Importing products from China offers cost-effective manufacturing, boosting profit margins. However, freight costs are significant and influenced by various factors. Understanding these is crucial for efficient logistics management.
For businesses of any size, new or experienced in importing, managing shipping and reducing international freight costs impacts profitability.
How to save freight costs while importing from China
1. Choosing the Right Products
To begin with, you must do careful research to select the products that you want to import from China.
Analyse factors like:
– Your target market niche and any gaps in the current selection or inventory
– Saturation and competition for specific products at home
– Trends and unique products that are in demand in your area
– Products with great demand but little supply domestically
– Items with reduced shipping and customs fees
2. Plan Ahead
Last-minute shipping incurs high costs due to express freight charges. Planning in advance helps avoid these fees and secure discounts. Booking cargo two weeks before ETD from China allows time for storage planning and flexibility in carrier and tariff choices.
Be mindful of holidays like:
– Chinese New Year
– National Holiday.
3. Find Suitable Shipping Method
Sea freight is ideal for large, non-urgent shipments, while air freight suits emergency, small, or high-security items. Choose for FCL (full container load) over LCL (less than container load) to save costs and avoid hidden fees.
Use courier services for shipments under 45kg, and consider air freight for those over 100kg. For most cases, choose courier services if under 100kg.
4. Find A Local Transport Company
You will gain a lot by selecting the incoterm FOB and working with a local freight forwarder to handle the transportation of your shipment.
Note:Â Due to their lower price and local expertise, the majority of foreign freight forwarders operating in China will work with a Chinese logistics or transportation company
5. Understanding Import Regulations and Compliance
Understanding customs, duties, tariffs, and regulations is crucial for smooth imports. Missteps can result in shipments being held, fines, and extra fees. When importing from distant locations like China, an experienced freight forwarder and customs broker is invaluable.
They ensure accurate goods classification, proper form preparation, compliance with entry requirements, and smooth customs clearance.
To summarize, importing successfully from China requires careful consideration of import restrictions, strategic selection of appropriate products, and collaboration with seasoned logistics service providers.
You may save money on shipping and increase your inventory by closely following these essential procedures, which come directly from the global supply powerhouse.