How to start cooperating with China. Where to start a business with China selling goods. The main advantages of doing business with China

According to experts, reselling goods is the easiest and, at the same time, the most profitable way to earn money. It is especially profitable to sell Chinese goods, which are characterized by low prices and quite acceptable quality. The most important thing is to find a manufacturer who will supply products on terms that are favorable to you. Any person can organize a resale business with China without investment. We will discuss how to do this correctly in this article.

Business without investment is real

Recently, many aspiring entrepreneurs are concerned with the question of how to start a business in China without investment? The easiest way to make money is dropshipping. This is a very popular line of business that does not require start-up capital. Its essence lies in establishing direct supplies of goods from the manufacturer to the buyer. This type of business appeared in our country relatively recently. It began to develop in parallel with online commerce.

Let's take a closer look at all the subtleties and nuances of doing business with China without investment. For example, you have your own online store. A customer visits your website, places an order and pays for his purchase. After that, you look for the product he needs from partners in China, buy it at a lower price and send it to the client. The difference in prices is your profit. All you need to do is find a trusted partner. It is advisable to agree on cooperation with the product manufacturer. If you order goods worth no more than 1 thousand euros, you don’t have to pay customs duties. Large orders require official processing and payment of all taxes.

One page site

Another option for those who want to organize a resale business with China is a one-page website or, in other words, an online trading platform. Such a resource should have a stylish, original design. In this matter, you need to pay special attention to every detail.

Entrepreneurs go to various lengths to ensure that the user who visits the site clicks the “buy” button. A one-page website is perfect for promoting any product. According to statistics, products that sell best are those offered at a low price in a single copy. People buy it much more willingly than several items with the same discount. As a rule, buyers are lost in front of a large assortment, so they may visit an online store and end up not buying anything. On a one-page site, everything is simple, since it presents only one type of product with complete information.

To open such a business with China without investment, you need to choose popular products that are in great demand among consumers. It is desirable that this be some kind of unique product. It is clear that TVs or refrigerators are unlikely to interest buyers, since nowadays you can buy such equipment anywhere. Before creating a website, carefully consider its design and functionality. If you do not have knowledge in this area, seek help from specialists who will create a high-quality Internet resource for you and fill it with unique content. In addition, the issue of delivery of goods needs to be resolved. In this case, you can use the services of a postal or courier service. If we are talking about some large cargo, agree on cooperation with a transport company.

What to trade?

Before starting a business with China, you must first decide. Production in the Middle Kingdom covers almost all market segments:

Clothes;
Shoes;
Textile;
Medical equipment;
Electronics;
Kids toys;
Industrial machines and production lines.

If you are not interested in reselling goods, you can find an interesting small business manufacturing idea from China and implement it in your country. Equipment for the enterprise is best ordered from Chinese manufacturers. China offers any construction, woodworking or packaging equipment, equipment for sewing shops, car services and more. Chinese manufacturers will organize the delivery of equipment, train staff and tell you how to organize production in a small room. In addition, they provide a guarantee for the maintenance and repair of purchased equipment.

Branded items

Another profitable business idea from China is the resale of branded items. Many well-known brands have moved their production to China. These are all kinds of companies that produce:

Clothes;
Household appliances;
Watch;
Computers and more.

Cheap labor allows you to implement any small business ideas in China without any problems. Take Nike sportswear as an example. Despite the fact that this is a well-known American brand, almost all of its products are made in China. Of course, the company strictly controls the quality of its products, which is a guarantee that you are buying a really good product. By hiring the Chinese, Nike significantly reduced production costs and, accordingly, increased its income.

Communications

Beginners often ask the question, where to start a business with China? At the formation stage, the most important thing is to formulate an offer that will interest the buyer. Therefore, you should not immediately set prices that are too high. When your outlet begins to flourish, prices can be gradually raised. At the initial stage, try to save as much as possible on advertising. Products can be promoted absolutely free on thematic forums or on social networks. In order to conduct an effective advertising campaign without investment, you will need free time and your imagination. In addition, in the process of self-promotion, you will be able to find out the preferences of your audience and, based on the results obtained, create a suitable assortment. You should not abuse discounts, as they reduce your income. If the product is in demand on the market, it will be bought at the price you set.

The most popular Chinese trading platforms

To implement new business ideas from China in 2020, you need to find a reliable supplier. In principle, it is possible to establish cooperation with several sellers who supply goods, both wholesale and retail. Let's look at some of the most popular online stores that offer customers free delivery of goods:

AliExpress. This is one of the largest Chinese Internet resources where customers from around the world make purchases. Here, buyers can safely purchase any product, since the money is transferred to the seller after the client confirms the quality of the purchased product;
BuyInCoins. This site presents a wide range of products. Promotions are often held here, within which you can purchase goods on favorable terms. Prices on this trading platform are about a third lower than in other online stores. In addition, you can find discount coupons on the Internet that allow you to purchase goods on BuyInCoins for another 5-8 percent cheaper.

Organizational aspects

Beginners often ask how to organize their business from scratch in China? As mentioned above, the easiest way is to open your own online store. If you do not understand anything in web technologies, you will have to pay money to developers for the creation and promotion of your electronic trading platform.

How much money do you need to start a business with China?

Chinese goods can also be resold through regular stores. The easiest way to implement a business idea for selling goods from China is to rent an outlet in a supermarket. You can also organize product sales through social networks. For example, your page in Vkontakte may resemble an online store, but it does not require any financial investments. This is a great option for people who are looking for . To increase sales, you can hold various competitions and sweepstakes. For example, a person who reposted to their page can win an inexpensive gadget. As a result, you will be able to attract a large target audience to your product. As a rule, any new business ideas from China bring good income, so your enterprise will flourish.

For Chinese entrepreneurs, 2017 was a year of lower prices for imported raw materials, reduced economic pressure from the United States and, as a result, an increase in foreign trade. Exports to Russia alone increased by 22%, and overall growth was almost 26% compared to the previous year. Experts say that 2018 will be just as favorable for China, and therefore Russian entrepreneurs can expect new interesting products, convenient logistics schemes, good discounts and improved quality standards for Chinese products.

Pros and cons of purchasing in China

The main part of export transactions between Chinese and Russian businesses is the supply of equipment (about 60%) and small wholesale trade in clothing and footwear, plastic products, furniture, leather goods, jewelry and toys (about 30%). Of course, similar goods can be found in Russia, but often their cost is so high that the reseller is not able to make a markup that will cover all pre-sale costs and also provide an opportunity to earn money.

The average small wholesale markup for the Russian manufactured goods group is about 30%, for the Chinese group - 200%.

It is obvious that any businessman who knows how to count money will invest in a scheme with Chinese supplies. But it is not only the possibility of colossal markups that makes the Chinese export offer attractive.

Important advantages of implementing business ideas from China are:

a huge selection of current and innovative products (as many new products as in China are not produced in any country in the world);
the ability to bargain with Chinese sellers until a very significant reduction in the original cost;
convenient, fast and cheap logistics (already today there are dozens of consolidation warehouses operating in Russia, and their number will only increase).

The weakest point of Russian-Chinese commercial schemes is the difficulty of translation. There are often situations when the parties seem to have agreed on the same terms of a transaction, but in fact the Chinese partner begins to fulfill its obligations with a significant deviation from the agreements. And only when the circumstances are clarified, it is discovered that the Chinese kept silent about something or joked about something, but the Russians did not clarify it in a timely manner.

In order to avoid these problems in the first stages of organizing trade with Chinese suppliers, it is recommended to hire a reliable consulting agent for the first three to five transactions. He will teach you how to properly negotiate with the Chinese side and correctly consolidate agreements on paper. The cost of such an agent’s services is about 10% of the transaction.

Business with China and laws

Any commercial activity between Russian and Chinese entrepreneurs must be regulated by an appropriate agreement drawn up in writing. Of course, if you order 100 watches on Aliexpress, pay for the goods through the payment system of the online resource and wait for the watch to arrive at your warehouse, you do not need to enter into any additional written contracts.

But if you directly contact the supplier or manufacturer, transfer money yourself through the bank and organize delivery, then you cannot do without a written two-sided document, sealed by both parties.

Do I need to pay customs duty for the import of goods purchased from Chinese online stores?

Customs duty must be paid on supplies worth from 1 thousand euros or more or weighing 31 kg or more. The billing period is a calendar month. These standards are established only for mail sent to individuals.

Accordingly, if an individual receives parcels from China in his name per month in the amount of up to 1 thousand euros and up to 31 kg, he is exempt from paying import duties and taxes.

If cargo is transported across the border by a legal entity or individual entrepreneur, completely different customs rules apply to such an operation.

Legal entities (including small enterprises and individual entrepreneurs), when importing goods into the customs territory of the Russian Federation, are required to pay duty, VAT, excise tax, and also pay for customs clearance services.

The total cost of legalizing a consignment of goods from China is 45.15% of the declared contract price of the product.

After a product is legalized, it can be sold on the territory of Russia, paying taxes according to the tax system under which the entrepreneur operates.

If you are just starting to work with China, you should not immediately get involved in commercial supplies. Work for several months as a private individual, evaluate the prospects of the direction in which you are working, and only then enter into commercial contracts. Moreover, newcomers to the Chinese market are not recommended to immediately invest more than 500 euros into the business.

Ways to bypass paying fees

As practical experience shows, attempts to save on customs duties can be very expensive and put an end to your entire entrepreneurial career. Therefore, if you decide to sell a current product and mark up 150 - 200% of the cost, do not save 45% on paying all the necessary duties. You risk being left without goods, without money and with a damaged business reputation.

But if you have an adventurous spirit, you like to fool the system, and you don’t want to share your earnings with anyone, then you can try to bypass paying duties in the following ways:

negotiate with the supplier to understate the contract value of the goods in invoices (there is a risk of not receiving the goods, and claims for the return of the advance payment can only be made within the limits of the invoice, which you deliberately underestimated);
involve several partners in the business, in whose name you can receive parcels without exceeding the monetary and weight limits (1 thousand euros / 31 kg).

If you don’t want to deal with duties, customs clearance and delivery at all, then the best option is to hire an intermediary who will look for a good product for you in China and deliver it. Intermediaries publish a complete list of services and their prices on their websites. On average, cooperation costs 10% of the cost of the batch.

How to start trading with Chinese suppliers

The main thing you need to get started is a great desire! A person who wants to do something looks for all possible ways to realize his intention. He tries, makes mistakes, tries again and achieves his goals.

Who can do business with China

If we analyze the success stories of Russian entrepreneurs who have built a legal and profitable business with China, then most of them initially had a merchant instinct and an economic education.

Yes, they had already traded goods of Russian, European, American origin and knew how to build relationships with suppliers. They, with their skills, simply entered another market with a cheaper product and the possibility of a higher margin.

Therefore, if you are currently involved in trade, working with Chinese suppliers will not be strange to you.

Those who understand the latest products in the electronics market, spare parts, car accessories, as well as gadgets of various types and modifications can earn good money.

Those entrepreneurs who can predict fashion trends for future seasons also have a chance of success.

At the stages of introducing new products to the market and during their promotion, manufacturers offer buyers the most comfortable conditions for cooperation (low prices, free delivery, free trial samples, etc.).

Experts note the cyclical nature of the Chinese goods market. The cycle is approximately 3 years. There is a high probability that this year some product items that were actively selling out three years ago will be popular (with the exception of gadgets).

Business with China in 10 steps

If you don’t know where to start trading Chinese goods, you can use the ten simple steps method. Here's a simple step-by-step plan:

Find capital of 1 thousand euros (it’s better to own your own; it’s difficult to raise money with borrowed money).
Select the five highest-rated products (ratings can be tracked using the functionality of the Aliexpress website).
Find the suppliers most loyal to wholesale buyers.
Depending on the conditions offered by suppliers, choose the most profitable business model for the operation.
Order trial copies of product items.
Determine the target audience who will be interested in this particular product.
Build a post-sales communication strategy with your target audience.
Calculate your markup percentage.
Place the first order with the supplier (the price of the first purchase should not exceed 50% of the initial starting capital, and better - 30%).
While the order is in progress, begin collecting applications for implementation according to the chosen scheme.

These steps must first be worked out on paper, adding details as they are implemented. This diagram should always be before your eyes, and then you will be able to restore the logic of your actions at any time if you feel that some processes have begun to get out of control. To correct the situation, it will be enough to return to the point where the mistake was made and work through it again.

Business visit to China

A business visit to China for one person costs approximately 1.5 thousand US dollars for 3 days (including visa and air travel in both directions). This amount does not include the services of a translator and business consultant, without which it is initially difficult for a Russian entrepreneur to manage. If you are bringing specialists from Russia with you, multiply the cost of the trip for one person by three. A Chinese translator and consultant will cost several times less, but you need to negotiate with them and sign a contract while still in Russia.

If you plan to come to China and look for help there, then most likely you will simply waste your time and will not be able to solve the business problems that were planned.

Obviously, a business trip to China is an expensive undertaking, especially for a novice entrepreneur, so it is recommended to organize such a visit only after several months of work and only with earned money.

Experts advise setting aside up to 20% of earnings from each operation in a business development fund and using this money for travel, organizing negotiations with Chinese manufacturers and expanding your own business.

Where to go in China:

to exhibitions (Shanghai International Spring Exhibition, Beijing Exhibition, Shenzhen Exhibition, etc.);
to fairs (Canton Fair, etc.);
to manufacturers interested in direct cooperation;
for themed sales.

It is quite difficult to track these events on your own, so, again, at first you will have to use the services of consultants.

It is believed that the most valuable advice that the pros can give to beginners is: don’t be afraid to start! But this advice doesn’t work well if you don’t really know where to start. Therefore, we have collected several business recommendations on what you need to do to feel confident in the market from the very first steps:

order marketing research on the group of goods that you want to trade (the opinion of a third-party specialist will expand the scope of your ideas about the business you plan to engage in);
undergo motivational training specifically on Chinese business topics;
find a like-minded person on online platforms (forums, social networks, offline);
approach each of your transactions as if it were your life’s work (carefully study your suppliers, demand from them all the necessary documents for the goods, negotiate delivery dates in detail, study the calendar of Chinese holidays, etc.);
always be prepared for the fact that your partners may turn out to be unscrupulous (you shouldn’t fall into total distrust and paranoia, but you should always agree in advance on the conditions for exiting a failed deal);
form a reserve fund (at least 10% of profitable operations);
From the first purchase, keep your own extended statistics (the more accounting items you track and analyze, the more thoughtful your every entry into the market will be).

Classic beginner mistakes

Let's name three main mistakes that prevent beginners from starting a business with China on their own:

Lack of a business plan. This is not only about financial indicators, but also about the fact that any business endeavor must have a goal. The best goal for a startup is to increase trade turnover, register your own company and expand the scope of activity.
Lack of specific deadlines (if you are looking for start-up capital, then a specific deadline must be set - no more than six months, and preferably three months).
Reluctance to learn new things. The business technology market produces updated formulas for successful sales every six months; if you do not study and use this information, you will not be able to adequately compete in your niche.

Unfortunately, universities, colleges and academies do not teach the intricacies of organizing business supplies from China. Yes, in academic institutions you can get basic knowledge in economics, logistics, financing, etc., but you need to gain practical experience on your own.

Or you can pay successful practitioners to share their work. Today, several well-known specialists work in the field of teaching trade with China:

Dmitry Kovpak;
Evgeny Guryev and Vasily Noginov;
Alexander Martynov.

All trainers provide online training, publish books, and also provide individual consulting.

The average cost of a book is about 500 rubles, an online course is about 10 thousand rubles, and individual consulting is about 200 US dollars per month.

Before purchasing a course subscription or arranging for consultations, read a book written by a trainer. The material in the book will give you the opportunity to understand how well the author of the course understands his business, whether he explains in detail to his clients the nuances of setting up a business, and whether he is ready to share truly successful schemes.

Determining your resources

Correctly determining your starting positions is perhaps the first important step towards building a business strategy. If you overestimate your capabilities, you will quickly find yourself in the minus; if you underestimate, there is a high probability that you will never reach a leadership position.

Is it possible to start a business in China without investment?

Of course, it is possible to organize a business without any investment, but with such a start it will take you a very long time to increase your turnover.

Yes, you can order two watches on Aliexpress for 300 rubles, wait a month for delivery, and then resell them for 1000 rubles. With such a scale, your monthly earnings will be 1.4 thousand rubles. To earn 30 thousand rubles on the same watch, you need to ensure a turnover of twenty times more.

If you want to organize a resale business without investments, you must understand: although you really won’t have to invest money in purchasing (since all purchases are made with the customers’ money), you will still have to promote your site and collect orders with your own money.

Even if, say, you are an Internet marketing guru and you yourself can organize powerful promotion of your project on the Internet, then in any case you will invest your efforts and time in this matter - a resource that you could profitably sell to customers.

Yes, perhaps a few years ago some active businessmen managed to make money out of thin air, but today the market for Chinese goods is very saturated, and in order to make money on it, you will have to give your all.

How to determine your niche in business

If you have a small starting capital, up to 1 thousand US dollars, and absolutely no experience as a reseller, then it is safest to trade goods with a purchase price in the range from 300 to 500 rubles. The advantage of doing this:

the opportunity to receive wholesale discounts;
in the average price range there is not so much risk of getting a product of very low quality;
large sales market.

Stay in this segment until you can invest up to $5 thousand in purchases. With such investments, you can switch to higher quality goods and sell them not only through social networks and one-page websites, but also through shops and retail outlets in your city.

As for choosing an assortment, trade in the product that you understand, that you feel and that you can evaluate as a specialist. You must know and be able to tell a lot of useful and interesting information about what you are trading. If you already have such a product in mind, start with it.

Effective business models for trading Chinese goods

The main tasks of an entrepreneur who wants to do business with goods from China:

minimize the risk of purchasing product items that are not in demand on the market;
buy a quality product inexpensively;
cheaply and quickly deliver it to the end buyer.

The ideal scheme looks like this:

a reseller finds a cheap product in China;
interests potential customers;
sets its own high markup;
collects orders;
arranges purchases from a Chinese manufacturer;
the manufacturer directly ships their purchases to customers;
Products arrive to customers of the required quality and within the agreed time frame.

This scheme has one drawback - it is very difficult to implement. But nevertheless, you can get closer to it. Moreover, today there are a number of business models operating in the market that bring trade in Chinese goods as close as possible to an ideal intermediary scheme.

This model is for entrepreneurs who want to start a business with China from scratch. As part of this project, the maximum you can do is receive wholesale discounts from suppliers for single purchases. Chinese manufacturers offer wholesale discounts from 20% to 50%.

To implement this model, you need to find partners who also want to save on wholesale discounts. It is best to look for co-customers for joint purchases on local forums or in regional social network groups.

You can organize a face-to-face meeting with partners from your city, make sure of their trustworthiness, and thereby minimize the risk of fraud.

There is no need to worry that by organizing a joint delivery to one city, the partners are thereby creating competitors for themselves.

If the product is really worthwhile, you will in any case be able to sell it quickly and at a good price.

Organizing retail dropshipping from China is almost impossible, especially at the initial stage of business development with minimal investment. And that's why.

The dropshipping scheme assumes that the manufacturer himself organizes delivery to customers, and the dropshipper acts only as an intermediary (looks for customers for the manufacturer and provides him with delivery addresses).

The functionality of Chinese purchasing sites (Aliexpress, Alibaba, Taobao, etc.) does not allow any delivery other than to the buyer’s address.

But if you still find the idea of dropshipping the most attractive for yourself, you can purchase a ready-made online store operating under a franchise of Chinese trading platforms.

Such franchises are sold today by the same Aliexpress, Taobao, Alibaba. The essence of the franchise is that a Russian entrepreneur buys a ready-made showcase site on which goods from Chinese manufacturers are posted, promotes this site, promotes its advertising and generates orders to China through his showcase.

The cost of such a site starts from 1 thousand dollars.

Wholesale sales

Wholesale trade of Chinese goods is a less risky business than buying a storefront website. The wholesaler's task is to search for the most profitable product and subsequent sale of wholesale quantities to smaller retail outlets.

This scheme can be implemented if you have business experience, official registration as a business entity and a purchasing capital of at least 300 thousand rubles. With such a purchase you can get good wholesale discounts.

The advantage of this scheme is that you will not have to spend time on retail sales. By investing in large wholesale and selling all the goods in one go, the entrepreneur has the opportunity to speed up the turnover of goods. By investing 300 thousand rubles and spinning them three times in two months, you can earn a million rubles.

The complexity of this scheme is the search for reliable small-scale wholesale customers. Usually, at first they agree to the deal, but when they need to pay money for the goods, they begin to doubt and refuse to cooperate.

To prevent this scenario, immediately conclude sales contracts with your customers and take an advance payment from them. Then, even in case of refusal, you can minimize your risk.

Search for business partners

You can look for partners in China when your business is officially registered, is focused on foreign economic activity and has a turnover of at least one million rubles per month. This result can be achieved in two months of active work, provided that you started the business from scratch.

Partners can solve the following tasks:

help the Chinese manufacturer comply with delivery conditions (consulting partner);
set up production of products to order (you agree with the Chinese manufacturer that he will manufacture the product specifically for you);
produce goods for you (according to your specifications and under your brand).

Finding a conscientious assistant in China is not at all easy. But if you find it, then consider yourself ahead in the competition.

Helping Partner

Most often they work independently or on behalf of a large consulting company. Contacts of two or three consultants in China can be obtained from companies that organize business trips to the Middle Kingdom. But in any case, you need to look for these contacts at the stage when you no longer want to be limited to purchasing from online stores and you have a desire to make a business offer to Chinese manufacturers.

What can a Russian businessman offer to a Chinese one:

an interesting idea in a cheap implementation;
a good percentage of the sale of a batch of finished products;
repurchase of draft blanks (with their subsequent refinement in Russia).

The difficulty is that at the stage of developing an idea, you not only do not know Chinese, but also do not have up-to-date information about:

what is the cost per unit of product produced in a Chinese workshop;
how much do raw materials and resources cost?
How truly new and relevant is your idea?

A business consultant in China will give you answers to these and a number of other important questions. He will also compile a list of the most reliable manufacturers with a good reputation and organize the most convenient route for delivering goods to Russia.

To make sure that your assistant truly fulfills his obligations in good faith, at the stage of pre-contractual negotiations, ask him for contacts of his clients who can give recommendations.

Supplier search

If you plan to switch to wholesale purchasing in China as soon as possible, you need to look for a reliable supplier from the first days of work.

Even when making small purchases on Aliexpress, enter into business negotiations with sellers for further cooperation. Yes, most likely 80% of your negotiations will not be successful, but even having three reliable suppliers will allow you to establish a profitable business.

Look for large manufacturers with about 1 thousand employees. Cooperation with such companies is the least risky and more promising in terms of developing your own business reputation.

The disadvantage of working with a large company is that the purchase price of the goods is higher than in small workshops that use cheap labor and outdated equipment.

To check whether your Chinese partner (intermediary, manufacturer) is trustworthy, test it using the following checklist:

Availability of your own website (in Chinese and English).
Date of creation of the site and information about its owners. This information can be verified using special identifying services (one of such services is http://whois.domaintools.com).
Unhindered provision of company registration documents.
Link in correspondence to business contacts.
The fact that the counterparty does not hide the address of the production facilities (and you can check it on the map).
The payment condition is the counterparty's bank account.
The company is not on the black list of scammers.
Willingness to provide product samples.
The counterparty’s willingness to provide you with an invitation to obtain a business visa (even if you are not planning to go to China yet, ask about the possibility of assistance from that party in obtaining your entry documents).
Information about the supplier on the Internet. Use Google search, check all the data that you know (company name, legal and email address, names of contact persons, etc.).

And, of course, before purchasing, you need to carefully study the reviews of real customers about the products and the manufacturer on electronic trading platforms.

Where and how to buy goods in China wholesale and retail

Alibaba, 1688 and Taobao sites are designed for wholesale deliveries from China, and Aliexpress for retail deliveries.

Taobao and 1688 provide information only in Chinese. Aliexpress today is available in many languages of the world, including Russian.

Despite the fact that many experts in purchasing on Chinese online platforms claim that today it is almost impossible to find high-margin goods for resale online, these conclusions are not entirely true.

Yes, today it is much more difficult to open a super-profitable business than five to seven years ago (even on the American Amazon, some groups of goods are sold at the same prices as in China). But, for comparison, if the average retail markup on goods from Russian manufacturers is 50%, then the minimum markup on goods purchased on Chinese wholesale sites is 100%.

And then, the prospects of working with the Chinese are much more attractive than with a Russian manufacturer, since with increasing turnover and long-term cooperation, Chinese companies are ready to double or even triple the discounts on their goods, and a domestic manufacturer is unlikely to agree to such concessions.

A little about the psychology of Chinese businessmen

As already mentioned, we poorly understand the mentality of Asian peoples, their laws and business customs, so the most reliable option for starting a business in Chinese territory is cooperation with a business consultant. But if it is not possible to pay for the services of such a specialist (approximately 300 US dollars per month), then you must learn to independently navigate the peculiarities of building relationships with Chinese partners. And here are a few rules:

Learn English and at least start learning Chinese.
Always be friendly and calm, but never take someone’s word for it.
From the very beginning of building joint plans, demonstrate your professionalism and seriousness of business intentions (study the documents in detail, make your suggestions and adjustments, be attentive to details).
Be open with your partners (provide all your registration documents), but do not reveal your future business plans (in case of questions, it is better to prepare some clear and simple wording without details).
Ask for advice from a Chinese person, but follow this advice with extreme caution, as the Chinese are very fond of making fun of Europeans (this step will allow you to better understand whether you are dealing with a prankster or a truly conscientious partner).
Fix all agreements on paper, and first consult a lawyer about what a legitimate agreement should look like under Chinese law.

Starting your own successful business

The most important moment for a businessman is to find a product , which suits both the price, the quality, and the terms of delivery. If you find one, then consider that very soon your small business will turn into a large profitable project.

What products can you make money on - TOP 10 products from China

First of all, look for something new and not yet promoted on the RuNet among the following product groups:

pet supplies;
goods for children (literally all items, from diapers to bicycles);
inexpensive haberdashery;
car accessories.

Advantages of trading these groups of goods:

they are in demand all year round;
cyclical demand (even if you did not sell the entire batch immediately after purchasing, there is a high probability that after a couple of months the demand for this product will become active again);
long shelf life;
Possibility of sales through offline outlets with a higher margin.

By purchasing a batch of such goods for 30 thousand rubles, you can earn at least 50 thousand rubles.

30 cent items from China for resale

Products with a purchase price of up to 20 rubles per piece sell very well in markets, in trade stalls and in supermarkets. Such purchases are best made by entrepreneurs who already have their own retail outlets and want to diversify their assortment.

The most popular product from this category:

car chargers-cigarette lighters,
liquid lipsticks,
disposable tattoos,
cases for keys and credit cards made of eco-leather,
hairpins and jewelry,
keychains and headphone cases,
magnets and silicone bracelets.

The average cost of goods purchased at 20 rubles per unit on the market is at least 100 rubles. Wholesale selling price is about 60 rubles per piece.

So it turns out that having purchased a batch for 200 thousand rubles (10 thousand pieces), the entrepreneur will immediately earn 400 thousand rubles. And this is a real business that today operates in every city and small town.

New ideas

Promoting new ideas of Chinese light industry in Russia is a profitable business, but very risky. It can only be done after gaining experience in the Russian and Chinese markets.

But if you still want to promote such a new idea, then it is better to do this not through online stores, where buyers come to buy goods they already know, but through landing pages and one-page pages. The format of such sites allows you to comprehensively advertise a new product, familiarize visitors with reviews of product owners and provide as much other useful information about the product as possible.

Edible in small containers

One of the new products on the Chinese market is small snack kits in colorful and convenient small containers. Such a set may consist of dried fruits, a bag of tea or coffee, snacks, etc.

It is best to sell kits in bulk to gas station chains, supermarkets, pharmacies, and drogerie stores.

The cost of such containers is from 100 to 500 rubles per purchase. You can sell them at a double markup.

For a fur coat - to China!

You can start a business in fur coats only if you understand natural furs and can evaluate the quality of tailoring, and also if you have the opportunity to personally travel to the Middle Kingdom, select the goods yourself and agree on its delivery with a reliable carrier. In this case, you will be able to sell each fur coat at three times the purchase price (on average, fur coats that are sold in China for 1 thousand US dollars, in Russia go for three thousand dollars).

Almost all types of fur and the most popular models are represented on the Chinese market.

Packaging of goods

Another profitable idea, the essence of which is the purchase of wholesale quantities of semi-finished products in China and their subsequent packaging in Russia. In this format you can trade Chinese tea, seeds, nuts, etc.

Packaging material can also be purchased from Chinese manufacturers.

On average, earnings from such operations are up to 200% of the cost of the initial purchase.

Test purchase and determination of markup

This is a mandatory stage for which you do not need to spare any time or effort. Order 10 units of the product and offer it to retailers for evaluation. If the product is relevant and in demand, the retailer itself will offer a good small-scale wholesale price.

Yes, with such a scheme, there is a danger that while the main product is on sale, the retail buyer with whom you discussed sales options will find another seller or lose interest in your product. But this is your task as an entrepreneur: to negotiate all the terms of delivery so that your partners do not refuse their obligations.

Anna Sudak

Bsadsensedinamick

The Chinese often call Russian businessmen “bukaopu” (Chinese: “not hitting the notes, unreliable”). But trends are changing, and now Eastern entrepreneurs are willing to work with Russians.

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Business with China on resale of goods
10 steps to start a business with China
Step #1 – study business models
Step No. 2 – analysis of your own resources
Step #3 – what to sell
Step No. 4 – searching for suppliers
Step No. 5 – checking the Chinese supplier
Step No. 6 – delivery
Step No. 7 – attracting clients
Step No. 8 – calculation of profitability
Step #9 – ask the manufacturer for samples
Step #10 – launch
Business with China on resale of popular goods with investments in 2019
Tips: where to start a business with China from scratch
How to do legal business with China from A to Z
How to open a manufacturing business with China
Instructions for implementing your own production in China

The article will be useful for beginning businessmen who plan to establish partnerships with Chinese suppliers and manufacturers. Most of the nuances will be discussed in detail in our material. Step-by-step instructions, recommendations and examples are provided.

Business with China on resale of goods

Despite the fact that this niche is very popular and only the lazy do not work in it, everyone can find their place here. And even a beginner can easily earn from 50 thousand rubles a month without much effort. Of course, you need to have an entrepreneurial spirit, have basic knowledge and understand the purpose of the final result.

But even if you lack something (knowledge, skills or personal qualities), it can be fixed. Business on goods from China is unpretentious. The main thing is to set a clear goal and move towards it step by step.

The simplest algorithm for working with China can be described in three points:

Search for popular products in China at low prices.
Delivery of goods to Russia.
Selling at a premium.

Why is it profitable to buy from China? Now the quality of products is increasing, but wholesale prices remain at the same level.

For example, let’s look at the products of Xiaomi, a Chinese brand that instantly won over its consumers not only within the country, but throughout the world. Why? Because the quality of products, smartphones in particular, is even higher than that of well-known brands. And the price is lower. At the end of 2017, the company occupied 4.4% of the Russian market and sold more than 3 million phones worth 37 billion rubles.

In general, in 2018 the trade turnover between the Russian Federation and the Celestial Empire exceeded $100 billion.

According to forecasts for this year, the amount will increase by at least 30%, which means that the prospects for business cooperation with China will only expand.

10 steps to start a business with China

Learn ten simple steps and start earning money in no time. And if you are too lazy or don’t have time to carry out all the actions and look for suppliers with goods, study the free course by Evgeny Guryev. Most Russian entrepreneurs work according to his methodology.

Step #1 – study business models

Before you start selling goods from China, choose the best business model for yourself.

Dropshipping

In other words, mediation. You can sell products now. No investment. Earning money comes from finding and attracting clients. You collect money from them, order goods from a third-party supplier, pay for it with the client's money and make a profit (from 30 to 500 percent). You don't even have to ship the goods yourself. It turns out to be a mini-business.

Joint purchases

This is the union of several people in a group to purchase goods at wholesale prices from a manufacturer or an official dealer. You can earn money using discounts and cashback services.

Offline wholesale sales

This model includes three stages:

Searching for a reliable wholesale supplier with a minimum receipt for the goods.
Search for clients: shops, private entrepreneurs. You can find them on classifieds websites and social networks (for free). Or place an advertisement (paid).
Prepayment. They give you money, you buy goods from the supplier and receive your percentage. The price of the product should be lower than what your customer pays to their current supplier.

Retail sales

Here it’s the same as with wholesale goods, only you are not selling to an intermediary, but to the client directly, so you set the price at your own discretion.

Online store

This option requires investment. But which ones exactly depends on you. You can start with a group on social networks and a one-page page. Or you can immediately create a full-fledged store with a wide assortment. The second option will cost more, but you will earn more money.

Step No. 2 – analysis of your own resources

Everything is simple here. Depending on the capital that you can invest in the business, you choose a model. If you have the opportunity to immediately invest in the creation and promotion of an online store, you will instantly reach a higher level. If not, you can start with the minimum. Trade with the Middle Kingdom is available to everyone.

Only its scale and time spent on developing the business depend on the chosen model.

Step #3 – what to sell

This question is asked by all newbies. To understand what to sell, you need to determine who you want to sell to. For example, a woman on maternity leave, having decided to conduct business trade with China, selects goods for children: toys, clothes, diapers and sells them to other mothers. Both benefit and income.

If you are not aware of market trends, start from your interests. Do you like mobile phones? Sell accessories for them. If you are a fan of online games, sell merchandise related to them: T-shirts, caps, bags, action figures, etc. Well, if you have absolutely no ideas, do this:

Open Yandex.Wordstat and look at the statistics of requests for product categories. Find the most popular ones.
When choosing a product, make sure that it is not overly competitive.
Sell only quality items.
Once you select a product, be sure to do your research. Follow market trends in this niche.
Be an expert. If you are good at something, sell it. Then you can not only attract new clients, but also acquire regular ones.

Never purchase unfamiliar goods in large quantities. First, grab a couple of units. Check it out and try to sell it. If the products are of good quality and there is a demand for them, you can safely purchase in the quantities you see fit.

Commodity business through China opens up great opportunities. Make the most of them.

Step No. 4 – searching for suppliers

If you want to purchase goods in bulk, do so directly from the manufacturer or official distributor. For small retail, mediocre websites are also suitable. To work with the Middle Kingdom, you don’t have to go there and look for a supplier yourself. But if you have the opportunity, do it.

Every year more than 1000 exhibitions are held in China, where you can find a manufacturer and a partner who independently makes purchases and sends you goods. The visit will also help you be inspired by new ideas and acquire useful contacts.

Orders can be made online. If you are afraid that you will not be able to cope with this task, delegate it to companies that will help with organizational issues and promotion of the store.

To start operating in this business (small and medium wholesale), we recommend using the following platforms.

Name	Peculiarities	pros	Minuses
Aliexpress	There is wholesale (small) and retail	Customer finances are protected, you can create an unlimited number of delivery addresses	It takes a lot of time to find the right product at the lowest cost
Alibaba	For medium and large wholesale	Prices are at least two times lower than on other sites	No retail provided
Tmart	Variety of products	Russian-language interface and QIWI calculations are provided	Products are expensive
Focalprice	Variety of products	You can do dropshipping	The interface is not tailored for a Russian-speaking audience

Step No. 5 – checking the Chinese supplier

Before you start working closely with a supplier, check their documents. Be sure to look for real reviews from those who work with him. Better yet, chat in person. Discuss penalties for both parties for failure to comply. If you don't take precautions, you could end up with money or a nervous breakdown. We have identified the following from common frauds:

Supply of low-quality products. Even if you enter into an official agreement with the manufacturer, you may receive low-quality goods made in underground mini-workshops. Such a product is nothing more than cheap consumer goods. And you will pay full price for it.
Shell companies. Any fictitious organization can register a domain, make a website and conduct an expensive advertising campaign, collect money from entrepreneurs and disappear into oblivion. Be careful!
Computer hacking. Your personal data may fall into the hands of criminals. This may result in loss of money from existing accounts.

To prevent this from happening, it’s best to always keep your eyes open and check your suppliers. And remember, finding what to buy in China is easier than looking for options on how to sell consumer goods.

Step No. 6 – delivery

All resources indicate delivery times for goods, but you can choose the best option for yourself. Talk to the seller and immediately indicate your position.

Step No. 7 – attracting clients

Let's figure out how to set up business with China via the Internet and create a queue of clients. There are plenty of options here. Free attraction will require a lot of effort, time and energy from you. Paid - finance.

To find clients, you can use the power of social networks: create a group, talk about your activities in thematic communities, and involve friends and acquaintances in shopping. There are also many forums and message boards.

Step No. 8 – calculation of profitability

Don't act rashly. Even if you don't invest money in your business, time is an even more valuable resource. First, make basic calculations: if the sale gives you 50–300% of the cost of the goods, there is a reason to continue. If you get pennies, you should optimize your activities.

Step #9 – ask the manufacturer for samples

Conduct your own testing for quality and compliance with the stated characteristics. If you don't like the product, your customer won't like it.

Step #10 – launch

After all the manipulations have been completed, start sales. Look at the response. Here, use free Google or Yandex analytics tools. As sales grow, record all changes. This is necessary to identify at an early stage what works and what does not. The main thing is to set a clear goal and keep focus on it. If you decide to get serious about business, it is advisable to open an individual entrepreneur.

Business with China on resale of popular goods with investments in 2019

You have already figured out how to organize a business with China. Now let’s decide what can be sold in Russia. List of the most popular products from China that are selling like hotcakes.

Electronics. They take high-quality Chinese equipment with great pleasure. It is both visually attractive and the quality is not inferior to many famous brands.
Watch. This product is also in demand. Of course, if we are talking about really high-quality products. But it’s worth taking into account that you need to be able to sell such a product.
Silk. This product is specific, but if you organize an advertising campaign correctly and find clients among entrepreneurs, then this can become a gold mine for you.
Jewelry and pearls. Excellent products made from precious materials sell well and generate high income. To implement a business in this niche, it is better to go to the Celestial Empire on your own, visit exhibitions and purchase products from a direct manufacturer. Before doing this, be sure to check all documents and certificates confirming the authenticity of the goods.
Jade products. Fashionistas are very happy to buy jewelry to highlight their beauty and elegance. Jade attracts the fairer sex like a magnet. And all because this material is the embodiment of femininity. Take advantage of this and start selling such jewelry.
It is unlikely that bamboo will be allowed to be taken out of the country, but fabrics and products made from it are very much so. Bathrobes, pillowcases, pajamas, socks, towels, car covers, bed linen - Russians willingly buy all this because such things are of high quality, comfortable and inexpensive.
Souvenirs and all sorts of little things. Here you need to look at what is most popular. How to do this, read above.
Furniture. Often high quality and inexpensive. But you shouldn’t buy it from just anyone. Because underground production in China does not sleep. It is better to go for this product yourself.
Tea. It is very popular with us because it is delicious and beautifully packaged. It is often taken as a gift.
Clothing, shoes, sports equipment. No comments here. This product will always be in demand.
Trivia from movies and TV series. Various little things, like the heroes of films, are very popular. Use this to grow your business.

You can learn more about popular products from our articles:

We also have interesting thematic selections of products:

Now it's time to get into the details.

Choose a niche. Trading with China for beginners is a simple process. Just follow the advice and everything will work out.
Decide who your client is. From this you will understand how to sell. Stay one step ahead of the consumer and give him what will satisfy his needs.
Create a business plan. Reflect all the necessary points: the goal you want to achieve, the chosen business model, the budget. Analyze your options.
Plan your advertising campaign. Approach the issue comprehensively - promote yourself on social networks and with the help of paid contextual advertising.
Purchase the goods. We have already discussed this issue above, but let us remind you of the most important thing again - do this only from trusted official dealers or directly from manufacturers.
Create a group on social networks and a sales page.
Attract clients.
Do analytics. This can be done using free tools that will help you understand how to build a business with China from scratch and scale it online.
Make a profit.

You set the margin on the product at your own discretion. If the product is of high quality, people will buy it. But even under such conditions, analyze your competitor. At least to find your competitive advantage, which will help you sell more expensively.

If you are still wondering where to start working with China, read on.

How to do legal business with China from A to Z

Let's look at several ways to legally do business with China.

Method number 1. Without registration of individual entrepreneur or LLC. Everything is simple here. Create a group on social networks and place free advertisements on online boards: Avito, OLX and others.

Method number 2. Form an individual entrepreneur and work as an intermediary under commission agreements, commissions, and paid services. In this case, you receive money not for the product, but for the service of purchasing it on Chinese sites. In fact, you have nothing to do with the product and are not responsible for it, therefore they cannot make a claim against you.

Method No. 3. Form an individual entrepreneur or LLC and import goods into the territory of the Russian Federation legally according to the following scheme:

Purchase products from the supplier with documents.
Clear customs according to the laws of the country and pay duties.
Issue certificates.

Now let's look at how to cooperate with China if you want to create a large-scale business.

Purchase goods in Russia from suppliers with documents. Large wholesalers also purchase from China, but due to large volumes it is easier for them to issue certificates for goods.
Go to China and enter into contracts with manufacturers directly.
Order goods without registering as an individual entrepreneur, but sell them as used. The sales scheme is the same as in consignment stores or second-hand stores - under a commission agreement. The contract is drawn up for each individual item in compliance with all requirements according to the description (cleaning, dry cleaning, etc.).
Buy goods and acquire “left” certificates for them. This method is illegal, but it exists. Many transactions are concluded according to this scheme in Russia (and not only).

Once again, let’s go over the tips on how to work with China legally.

If you see that your business is constantly growing and brings in a stable income, open an individual entrepreneur.
To accept money from clients, create a current account.
Choose a simplified taxation regime with the “Income” base when trading via the Internet.
Submit tax reports for your individual entrepreneur on time.
Use available accounting tools.
Certify your products.

How to open a manufacturing business with China

Another opportunity to trade goods from China is your own production. This is done if you want:

Sell counterfeits of famous brands. Let's say Nike announced a new sneaker model. They are already popular in Russia, but they cost a lot of money. You can take a couple, send them to China and get a copy of them. You can sell it at the store price or cheaper.
Add several features to an existing product on the market. To improve something, you need to describe your vision and send it to the factory. They will already do everything as it should. As a result, you will receive exclusive products that can be sold for good money.
Sell existing products under your own brand. There will be no production here as such. At the factory in China, your logo will be applied to the item for sale.
Launch your own invention into production. This, of course, will require money, but much less than what would be asked for in the Russian Federation or the EU.

Instructions for implementing your own production in China

Find an intermediary in China. Of course, it must be a Chinese who understands the intricacies of business.
Delegate to an intermediary the task of finding a factory to produce what is needed.
Select the best option for yourself from the found options and request a factory inspection. It usually includes: visiting the site, checking documentation and performance, checking production facilities and manufactured products, obtaining samples.
Instruct the intermediary to draw up technical specifications for the manufacturer of the product that you want to receive as a result.

Foreign trade with Chinese partners has gained momentum, but this does not make this type of business any less attractive. How to organize work with China? You will learn how to start cooperation and choose the optimal direction and supplier, as well as the rules for participation in Chinese exhibitions. The information in the articles will help organize the supply of products from China, reveal the features of customs clearance and return of goods if they are found to be of low quality, and help deal with the organization of the sale of goods and the purchase of machinery and equipment. You will find schemes, recommendations and advice for entrepreneurs starting a business in China.

Both beginners and experienced entrepreneurs often look towards China when developing their business. And this is not surprising, because China’s trade with Russia is developing rapidly and this country provides a lot of opportunities in developing its business. Organizing business cooperation with Chinese entrepreneurs is a separate area in which you need to take into account the mentality, the rules for finding a supplier, and many other factors.

How to start working with China?

When establishing trade in goods from China, an entrepreneur must draw up an action plan. The stages of organizing trade with China for beginners are as follows:

This is almost the full range of actions that an entrepreneur will need to perform when collaborating with a Chinese manufacturer.

An important role in organizing successful business with the Celestial Empire is played by knowledge of the business and basic cultural traditions of the Chinese, and the legislation of this country.

We organize a business with its own specifics

Different areas of business require different approaches. If you are planning to organize a business selling Chinese goods. From this article you will learn recommendations for opening such a business.

Business with China without investment is now a popular topic on the RuNet, and this is not surprising: this country clothes and shoes us, and it is generally impossible to imagine our life without its goods. This commodity expansion, which China launched with its millions of cheap workers, has not only overwhelmed domestic commodity spaces - the same situation is happening all over the world. Therefore, it is important to receive information in time that will help you start a successful business from scratch, without falling for a banal deception due to inexperience.

A little about China as a manufacturer and partner

China today is almost all consumer goods. And even if the term “Chinese counterfeit” is derogatory, these goods are not only in demand, they simply displace products from manufacturers in other countries (even domestic ones!), since their cost is uncompetitive.

The growth rate of China's economy is reflected in all areas:

electronics;
mechanical engineering;
light industry;
chemistry;
Agriculture.

And this list can be supplemented by listing almost all the categories of production known to people today. And no one knows how to combat this phenomenon in a civilized manner - people buy cheap goods even when their incomes do not allow them to do so. Hence the conclusion for those who want to start a business with China from scratch: working with Chinese manufacturers is a profitable business.

It goes without saying that the essence of this business will be the trade in goods produced in China. You will become an intermediary who will make money on the difference between the cost of goods from manufacturers and the price of their sale to the consumer.

The main points will be:

correct selection of partners;
the right format for cooperation.

Let's look at them in more detail.

Correct selection

Having decided to choose China as the field from which to get the harvest, a potential business newcomer will be faced with a choice of those who:

makes goods;
or helps to find the first ones, and also helps to cooperate with them.

How to find manufacturers

Business with China without investments will be profitable if you take into account some features and nuances. Direct trade relations with the Chinese are most promising, but this presupposes:

personal contacts, for which you need to know languages (English is a must, Chinese is ideal) or use a translator (pro) and visit the country, because this is the only way you will be convinced of the reality of production and its capabilities; plus, this will allow you to negotiate interesting offers, and not the template thresholds from which they begin to “move” in terms of conditions;
The easiest way to make connections is by visiting specialized exhibitions that are regularly held throughout China and about which there is a lot of information on the RuNet;
tighten up the legal side (involvement of a competent specialist), since a foreign trade contract is the icon that can protect your business (prices, terms, quality, quantity, equipment, etc., etc.), and will also become a “door” at customs.

Relationships through intermediaries

This is a less pleasant form of doing business with China from scratch in all respects. Intermediaries here can be different:

Chinese - they speak at least English, and often Russian, languages, but here you will most likely play an obviously “winning” lottery, since you will be forced to believe a picture specially made for you and even the absence of bad reviews about the intermediary will not will be a guarantee of his integrity;
domestic - they are “adapted” to work in domestic conditions (officials, taxation, duties, etc.);
work through online exchanges, of which there is no number and the most famous ones are also well-known by many (Alibaba, Taobao, etc.), and there is also the possibility of secure transactions - money is transferred to the seller only after your signal that everything is in order and the goods came (such security will result in commissions for you).

Intermediaries, if you find relatively honest ones, will be able to:

negotiate the supply of goods;
control the quality and timing of deliveries;
provide the logistics chain (China-consumer), taking care of shipping and customs;
provide legal support;
organize direct contacts (trips to China, etc.).

For this, of course, you will pay them no less than 10% of the turnover. Moreover, this is only the minimum, which tends to increase, depending on your negotiating abilities and the right choice of partners.

Elementary “norms” of Chinese business

The specifics of doing business with China from scratch will require quick adaptation to the following:

getting used to prices in a particular currency, taking into account units of measurement and quantity: for example, the price often refers to a batch of 100 pieces of a particular product, and the metric system is ounces, barrels, etc.;
the same with other parameters - for example, the designations for shoe or clothing sizes are different than in the European Union;
waiting for delivery takes weeks (okay, if only 2-3) - unforeseen situations may arise at customs, but you can keep track of where the ordered products are online (postal service).

Therefore, if you decide to start a business with China without investing, you should take into account that it will take some time to figure it out and get used to it.

The reality of no investment

Direct delivery of Chinese goods is an attractive way to start a business with China without investment. The essence of this method briefly boils down to the fact that you will find a local buyer for a Chinese seller, “take away” the money from him and send it to the country of tangerines, leaving a percentage of the purchase for yourself. Formally, this is where the mission of such a seller ends - then the Chinese themselves send the goods to the buyer (you can even do it on behalf of the business novice himself).

you will have to pay for a list of sellers in China;
very often there may be 100,000 manufacturers on the list (real or not), contacts with which you will need to find yourself;
Even if, by a lucky chance, an interesting manufacturer is discovered, it turns out that either the required product is not in stock “now”, or its price is not at all what can pay off for a businessman who wants to open his own business without investment, or the cost of delivery will make the goods “ gold."

However, this does not mean that business with China is impossible without investments - you need to try to do everything yourself, investing, first of all, your time and abilities.

How to start a business with China from scratch and without investment: a guide to action

Based on an analysis of the practices of those who were able to successfully establish their business with China, we can obtain certain rules of behavior, following which will allow you to work and earn money:

These are just the theses that you need to understand, comprehend and correctly apply, expand many times, starting and successfully running a business with China from scratch and without investments on your terms.