China has been the largest exporter of goods in the world since 2009, and total Chinese exports amounted to $2.641 trillion in 2019. However, importing from China is difficult and not always a realistic option. It is a situation that we frequently observe while speaking with businesses, and many people struggle to comprehend the complexities involved. In fact, we frequently came across organizations that attempted to import without prior expertise or knowledge, and the results were plainly unfavorable.
Asiacommerce, as a Procurement company, has witnessed a wide range of issues that many businesses face and, in most cases, are unable to resolve satisfactorily. These challenges are not usually limited to small businesses. Importing products from China can cause a variety of issues if you lack proven competence in this area.
Difficulties encountered throughout the importation procedure frequently lead companies to conclude that importing from China is not a viable choice. This is a false statement. In general, problems arise when the procedure is not left in the capable hands of a strategic sourcing professional, allowing the entire foreign purchasing process to be effectively completed.
Main problems before starting manufacturing.
In many cases, problems with imports start at the beginning: during the research and selection process.
- Supplier selection: Many organizations undertake erroneous market research that provides insufficient information on the competitiveness of the chosen supplier due to a lack of knowledge of the wide Chinese market. When you choose the wrong manufacturer, problems might arise quickly.
- Cost reduction study: This is a problem that appears early in the process but is frequently overlooked. When estimating the cost per imported product, certain costs may be overlooked, such as the payment of customs duties or the cost of travel to China, which may be required if the buying process necessitates it.
More frequent complications during the manufacturing process.
The majority of people who consider making foreign purchases appear to understand that the production stage is where the most complications can develop. This is not always the case, as many setbacks in product production are the result of poor planning. As a result, let’s take a look at some of the most common roadblocks that businesses face at this point.
- Communication issues: In many cases, this is unquestionably the source of the rest of the issues. It is not just language, but also specific Asian cultural characteristics and the standard forms of negotiating in China. The reality of “not comprehending” transcends language.
- Possible product failures or defects: Due to poor communication or incorrect explanation of the requirements, the products to be imported may occasionally present design errors that can jeopardize importation. Failure to respond in time to anticipated difficulties in the first products results in some companies receiving entire containers that do not satisfy their expectations.
- Quality standards: This is not a flaw in and of itself, but it can be a major issue. Quality standards in China are not always comparable to those in the destination country. This is something that, if not noticed in time, might cause a setback, perhaps making the ultimate sale of the things impossible.
The latest difficulties after manufacturing.
There are numerous examples of corporations that successfully pass the first two phases but then have a nightmare before obtaining the products in their country. This is attributable primarily to two things.
- Long delivery times: Despite the fact that we live in a more connected world than ever before, acquiring a purchase from China is not synonymous with speed. In the worst-case scenario, the time it takes for things to leave the manufacturer and arrive at a company can range from two weeks to two months. This wait, in addition to being lengthy, can often be exacerbated by the inability to check the actual status of the import procedure.
- Customs: If not properly managed, customs controls may be a real pain. In addition to the additional tariffs and fees that must be paid (which many companies did not consider during their original research), the product may not meet the conditions for importing.
As we have seen, the drawbacks of importing can be vast and diverse (especially when we try to buy certain types of products considered difficult to import). It is not always possible to guarantee a problem-free import. With AsiaCommerce, you may ensure that these issues are minimized and will have a solution.
Asia Commerce Network is a Global Sourcing & Import-Export Solution for your Business. We specialize in these 4 areas: Help you source the right products, negotiate with suppliers, and do quality inspections; Help you import/export the products to your countries, port to port or door-to-door; Help you do Marketplace Distribution in South East Asia Countries; Help you in providing the best education and training for your e-commerce business.
We are located in China, Indonesia, Malaysia, and Singapore, and I am proud that we have served many top 10 vendors in the e-commerce business across South East Asia.