Monday, October 26, 2020

Helpful Tips to Start Importing and Exporting from China to New Zealand

The Import Export business is fast becoming a lucrative industry. It was, before COVID-19 relatively untapped, and with many potential new players due to come into the market in 2020 having now pulled out, 2021 represents an excellent opportunity to get a foothold. 

Here I look to guide you through the process of what it takes to get an Import Export business up and running in New Zealand. 

Here we go.

 

Stage 1: Select a business name 

The first and most obvious step is choosing a business name and getting it registered. You need to register with the relevant authorities and also apply for all the required permits.

A handy tip at the stage is to hire the services of a reputable customs broker they will take the research time out of the equation and help get these on your behalf or contact the New Zealand Customs Service for advice.

Stage 2. Create and launch your website 

Getting a domain for your website is quickly done online and can cost as little as NS$20 depending on the business name you choose. If you are hiring a web designer, this will come as part of the design package. 

In a website, you are looking for high-quality images, and an easy to navigate website that is engaging and gets the visitor to become a customer. 

Stage 3: What product(s) to focus on

So what are you going to import and sell?

When selecting a product to sell the main point is to know that you can sell a fair amount of the products whereby you move the goods quickly, this in-turn will reduce warehouse charges.

Plus of course, you are looking to buy low and sell high for maximum profit.

Stage 4: Selecting the right supplier 

When you know what goods you are looking to sell, the next step is choosing the right supplier and engaging them.

An experienced supplier will look at long-term business with you and therefore negotiate favourable terms for both parties, and both sides have to bend a little in the initial negotiations. 

Stage 5: Getting the right freight forwarder

A freight forwarder is one of the most vital links in the chain to your success. Importing from China to NZ for example or general international relocations, moving from Australia, car shipping or any sea freight, come with obstacles and hurdles which could lead to not getting customs clearance.

They can do everything from customs clearance to transportation from the port into New Zealand. 

For a second opinion on the items that you are importing from China to NZ to ensure they are safe go to the link under the prohibited and restricted section of the New Zealand Customs website.

In this article, we will look at how to find the right freight forwarder.

Stage 6: Marketing your products

In conjunction with what we have talked about above, it is wise to start looking at marketing the product as soon as you have made a decision.

If the company you approach to acquire the domain and design the website are an SEO company, then they will also be able to assist with digital marketing.

Usually, part of the packages offered includes setting up various social media platforms. My advice is to do a one-stop-shop and do all of this with one company as one project; it makes sense. 

People turn to the internet search engines these days not so much traditional marketing anymore.

Be sure to get as much information about the products from the supplier in China, especially warranty information and ensure this is clearly stated on your website. The more information you provide to people online this year will go a long way to determining your success through selling online.  

Be clear about all delivery or pick-up options if you are storing goods or opening a physical store. Make sure everything is clear and provide a secure payment gateway and as many payment options as you can. 

Alibaba to New Zealand – How to Import

Alibaba is now a giant in the marketplace. And import from China to NZ is very straightforward and more secure than doing it by yourself, but alas not as profitable. 

Alibaba has become a vast online marketplace where you can engage with various suppliers for goods.

Let’s take a closer look at what they can bring to the table for you when importing from China to NZ.

1.      Identifying the product(s) you wish to import

By this time, I’m sure you will have deliberated on what you are looking to import from China to NZ. Alibaba can present you with many ideas, but stick to your guns, one-step at a time, go with what you want to do first, see the system work and then look at other products and suppliers. 

Here we look at how to plan for getting the goods from Alibaba into New Zealand.

By being clear on what you want to import from China to NZ through Alibaba at the start gives you ample time to search for the right supplier and look into the market. 

You have various options whereby you can identify and choose the right product to import. 

2.      Identifying potential suppliers

Alibaba provides an ever-expanding database of suppliers to choose from to start your supply chain. Moreover, they allow reviews on many suppliers, so this helps in the deliberation process of selecting the right supplier for you. 

My first piece of advice is, of course, simple, reviews and star ratings are there for a reason, but make sure you don’t just look at the star ratings, read the reviews as someone could give a company 4-stars as they had excellent customer service. Still, when you read the review, there were other issues which is why it’s four stars and not five and that problem could be as important to you as customer service – take your time to get it right. 

3.      Engagement with the supplier

After compiling a list of suitable suppliers as candidates, the next step is taking the plunge and engaging them. 

The areas that are paramount in the negotiations should be, of course, cost, production times based upon volume due to the price and most importantly, MOQ.  

When importing from China to NZ understand Minimum Order Quantity (MOQ) is vital.  

Let me explain as this is a defining factor of cost and production time for goods for import from China to NZ. Chinese manufacturers impose MOQ on almost every single product shipped out of the country. 

 

  • MOQ why is it so important?

MOQ ensures that all production costs are met while ensuring the manufacturer makes a profit and continues a healthy cash flow.

Please understand that many Chinese manufactures operate (compared to the West) on relatively low-profit margins, meaning, the main focus is on producing bulk.

The main point being cost, time and energy used during production.

 

  • How can I use MOQ to my advantage?

MOQ will inform you of the lowest price per unit. As in most industries, the more you buy, the better the price. Meaning, this can generate healthy profit margins for your business.

So sensible negotiations with the right supplier who offers reasonable terms for import from China to NZ is where you’ll do well in the marketplace. 

4.      Your Finances

Make sure you have either a financial background or get financial advice as planning is vital when importing from China to NZ with Alibaba.

There are several costs throughout the international shipping, importation and customs clearance process. Be sure to have the right liquidity for the shipment.

Even though Alibaba is a very reputable company, international shipping and importing from China to NZ will always carry a degree of risk.

5.      Choosing the port of origin and a cost-effective port in NZ

Once you are happy with the supplier and the goods are ready to be shipped, the next phase is to choose the destination port. My advice at this stage is to ensure you are using a reputable customs broker in NZ. 

They will be able to advise, based upon experience, the best port of origin and destination when importing from China to NZ. 

As a rule-of-thumb try to look for the closest port of destination in New Zealand as due to possible fluctuations during the international shipping journey of oil prices, it is cheaper to transport good overland in New Zealand than ship to a destination port further away. 

6.      Collecting your goods

Once you have got your suppliers lined up, then you look for a reliable freight forwarder to ship the goods. 

Again if you use a reliable customs broker, they will already have a freight forwarder they trust and advise you whom to use through Alibaba, as they are a facilitator, not an advisor.

A customs broker will save you time, but if you are going it alone, this is the next step to look consider. 

The freight forwarder will ship to your chosen port of destination and ensure you get customs clearance.

Upon arrival, you pay for the cargo and collect.  Alipay which you will see when you look into Alibaba is self-explanatory and ensures that all payments are secure, which is an advantage of using Alibaba. However, even though you pay a little extra for the service; it’s worth it for peace of mind.

Summary

Importing from China to NZ can have its issues, but if you follow the guide above step-by-step, you’ll be on the right track.  Outside of using Alibaba, make sure when you start out with your own company, use the services of an experienced customs broker, who it-turn, recommend a reliable freight forwarder to ensure customs clearance on international shipping.  If you do that you really can’t go wrong.  Best of luck!

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