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A product that has a low price and acceptable quality is considered competitive. For this reason, it is profitable to organize a business with China, where mass production allows you to offer a product of decent quality at an attractive price. China has become a key supplier of all kinds of goods to the whole world. You can arrange supplies and start earning real money right away. The payback of a business idea is less than 1 month, profitability is from 50%. The main thing is to know where and what to buy, as well as how to sell the product.

This article contains the most actual information about how to start a business with China. All significant aspects of the issue, as well as a short business plan.

Business with China and Russian law

When it comes to serious business, everything needs to start at legally. When talking about trade with China, we need to touch on the issue of customs duties.

If you order goods worth less than 1000 euros per month and no more than 31 kg, then this volume is not subject to duty. If the cost or weight exceeds, you must pay 30% of the amount exceeding 1000 euros or 4 euros per 1 kg of excess. For example, for purchasing a shipment worth 1,200 euros, you will need to pay duties of 60 euros.

Note! There was a bill that proposed paying a duty for amounts exceeding 150 euros and 1 kg, but it was not approved.

For official trading, all certificates, contracts, original price lists and other documentation are required. When ordering on Chinese sites, you need to understand that you are operating as individual, therefore, all licenses and certificates must be requested in personal communication with the seller. To legalize a company, you need to register as an individual entrepreneur and with the tax authorities.

Where is it profitable to buy goods?

Choosing a supplier is an important step

The first step in building a work plan is choosing a supplier. If you don’t know where to start a business with China, it’s best to use proven schemes. Main purchasing sites:

Each site has its own characteristics and target audience buyers depending on the scale of purchases.

Aliexpress

The most famous website for goods from China, Aliexpress.com, works in alliance with the megamarket www.alibaba.com. There are a huge number of offers from different sellers here. IN Lately the prices on this site are not the most favorable and for wholesale purchases you need to look for other options.

The advantages of this site are the opportunity to buy directly from Russia, pay using MasterCard, Webmoney and other payment systems, and there is also free delivery.

Taobao

A profitable site for retail purchases on Chinese www.taobao.com To understand the text, you need to log in from the Google Chrome browser and translate the page. To search for products, enter pre-translated text through Google Translator. But this site does not have wholesale prices, which is not interesting for wholesalers.

Site 1688

For wholesalers who want to purchase 10 or more pieces of goods, you need to contact the Chinese website www.1688.com. You also need to work with it through Google Translator. For each product there are 2 or 3 prices - for small and large wholesale. The greater the quantity, the better prices, indicated in dollars. At the current exchange rate, even 5 dollars will play a role.

The 1688 and Taobao sites sell exclusively to the Chinese, so you need to find an intermediary.

Intermediaries for purchases from China

There are many intermediaries and payment options for their services; it is important to find a reliable one. This is a key aspect of success for those wondering how to do business with China. What you should pay attention to:

Is delivery paid?
what percentage of the amount of goods does the intermediary take;
RMB exchange rate used.

Check this information with the intermediary, because it may happen that he does not charge for delivery, and his percentage of the product is too high.

Scheme of cooperation with intermediaries:

select products on the website;
you send the exact order list to the intermediary, who checks their availability;
pay the invoice: cost of goods + n%, where n is the intermediary’s rate, which is usually about 10%;
a partner who is a resident of China or an account holder in a Chinese bank buys the goods and checks for defects;
an intermediary company in Russia delivers the goods to you using a transport company;
you pay for delivery: urgent (up to 4-5 days) - about 250 rubles/kg, regular (2-4 weeks) - 50 rubles/kg. From 20 kg, courier services in Russia are free, if less, then about 300 rubles.

Schemes of trade in Chinese goods

Dropshipping is one of the most successful schemes

There are many schemes on how to build a business with China:

Standard – buy goods and sell them in an online store;
Dropshipping (reselling) – find a supplier who sends the goods directly to the client, and you only offer it and take a percentage;
Joint purchases – collect orders for a minimum wholesale purchase from people who are willing to wait. Next, you make a purchase, and take a discount for wholesale or a set percentage for yourself.

The second scheme of work is an option on how to start a business with China from scratch without investment. Your task is to find a product on a Chinese website, a buyer and an intermediary. Again, much depends on the integrity of the intermediary.

Dropshipping can also be done through Aliexpress.com as they have shipping and work with Russian buyers.

What does dropshipping mean and how does it work:

you offer a product on your website;
the client selects the product and pays for it;
you take your share, pay the rest to the intermediary;
the intermediary pays for the goods in China, forwards them, checks for defects (if there are any, then returns them for replacement) and sends them directly to the client’s address.

You don't need to have warehouse space or a physical office. The minimum order amount depends on the intermediary; some work with any amount. The percentage depends on the order amount or quantity ( regular customer), usually from 7-10%. Delivery time is from 10 to 25 days, depending on the method - AIR, RAILWAY.

How much does it cost to create a selling website?

A selling website is one of the starting points of a business.

The best option for a “Chinese” business is to create an Internet site - this is the only significant investment in terms of money. Many work according to the following schemes:

selling through groups in in social networks;
sales on free classifieds sites such as avito.ru and others;
paid online trading platforms and auctions.

Some budding businessmen rose to sales from one-page websites or landing pages. This is a landing page for sales through dropshipping or other options.

The cost of creating such a page depends on the artist:

high-quality, unique and functional page from a web studio – from 35,000 rubles;
a unique functional page for freelancers – from 8,000 rubles;
independent work with paid designers - about 1,500 rubles;
free options self-creation landing page.

This scheme has minimal investment and maximum return.

Marketing strategy

Successful promotion strategy:

advertising - banners, contextual advertising, social networks, free and paid sites, auctions, etc.;
buy a trial copy and do it real photo and protect it from copying;
We create an attractive website design.

For greater profits, it is advisable to create several one-page sites in different groups goods. The main thing is to approach the preparation of contextual advertising correctly, otherwise the money will be wasted.

TOP range of products

In order for a business with China to quickly begin to make its first profit, you need to know exactly what to order. There are “star” products of sales, while others are taken for the assortment and respectability of the online store.

You need to choose products that have a good purchase price and are popular. Top list of such products:

Shoes and clothing are in constant demand. The quality of Chinese goods is decent, and the fashion range is wide. Shoes and clothing are seasonal, so for a quick response you need to find intermediaries who offer urgent delivery.
Accessories: bags, watches, belts, wallets, etc. belong to the group of goods with stable demand
Smartphones, iPhones, tablets and cases for them are products that China produces at an attractive price. This could be a lucrative vein, but you have to take the competition into account.
Stationery, pens, key rings, napkins, themed souvenirs, jewelry and other inexpensive goods can be purchased in large quantities at a bargain price and markups of more than 200-300%. This product does not lose relevance and does not go out of fashion.
Products for slimness, beauty, passive weight loss and other sensational products are always in demand. You need to order what you hear: green coffee, teeth whitener, muscle protein, hallux valgus, etc. The nuances of such products are that they need to be advertised correctly.
Goods for further packaging provide a large percentage of profit, since they are bought in large quantities and packaged in Russia. Packaged goods long-term storage, such as chips, dried fruits or nuts, can be sold at a price several times higher than the purchase price.
Toys, children's products and clothing, etc.

Note! To choose a hot product, check it out by advertising on a free website. If applications are coming in well, start a business.

China has a huge offer of interesting trinkets that sell well: luminous bracelets and laces, light bulbs and fans on USB, a player in the form wristwatch. You can make a real store of unusual souvenirs or take such souvenirs as an additional product that adds visits and ratings to the site, and specialize in clothes and bags.

Pros and cons of business

Let's consider the pros and cons of such an entrepreneurial venture.

low cost and high competitiveness of goods;
a large assortment;
wide choice of work schemes.

the danger of ending up with an unscrupulous supplier;
inability to personally assess the quality of an item;
customer dissatisfaction with the product, returns, defects, discrepancies with the photo or order;
the risk of purchasing or offering a product that turns out to be unmarketable.

Business plan for selling goods from China through dropshipping

Dropshipping - start without investment

Let us describe the simplest project that does not require global financial investments, where the markup on goods will be 100% of the purchase.

The cost of creating a good landing page (on average) is 17,000 rubles.

Monthly payments in $ (currency of prices on Chinese sites):

Gross revenue - 40 pieces of goods for $50 (for example, inexpensive brand watches) - $2,000.
The cost of goods 40 pieces at 25 $ is 1,000 $.
Payment to intermediaries, delivery, promotion, etc. 25% - $250.
Gross profit – $750 or 51,000 rubles.
Profitability 60%.

From the calculations that represent the approximate figures for starting, it is clear that the payback of the business is 1/3 of a month - it pays for itself almost instantly. In fact, when working with clients on an advance payment basis, you do not bear the risk of losses for unsold goods.

Why is it profitable to work through intermediaries? They have established schemes for working with China, contracts with carriers and experience, which ultimately will result in the absence of ridiculous mistakes.

You must remember that there is a high probability of falling for scammers. How to recognize them:

deliberately low prices;
fast free delivery;
on Aliexpress.com, dubious sellers may have a low rating (less than 3-4 stars), few votes and the number of orders compared to others.

You should not buy at reduced prices, as your money may simply burn out. Business in China is structured in such a way that suppliers can offer the same product, but with different quality.

The required personnel for a business at the formation stage implies the entrepreneur himself, and in the future, during development, assistants can be involved.

Chinese goods today occupy a large share of the market around the world. In Russia, for example, this share is 80%. This is due to the fact that products from the Middle Kingdom have become cheaper, more diverse, of higher quality and more functional than they were several decades ago. And therefore you can build a good business on goods from China.

Even if you have never been in sales and have no entrepreneurial skills, you have every chance of starting your own business and making a profit. Many enthusiasts have already become convinced of this. It is enough to have a desire, interesting ideas and some start-up capital.

The essence of business

In principle, the business scheme is no different from ordinary sales of any product. All work will come down to three main points:

1. Search for the cheapest possible product in China.

2. Organization of its delivery.

3. Selling at a premium. Celestial products are very cheap, and you can mark them up tenfold. From this we can conclude that the most profitable business- Chinese products.

Where to start for an inexperienced businessman? Eleven sequential steps will tell you what to do.

1st step - study business models

There are several ways to sell products. You can combine them or use just one that is more suitable for you.

1. Dropshipping. This is an option for business without investment. The point is that you become an intermediary and receive a percentage of it. Buyers place an order with you, you transfer the request to the supplier, and he sends the package to the client's address. Everything would be fine, but people rarely agree to make an advance payment and wait for the product indefinitely.

2. Wholesale sales. You again act as an intermediary, only you sell goods in large quantities. You can find partners on free classifieds sites or on social networks. You just need to mark “wholesale”.

3. Online store. You buy goods from the supplier in advance and create your catalog. You can post it on a specially created website or in your social network groups.

4. Retail sales. In this case, trade will be carried out offline in the rented area or the territory of your home. The latter option even has the beautiful name “show room”.

2nd step - identify your resources

Before you start a business selling goods from China, you need to understand how much you can and are willing to spend. The choice of sales model directly depends on the amount of money available. If you don’t have them or have very little, then it’s better to start with dropshipping. It minimizes the cost of goods and eliminates the “burnout” of the business.

If you have at least a few tens of thousands of rubles, and you are willing to take a risk, then you can purchase goods in advance. Start with popular message boards and groups on social networks. An online store, if well promoted, significantly increases profits, and with it the volume of work. With significant start-up capital, you can engage in wholesale sales or even open your own retail outlet.

3rd step - find your niche and evaluate the prospects of the product

Many entrepreneurs choose goods from China as a business idea. But what exactly can you sell? As practice shows, anything from stationery to large electronics. The main thing is to love the products you sell, and ideally to understand them well.

Popularity and consumer demand are also of great importance. You can check it using statistics from the Yandex service - Wordstat. At the same time, the market should not be oversaturated with these products, otherwise competition will ruin the entire business.

Most often, people are interested in certain goods from China. A small business or large trade can be built on the following categories:

Clothes and shoes. They can be for the whole family or for a specific category: women, men or children.

Accessories: bags, watches, belts, umbrellas, jewelry, etc.

Mobile devices.

Cases and accessories for smartphones.

Laptops, tablet computers, e-books.

Appliances.

Devices for cars: navigators, DVRs, floor mats, phone holders, etc.

Household items: hygiene products, kitchen utensils, interesting household goods.

Children's toys and construction sets.

Non-perishable products: teas, nuts, dried fruits, beer snacks.

Of course it's not full list in demand and popular products, but first you can stop there.

4th step - find products and suppliers in China

Once you decide on the type of product, you can move on to searching for suppliers. If you are planning big business- an offline store of goods from China, that is, your goal will be wholesale, then you definitely need to contact direct manufacturers or distributors. This way you can buy goods much cheaper. To do this, you will have to go to the Middle Kingdom to visit warehouses and negotiate a deal.

If you want to focus only on small businesses, then your area of interest is intermediary sites. Thanks to them, you don’t have to go anywhere, but order products directly online without leaving your home. Such platforms include: Alibaba, Aliexpress, Taobao, Dinodirect, Tmart and others. These are the most popular sites, and they will be enough for the first time. To make transactions, you will have to register on the selected resource and become more familiar with the terms of the order. It is useful to use online translators to communicate with sellers if you do not speak Chinese or English.

Step 5 - check the Chinese partner, rule out fraud

It is through dialogue that you can check the adequacy and professionalism of the seller. How successful your business will be in the resale of goods from China largely depends on them. When choosing an intermediary, also study reviews about him and his documents. Never work with an unreliable seller: the Chinese are great at deceiving. Be sure to check if the seller is on the list of scammers. This is very easy to do through reliability checking services, of which there are many on the Internet.

More and more entrepreneurs are purchasing goods from Chinese suppliers. In this article we will talk about all stages of working with Chinese partners, about how to avoid translation difficulties, learn to respect other people's cultural traditions and earn a good business reputation.

Why work with the Chinese at all?

If you ask yourself this question, it means you haven’t tried working with Chinese suppliers. Why is everyone working? Not just like that: There are a lot of advantages in this cooperation. Let's look at the most important of them.

Low price of goods

China has a huge number of factories, plants and factories where hardworking Chinese work day and night. It is clear that without any markups, the cost of production will be very low. Then the price will increase several times: during customs clearance, when entering retail chains. And only there, in the Celestial Empire, do you understand how much things actually cost.

Huge assortment

Without a doubt, we can say that the Chinese not only pick up all fashion trends, but also create them themselves. Absolutely everything is produced in the country including those goods that will not reach the Russian market soon. There is every chance of finding a literal diamond in the heap.

Quality is up to par

Gone are the days when “Made in China” meant bright plastic stuff with a chemical smell. If you don’t be greedy and don’t buy batches of goods at a frankly bargain price, you will receive goods of good quality.

What are they like, the inhabitants of the Middle Kingdom?

To find mutual language with the Chinese, you need to know at least a little about their character. This will help you better understand the psychology of your partners, understand what they are like, what their values are and their attitude towards work.

The Chinese love to work. VERY. These are real workaholics who really work from morning to night, raising the country’s economy. Accordingly, they have the same requirements for business partners, therefore please comply. If you like to be lazy, are unnecessary and unpunctual, this will be a reason to change your attitude towards work.
The public is more important than the personal. Family, workers' community, native enterprise - all these are not just words for the Chinese, but the most important concepts in life. He will easily push personal interests aside, if the team requires it. Therefore, when negotiating and concluding agreements with legal entity in China, remember: under no circumstances should you infringe on the interests of the company as a whole.
The Chinese are cautious, calm, and do not like extremes. Given a choice between a risky venture and stability, in 99 percent of cases he will choose the second. In Russia, people are more impulsive - both in life and in business, sometimes they are guided by emotions. When communicating with Chinese suppliers, you can forget about this: be patient and calm.
The Chinese have a hard time saying no. Therefore, if your Chinese partner is not satisfied with your proposal, he will come up with thousands of reasons to postpone the meeting, offer compromises, but is unlikely to be able to refuse directly. This tactic leads to cases being delayed and postponed indefinitely.
The Chinese are modest and are not used to expressing their feelings. If you tell a bombshell joke to soften the atmosphere, and no one laughs, everything is fine, the Chinese appreciate it, they just don’t show it.
The Chinese are not used to responding to praise. Don't be surprised if, in response to your compliment about good work, he embarrassedly says that he could have done better. And if you decide to give a foreign partner a gift, offer it several times, because taking a gift the first time means being branded as a greedy person.

Rules for communication with Chinese partners

Don't just call a Chinese person by name- this will be considered disrespect and familiarity. In extreme cases, by last name and first name - yes, yes, in that order, but best of all - with an indication of the position. For example, Manager Wang, Director Li and so on.

Never complain about your job, do not try to discuss with a Chinese his boss, salary, or relationships in the team. The boss is sacred, he cannot be judged or criticized, and colleagues are a real second family for any honest Chinese. The same goes for politics: The Chinese are great patriots and do not tolerate irony about government structure. And then, you won’t be talking about politics, but doing business.

But your partner will enjoy talking about Chinese culture, traditions, and local cuisine. Be sincerely interested in the traditions of the Chinese people, but do not overdo it - they see through falsehood and flattery very well.

Don’t rush to rejoice if your Chinese partners happily agree with your proposals and nod in agreement. This doesn't mean anything yet: It’s difficult for a Chinese to say “no”, it’s easier for him to agree, and then think about how to avoid an awkward agreement. And if you were told “You need to think about this,” most likely, get ready for refusal.

In turn, soften the wording yourself and do not cut from the shoulder. Adapt to other people's mentality, avoid harsh answers and, if the proposal of your Chinese partners does not suit you, delicately say: “We need to consult with our partners,” “We need time to think about your proposal,” and so on. Believe me, the Chinese will understand the hints perfectly.

Try to enter into written contracts and agreements. What is said in words often means nothing, but before a letter or any business paper, the Chinese have deep respect.

Don't skimp on praise and compliments. The East is a delicate matter, everyone there praises each other, but most often acts in their own way. Accept the rules of the game, allow yourself to be praised and do not forget to lavish good words in reply. It won't be considered flattery- completely normal business communication.

Don't express your emotions too clearly. Of course, Chinese suppliers are accustomed to working with Russians, have read Dostoevsky and have heard a lot about the mysterious Russian soul. But still, you shouldn’t go into someone else’s monastery with your own rules and temporarily pacify your nature.

Don't dress too brightly. Yes, we remember that on the AliExpress website you can find clothes, shoes and accessories of the most crazy colors and styles, but they are produced for import - the Chinese themselves are unlikely to wear such things, especially on business meeting. Dress modestly and discreetly: no stretched T-shirts, torn jeans, a shirt and trousers - this is the ideal option.

Well, the educational part is over, now let's move on directly to business processes.

So, what are the stages of working with Chinese suppliers?

Stage 1. Choosing a niche in the market

This could include clothing, electronics, toys and children's products, replicas famous brands or a little bit of everything - and see how it goes. Be sure to look at the demand for these products. Or maybe you will be attracted by unusual products that are not yet presented on the Russian market: in this case, you will become a pioneer.

Stage 2. Selecting a supplier

There are a lot of options, so the chance of running into an unscrupulous partner is also great. Study the supplier market, find intermediaries, use word of mouth, scour Chinese product aggregators and start communicating. As an option for the brave - trip to the Celestial Empire and attending offline events: exhibitions, forums, conferences. This way you can personally meet future partners and evaluate the product in person, and not from pictures on the Internet.

Tip: pay attention to the scale of the supplier - An individual entrepreneur is a representative of a small or medium-sized business, a large factory or plant. Medium and large businesses are more reliable - there the likelihood of fraud is reduced to zero, there is the possibility of wholesale purchases, but the prices for products are higher and delivery times may be delayed. Small suppliers often work without a contract, on their word of honor, and sell in small quantities - their turnover is simply not enough for wholesale. It is better to choose, as always, a middle ground in order to take into account the interests of both parties.

Stage 3. Personal meeting

You can, of course, collaborate with partners online, but it’s better to meet the most promising ones in person. China is not that far away - eight hours by plane and you are already there. A personal meeting will allow both parties to be convinced of the seriousness of their intentions, personally assess the prospects for online trading, conclude contracts and discuss further cooperation.

Stage 4. Purchasing consignments of goods, completing a transaction

Be sure to mention the following points:

production and delivery times;
possibility of returning goods;
the supplier has a trading license.

Be careful: We will tell you about the schemes of scammers at the end of the article.

Stage 5. Transportation of goods

Perhaps the most dreary stage, without which, however, the work is impossible. You will have to arrange transportation of goods- in wholesale or retail quantities, correctly arrange customs clearance of goods and, finally, ensure their delivery to your warehouse or office. Remember that if the supplier or seller does not have a license, the cargo simply will not be able to pass customs control. To clear goods through customs, you must pay customs duties and fill out a declaration. You can submit it yourself or use the services of a customs representative and not bother yourself. For small businesses, this is perhaps the best option.

We agreed, ordered, received. And the product is bad!

What to do in this case? If you are not satisfied with the quality of the product, you need to issue a return. It is better to pre-register this clause in the contract to avoid unpleasant surprises. Then returning the goods will be much easier.

In any case, you will have to prepare the following documents:

an act of complaint regarding the quality of the product, which states the reasons for your dissatisfaction;
invoices for the transportation of goods;
act of acceptance and transfer of products.

And here’s another advantage of working with large and medium-sized companies: they have representatives in Russia who will help resolve the issue. With small suppliers, the chances of getting your money back are not that great.

How to recognize a scammer

Unfortunately, in any business there are unscrupulous partners, and the Chinese are no exception. Here are the main scams problems that owners of Russian online stores face.

Shell companies that simply close after receiving money from the buyer. There is only one way out: carefully check the documentation and enlist the recommendations of others.
Price increase after prepayment. How many times has this happened: a businessman makes an advance payment, and then they start feeding him juicy Chinese noodles: they say that the raw materials have become more expensive, and accordingly, the price of the batch will increase. If you don't want to pay, you risk receiving the goods terrible quality. Agree - you will feel like a fool. That's why It is better to work only with trusted companies.
Increasing the price of repeat purchases. The first transaction went well: you sold the goods received from China, made a profit and are happy to continue working with this supplier. He, feeling that the fish is hooked, takes it and increases the price. This often happens when the price initially offered is very low, and the buyer simply cannot refuse. What can you do here - don't believe suspiciously low prices, monitor suppliers' offers and look for the optimal price-quality ratio.
Arrival of low quality goods. We have already written about this. Most often this happens if the buyer does not see the product himself and communicates with the supplier only via the Internet. It is worth remembering the Russian wisdom “trust, but verify,” and putting it into practice.
Muhlezh with contracts. Even if you personally come to China and test the product, the possibility of deception remains. Sometimes the contract states something completely different, than was promised to the buyer. For example, the supplier promised to send high-quality expensive clothes to Russia, showed samples, equipment, but... cheap synthetics from the “expectation-reality” series arrived in Russia. The thing is that at Chinese customs the goods were declared as cheap consumer goods, and according to the contract, after the goods left the Celestial Empire, all responsibility for it lay with the buyer. They didn’t check, they didn’t look at the documents carefully before signing, they didn’t... There were a lot of different things that didn’t happen.

By and large, working with Chinese suppliers is not much different from working with other foreign and Russian partners. Everywhere you need to carefully study the market. Everywhere you need to personally check the quality, and not believe sweet speeches. Finally, there are scammers everywhere. You just need to take into account the local mentality and respect other people's cultural traditions.祝你好运 (we wish you good luck - Chinese)!