Dealing with China Today Is a Gold Mine for Smart Entrepreneurs… You can start without investment and from scratch. There is an opportunity to earn your first million. And there are many options for cooperation with different vendors. But this business requires a competent and careful approach. We'll tell readers about many of the nuances below.
Business with China without investment: real or not
So many citizens know that more than half, or rather 60-80% of the products on the market are Chinese products. And, of course, the popularity of this trend is based on the ever-increasing quality of products and things than, say, 20 years ago. Products have become more functional, more durable, more practical. Chinese shopping experts talk about what you can easily use in your wallet from 50 thousand rubles per month and at the same time there are always hours for hobbies, vacations.
If you have a little entrepreneurship experience and basic knowledge in this area, it is possible to do business with China from scratch.
Also Read: 100+ Minimum Investment Business Ideas for Women in 2021
And of course every entrepreneur gets huge advantages in cooperation with PRC:
- Low cost of acquiring goods. This means that there is an opportunity for the entrepreneur to receive benefits of up to 1000% of the original price of the product.
- Great variety of products. We can safely say that the range of providers in RPC is infinite. You can find almost anything in China! And finding a niche for your personal business is just a matter of choice.
- Aiming at Chinese suppliers for sales, cooperation, advantageous offers. Competition in the market today is huge, so finding your supplier with exceptional conditions is a matter of time.
- The ability to buy and sell unique products. China's merchandise trade can be very unique and individual. Found a brand that is not represented on the Russian market? It is possible that he will become your treasure.
Cooperation with PRC is beneficial for the entrepreneur, because customers who want to buy an item from China will not waste time and effort asking for the only item to be made directly. And then you come across! And not everyone wants to understand the variety of locations for sourcing products from China. It is much easier to buy the desired product from you.
Of course, cooperation schemes with China have their own nuances, namely, disadvantages:
- Delivery. It may take several months. And it is very important to consider this when planning business processes.
- Communication difficulties. Unfortunately, not all companies in China can do business in English.
- Trust a partner. The process of quality control, shipment, delivery of goods by a company that is thousands of kilometers from you is not an easy matter.
- A long-term contract is almost impossible. And the China supplier can terminate the contract at any time.
- An unpredictable increase in the cost of goods from a Chinese supplier. And here it is important to carefully study your partner and choose the most reliable.
Of course, there are other characteristics of doing business with China from “A” to “Z”.
How to start a business in China from scratch: important points for a young entrepreneur
and now we step by step Let's talk with businessmen about cooperation with China:
- Choosing an effective business model: dropshipping – here you can start a business without financial investment initially. The essence of the matter is this – you receive funding from the customer and transfer the order to a third-party supplier; retail sales; activity through the Internet platform; offline wholesale sales; Joint purchases.
- We determine our resource capabilities. Of course, when choosing a business model, you need to focus on your personal budget. And with good funding, there are more referral opportunities early on.
- Choosing your niche. Of course, the question of how to build a business with China is not an easy one. But everything can be discovered. And the first thing to decide is what to sell. Let's say right away: you can implement everything successfully. But, in the initial business, it is better to choose products that will be in great demand by the consumer: souvenirs; sportive articles; home appliances (domestic and digital); equipment accessories; consumables, etc.
- We are looking for products in China and selected suppliers. And here the Internet will be a great help. There is no need to go to China. Any product today is found and ordered on the Global Network. Are you afraid of running into scammers? So, it's worth considering cooperating with companies that will help you find a niche, promote your business, and avoid common mistakes. These sites can be very helpful for you: Aliexpress, Alibaba, Taobao, Dinodirect, Tmart, Focalprice.
- Starting a business in China with a “head” means choosing a partner you can trust. And it is, of course, important to verify this. Examine the documentation and find real feedback on cooperating with him. Remember – in PRC they can cheat. Stay tuned. Don't bump into fictitious one-day companies, rate the quality of vendor's products, don't let your PC get hacked.
And some more tips:
- study the terms of cooperation;
- check the company on the fraudster list through the Global Network;
- request an official invitation from the company for a study trip to a plant, factory, etc. Your partner's reaction will tell you a lot.
But that is not all.
How to work with China: Continuing the list of recommendations for entrepreneurs
What else is important to consider? We say:
6. We studied the terms of cooperation. This information can be displayed on the portal. But practice shows that you can establish more interesting terms of cooperation for yourself.
7. Find buyers in your niche. Remember that in the beginning the easiest way is to be an intermediary and not invest in the business, but receive a percentage. However, the business requires development. Attracting customers is important. Create pages on the Internet, make sales on social networks, remember promotions in likes, reposts, etc.
8. Calculate the profitability of your project. We have described above what it is profitable to sell from China. But that doesn't mean that the business will always have an immediate return and the way you would like. Acting randomly is not a very smart option. Evaluate the profitability of your business in advance. If you have 100-300% of the original price of the product in an intermediate business, then this direction has a perspective.
9. We purchase products from a Chinese manufacturer and carry out operational tests in the Russian market. It is important to check the quality of the products. If what the manufacturer claims matches reality, go for it.
10. Starting a business. China's business offerings are varied. And, of course, it is worth talking in more detail about the range of popular products.
Also read: Dropshipping – what it is and how to work with it
What is profitable to resell from China: ideas that will be useful to you
There are a number of Chinese-made products that you can get off to a good start with. And already more than a thousand entrepreneurs have made millions with them:
- Shoes and clothes. A wide variety, pricing policy available for many products for any age, gender, status.
- Accessories. Watches, belts, bags, umbrellas, wallets.
- Car devices. For example, as video recorders, browsers, etc.
- Mobile device accessories: covers, laces, etc.
- Mobile devices.
- Disposable items such as bathroom, kitchen, picnic, etc.
- Food products with a long shelf life. Selling Chinese goods is gaining more and more popularity every year.
- Computer and home appliances.
- Products for children's games and creativity for boys and girls.
Of course, this is not the complete list of what to sell from China. There are many other interesting positions for business. But the best place to start is with the above.
How to sell products from China and the main mistakes of novice entrepreneurs
Organizing a business, of course, requires a lot of strength, energy, patience. And if you are afraid and show indecision in the activity, then the inner resources will gradually become weaker. This will stop you from moving forward. It's worth working and saying goodbye to.
In addition, you must have clear and understandable business idea… Do you want to make money in the business or just start another hobby? Think about it beforehand. That will solve a lot.
See also: How to sell a business idea? Addendum
Don't get stuck on starting capital… As we said before, you can even start a business with a zero deposit. And you also know how to make money in China. But not all at once, if it is not yet possible.
Necessarily read all kinds of information about doing business with China online… Make sure you get the basics of basic entrepreneurial skills.
Learn new things, strive for something higher, expand your limits.
Now the information about what is profitable to trade in China is clear to you.
But there are some more important tips:
- Check the supplier;
- draw up formal contracts;
- consider samples, check functionality;
- choose the optimal delivery scheme;
- speak with the supplier about providing up-to-date and honest information about the product and in person;
- discuss in advance the course of action when receiving defective products;
- always look for great deals for your business;
- examine the goods received in detail and responsibly;
- choose a convenient service.
We believe that much has now become clear about doing business with China and where to start. Good luck!
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