Perhaps you've wandered into a suitcase store in a nearby shopping mall and thought about where they get their stuff. And perhaps, you search on-line for a portable air conditioner and find countless sites with impressive product lines, and you think "how do they get these products, and how much money are these guys making?" Chances are good that the stores got their goods from China at an extremely cheap price and are getting a decent profit on each unit sold. If you understand how to import goods from China, you are one step ahead of your competitors.

Several imported items like cell phone batteries can be sold in the U.S. for approximately five times the cost, while more luxury items like plasma TVs will have approximately a 10-15% profit margin. If you own a retail business going or plan to build one, you must explore the opportunities found in China. Whether it's the right move or not is determined by the product(s) you are going to to sell and your stomach for dealing with a foreign entity.

First thing to consider before you make a decision to import goods from China is whether there are less expensive alternatives to getting your merchandise. Do not forget that there are manufacturing operations for many types of items right here in the U.S. The advantages are clear: no language barriers, legal protection, great infrastructure for shipping, etc. The big weakness is the fairly high cost of labor/ manufacturing, which will push you to sell your US made product at a more expensive price. Not a good thing considering all the Wal-Marts of the world. Retail is a cut-throat industry - you have to be price competitive, or you better have a distinct item with a small number of competitors (a very rare situation, indeed). Hence, the benefits in money and time from importing need to be material enough to make it worth the effort. At a minimum, you must be able to calculate, with a high degree of certainty, that you can benefit from importing a certain good from China before proceeding.

Before you launch an import export venture, understand that there are possible risks connected with importing goods from China that you should avoid, such as the chance of mis-communication with the supplier; running into an unscrupulous company who has a per unit price that is too good to be true; as well as troubles dealing with quotas, taxes, other import restrictions. A lot of people begin by working with an import-export adviser, but this cuts into profits. As you become more familiar with the inner operation of importing, and depending on what you import, you will eventually need to consult legal and tax-related regulations to ensure all bases are paid.

Doing business in China, an unfamiliar country for most of us, can be very intimidating. But, if you want to gain a competitive edge, you will have to break through your comfort zone, and China presents a very good prospect for you if you intend to engage in retail business. The Golden Rule that trumps everything and that must guide any business relationship is logical thinking: Chinese and American societies differ in many ways. Don't think that things are conducted the same way in China as they are here in the U.S.; this may cost you time and money.

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Perhaps you've wandered into a luggage store in a local shopping mall and wondered where these people get their stuff. Or, you shop on-line for a portable air conditioner and see many sites with impressive product lines, and you think "how do they acquire these products, and how much money are these people making?"

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