China import guide

Thousands of companies import from China and achieve substantial and sustainable profits. On paper, it seems simple: choose a product, buy it cheaply in China, bring it to your local market, perfect your marketing and branding, and the profits start flowing.

However, as many who have tried it know, it's easier said than done.

Besides the challenges of marketing and branding—which are no small feat—importers must overcome numerous other obstacles. Below is a detailed guide on how to successfully import from China.

The information presented here summarizes what we have learned over the years from helping hundreds of importers improve their businesses. During that time, we refined our own methods for sourcing, inspecting, and shipping goods from China, while also gaining insights into what works and what doesn’t from our clients’ perspective.

Contents of the Import from China Guide

Given the extensive nature of this topic, we have divided it into several separate pages, all accessible via the main shopping menu.

Contents of this page:

By following the steps outlined below, you will gain a solid understanding of importing from China, including how to:

1. Choose the right product to build a responsive and profitable business around.
2. Define and detail product specifications so suppliers clearly understand your requirements.
3. Source qualified manufacturers offering competitive prices and quality.
4. Submit effective RFQs (Requests for Quotes) that attract high supplier response rates.
5. Shortlist suppliers to identify the best options based on price, quality, lead time, factory size, and willingness to collaborate.
6. Negotiate favorable prices and contract terms.
7. Establish lead times and purchase orders to ensure both parties understand the business rules.
8. Minimize product defects through sampling and rigorous quality control.
9. Ship your products from China to your destination safely and efficiently.

1. Why import from China?

Why import from China when it may seem easier to buy products from local suppliers or distributors? Here are three reasons why China remains the best option for most products.

Price

Even accounting for shipping, quality control, and import duties, savings when buying from a Chinese manufacturer typically range from 30% to 150% (based on most products) compared with manufacturing outside China or purchasing from local distributors.

Flexibility

Chinese factories are generally cooperative, have lower minimum order requirements, possess strong tooling and mold expertise, and are capable and willing to produce both large and small quantities.

China's competitive advantage

Although labor costs in China are higher than in some low- and middle-income countries in Southeast Asia, other advantages—such as developed infrastructure, established supply chains for components and raw materials, and skilled labor—more than compensate.

Apple CEO Tim Cook explains it best:

“There is confusion about China. Many believe companies go there because of low labor costs. I’m not sure which part of China they are referring to, but the truth is China stopped being a low labor cost country many years ago. The real reason to go to China is the concentration of skill and expertise in one place.”

2. Choose the right product to import from China

Selecting the right product is important for success when importing from China, but it’s not the only factor. You should consider your budget and the market potential for your chosen product. Beyond that, with the right strategy and sufficient capital, you can succeed in almost any market. Below are 10 key principles for product selection, drawn from our experience helping hundreds of businesses import from China.

Successful businesses often follow these principles:

Principle 1: Build a brand around your product

People connect with brands, not generic products that compete solely on price. By creating a strong brand, you ensure longevity and recognition for your business.

Principle 2: Avoid new or trendy products

Fashion or hyper-trending products have a short life cycle, making it difficult to build a brand around them. Instead, focus on products you can customize and that offer sustainable profit margins. New trend items also tend to have unresolved quality issues—hoverboards are a prime example due to battery safety concerns.

Principle 3: Have at least one unique selling point

Your product should have a point of difference (POD) to stand out. It doesn’t have to be dramatic—it could be a logo, a distinctive color scheme, better marketing visuals, or an engaging unboxing experience. Start with one or two PODs and add more as your business grows.

Principle 4: Don’t sell products you dislike

Interest in your product matters. You don’t need to be obsessed, but selling products you dislike—like yoga equipment if you hate yoga—makes success harder.

Principle 5: Avoid “experts” promising unrealistic profits

Average net profit margins for e-commerce importing from China are around 20–30%. Be wary of claims suggesting ten times the factory price; unrealistic expectations can lead to costly mistakes.

Principle 6: Consider cost per click (CPC) and search volume

Focus on marketing potential rather than just current profit margins. Products with high search volume and relatively low CPC are ideal for scalable marketing campaigns.

Principle 7: Account for bulky products

Storage and shipping costs matter. Large items like furniture can be profitable if you have the capacity and capital. The key is planning logistics effectively.

Principle 8: Avoid products under $15

Low-cost items are tricky early on. Small margins and high PPC ad costs can reduce profitability. Aim for products where calculations and campaigns are manageable.

Principle 9: Prioritize product safety

Unsafe products can ruin your business due to recalls and liability. For example, over 5 million hoverboards were recalled in the US due to battery hazards, damaging many importers.

Principle 10: Focus on progress, not perfection

Don’t try to do everything at once. Start with one or two quality products, then expand and improve as your business grows. Gradually add features, customizations, and enhancements instead of overcomplicating your first orders.

3. Product Selection and Finding the Right Supplier in China

Step 1: Create Product Specifications

Before you start sourcing a product, you need to define its specifications.

Starting procurement without clear product specifications is one of the biggest mistakes made by beginner importers and can lead to many problems. Your specification list should include at least:

• Product description
• Materials used
• Dimensions
• Color options
• Testing requirements for your target market (ECE, etc.)
• Labeling specifications
• Packaging specifications

Why define product specifications?

If you don’t know the specifications, packaging, labeling, compliance, and quality requirements for your market, it is extremely difficult to choose the right manufacturer. Leaving sourcing decisions entirely to the factory or supplier is a recipe for disaster. When evaluating suppliers and analyzing quotes, small differences in materials, colors, dimensions, and packaging can have a major impact on price.

How to determine product specifications:

Research your product online to understand your unique selling points (PODs) and the baseline quality expected in the market. Purchase and examine competitor products that sell at your target price to see the materials and components used.

Example: If you plan to sell camera bags, buy bags at your target price from a reputable retailer. Examine bags with high ratings to understand the specifications. Expensive bags may use YKK zippers, 600-denier Helix fabric with water-repellent coating, reinforced straps, and waterproof bottom panels. Cheaper bags may use no-name zippers and lower-quality fabrics.

Learn from competitors, industry leaders, and suppliers about product specifications, components, certifications (CE, RoHS, FCC, GS, etc.), as well as packaging and labeling standards. Check online reviews to identify common issues that you can improve. Defining product specifications is time-consuming but essential for successful sourcing from China.

Step 2: Finding the Right Supplier

There are two main ways to find products and suppliers:

• Independent search for suppliers
• Working with a professional sourcing company or agent

Direct imports from Chinese suppliers

The primary platforms for sourcing in China are Alibaba, Global Sources, and Made-in-China. AliExpress is also an option for smaller orders. While these platforms host thousands of suppliers, the best manufacturers in terms of price, quality, and reliability may not advertise there.

Trade fairs in China

Many top suppliers are found at industrial trade fairs in mainland China. The largest and most famous is the Canton Fair in Guangzhou. For furniture, consider the China International Furniture Expo in Shanghai. Suppliers attending fairs are serious about bulk orders and international trade. You can also search for suppliers via Baidu (China’s Google).

See a full list of trade fairs on the page Trade Fairs and Accommodation.

Alibaba: How to Find the Best Supplier

Alibaba relies on keywords to display results. Use multiple keyword combinations when searching. For example, for a chest strap heart rate monitor, try: “chest strap heart rate monitor”, “heart rate monitor belt”, or “chest strap fitness tracker”.

Supplier Tips:

Tip 1: Check how many years the supplier has been in business. For specialized products, a minimum of three years’ experience is ideal.

Tip 2: Ensure they understand product specifications and hold necessary certifications for your market.

Tip 3: Verify if they are a manufacturer or a trading company. Check their Alibaba profile and website. Factories specialize in a narrow range, while trading companies sell many types of products.

Tip 4: Check their transaction volume.

Tip 5: Consider factory location and logistics.

Tip 6: Use Alibaba’s image search to find hard-to-find designs.

Tip 7: Use supplier evaluation filters and Alibaba Gold Supplier filters to narrow results.

Tip 8: Don’t forget other platforms like Made-in-China.com and Google to locate non-Alibaba factories.

Tip 9: Trade fairs often host suppliers who do not advertise online.

Using a sourcing agent

Hiring a professional sourcing agent is the safest way to import from China. Agents can access manufacturers you might not find and often have local knowledge, databases, and connections. We visit production hubs, identify top manufacturers, and evaluate factories based on expertise and raw materials. This ensures consistent quality and reliability.

Step 3: Request Quotes from Suppliers

Your initial email and Request for Quotation (RFQ) are critical. A well-written first contact increases response rates and simplifies supplier evaluation.

• Keep the email short and clear with specific calls to action
• Use correct terminology for components, materials, and testing requirements
• Include a simplified product specification as an attachment

Step 4: Create a List of Potential Suppliers

Start with 10–15 suppliers, then narrow to 3–5 based on price, sample quality, lead time, factory size, and communication efficiency. Focusing on the top few suppliers reduces costs and complexity of sampling and factory inspections.

Step 5: Verify Suppliers

Before selecting a factory, verify the quality and suitability of suppliers. Key questions include:

1. Can the factory produce my product?

Check their experience and request evidence for their capabilities.

2. Are they a trading company or manufacturer?

Trading companies typically sell many product types.

3. Can you communicate effectively with the supplier?

Poor communication can cause delays and misunderstandings.

4. Where is the factory located?

Consider logistics, shipping costs, and delivery times. Electronics are often sourced near Shenzhen, furniture from Chongqing, etc.

5. Is the factory size appropriate?

Ensure they can handle your order quantity without delays.

6. Do they have necessary certifications?

Always verify to avoid faked certificates.

7. Which markets do they serve?

Factories producing for domestic or low-quality markets may have lower standards.

8. Are they a legal entity with an export license?

Avoid suppliers without legal export capabilities.

9. Are they interested in your product?

Uninterested suppliers are unlikely to prioritize your orders.

10. Are prices competitive?

Ensure pricing aligns with your targets or is negotiable.

11. What is the production lead time?

Compare lead times to meet your business needs.

Read more about steps 3–5 on Verifying Chinese Suppliers.

Step 6: Visit the Top Suppliers

Visiting factories allows you to assess equipment, capacity, workforce, quality systems, and negotiate directly. If you cannot travel, use a reliable agent to perform inspections on your behalf.

Step 7: Request Samples

Always request samples from at least two top suppliers. Check appearance, feel, dimensions, function, performance, and packaging. Test packaging durability (e.g., drop tests). If a factory cannot meet your standards, consider other suppliers.

Guidelines:

Samples often require adjustments. Don’t discard a factory over the first sample. For new products, sample costs can be high, so focus on the best supplier to refine the product.

4. The Best Ways to Import from China

When importing from China, there are two main approaches:

• Using a professional sourcing company, where an experienced local team can negotiate face-to-face with suppliers, monitor every stage of importation, and perform quality control checks.
• Importing directly from suppliers, typically via platforms like Alibaba, with communication conducted mostly online.

Each method has its advantages and disadvantages.

As a professional company, Gabriel Group emphasizes a clear, defined process from start to finish, with experienced staff handling all procurement requests.

Importing with a Professional Sourcing Company

Chinese sourcing agents can speak the language, making negotiation and communication much easier. Being based in China, they can attend trade shows and access local sourcing websites. A professional sourcing company follows a structured process to ensure every step is handled correctly, minimizing risks for importers.

Services include:

• Factory audits and evaluations by a dedicated quality team
• Sample production and inspection procedures
• Obtaining multiple bids and providing a procurement report to justify supplier selection
• Access to trusted supplier databases and revisions based on previous experience
• Professional quality control at all production stages
• Ability to negotiate and purchase in local currency (RMB), avoiding exchange rate fluctuations

Importing Without an Agent

Importing directly from China can be profitable if done correctly. Platforms like Alibaba allow fast access to many suppliers and quick responses. However, finding the best suppliers is challenging due to the large number of options. Issues can occur, such as:

• Product inconsistencies between orders due to suppliers being trading companies who outsource production
• Cultural and language barriers causing miscommunication and quality problems

Trading companies on Alibaba often outsource, leading to variations in quality and appearance with each order.

5. Price and Contract Negotiation

Negotiating with Chinese factories can be tricky. To secure the best results, follow these steps:

1. Negotiate only with shortlisted suppliers who meet your quality requirements.
2. Do thorough research: product specs, factory location, and manufacturing methods.
3. Set a clear negotiation strategy: price vs. quality vs. production time priorities.
4. Understand your factory: new factories may offer better prices, established ones may have high MOQ and less interest.
5. Negotiate with the right person, often the factory owner or decision-maker.
6. Introduce your company and business intentions clearly.
7. Agree on payment terms: typically 30% deposit, 70% after successful inspection before shipment.
8. Trust your instincts and stay cautious during negotiations.

6. Costs and Profitability

Calculating total costs is essential for determining sustainable profit margins. Costs include manufacturing, importation, and delivery to customers if applicable.

Why calculate costs?

Accurate cost calculation helps assess profitability and supports negotiation with suppliers. Low margins compared to market prices indicate poor sourcing or negotiation.

How to calculate in-country costs

Consider anticipated order quantities rather than just the MOQ. Larger orders lower per-unit shipping and quality control costs and allow better price negotiation.

Key cost components include:

• Supplier quotation: Incoterm, port of loading, product details, total package size, unit price, shipment type (FCL/LCL), and currency
• Freight forwarder and customs costs: shipping, local taxes, customs duties, VAT
• Exchange rate differences

For simplicity, assume FOB pricing. See our Comprehensive China Shipping Guide for details.

Cost formula: Purchase Price + Ocean Freight + Local Shipping & Taxes + Customs Duty + Taxes

Purchase Price

Factory cost + quality control inspections + lab tests (if required).

Transportation Costs

Domestic shipping to port + sea/air freight. Costs vary by date and method.

Local Fees

Port charges, documentation, customs clearance, quarantine, insurance, domestic transport.

Duty

Use the correct HS code to determine applicable import duty.

Tax

Include local taxes, shipping, storage, and allow 1–3% for defective products.

7. Actions Before Placing an Order

Before starting mass production, ensure you have a perfect sample that meets your specifications—this is your "golden sample". Factories often promise to adjust during production, but you should insist on a finalized sample.

Best practice: produce two golden samples—one for you, one for the factory as an internal reference.

Define Tolerance Limits

Some products require precise dimensions. Discuss and approve tolerances with the supplier, then include them in your contract. This forms the basis for quality control standards.

Define Terms of Cooperation

Chinese factories often agree to everything. To avoid misunderstandings, create a comprehensive list of terms and confirm with the factory manager, including:

• Unit price and order size
• Payment terms (standard: 30% deposit, balance after QC)
• Product specifications, labeling, and packaging requirements
• Tooling ownership and costs
• Tolerance limits
• Mass production timelines
• Penalty clauses for delays
• Quality criteria: defects classification, AQL, testing requirements
• No unauthorized outsourcing
• Warranty provisions
• Rights to factory inspections
• Exclusivity agreements (if applicable)

Formalize in a Purchase Order

Your purchase order should include:

• Company contact details and logo
• Supplier information
• Unique order number and date
• Product list with quantities, unit price, and total

Confirm all details with the supplier. Once confirmed, receive a Pro Forma Invoice (PI) and ensure all pages are signed and stamped by both parties.

Contracts: Are They Necessary?

Contracts in China do have value, but only if drafted correctly. A standard contract from a non-China-specialized lawyer may not hold up. Use professional guidance for contract drafting in Chinese business law.

8. Supplier Contracts for Imports from China

Contracts are essential to prevent misunderstandings and ensure compliance when importing from China. A supplier contract should clearly cover:

Product specifications, payment terms, quality standards, delivery timelines, warranty agreements, and penalties for non-compliance.

Incomplete specifications or ambiguous instructions can lead to products that do not match your expectations. All quality control and production details should be documented to avoid misinterpretation by the factory staff.

The contract doesn’t need to be hundreds of pages, but it should include all critical requirements, so you can refer back to it if the delivered products differ from what was agreed. Suppliers generally prefer precise instructions to maintain repeat business.

How to Avoid Issues in Contracts

Using a China-based sourcing company allows the contract to be represented locally. Your agent can enforce contract terms more effectively and apply legal or practical pressure to resolve deviations. Face-to-face inspections and meetings further ensure the supplier takes responsibilities seriously.

Purpose of the Contract

Contracts act as a communication tool to prevent misunderstandings and ensure compliance with specifications, packaging, quality, production timelines, penalties, and payment terms.

When is a Contract Necessary?

For most small importers, a formal contract may not be required. Contracts are essential in two situations:

1. High-value purchases or significant order quantities
2. Protection of intellectual property

In these cases, hire a lawyer specializing in Chinese business law to draft the contract.

9. Quality Control in China

Quality control protects importers from defective or non-compliant products. It is an ongoing process because even large factories may cut corners to reduce costs. Independent inspections encourage suppliers to maintain high standards.

Required Level of Quality Control

The level depends on your product, market, and business needs. For most importers, a pre-shipment inspection is sufficient.

Types of Quality Control

• Pre-production inspection
• During-production inspection
• Pre-shipment inspection
• Container loading inspection
• Product testing and certification checks
• Laboratory tests

Read more about inspection types on our Quality Control page.

Quality Control vs. Quality Assurance

Quality control identifies defects and deviations post-production. Quality assurance ensures all specifications and sample requirements are correct before mass production. Combining both provides checkpoints before and after production, minimizing risk.

Start with the Right Manufacturer

Quality starts with choosing the right supplier. Low-cost factories often produce lower-quality goods and cannot achieve consistent standards, even with post-production inspections.

Optimal quality = right manufacturer + quality assurance reports + quality control inspections.

10. Transportation of Goods

Logistics is crucial for importing. Shipping by container is economical, but small or lightweight orders may require air freight or LCL (Less than Container Load).

LCL (Less than Container Load)

LCL shipments combine goods from multiple importers in one container. Products are handled multiple times, increasing the risk of damage. Proper packaging is essential to prevent losses.

FCL (Full Container Load)

FCL shipments are sealed at the factory and only opened by the importer after customs clearance, minimizing handling damage. Container loading inspections ensure:

• Correct quantity loaded
• Careful handling by workers
• Proper stacking to avoid damage

Preferred Container Sizes

Standard 20ft, 40ft, or 40ft HC containers are recommended. Larger containers reduce shipping cost per cubic meter, lowering overall import cost and increasing profit margins.

We offer combined sourcing and shipping services for the Balkan region, handling all documentation, customs clearance, and delivery coordination.

Read more about transport, Incoterms, and container sizes in our China Shipping Guide.

11. Customs Duty When Importing from China

Customs clearance is critical for determining the final product cost. Ensure correct documentation to avoid delays, fines, or seizure of goods. Common documents include:

a) Bill of Lading (B/L)

b) Packing List

c) Commercial Invoice

These documents are used by customs to verify goods, quantities, and declared values. The commercial invoice determines taxes and duties.

Example Customs Calculation

• FOB Value of Goods: $10,000
• Shipping: $1,000
• Customs Duty (5%): ($10,000 + $1,000) x 0.05 = $550
• VAT (20%): ($10,000 + $1,000 + $550) x 20% = $2,310
• Total Import Cost: $13,860

12. How Gabriel Group Can Help You Import from China

Gabriel Group, founded in 2011 by Josip Glušac, is a China-based company helping foreign businesses import products efficiently. We manage the entire import process with a team of professionals, from sourcing to shipping and customs clearance. For assistance, contact us.