There are two types of exhibitions in China – professional exhibitions and comprehensive exhibitions. The comprehensive exhibition is easy to understand. The Canton Fair is one of the most famous comprehensive exhibitions in China. You will find many product categories at this exhibition.
There are also many professional exhibitions such as furniture and lighting to showcase similar products. The main advantage of a professional exhibition is the concentration of resources in a category of suppliers.
Dealing with suppliers is very time consuming and costly, and a particularly complex supply chain. If you are engaged in complex electronic products and machinery transactions, you should purchase from a purchasing agent. Efficient and professional Chinese purchasing agents can reduce unnecessary risks and save a lot of time and cost.
Part 3: How to ship from China to the US
In terms of transportation, there are three main modes of logistics from China to the United States:
Shipping is the cheapest way to ship products from China to the United States. It involves the transport of goods by ship and the port of discharge. This process is complex but more cost effective than air transport.
3.2. Air transportation
Air transport can transport goods from our Chinese factory to your US warehouse within a few days, as this is a fast way to transport. Therefore, if you are looking for shorter lead times, transporting goods by air will be your best bet. However, it’s important to note that although you will save a lot of time, you will cost more because air freight is much more expensive than shipping.
If you need door-to-door goods from China to the US, the courier service is your best choice, but the courier service is only suitable for small batches and the price is very expensive.
As an importer in the United States, you must comply with marketing and labeling requirements. Importers who do not do so may be detained by customs authorities. You can find a list of items to include below:
Product name and description
Maximum retail price, including taxes
The month and year the product was imported
Country of birth
Customs documents are the most important documents when importing from China to the United States. This document specifies the type of project and its value. However, it does not always have to be done by the importer and can be generated automatically upon arrival. However, you must prepare the following documents before shipment arrives:
Bill of lading (marine shipping) or air waybill (air transport)
Health/Food Safety Certificate (for food only)
Certificate of Origin (if applying for tax reduction or exemption)
Insurance policy / precautions
Product Description / Catalog
Health/Food Safety Certificate (for food only)
Certificate of Origin (if applying for tax reduction or exemption)
Purchase order or letter of credit
Industrial license (if needed)
Yes, the transportation process from China to the United States is complex and requires a lot of paperwork. Therefore, it is necessary to choose a professional freight forwarder to help you.
Part 4: Product demand forecast based on US national conditions and development stages
The prices of products exported from China to the United States are quite low. Many Americans still find these products expensive. The main reason behind this is that the nature of US trade is a proxy model. This means that the goods pass through a minimum of three agents before they reach the customer.
Over time, US buyers can easily import from China and launch online sales. With the increasing number of Internet users, the US e-commerce market is also constantly upgrading. Due to the popularity of the Internet, the e-commerce market is booming.
The following statistics explain the same point:
According to the US Internet report released by APUS in April 2018, 85% of the population is under 60 years old, and the proportion of 0-35 years old is much higher than that of China. According to IBEM’s analysis of US Internet users, the younger generation is the most commonly used Internet user in urban and rural areas of the United States. It also shows that there are 260 million Internet users in the United States and 300 million smartphone users. Moreover, the Internet penetration rate in the United States is 85%.
This will bring huge market potential.
Now, the problem has arisen. What products do Americans like? This can be displayed along with the data.
According to a survey, about 38% of the 8,689 respondents said they mainly buy durable consumer goods such as clothing and other electronic products produced in China. 15% said they would buy Chinese household items and decorations. 10% of respondents buy Chinese gifts, while others say they like to buy a variety of Chinese products.
In addition, Chinese fashion products are very popular in the United States.
According to a report released by Facebook in March 2017, more than 30% of first-time online shoppers started buying clothes and shoes, and 70-75% of online shoppers bought clothes, shoes, hats and accessories.
Fashion is one of the most popular categories in the United States. In addition, on Instagram, one out of every two US users is interested in fashion. ”
As the middle class grows, so does the demand for consumers, so new opportunities arise. The US middle class population is growing, and the growth in disposable income has led to a surge in consumer demand for electronic products such as advanced television, mobile phones and computers.
Another example, the middle class has enough money, and the first thing they do is to buy a new house. Therefore, the US home building materials and hardware industry is booming. Most importantly, it contains many business opportunities.
In addition, the growth of the middle class has also spawned new living habits. For example, most American middle-class couples (husband and wife) are doing work. They don’t have time to cook at noon, which has an impact on the microwave oven industry. Many examples of these types can be found in the United States.
Therefore, this is the process of importing from China to the United States. Moreover, this is a new opportunity for your reference, maybe you can start your import journey now.
Now I want to give it to you:
What new things have you learned from this guide?
Maybe you have a problem.
Either way, comment below now.