Perhaps you've wandered into a suitcase outlet 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 countless sites with impressive product lines, and you think "how do they get these items, and how much money are these people making?" Chances are good that the merchants got their items from China at a very low cost and are getting a decent profit on each unit sold. If you understand how to import goods from China, you are one step beyond your competitors.

Certain imported items like cell phone batteries can be sold in the U.S. for about five times the cost, whereas more expensive items like plasma TVs will get about a 10-15% profit margin. If you own a retail business going or plan to build one, you must consider the opportunities found in China. Whether it's the right move or not depends on the product(s) you plan to sell and your stomach for working with a foreign entity.

The first thing to consider before you decide to import goods from China is whether there are cheaper 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 strengths are obvious: no language barriers, legal protection, great infrastructure for shipping, and so on. The big drawback is the comparatively high cost of labor/ manufacturing, which will force you to sell your US made product at a higher 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 sell a unique product with few competitors (a very rare situation, indeed). So, the savings in money and time from importing should be material enough to make it worth the effort. At a minimum, you must be able to calculate, with a high degree of confidence, that you stand to benefit from importing a particular good from China before proceeding.

Before you begin an import export venture, understand that there are potential pitfalls associated with importing goods from China that you should avoid, such as the chance of mis-communication with the supplier; running into a questionable manufacturer who offers a per unit price that is too good to be true; and issues dealing with quotas, taxes, other import restrictions. Most people start 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 in the end need to consult legal and tax-related publications to make sure all bases are covered.

Doing business in China, an unfamiliar country for most people, can be very intimidating. However, if you want to gain a competitive edge, you will need to break through your comfort zone, and China presents a very good prospect for you if you want to engage in retail business. The Golden Rule that trumps everything and that should drive any business relationship is common sense: Chinese and American cultures are different in many ways. Don't assume 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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