How to import goods from China to sell – A Step by step guide

Just a few decades ago, importing goods from China was something only large corporations could afford. Today, the landscape has completely changed. Many of the world’s biggest brands—such as Apple, Samsung, Uniqlo, Zara, H&M, Mango, Adidas, Esprit, Tesla, and Caterpillar—continue to rely on countries with lower labor costs, like China, to handle their manufacturing and processing needs.

China is now widely recognized as a global manufacturing powerhouse. Its products are incredibly diverse in terms of type, design, functionality, and price. No matter what industry you’re in, there’s a high chance you’ll find suitable products manufactured in China.

In the past, shipping and logistics were major hurdles when it came to importing from China. However, thanks to modern advancements in e-commerce and international shipping, importing has become more accessible and convenient. You can now order and receive goods from the comfort of your home or office.

This ease of access also simplifies the process of selecting products and deciding on order quantities. Thousands of ready-made products are available across China, catering to a wide range of industries and demands.

It’s important to remember that the product is the core of any business. Customers and clients won’t care about the size of your company—they care about whether you can provide the right products that meet their needs.

 

If you’re ready to explore the vast opportunities that importing from China can offer, the following steps will help guide you through the preparation process and set you up for success.

Step 1: Identify the products you want to import from China

If you want to start an import-export business but you don’t know which products to start with, we’ll give you some ideas.

First of all, China is a market that provides a diverse source of goods but may bring many risks to product quality. To avoid encountering poor quality products, you must always be alert, not just guessing the quality through the cost.

The one who wants successfully import from China. With “successfully”, we mean a profitably, so in total, you can get a remarkable profit after re-selling your products. The one must choose and import products which meet at least the following criteria:

  • Demand for the product is regular and sufficient.
  • Profit margin ( Product sale price – product landed cost at your warehouse) is at least 30-50%
  • Product is reliable and the possibility for warranty cases are low
  • During the stay in your warehouse product doesn’t have high maintenance costs.
  • Product is not counterfeit!!
  • Product sale price is affordable for the targeted people you wish to sell to.
  • Make a plan which details what you require for the product from China. So you do not miss the necessary information. After criteria are set, you should conclude a list of the potential products you wish to import from China.

To compare potential products, e-commerce websites are good resources, like Taobao, Jindong etc. But Chinese e-commerce websites are almost all with Chinese characters, which will be difficult for you to find product information if you don’t know the Chinese language. You should thoroughly use the translation tool to understand.

We would suggest comparing and learning products in Alibaba or Aliexpress which are purely created for overseas importers. There you no need to know mandarin, as all is revealed in English there.

 

If you compare products in Aliexpress example, then usually, products with high sales volume ( number of the transaction) and with many good reviews and high ranks, these are favorable products, reliable for you to dig in.

Step 2: Find the source of supply

Once you’ve selected the products you wish to import from China, the next critical step is identifying trustworthy suppliers to source them from.

It’s strongly recommended to work with at least two suppliers simultaneously. This ensures stability and continuity for your business. If one supplier faces delays or issues, the other can serve as a backup source, preventing disruptions in your supply chain.

Look for reputable suppliers who are committed to long-term cooperation and can be relied upon to take responsibility for their work. Establishing partnerships with dependable suppliers not only supports smoother business operations but also helps reduce costs and save valuable time.

Additionally, after-sales service plays a crucial role—both for your business and for your customers. A supplier who offers strong after-sales support can help resolve product-related issues quickly and maintain customer satisfaction.

 

Effective communication is essential when dealing with Chinese suppliers. It is advisable to work with someone who has strong communication skills and experience working with Asian partners. Ideally, this person should be fluent in English or Chinese to handle negotiations and build strong supplier relationships. Good communication can also help you secure the most competitive pricing and better contract terms.

How to contact Chinese suppliers

We recommend using Alibaba to search for and connect with potential suppliers. When selecting whom to contact, prioritize Gold Suppliers who have been active on Alibaba for several years, offer Trade Assurance, and are Verified. These indicators increase the likelihood of working with a trustworthy and experienced partner.

When evaluating suppliers on Alibaba, pay close attention to the following:

Trade Assurance: This protects your order and payment, ensuring the supplier meets the agreed terms.

Verified Status: Verified suppliers have been inspected by third parties, which adds a layer of trust and credibility.

It’s essential to contact multiple potential suppliers, compare their offers, and analyze them thoroughly. The right supplier should meet at least the following criteria:

Product Expertise: The supplier must have extensive experience producing your chosen product and demonstrate both technical and commercial professionalism.

Competitive Pricing: They should offer prices that allow you to maintain a healthy profit margin.

After-Sales Support: A good supplier will provide warranty options and support after the sale, helping you maintain customer satisfaction.

Certification Compliance: The supplier should possess all the necessary certifications required for importing products into your country.

Export Experience: Ideally, the supplier is already exporting to your country and can provide references to demonstrate successful transactions.

Secure Payment Terms: Look for suppliers who offer flexible and secure payment terms, including Alibaba Trade Assurance and other protective instruments to reduce your risk.

Step 3: Payments to Chinese supplier and secure your products

When importing from China, it's common practice to pay a 20–30% advance when placing the order, with the remaining balance due before shipment. To protect your money and minimize risk, consider the following options:

Use Secure Payment Methods:

 

Small Orders: Use PayPal or AliExpress. Both platforms offer buyer protection, allowing you to dispute the payment if goods are not delivered or are not as described.

 

 

Larger Orders: Use Alibaba Trade Assurance, which holds funds in escrow and releases them only when the order is confirmed to meet quality and shipping terms.

 

 Sign a Detailed Contract:

 

Always sign a formal sales-purchase agreement before making any payment.

 

 

Ensure it includes:

 

 

Company chop/stamp from the supplier.

 

 

Signature of the authorized representative (CEO or owner).

 

 

A copy of the signee’s passport or ID card.

 

 

All contract pages initialed or signed by both parties.

 

 

Use Letter of Credit (L/C) for High-Value Orders:

 

For orders over $10,000 USD, consider using an L/C (Letter of Credit) for both the advance and balance payment.

 

 

Structure the L/C so the supplier is only paid upon submitting key documents to your bank, such as:

 

 

Final inspection report (verifying product quality and quantity).

 

 

Packing list.

 

 

Original Bill of Lading.

 

 

Inspect Before Final Payment:

 

 

Before releasing the final payment, visit the supplier in person or hire a third-party inspection service (like SGS) to check product quality and packaging.

Ensuring Product Quality and Timely Delivery

To avoid delays and quality issues, take a proactive approach to production monitoring:

Monitor Order Progress:

 

Ask the supplier for a detailed production timeline with clear milestones.

 

 

Request regular progress updates throughout the production process.

 

 

Communicate frequently to stay informed and maintain pressure on timely delivery.

 

On-Site Inspection:

 

For complex or high-value orders, arrange an in-person visit or hire an inspection agency to verify:

 

 

  • Raw materials used
  • Work-in-progress quality
  • Finished product condition
  • Packaging and labeling

 

 

Include Penalty Clauses in Your Contract:

To safeguard your interests in case of delays, include a late delivery penalty clause such as:

If the Seller fails to deliver on time (unless due to force majeure), the Buyer agrees to accept a delayed delivery only if the Seller pays penalties:

  • 1% of the shipment value per day for the first week.
  • 2% per day for subsequent weeks.
  • Penalty capped at 15% of the total order value.
  • If the Seller signs the Purchase Order but fails to ship on time, they must pay 20% of the total PO value.

Step 4:  Prepare documents required to import from China

If you import a large number of Chinese goods into your country, certain documents are required to clear the custom in your country.

The preparation of documents on time is the most important for the stage of customs clearance. Preparation early and accurate documents will contribute to 95% of the customs declaration speed as well as customs clearance costs.

When you want to import a quota shipment, you first need to get the following information:

 

  • Information of the goods to enter, such as the full name of goods, packing specifications, weight, number of blocks …
  • Conditions of purchase and sale among parties are EXW, FOB or CIF …
  • Documents required for goods to be imported ( ask from your custom)
  • The import procedures related to customs, quality control department at your country custom.
  • What taxes are required to pay for this shipment? Are goods to be imported in the list of goods eligible for preferential treatment according to the state policy?
  • For different kinds of products, the import requirements, required documents, procedures can be different. But in general, if you want to import from China, prepare the following documents:

Documents needed for import include:

  • Purchase contract. (prepared by importer mostly)
  • Invoice. (prepared by the seller)
  • List and details of the goods (packing list). (prepared by the seller)
  • Shipping cost invoice or bill ( issued by the shipping company)
  •  Bill of lading. (issued by the shipping company)
  •  Coupon, if any. ( by the seller)
  •  Notice of arrival. ( by shipping company)
  • Certificate of origin. ( Seller will apply for the goods he sells)
  •  Other relevant documents (if any). ( seller, buyer or other parties involved)

Some of the previous set of documents will be prepared by the Chinese seller and sent to the buyer. It is wise to ask the seller to send drafts for review before sending the original to your country custom.

Proforma invoice is one of the most important documents for your custom!

For all dutiable shipments, an invoice (provided by the supplier) will be required by custom. Proforma invoice must include:

  • Number and date of issue
  • Full name and address of seller and receiver, including contact details
  • Description of goods in plain language and sufficient detail
  • VAT numbers for seller and Receiver if applicable
  • Harmonized System Code (“HS Code”)
  • The total value of goods
  • Currency
  • Country of origin (of goods)
  • Payment terms (value for customs only for example)
  • Delivery terms
  • Signed and stamped (if applicable)

You should be careful in checking the validity, and completeness of the documents. If something is not valid or missing, can cause you trouble and costs, lost time in your custom.

Our experience with the procedure shows that being cautious in this step will help you make import procedures much more convenient.

Step 5: Search for shipping methods – What is the cheapest way to ship from China?

Shipping by containers via Sea:

Sea freight is one of the most popular and widely used forms of shipping goods from China. The main advantage of sea transport lies in its flexibility, low costs, and convenience, particularly for transporting large and bulky items. This method allows businesses to move substantial volumes of goods at affordable rates. However, the one notable downside is the relatively slow delivery time, making it less ideal for time-sensitive shipments.

Sea freight is not only used by small companies but also by large businesses. The reason is simple: the cost-efficiency of sea freight shipments. The prices for transporting goods by sea are relatively inexpensive, and it comes with fewer restrictions regarding the types of goods being shipped, including liquids. This makes sea transport a versatile and attractive option for various industries.

Shippers can choose between two main options for transportation: full container load (FCL) or less than container load (LCL). For FCL, a container truck is used, while for LCL, smaller trucks are employed for retail shipments. Once the goods are picked up from the sender's address, they are transported to the designated customs warehouse where the necessary customs procedures are completed. After this, the goods are ready to be loaded onto a ship for export.

For many people, the process of coordinating these steps can seem overwhelming, especially without prior experience in freight logistics. To alleviate this, many businesses opt to hire freight forwarding companies that offer comprehensive services. These companies manage everything from shipping and customs to transport, making the entire process much more manageable. If you don’t have the experience or prefer to focus your time on your core business activities, utilizing such a service can be incredibly helpful and save significant time and effort.

Shipping by air cargo:

hipping goods by air is one of the most advantageous methods for importing from China, especially when speed is crucial. It is particularly suitable for transporting high-end items such as perfume, cosmetics, smart electronic devices, or products with a short shelf life like fresh fruits and food. Air transport ensures that goods are delivered quickly and safely, making it an ideal choice for time-sensitive shipments.

The main benefit of air freight is the speed and safety it offers, making it the preferred option when quick delivery is essential. However, this comes at a higher cost compared to other forms of transport. Air shipping is generally chosen when the volume or weight of the goods is not too large, and when the urgency of the delivery outweighs the need for cost-efficiency.

One of the drawbacks of air transport is the complexity of the procedures involved. These often include complicated customs processes, stringent requirements for the origin of the goods, and a high level of documentation. This makes air freight a more involved option compared to other shipping methods.

 

Courier companies with their own aircraft will handle the transportation of goods directly, while other businesses will hire airlines to manage the shipment. This allows for flexibility depending on the size and scope of the shipment, but it also highlights the importance of selecting a reliable carrier when choosing air freight as the preferred shipping method.

How to rent a cargo ship (Only for very large delivery)

The process of cargo transportation begins when importers meet with a charterer to discuss their shipping needs. The importer provides specific requests regarding the cargo, and the ship offering broker uses these details to select suitable shipping lines that align with the importer’s requirements.

Once a shipping line is chosen, the broker negotiates the charter terms with the ship owner. These terms include shipping conditions, handling charges, costs, ship location, and the time frame for delivery. After these terms are agreed upon, the broker informs the importer that the charter party agreement is ready for signing.

Once the charter party is signed, the importer prepares the goods for shipment and delivers them to the port for loading onto the ship. At this stage, the ship owners or their agents issue a bill of lading. This bill of lading is a legal document known as a "bill of lading under a charter party," which serves as proof of shipment.

Final Considerations for Shipping from China

Regardless of whether you opt for air delivery or sea freight, it’s important to compare the different service providers and their offers. Shipping prices and conditions can vary greatly, so ensuring you understand the terms and fees is crucial. Additionally, don’t overlook the importance of insurance. Although the insurance fee is relatively small, it can provide significant protection in the event something goes wrong during the transport, making it a wise investment for peace of mind.

Step 6: Customs declaration

Once your goods have successfully landed in your country or destination, you're approaching the final stages of importing products from China. This is a critical point where the customs process comes into play before you can start reselling your imported items.

A Brief Guide on How to Proceed with Customs

Prepare the Goods Document: Ensure that all relevant documents for your goods are ready for submission to the customs authorities or your customs agent.

Digital Signature & Registration: Prepare your digital signature and register with the General Department of Customs to complete the required formalities.

Specialized Inspection Registration (if applicable): If your goods require specialized inspections, you will need to register them for this process.

Fill Out the Declaration: Complete the customs declaration forms and transmit them to the authorities. This is a crucial part of the process to ensure that your goods are cleared through customs.

Pay Import Duties & Taxes: You will need to pay the necessary import duties and taxes based on the value of your goods. This payment is essential for the clearance of your shipment.

Retrieve Goods from Customs Warehouse: After the customs process is complete, your goods will be ready for pickup from the customs warehouse in your country.

The Importance of Correctly Filling the Customs Import Declaration

The most important step in this process is accurately filling out the customs import declaration. It is highly recommended to work with an experienced customs agent to handle this task. Customs declarations require a thorough understanding of the legal procedures and necessary documentation to ensure compliance with both customs and tax authorities.

 

Customs declarants must be experienced and responsible to act on behalf of enterprises during this process. They play a crucial role in ensuring that the customs declaration is properly completed, the correct documents are prepared, and costs are minimized. An experienced customs agent can also help reduce customs clearance time and avoid unnecessary storage fees, making the entire process more efficient and cost-effective.

Step 7: Pay import duties, taxes and get your goods for free use

Once the import taxes and duties have been paid, you are legally free to retrieve your goods from customs and begin reselling them!

After the customs procedures are completed and your import declaration and other necessary documents have been accepted, the final step is to pay the declared import duties and taxes.

At this stage, your customs agent or the customs authorities will provide you with the specific details about where and how much you need to pay in import taxes and duties. Once this payment is made, you can take your goods out of customs supervision. After that, your goods are ready for sale, and you can begin reselling them in your market!

 

This concludes our 7-step guide on how to import goods from China or any other country. In the following section, we will explore different methods and strategies for importing goods from China, offering you even more flexibility and options in your import process.

Common ways to import goods for starters

When it comes to importing goods from China, there are generally three primary ways to go about it. Each method has its own advantages and disadvantages, and the right choice depends on your specific needs, budget, and goals. Let’s explore each method in detail:

1. Direct Import from China

This method involves personally traveling to China to meet with suppliers, inspect products, and place orders directly. It's the approach we primarily focus on in our earlier guide about importing goods from China.

Advantages:

Lower Costs: You can buy goods directly from the factory at the original price, with no middlemen involved. This allows you to purchase unlimited quantities, various models, and different categories of products.

Unique Products: Direct sourcing allows you to find unique, specialized, and creatively designed products that may not be available through other channels.

Cultural Experience: Visiting China offers an opportunity to explore the country, enjoy its scenery, shop, taste local food, and engage with the culture.

Building Relationships: Meeting suppliers in person helps establish personal relationships. This could benefit you for future orders, as you will have built trust and rapport, which can result in better deals and more flexibility.

Disadvantages:

Travel Costs: Traveling to China incurs expenses such as airfare, accommodation, transportation, and possibly hiring a translator if you are not familiar with the language.

Time Investment: It takes time to plan and execute a trip, which could be a strain on your schedule, especially if you are managing a business or have limited time.

2. Import Online via Alibaba/Taobao

China's major online sales platforms such as 1688, Tmall, Taobao, Aliexpress, and Alibaba provide a convenient way to import goods without traveling to China. With a single Alibaba Group account, you can access multiple platforms and order products from various suppliers.

Popular Platforms:

Taobao.com: Known for its wide range of products at competitive prices. Taobao is perfect for buying inexpensive goods, but it's primarily geared toward the domestic Chinese market.

1688.com: Specializes in wholesale products and is intended for Chinese consumers. If you want to buy from 1688, you may need help from someone in China, as the platform doesn't typically cater to international buyers.

Tmall.com: Focuses on high-end domestic Chinese goods, offering branded products with proven origins. Tmall is often the best choice for those interested in high-quality Chinese goods.

Alibaba.com: A global platform designed for international buyers. It offers a vast range of verified suppliers, with services like trade assurance, secure payment methods, and product inspection. Alibaba is the go-to platform for importing goods from China.

Difficulties with Online Platforms:

Account Setup: You need an account on the platform and, in some cases, an Alipay payment account. For international orders, you might also need a local address in China for shipping.

Complex Procedures: The buying process can be overwhelming, especially for first-time buyers, as it involves multiple steps and decisions. If you're not familiar with the platform or the process, it can be confusing and lead to mistakes.

Choosing Reliable Suppliers: Without prior experience, it's challenging to identify trustworthy suppliers. You may end up purchasing from unreliable sellers, which could result in receiving poor-quality products.

3. Import by Intermediary

Importing through an intermediary involves hiring a third party to facilitate the process. The intermediary helps you find suppliers in China, negotiate prices, arrange shipments, and manage the overall process on your behalf.

Advantages:

Expert Guidance: Intermediaries often provide valuable advice throughout the process, ensuring you get the best deals, quality products, and safe transactions.

Reduced Risk: With their expertise, intermediaries can help you avoid common pitfalls such as dealing with untrustworthy suppliers or navigating complicated import/export regulations.

Convenience: The intermediary handles the logistics, which can save you time and effort, especially if you are new to importing.

Disadvantages:

Higher Costs: Using an intermediary typically increases the cost of goods because they charge a fee for their services. This could raise the overall cost of importing.

 

Less Control: Working through an intermediary means you have less direct control over the entire process, which could be a disadvantage if you want to be more hands-on.

Best products to import from China

For any business to be profitable, it needs to meet customer demand effectively. If you're looking to import products from China, there are several categories that offer high profit potential and have proven to be successful in recent years. Below is a shortlist of popular product categories with strong demand and profitability for 2019/2020 and beyond.

 

1. Electronic Goods

 

Electronics have an immense global market and always face a shortage in supply, making it a lucrative category for importers. China is a global leader in manufacturing a wide variety of electronic products, from computers and mobile phones to televisions, refrigerators, cameras, and smaller electronic components.

 

Why it’s Profitable:

 

  • High Demand: There is always a steady demand for consumer electronics.

  • Low Costs: China’s electronics industry is developing rapidly, with competitive prices for products manufactured with great precision.

  • Growing Market: With constant innovation and affordable pricing, Chinese electronics are increasingly popular worldwide.

 

2. Guangzhou Fashion Goods

 

Fashion items such as shoes, clothes, bags, hair clips, belts, earrings, and bracelets from China are in high demand, especially among women. Guangzhou is known for its affordable and trendy fashion products.

 

Why it’s Profitable:

 

  • Cheap Prices: Chinese fashion goods are affordable and have a low cost of production.

  • Wide Supply: There is a constant influx of new designs and products, keeping the offerings fresh and appealing.

  • Popular Worldwide: These products cater to a global market, particularly in Western countries.

 

Note: Keep in mind that Asian sizes tend to be smaller than European or Western sizes, so it’s important to choose products with the correct measurements for your target market.

 

3. Interior Goods

 

Interior products like furniture, cabinets, bookshelves, and other home decor items are in high demand in both Asia and Western countries. These items are typically made from pressed wood, Chinese hard plastics, and other materials.

 

Why it’s Profitable:

 

  • Affordable Manufacturing: China’s interior goods are manufactured at a low cost, making them highly affordable for importers.

  • High Profit Margins: While transportation costs for bulky items like furniture are higher, the higher retail price for home decor items makes the potential for profit substantial.

  • Strong Market Demand: With the rise in home ownership and home improvement trends, interior goods have steady demand globally.

 

Note: Since these items are often large and bulky, transportation costs may be higher, and additional capital might be required.

 

4. Industrial Machinery and Equipment

 

China has made significant advancements in the development of industrial machinery and equipment. In recent years, Chinese-made machines and equipment have caught up with their European counterparts in terms of technology and reliability, but at a much lower cost.

 

Why it’s Profitable:

 

  • Cost-Effective: Chinese industrial machinery can cost 2-3 times less than similar machines made in Germany or other Western countries.

  • High-Quality Manufacturing: China has invested heavily in the production of high-tech machinery, making their equipment competitive in terms of performance.

  • Global Demand: With industries worldwide needing efficient and affordable machinery, the demand for Chinese industrial goods is strong.

Conclusion

When importing goods from China to India, the general process follows the same 7 steps, but there are some specific factors to consider. India is one of the largest importers from China, with bilateral trade growing significantly over the years. To legally import goods, you need an Importer Exporter Code (IEC). The procedures for certification and formalities are similar globally, but it’s important to comply with India’s unique customs and import regulations.