by DR0832
5 replies
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I am going to Hong Kong in December and will be visiting Shenzhen. I am interested in starting an eCommerce business. In the past I have been successful running an ebay business with $150k net income but the products I was selling were given to me and were all unique. I've been interested in starting a business selling a handful of the same products sourced from asia for along time but have never got around to traveling there until now. Does anyone have any info on this sort of thing? I've use Alibaba in the past, but I am looking to build a real relationship with a manuafacturer.
#headed #shenzhen
  • Profile picture of the author Importexport
    Originally Posted by DR0832 View Post

    I am going to Hong Kong in December and will be visiting Shenzhen. I am interested in starting an eCommerce business. In the past I have been successful running an ebay business with $150k net income but the products I was selling were given to me and were all unique. I've been interested in starting a business selling a handful of the same products sourced from asia for along time but have never got around to traveling there until now. Does anyone have any info on this sort of thing? I've use Alibaba in the past, but I am looking to build a real relationship with a manuafacturer.
    Yes I ran an importing business for 22 years and franchised it in four countries, so I do know the ropes. I retired due to ill health and sold the business.

    Before visiting Hong Kong and mainland China you must do your homework. First I must stress that the vast bulk of "manufacturers" listed on Alibaba, and almost every other popular and heavily advertised sourcing platform are traders in disguise.

    You need to locate real manufacturers straight away, and begin discussions with them, because you will otherwise be wasting a lot of time in China. I teach safe sourcing and that involves using sites where if they say they are manufacturers you can be sure they are. One such site even checks out their employment conditions.

    I suggest that you should always ask to visit the factory. This will often help identify those that are just traders, but it is not foolproof. There are other ways, but that occupies a lot of space in my book and I could not post it all here.

    You also need to be sure that you have more than one supplier. This is due to several factors, not the least of which is that after you have developed a long term relationship they can begin to take you for granted.

    You can build up a real friendship, but business is business.

    I have had excellent business relationships in China since 1987, and every now and then I had to smarten them up a bit. Even though I have not been in business for a few years now, I still get greeting cards, and some of them keep me up to date with latest business trends in China.

    If you are a sole trader, don't tell suppliers that when first making contact. Also, use a business name, even if you don't have one registered yet. Also, don't tell them that you are just starting up in importing. I would advise you to learn something about importing before you go too far. I have seen too many people make mistakes on some amazingly simple things.

    Once you have a business name that you intend using for your importing, have business cards printed in English on one side and Mandarin on the other. They will be suitable for use in Mainland China. If you are really keen have another supply printed in Cantonese and English for use in Hong Kong, although most business people in Hong Kong are fluent in English or they have staff that are.

    It is not necessary to do this, but it gains you respect and they treat you seriously.

    Oh yes, never accept an offer to send fake invoices or to understate values. Such offers are the usual way of doing business in China, but can lead you into big trouble.
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    Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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    • Profile picture of the author DR0832
      Thanks. I will be traveling with a friend that speaks Cantonese. Are most people in Shenzhen speaking Mandarin? Also I realize a lot of the stuff in China is counterfeit which obviously is not going to be sold in the US. What is the best way of identifying factories which will source products that aren't knock offs?
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  • Profile picture of the author swinger
    Well, in fact, most people on Shenzhen are from other parts of China, and hence they speak Mandarin, instead of Cantonese. Hope your friend know how to speak Mandarin as well.
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    • Profile picture of the author DR0832
      No he does not
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      • Profile picture of the author Importexport
        Inability to speak the language is no bar to doing business in China unless you are selling.

        If you are buying you should not use an interpreter. If the business you are dealing with does not provide an English speaker as your contact I would seriously consider looking for other suppliers.

        Using an interpreter puts you at a great disadvantage. Never negotiate through an interpreter. Your friend would be an exception because she or he will be on your side.

        Most businesses in China will have a young woman with reasonable English who will be your point of contact. All the exhibitors at the trade fairs you probably intend visiting in Shenzhen will certainly have English speaking people on their stands.
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        Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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