Starting your own Import/Export business?

5 EFFECTIVE WAYS TO IMPORT AND RESELL YOUR PRODUCTS:

Dear readers,

Not only does smallvolume.com’s website aim to make purchasing goods made in China an easy proposition, but we also want to see you make your general wholesale merchandise business a tremendous long-term success. Your success is our success!

This article offers you valuable information on the various modes of distributing and selling your China items, import products, and other goods. This is crucial information to consider before you decide what products you want to import. Hopefully it will eliminate a big part of your learning curve and help you avoid costly China sourcing business mistakes in the process. We have highlighted the pros and cons of each distribution method so you can see what might work best for you.

Have a nice day!

Your sincerely,

James W.K. Lam

CEO

Smallvolume Co Ltd

1. RETAIL DISTRIBUTION:

Buy a larger range of products in smaller quantities,

and sell it in your retail store or local flea market!

Retail selling, whether through your retail/dollar store or local flea market, is the oldest and most established ways of doing business. Nothing beats the personal feeling of serving your customers face to face when conducting a sale. However, mom and pop stores nowadays face fierce competition from large chain stores and key is to be able to differentiate your product offerings from the mainstream products at cheap prices that large chain stores supply. Now, through smallvolume.com, you are able to buy in minimal quantities of unique products of excellent quality for long term profits. Products you may not even be able to get from your local wholesalers or distributors. That means increased competitiveness since you sell stuff that nobody else has, as well as a wider and enhanced range of product offerings without additional risk of stock investments.

The section below highlights the pros and cons of selling through retail:

Pros:

-          A large product range hence increased choices for your customers

-          Ability to constantly differentiate your products from the Walmarts in your area

-          Low capital investment per product range

-          Immediate stock availability hence immediate customer cash receivables

-          Higher profit margins derived from retail sales compared with wholesaling

Cons:

-          Requires sizeable upfront capital investment for stock purchasing

-          Not sure if all the products you have selected for purchasing will sell well

-          Added challenge of managing a greater diversity of products

2. ONLINE DISTRIBUTION:

  Buy a larger range of products in smaller quantities,

  and sell it in your online store or Ebay!

The e-commerce revolution and E-bay phenomena has sparked off thousands of net entrepreneurs and millions of online customers. Surveys show that 7 out of 10 internet users have already purchased products on the net. The low startup costs and ability to open shop 24/7 is simply too irresistible for many. But many online business go down as much as those coming up. The learning curve to set up store and market on the internet is huge and not for the faint hearted. But once you have a business model that works and products that your customers like, the sky is the limit. The secret of all internet businesses is their wisdom in carving a niche for themselves, and to offer a huge and attractive range of products for that niche they are serving. You can always look to smallvolume.com to increase your product range in your niche, without having to risk large stock investments.

The section below highlights the pros and cons of selling through the Internet:

Pros:

-          Large product range hence increased choices for your customers

-          Low capital investment per product range

-          Low cost of running your online store

-          Immediate stock availability hence immediate customer cash receivables

-          Higher profit margins derived from retail sales compared with wholesaling

Cons:

-          Requires sizeable upfront capital investment for stock purchasing

-          Not sure if all the products you have selected for purchasing will sell well

-          Difficult learning curve of learning how to set up shop and sell on the internet

-          Added challenge of managing a greater diversity of products

3. WHOLESALE DISTRIBUTION:

Buy a smaller range of products in larger quantities,

and supply as wholesale items to retail or department stores!

So you think you're a true volume trader and interested in selling only a few select winners but in large lots? Welcome the world of wholesaling and distribution. You know your customers want the goods today and they want it in plenty. This is a true cash business?lots come and lots go! And we are not talking about chump change either. You deal with fewer customers, but derive much larger transactions per sale. Relationships with big buyers are important in this business and may need to be built over time. Profit margins are much lower than retail, but you make it up by selling in volume. And make sure you have plenty room to stock up!

The section below highlights the pros and cons of a wholesaler/distributor:

Pros:

-          You make faster profits by selling in bigger lots, compared with retail

-          Ability to enjoy wider profit margins via deep discounts through bulk buying

-          Immediate stock availability hence immediate customer cash receivables

-          Less is more: you only need to focus on a few winning product lines

Cons:

-          Products you have selected for purchasing needs to be a sure winners

-          Your handful of loyal customers will need to constantly re-order your products

-          Requires sizeable upfront capital investment for stock purchasing

-          Need to constantly look out for new winners in case of changing market demands

4. DISTRIBUTION BY CONSIGNMENT:

Buy a smaller range of products in larger quantities,

and supply as consignment items to retail or department stores!

Don't have the personal customer connections of a wholesaler/distributor and don't have the money to invest in your own retail space too? Then selling through consignment maybe your thing. With your ready stock in hand, you simply have to convince retailers or department stores to allow you to piggyback your products on their limited shelf space in return for commissions after a sale of your product is made. Commission payment ranges from 30% onwards. Needless to say, it is best you offer products that are unique, interesting and not already sold by other vendors in your area. You can find lots of unique ready-to-export products through smallvolume.com

The section below highlights the pros and cons of selling through consignment:

Pros:

-          Low business overheads as you are not bound by monthly rent installments

-          Ability to shift your business to other more successful locations

-          Ability to scale up your retail locations quickly and conveniently

-          Less is more: you only need to focus on a few winning product lines

-          Higher profit margins derived from retail sales compared with wholesaling

Cons:

-          Products you have selected for purchasing needs to be a sure winners

-          Requires sizeable upfront capital investment for stock purchasing

-          Need to convince consignees to offer you limited shelf spaces for your items

-          Need to provide accurate commission fee calculations to your consignees

-          Need to constantly monitor and deal with missing stock items with consignees

5. PRODUCT AGENT:

Purchase samples for showcasing to your customers,

and consolidate their individual orders as one bulk order!

This is probably the most risk free way of getting big orders from potential customers. Samples are cheap, and customers tell you exactly what they want and how many. They even help to fund a big portion if not all, the cost of your stock. A dream business come true! However, there are risks involved and one bad delivery from your supplier could really hurt your business. (Yes, you will need to hand back all the deposits to your customers for your defective goods). Hence, a solid relationship with a trusted, reliable supplier is the main factor in order to have your order fulfilled on time with the highest attention to quality. Samples can be readily purchased from smallvolume.com

The section below highlights the pros and cons of selling as a product agent:

Pros:

-          Low business overheads as you are not bound by monthly rent installments

-          Ability to pinpoint in demand items as customers will only choose what they want

-          You make faster profits by selling in bigger lots, compared with retail

-          Customer deposits will help to fund a sizeable portion of your stock purchases

-          Ability to enjoy wider profit margins via deep discounts through bulk buying

-          Ability to constantly invest and showcase new sample items to your customers

Cons:

-          Slow lead time for your customers since they have to wait months for you to consolidate orders and purchase consolidated stock as well as delivery time.

-          You need to be able to convince your customers you are a legitimate seller and earn their trust since you will be collecting goods deposits upfront

-          You need to consolidate enough orders to enjoy deep discounts from suppliers

-          Goods need to be delivered to customers at the timeline promised or losses can be great due to good rejection caused by delays in shipment.

-          Chances that a customer may "back out" although upfront deposit has been made

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