More FAQs About Sourcing From Wholesale Markets in China
As I had shared in my last post, I will offer more of my answers to frequently asked questions from Australian entrepreneurs who are just starting off with their importing business. High levels of minimum order quantities are a common complaint among new importers and small business operators. Going to wholesale markets is your best option. Luckily, there is no shortage of places to visit for wholesale orders in China.
Here are more of the questions that clients ask me about sourcing from wholesale markets:
What currencies should I bring with me as pocket money?
The good news is your Aussie dollars are welcome in China. The local currency in China is called the Chinese yuan or the RMB (Renminbi). If you have other currencies at hand, no worries, all major currencies are accepted. You can also use your credit cards, but be aware that there can be transaction charges. On another note, make sure your bills are not dirty, torn, worn or tattered. To be safe, just bring newer notes.
How much will it cost to ship my container?
Shipping costs are similar to commodities in that prices vary depending on demand. Much like the price of oil, it is dependent on supply and demand. There are low and peak seasons. Freight charges also change depending on the size of your shipment, the size of container that you use and the shipping company that you engage.
If you are shipping on LCL basis (Less Container Load or less than a container load) your shipment cost will be based on the size (volume) or weight of your cargo. If your cargo occupies a quarter of a container, then you should expect around that much of a cost or an amount slightly higher than that.
Upon reaching the port of destination in Australia, it is good to know what customs duties are imposed on your products and then add on GST, which is 10% of the total cost of goods and the freight charges. Other transport costs like port-to-door delivery, are usually determined on a dollar per kilometer basis.
How many containers should I fill?
For those who are able to import in larger quantities, it is to your advantage that you can ship more than one container. Large quantities mean you can spread the cost of shipment over a greater volume of products. This improves your profit margin.
You also have to remember that if your product becomes a success, repeat orders will be necessary to meet your customers’ demands. It would be wise to have a buffer stock because the next shipments may take a while to arrive. Generally, it takes four weeks to manufacture a reorder, another four weeks to ship and a week to deliver within Australia. You should have enough stock to cover you while you wait for your next shipment to arrive.