Business with China without investments. Successful business on goods from China: step by step instructions. What is better to sell
Foreign trade with Chinese partners has gained momentum, but this does not make this type of business less attractive. How to organize work with China? You will learn how to start cooperation and choose the best direction and supplier, as well as the rules for participating in Chinese exhibitions. The information in the articles will help organize the delivery of products from China, reveal the features of customs clearance and the return of goods if they are found to be of poor quality, help you deal with the organization of the sale of goods and the purchase of machine tools and equipment. You are waiting for schemes, recommendations and advice for entrepreneurs starting a business with China.
Both beginners and experienced entrepreneurs often look towards China when developing their business. And this is not surprising, because China's trade with Russia is rapidly developing and this country provides a lot of opportunities in the development of its business. The organization of business cooperation with Chinese entrepreneurs is a separate area in which it is necessary to take into account the mentality, the rules for finding a supplier, and many other factors.
How to start working with China?
When establishing trade in goods from China, the entrepreneur must draw up an action plan. The steps for organizing trade with China for beginners are as follows:
This is almost a complete range of actions that an entrepreneur will need to perform in cooperation with a Chinese manufacturer.
An important role in organizing a successful business with the Middle Kingdom is played by knowledge of the business and basic cultural traditions of the Chinese, the legislation of this country.
We organize a business with its own specifics
Different lines of business require a different approach. If you are planning to organize a business selling Chinese goods. From this article you will learn recommendations for opening such a business.
Greetings! Chinese goods (cheap and not very cheap) flooded the Russian market. Everything is made in China: quadrocopters, gadgets, household appliances, clothes and shoes, green tea and products for cleansing the body, children's toys and stationery. Why not make good money off this idea of “abundance”?
Today I want to talk about what business with China is like. Where to start, what formats are available, what to look for, how and where to look for suppliers.
The business scheme for the resale of Chinese goods comes down to three stages:
- Find a product in China at the lowest possible price.
- Deliver it to Russia.
- Sell with a wrap to Russian buyers.
Why does this scheme work? After all, theoretically, any resident of Russia can order anything they want directly via the Internet and not overpay for the services of an intermediary.
But you, as a domestic seller, will have three "trump cards" at once:
- The wholesale purchase price from a Chinese supplier is always lower than the retail price. Even with your cheat, a vacuum cleaner, coffee equipment or a smartphone case will cost a Russian cheaper than when ordering them on the Alibaba website. In addition, there are not many suppliers in China that actually work with retail.
- The goods ordered from you are already in Russia (the exception is the drop-shopping business model). Delivery of goods will take several days or hours, not a couple of months.
- Buying goods from a compatriot for 90% of Russians is easier than looking for and ordering it on foreign resources. It’s more convenient, more familiar and there is no language barrier. And it’s also easier to return goods from a supplier from Russia.
Advantages of Chinese business
- Cheap goods. Goods from China for Russians are sold by domestic businessmen with a markup from 50% to 1000%. For comparison: work with Russian suppliers brings only 10-30% to the "dealer".
- Limitless range. In China, you can, without exaggeration, find anything you like: from exclusive and exotic to disposable consumer goods.
- High customer orientation of Chinese intermediaries and manufacturers. Competition in China is fierce, and price wars are ongoing. In order to survive, suppliers are forced to meet the needs of each client: make discounts, enable “financial protection” options, agree to the sale of small lots, offer more convenient payment and delivery terms, and much more.
Who is the business for? You must:
- First, warmly relate to the occupation of the “bought-sold” format. Not everyone wants and can earn on a banal resale for their own benefit.
- Secondly, it is easy and quick to find goods that are in demand (moreover, to find them both in Russia and in China).
- Thirdly, be ready to constantly develop: expand the range, promote groups in social networks, perhaps master coaching.
If everything is OK with all three points, we proceed. How to build a business? First, decide on its format.
Choosing a business format
Dropshipping
A dropshipping business can be opened with little or no investment. How to organize? Let's say you were ordered headphones in Russia and paid for them. You submit the application to the supplier in China, who sends the headphones to the buyer. You do not need to spend money and time on the purchase of goods, logistics and storage.
Your task is to attract the buyer and "persuade" him to buy the goods from you. No one knows that you are an intermediary and not a final supplier. For attracting customers, the supplier pays the dropshipper a commission (from 30% to 500%).
Joint purchases
The bottom line: several people unite in a group (for example, on a thematic forum) and buy goods from a supplier in small or large wholesale. Joint purchases allow you to seriously save on goods from China. Firstly, at the wholesale price, and secondly, at the delivery. It's no secret that shipping from China is often more expensive than the product itself.
Joint purchases make it possible to sell goods in Russia with a good markup: through social networks, websites or online stores.
Wholesale
Here, too, you are essentially acting as an intermediary between a major Chinese supplier and the final buyer in Russia. But it is not an individual Vasya or Petya who acts as the final buyer, but an entrepreneur. And he will buy goods from you not at retail, but in bulk.
Usually, start-up entrepreneurs in the province work according to this scheme. It is easier for them to buy a consignment of goods from a Russian intermediary (of course, at a good price) than to look for and order the same thing in China.
Online store
This option is for more experienced businessmen. Since starting from scratch in this format will be expensive and difficult. Creating a decent online store requires a significant initial investment. But the potential profitability of such a project is higher than that of the three models that I described above.
IM promotion usually begins with a group on a social network and with the creation of a professional landing page (“landing” page).
An online store is a topic that you can devote a whole post or even a blog to. Now I will not delve into the subject. I can only say that any IM (no matter what exactly it sells) stands on three “pillars”: assortment, prices and service. And the creator of the store will have to constantly work on all three "whales".
Where to look for suppliers?
If you do not plan to purchase large quantities of goods, then you will not need contacts of direct manufacturers or distributors - they work only with wholesalers.
There are three ways to search for suppliers from China:
- Through personal meetings.
- in Chinese trading floors.
- At exhibitions and presentations.
Personally, I prefer the third option more than others. You do not even need to apply for a visa and travel outside of Russia. Specialized exhibitions are regularly held in all major cities. There you can personally get acquainted with representatives of Chinese business, exchange contacts, discuss conditions and see the goods live. Often at such exhibitions, you can even test the product or take samples home.
Each intermediary has its pros and cons. I will write two words about the features of each.
aliexpress
The strengths of Aliexpress: financial protection of the buyer and the ability to buy goods at retail. The supplier receives the money only after the buyer confirms that everything is ok. At the time of purchase, the customer is assigned a unique tracking code to control the movement of goods. Pleases and a good choice payment methods.
Determining a supplier on Aliexpress is easier than on other sites: the system of statuses and ratings of sellers is well thought out here. You can chat with all of them (online translator to help). The site regularly holds a lot of promotions, sales and discounts.
Minus the intermediary: a constant rise in prices (today Aliexpress is one of the most expensive sites in China). There are a lot of the same type of goods, which complicates the search. And more and more goods are sold only in lots (packs).
Alibaba
On Alibaba, any product can be bought 2-3 times cheaper than from other intermediaries. But here everything is sold only by medium and large wholesale (no retail). Well, there are enough scammers on the site - this is a minus. And in any case, you will have to make a 100% prepayment for the goods (and this despite the fact that few people want to use Alibaba).
But there is Russian-language support, a convenient search, detailed (and more or less honest) information about suppliers and products.
Taobao
Taobao boasts the widest range of products (more than 750 million items). The site is in the TOP-100 most visited sites in the world. Here you can find something truly exclusive, and home consumer goods, and high-quality fakes of famous brands.
Taobao has very “delicious” prices, high-quality photos of any product, and excellent navigation. From fraudsters, the buyer is protected by a secure payment system.
But, unfortunately, the information on the site is presented only on Chinese. And you can buy something on Taobao only through intermediaries from China.
Tmart
Tmart provides localization of the site in Russian. But this is not the main plus: the site makes it possible to work according to the dropshipping scheme. The online store specializes in electronic equipment, accessories and components. But if you want, you can find clothes, sports equipment, and jewelry here.
Separately, I note the convenient navigation of the site, generous bonus program and a guarantee for the goods within 180 days from the date of its receipt.
Now about the "fly in the ointment". Tmart is being complained about due to interruptions in the delivery of goods and a lengthy return procedure. Well, and sometimes the declared product is simply not available.
Dino direct
Dinodirect took care of Russian-speaking clients and even provided for. Separately, it is worth noting a good choice of payment systems, generous bonuses and discounts, and the opportunity free shipping. In addition, Dinodirect warehouses are located in several countries (not only in China), which makes delivery much faster.
But the prices on the site "bite". And, in my opinion, it would be worth working on the interface: “glitches” and “freezes” happen regularly.
By the way, you should not be afraid of Chinese characters. To familiarize yourself with the product, you can use any online translator.
How to choose an intermediary to work with Chinese sites?
Your task: to choose a reliable partner on the most favorable terms for yourself.
Unfortunately, there are no less scammers in China than in Russia. You can run into a one-day company disguised as a mini-production. After payment, the company disappears along with the goods. Or choose an intermediary who cooperates with a dubious manufacturer (the product will not be of the quality you expected).
How to quickly check the supplier before starting cooperation?
- Make sure the legal address is correct. The "correct" supplier indicates the details of his company in full.
- Evaluate supplier reviews on the Web.
- Look for a supplier in the "black" lists and lists of scammers.
- Ask a future partner for a trip to the manufacturer's factory. Based on the supplier's reaction, conclusions can also be drawn.
- Check the details in the invoices for payment with the details of the partner indicated on the site.
- Examine the information about the supplier on the website of the China Chamber of Commerce and Industry.
How to establish uninterrupted supply? The classic scheme of cooperation looks like this:
- Choose products on the site.
- You send a list of items to an intermediary, and he compares the list with the balances in the manufacturer's warehouses.
- The intermediary issues an invoice, and you pay it (the margin is immediately added to the price of the goods).
- The intermediary buys the goods from the manufacturer, evaluates its quality and sends the order to Russia.
- You pay for shipping (the amount depends on the weight of the order and the timing).
Even before the conclusion of the first transaction with an intermediary, it is necessary to agree on the following points:
- Deal course.
- The amount of the intermediary markup.
- Terms of delivery of goods.
TOP goods from China
On the territory of Russia, you can resell any Chinese goods. But the TOP of the most "sold out" looks like this:
- Accessories. Perhaps one of the most popular categories: umbrellas, belts, bags, wallets, watches, cases for mobile devices.
- Household and computer equipment, as well as electronic gadgets: tablets, "readers", smartphones, iPhones.
- Toys and in general any little things for children (stationery, school bags).
- Car gadgets (navigators, video recorders).
- Plants' seeds.
It is desirable that the purchased product has two characteristics:
- Light weight and small dimensions (easy to store, no problems with delivery).
- It could be stored for a long time (so that it was possible to send goods throughout Russia, even by mail).
Start small and build up gradually
You can create a "test" business on goods from China with little or no money. Invest less - you will lose less if something goes wrong (they overestimated the demand for the goods, let the intermediary down, received a poor quality product).
Here are examples of goods whose price does not exceed 30 cents:
- Orchid seeds ($0.07).
- Smiley Face Stickers ($0.09).
- MicroUSB cable ($0.01).
- Tapes for needlework ($0.14).
- Tattoo decals ($0.29).
And do not rush to register an IP (although by law you are required to do this at the time of the first sale).
Evaluate competitors, product and demand in advance
The demand for a particular product is easy to estimate using the good old Wordstat (wordstat.yandex.ru). Just enter in the search bar "buy Omsk sunglasses" or "buy Sochi orchid seeds" - and you will immediately see how many potential buyers you have?
Have you ever thought about starting your own business?
Business with China without investments is now a popular topic in Runet, and there is nothing surprising in this: this country clothes and shoes us, and our life without its goods is generally impossible to imagine. This commodity expansion, which was launched by China with its millions of cheap workers, swept over not only domestic commodity spaces - the same situation all over the world. Therefore, it is important to get information in time that will help you start a successful business from scratch, without falling for a banal deception due to inexperience.
A little about China as a manufacturer and partner
China today is almost all consumer goods. And even if the term “Chinese fake” is pejorative, these products are not only in demand, they simply crowd out the products of manufacturers from other countries (even domestic ones!), since their cost is unrivaled.
China's economic growth is reflected in all areas:
- electronics;
- mechanical engineering;
- light industry;
- chemistry;
- Agriculture.
And this list can be supplemented with a listing of almost all categories, known to people production today. And no one knows how to deal with this phenomenon in a civilized manner - people buy cheap goods even when their incomes allow them not to do so. Hence the conclusion for someone who wants to start a business with China from scratch: working with Chinese manufacturers is a profitable business.
It goes without saying that the essence of this business will be the trade in goods produced in China. You will become an intermediary who will earn on the difference between the cost of goods from manufacturers and the price of their sale to the consumer.
The main points will be:
- proper selection of partners;
- the right form of cooperation.
We will dwell on them in more detail.
Correct selection
Deciding to choose China as the field from which to harvest, a potential business newcomer will be faced with the choice of those who:
- makes goods;
- or helps to find the first, and also helps to cooperate with them.
How to find manufacturers
Business with China without investments will be profitable business, if you take into account some features and nuances. Direct trade relations with the Chinese are the most promising, but this implies:
- personal contacts, for which you need to know languages \u200b\u200b(English is a must, Chinese is ideal) or use an interpreter (pro) and visit the country, because only in this way you will be convinced of the reality of production and its capabilities; plus, this will allow you to bargain for interesting offers, and not template thresholds from which they begin to “move” according to the conditions;
- the easiest way to make connections is by visiting specialized exhibitions, which are regularly held throughout China and there is a lot of information about them in Runet;
- pull up legal side(attracting a competent specialist), since a foreign trade contract is an icon that can protect your business (prices, terms, quality, quantity, equipment, etc., etc.), and will also become a “door” at customs.
Relationships through intermediaries
This is a less pleasant form of doing business with China from scratch in all respects. Intermediaries here can be different:
- Chinese - they speak at least English, and often Russian, languages, but here you will most likely play the obviously “winning” lottery, since you will be forced to believe a picture specially made for you and even the absence of bad reviews about the intermediary will not will be a guarantee of his good faith;
- domestic - they are "adapted" to work in domestic conditions (officials, taxation, duties, etc.);
- work through Internet exchanges, of which there are no number and the most famous ones are also well-known to many (alibaba, taobao, etc.), and there is also the possibility of safe transactions - the money is transferred to the seller only after your go-ahead that everything is in order, and the goods came (such security will result in a commission for you).
Intermediaries, if you get to relatively honest ones, will be able to:
- agree on the supply of goods;
- control the quality and timing of deliveries;
- secure the supply chain (China-consumer) by taking over shipping and customs;
- provide legal support;
- organize direct contacts (trips to China, etc.).
For this, you understand, you will pay them at least 10% of the turnover. Moreover, this is only a minimum, which tends to increase, depending on your negotiating skills and right choice partners.
Elementary "norms" of China business
The specifics of doing business with China from scratch will require rapid adaptation to such moments:
- getting used to prices in a particular currency, taking into account units of measurement and quantity: for example, often the price refers to a batch of 100 pieces of a particular product, and the metric system is ounces, barrels, etc .;
- the same with other parameters - for example, designations for shoe or clothing sizes are different than in the European Union;
- waiting for delivery takes weeks (well, if only 2-3) - unforeseen situations may arise at customs, but keep track of where the ordered products can be online (postal service).
Therefore, when deciding to start a business with China without investments, it should be borne in mind that it will take some time to figure it out and adapt.
The reality of no investment
Direct shipping of Chinese goods is an attractive way to start a business with China without investment. The essence of this method, in short, is that you will find a local buyer for a Chinese seller, “withdraw” money from him and send it to the country of tangerines, leaving a percentage of the purchase for yourself. Formally, the mission of such a seller ends here - then the Chinese themselves send the goods to the buyer (it is possible even on behalf of the business novice himself).
- you will have to pay for the list of sellers in China;
- very often there may be 100,000 manufacturers (real and not) on the list, contacts with which you will need to look for yourself;
- even if, by a lucky chance, an interesting manufacturer is found, it turns out that either the desired product is not in stock “now”, or its price is not at all the one that can pay off for a businessman who wants to open his own business without investments, or the cost of delivery will make the goods " gold."
However, this does not mean that business with China is impossible without investments - you need to try to do everything yourself, investing, first of all, your time and abilities.
How to start a business with China from scratch and without investments: a guide to action
Based on the analysis of the practice of those who were able to successfully establish their business with China, you can get some rules of conduct, following which will allow you to work and earn money:
These are just those theses that need to be understood, comprehended and correctly applied, expanded many times over, starting and successfully doing business with China from scratch and without investments on your terms.
It is common knowledge that China has become a global trading superpower. His leadership is largely provided by cheap products coming from the Middle Kingdom to all corners of our planet. If you join with the most powerful Chinese commodity distribution network, you can make good money on this. It is recommended to start such activities only when a high-quality business plan for the sale of goods from China has been drawn up. Such a document will help not only to calculate all the steps for organizing a business, but also to get acquainted with the nuances, which are quite a lot in this field of activity.
General concept of the project
The considered business plan for the sale of goods from China with calculations involves the creation of a trade enterprise that will sell goods, according to the “bought in China - sold in Russia” scheme, without affecting the organization of its own production in this country. As you know, the production in it is exclusively mass-produced. The production of batches of a wide variety of goods is carried out for hundreds of thousands and millions of items. This partly explains their cheapness, and, consequently, the profitability of retail facilities selling Chinese products.
The idea of organizing trade in Chinese goods is based on several obvious inferences.
The first of them is that around us in everyday life there is a huge amount of Chinese products. Perhaps only food from China has not yet dominated our refrigerators.
The second conclusion, convincingly confirmed by statistics, is that although many people can already order goods on Chinese marketplaces on their own, nevertheless, the number of those who prefer to buy the necessary goods directly in Russia and not wait a month for their delivery is not decreasing.
The third conviction is the recognition of the indisputable fact that China is the world's most masterful counterfeiter. Moreover, many well-known brands themselves go for it, selling Chinese manufacturers the rights to manufacture certain types products. Considering that the quality of production in China is constantly growing, consumers receive quite decent goods of world brands at incomparably lower prices than they could buy them, for example, in Europe.
The business idea of organizing trade in Chinese products is also attractive because it can be started almost alone at very little cost. After the promotion of investments in this business, of course, will increase, but the profit will also become greater.
Another nuance of organizing trade with China is that you should not immediately create a “department store” in which you will sell everything in a row, presenting various product groups. You should start with a certain type of product, it is best to determine this based on the demand for goods in your area. It can be clothes, shoes, goods for children, tools, spare parts for cars, electronics, etc.
An example of a business plan that is brought to your attention is designed for such a popular activity as the sale of spare parts for Chinese cars.
Market analysis
According to experts from the reputable media holding Expert, in the coming years, Russia will face a “new Chinese automobile invasion”. At the moment, the share of Chinese cars on our roads is relatively small, their number does not exceed 3.9%. But at the same time, one should not turn a blind eye to the fact that 2 years ago this figure did not exceed 1.8%. Taking advantage of the favorable geopolitical and economic situation, Chinese automakers have stepped up significantly and are beginning to attack the domestic car market in all directions at once, including the organization and expansion of their own production facilities in the Russian Federation. These aspirations are clearly demonstrated by the list of Chinese automakers present on our market. But that's not all, the list of players from China is constantly updated. For comparison, now the Russian car market is represented by: German marks - 6, Korean - 3, Chinese - 11 (!). Leading among them are 4 companies: Chery, Lifan, Geely and Great Wall.
The presence of Chinese auto giants is manifested not only in the fact that more and more of their factories are opening in our country, but also in the fact that the dealer and service infrastructure is gradually expanding. Many Chinese automakers are already immediately entering the market with a ready-made package of solutions for the supply of vehicles and their after-sales service.
Of course, Russians in Chinese cars are attracted primarily by the price, although with an increase in the quality of production, it is gradually increasing. Demand is held back by the lack of special prestige of models and experience in their long-term operation. In addition, to this day, Chinese models are characterized by very low liquidity in the secondary car market. Considering that the production costs of Chinese cars are low, no problems stop Chinese automakers from striving to expand their presence in the domestic market. Evidence of this is the trend towards solving one of the oldest problems - providing Chinese car owners with spare parts. Until recently, this issue was one of the most "hot" in the attitude of Russians to the Chinese auto industry as a whole. But it is already obvious that many companies are concerned not only with the quality of their cars, but also with the creation of a service network in Russia and the supply of spare parts.
That is why the organization of trade in spare parts from China is a very attractive option in this particular situation in terms of the choice of marketable products.
Description of the object
The trading facility for the sale of spare parts for Chinese cars and other related products is designed to solve the following socio-economic problems:
- Meeting consumer demand for spare parts for Chinese cars.
- Profit by creating a highly profitable enterprise.
- Creation of new jobs.
- Replenishment of the local budget by deducting taxes from the profits of the enterprise.
The main stages of the project implementation:
Stage/month, decade | 1 | 2 | ||||
Dec 1 | Dec 2 | Dec 3 | Dec 1 | Dec 2 | Dec 3 | |
Independent activity of the founder, formation of a base of suppliers of spare parts | + | + | ||||
Registration of an enterprise, registration of permits | + | + | ||||
Buying a car | + | |||||
Signing a contract for the lease of retail space | + | + | + | |||
Acquisition of trade and technological equipment | + | + | + | + | + | |
Coordination with the State Fire Supervision and SES | + | + | ||||
Installation of trade and technological equipment | + | + | + | + | + | |
Recruitment | + | + | + | + | + | |
Conclusion of contracts with suppliers of spare parts | + | + | + | + | + | |
Launch of a trading enterprise | + |
The location for the Chinese spare parts store is selected in the business part of the city. It is advisable that it be located near large car markets, service stations and dealerships. Considering the prospect of expanding the range of Chinese goods, the store should be located in places with the highest traffic of people during the working hours of the trade object.
This business plan assumes the use of a leased premises with an area of at least 200 square meters. meters. This will allow you to place in it all the necessary storage facilities, shopping room, rooms for staff.
To equip the store, standard trade and technological equipment is purchased, the cost of which is indicated in the summary table.
Organizational and legal form
The best option for creating a store selling spare parts for Chinese cars is to register the founder as an individual entrepreneur. On the initial stage the implementation of a business idea, this will greatly simplify the registration of a trading facility, will not require significant bureaucratic red tape and will make it possible to apply a preferential taxation regime: UTII. According to it, the declaration is submitted to the tax authorities once a quarter, UST and 3-personal income tax are paid, which does not require the creation of its own accounting department and allows outsourcing accounting.
Recruitment
To ensure the normal functioning of the facility and the fulfillment of the profitability indicators laid down in the business plan, it is necessary to have a staff of the following composition:
Job title | Number of staff units | Salary (thousand rubles per month) | General personnel expenses (thousand rubles in m-c) |
Store manager (at the initial stage of the project, the duties are performed by the founder) | 1 | 25 | 25 |
Merchandiser | 1 | 14 | 14 |
Art. salesman | 2 | 22 | 44 |
Store sellers | 2 | 17 | 34 |
Total | 117 |
For employees of the enterprise, the following working hours are established:
- Merchandiser - 5-day work week from 10:00 to 19:00.
- Sellers - in shifts of 12 hours (2 people in a shift work two days after two).
The store is open from 09:00 to 21:00.
In order to increase the motivation of employees, it is planned to introduce a bonus system based on the payment of bonuses in the amount of 10% of the excess revenue.
Product range
As mentioned above, an important success factor in this business is a clear definition of the range of products that the store will sell. To do this, even at the stage of developing a business plan, the founder needs to study the needs of the local market for auto parts for Chinese cars. In our paper, we used the statistics of the average values of the distribution of models of Chinese automakers among Russian motorists.
This is also done for:
- Collection of information on the availability of dealerships and the level of car sales for specific brands and models.
- Collection of data on sales from car dealerships.
- Analysis of statistics of private announcements on sales of Chinese-made cars.
- Analysis of advertisements in the media and the Internet about the need for spare parts.
- A study of the statistics of the most frequent breakdowns by models from Chinese automakers.
Our business plan for the sale of goods from China with calculations proceeds from the fact that the range of spare parts sold should be focused on owners of such car brands as:
- Great Wall.
- Chery.
- Geely.
- LIFAN.
The most important condition for the smooth operation of the store is the choice of reliable suppliers of spare parts. It is assumed that these will be wholesale companies that have proven themselves in the Russian market:
- ADK (GlavAvtoSnab company).
- KITPARTS group of companies.
- Vin-motors company.
These suppliers have a wide range of spare parts for various models Chinese cars, quickly deliver them at affordable prices. You can place an order with them online.
Marketing and Advertising
In order to promote the marketable products of the store and increase sales, it is planned to carry out ongoing activities aimed at improving the reputation of the enterprise and attracting new customers.
For this, the following methods will be used:
- Publication of flyers and banners.
- Advertising on elements of urban infrastructure and vehicles.
- Announcements on local radio and television.
- Distribution of information about the store in car dealerships and service stations.
- Website development and work through social networks.
The store is equipped with a bright signboard with lighting elements.
Financial plan
Estimated capital costs for opening a store:
Capital cost items | Amount of expenses (in rubles) |
Purchase of trade and technological equipment (showcases, racks, cash registers, etc.) | 350 000 |
Purchase of spare parts and formation of a commodity stock | 3 000 000 |
Payment for renovation costs | 300 000 |
Total | 3 650 000 |
Thus, over 84% of capital expenditures are spent on purchasing spare parts for Chinese cars. Procurement is financed by obtaining commercial loan in the amount of 3 million rubles for 24 billing periods at 17.5% per annum. Payment of interest and repayment of borrowed funds begin from the 1st month of the project implementation.
The calculation of the cost of production and the projected amount of revenue is made on the basis of the average statistical value of the trade margin for these retail facilities of 40-50%. In some cases, the size of the trade allowance may increase up to 70%.
The calculation is based on the terms of the lease of a 250 sq. meters.
The total project costs for 1 month of the store operation will be (in rubles):
An analysis of the costs and projected revenue of the enterprise allows you to calculate its profit and profitability:
Thus, if the amount of capital investments in the project is 3,650,000 million rubles, the trade enterprise will pay back the investments in 28.5 months. At the same time, the store will receive a monthly profit of 128,000 rubles.
Conclusion
Establishing a trading facility for goods from China will be a profitable business for a number of reasons at this time and for the foreseeable future. It is associated with medium-level risks and is easily diversified. With a competent organization of interaction with suppliers, the enterprise has good prospects for expanding the range, increasing the volume of goods sold, creating its own retail network at the regional level.
09Jan
Hello dear readers! It's time to summarize all the information about Business with China into one complete guide. There are a lot of articles on the site and today I put it all together so that in your head there is one complete picture of the business with China on the resale of goods and you know where to start!
- What do we mean by business with China and how it works;
- How to start a business with China for the resale of goods and what is needed for this;
- Where to buy goods, how to do it and how to sell.
As usual, I write everything from personal experience. So, a complete guide to doing business with China!
What is business with China and what is its essence
When I talk about doing business with China, I mean reselling goods from China. Those. bought goods in China, sold in Russia. This will be discussed further. Resale only!
I will not touch on production in China because it is a very labor intensive process. And if you have money for it, then it is better to spend it on the advice of specialists in this field. Therefore, do not ask me questions regarding production in China if you do not have at least a few million rubles for this. No one in China is going to make you 10 pieces of something. Production is measured in thousands. I'm talking about conveyor (factory), and not underground production.
Why business with China is still considered profitable
It has always been profitable and will be profitable for a long time to come. It is enough to look around in your apartment and you will understand that most electronics and household appliances are made in China, clothes are sewn in China, etc. Everything comes from there!
Fact #1. Russia will not learn how to produce stylish clothes, good electronics, etc. for a long time to come. I love my country, but there's nothing to be done, I have no faith that everything will change quickly in Russia. I would only be glad, but alas, so far we have what we have.
Fact number 2. Although many people can already order goods from China on the same Aliexpress, there will always be those who find it easier to buy from you in Russia and receive their purchase now or in a few days than to wait a month or even more until the order arrives from Aliexpress . If it were otherwise, stores in Mega and other shopping centers would have been empty for a long time.
Fact number 3. China is the world's largest "counterfeiter" of famous brands. Many brands have production in China and within a month after the release of any branded novelty, exact copies (fakes) appear on the Chinese markets at a price several times lower. No one can compete with China in this, which means that we will always buy the necessary goods there.
There are many more things to list, but I think that 3 facts are enough.
Is it possible to start a business with China without investments or only with investments
Business with China without investment is not possible! No way. At a minimum, you will need to invest in goods, advertising, a website, etc.
You will say that there is dropshipping with China. I agree! But after all, no one canceled investments in the site and advertising (at least).
Possible with investment. But only initially you need to calculate the amount of investments to implement your idea.
Who can do business with China
Now I will give a few criteria that are mandatory, in my opinion:
- You must be interested in this. If you are interested in the activity "Buy-sell", then this is for you.
- You must have free time. The more, the faster you will get the results of your labors.
- You should at least superficially understand how sales on the Internet work and know the types of advertising.
- You must have at least a modern computer or laptop.
- You must be a confident PC and Internet user.
- You must be able to see immediately what is profitable and what is not.
- You should not have questions about what markup to make on a product, etc. This is easy to check by comparing prices in China with your competitors in Russia and making a Grade 1 school calculation (Sale price - China price = markup). In any commerce, whether it is China or not, you must be able to count, and even more so money.
- You must be able to find products that are in demand.
- You should not have the last money, but free money, which in which case it is not a pity to lose.
- You must be willing to learn a lot of new information.
And you don’t need to believe any pseudo-gurus on the Internet that you can start a business with China without investments, spending 20 minutes a day on it and working from your phone. All this is a lure to buy information courses. There is only 1 course that really teaches and in which the real distribution of sales of goods from China. But read about it below if you are interested.
How to start a business with China on the resale of goods
Below will be step-by-step instruction, but because a lot has already been written on my site, I will give links for some moments so that you can read more.
Step 1. Idea for a business with China - what to sell
First you need to find an idea:
- What do you want to sell;
- Why this particular product;
- How will you sell it?
- Who is your potential customer?
- How much can you earn on this?
- Where is the best place to buy your product?
I will go into more detail below. But after your analysis, the idea should look like this.
Example:
- I will sell bags;
- Because it has no dimension, but has a constant demand;
- Since the assortment is large, it will be an online store + a group on Vkontakte + an Instagram account;
- I will initially focus on the female audience, because. they change them more often, in the future I will connect the men's assortment;
Or I’ll start selling men’s bags first, because I understand this product and I know that their prices are often higher, which means a higher margin + I myself am a man and I understand the male audience better. - After reviewing 100 sites selling men's bags and sites where you can buy them in China, I saw that you can wind up OT 100% on a product, which will double the money invested in the product from the sale. Having invested 20 000 r. I will receive 40,000 rubles. Subtract from this money for advertising, etc. still make a good profit. + there is a run for discounts.
- Since I don’t have money for wholesale, and I need to test it on a smaller amount first, I’ll stop at the Taobao website. If I live in Moscow, then it still makes sense to go to the Sadovod market.
Example 2:
- I will sell the Scholl Heel File;
- Because this product is actively advertised even on TV and is in great demand;
- Since there is only one product, I will sell through the Landing Page (one-page site) + Vkontakte group + Instagram account. I will use contextual advertising for traffic to a one-page site.
- Women and girls from 20 to 45 years old with an average and above average income (because with a low income they are better off buying pumice).
- After looking at 100 competitor sites, the average price for this file is 2000 rubles, and in China I can buy it for 600 rubles. Good twist. If you consider that there are thousands of requests on the Internet, then you can make good money.
- Since I have one product, I will consider buying on the 1688 website or Taobao. If I live in Moscow, then it still makes sense to go to the Sadovod market.
And the more detailed your scheme and your analysis, the more accurate the results will be. I advise you to choose more than 10 niches, analyze and test each one and already deal with those that are most interesting and profitable for you.
What is profitable to sell from China?
The answer is simple - anything! Everything that you can sell and what EXACTLY it will be profitable for you to sell.
You should initially approach this from the side of profit: “This product in Russia costs 1000 rubles, but I found it in China for 200 rubles. It's profitable, buy for 200, sell for 1000. And not vice versa!
I can't tell you exactly what to sell to you. Because everyone has a different vision of the market and not everyone can sell everything. The choice of goods is an individual process for everyone. I know people who earn hundreds of thousands a month on women's bracelets. But I could not sell women's bracelets the way they sell, which means I could not make money like that. I hope you understand what I mean?!
The following articles will help you find business ideas with China:
Step 2. Where and how to buy goods in China wholesale and retail
The basis of those sites where you can buy goods:
- Taobao
- Aliexpress
- Alibaba
The first 2 retail, the second 2 wholesale. I have been working with Taobao for retail and since 1688 for wholesale! But very often I look for suppliers on Alibaba (I don’t buy there, but I look for suppliers and correspond with them !!!)
But you can also buy in Russia (in Moscow) at.
To work with these sites and, in principle, to find suppliers, the following articles will help you:
For purchases on all sites except Aliexpress, you will need an intermediary because buying it yourself is very problematic and sometimes risky! An intermediary without risk redeems your goods for a percentage and sends you in one order. Issues with customs also fall on the shoulders of the intermediary, so you just get your goods in your city. It's convenient and easy!
You can find your intermediary, or you can use mine. I wrote about him in an article:.
Step 3. Testing a Niche
When you have collected a list of ideas, analyzed the demand, found a product, then it's time to start testing the niche. I wrote about this in detail in an article about.
In short, the process is to quickly create a site (you can copy from competitors), set up test advertising with a minimum budget, and receive applications for the purchase of your products. If there are a lot of applications, then it is worth buying goods and starting an active sale. If not, then we test another idea. We continue like this until the tests show positive results.
By testing BEFORE buying products, you save a lot of money!
Step 4. How to sell and ship goods from China to customers
There are many ways to sell:
- Social networks (Vkontakte - groups, Instagram - account);
- Online store
- Bulletin boards (Avito)
- One-page sites (Landing Page)
- Offline store (outlet)
I can’t tell you anything about offline sales, because. did not open stationary stores. I only worked online.
Here is a selection of articles on sales tools:
Here are articles on sending goods to customers and accepting payment:
Step 5. What we have as a result
Let's go through the first 4 steps and as a result we get:
- You have chosen a product, decided on a niche;
- Do you know where to buy goods?
- You have tested the products and you are left with those that gave the best results after the test;
- You know how you will advertise and sell products;
- It remains to purchase goods and increase the volume of advertising and sales.
Business training with China
I am self-taught, I have not studied with anyone and now I do not teach anyone. But I didn't come into the commodity business as a newcomer to the Internet business, I knew how to make websites myself, set up ads, and so on. Accordingly, I studied only the commodity part, but still spent a lot of time, effort and money on self-study and tests, which were not always successful.
If you don't want to spend a lot of time hitting bumps, you can learn from someone.
I advise you only one person who can really teach commodity business on the Internet is Roman Kolesnikov. Here is information about his course. There are also free lessons!
This is the only person I know who is primarily in the business of selling goods and only teaches in addition! Those. he is a real practitioner whose knowledge is updated every day, because he is still in this business. For all the time he has achieved good results and often shares them on the pages of my site!
He will teach you from scratch how to succeed in selling Chinese goods, from finding products to setting up advertising, creating a website and working with clients. FROM and TO.
But, I repeat once again, to learn or not, you decide. Roman's course is just my recommendation to those who decide to study and think about whom to go to. If there was such a course when I started, I would definitely take advantage of it.
I am often asked to give some advice to beginners. I also collected them:
- Start small and build up gradually. Any undertaking is a risk of being left with nothing. So try with minimum investment and when things start to work out, invest more money.
- If you are completely new to doing business with China, then I would advise you to learn from someone (I wrote above), because the market is developing very quickly and you can not keep up with your competitors by self-learning. But here everything is purely individual.
- Analyze competitors, products and demand as deeply as possible. It is not always enough just to point a finger and say: “I want to sell this…”. You may want something, but will they buy? Therefore, first of all, evaluate requests on the Internet (I gave a link above to assess demand), look at prices on Chinese sites, prices from competitors, and then decide whether it is worth trying or not.
- If you're not interested, then don't start. Burn out quickly. This has long been proven in any business. Routine is everywhere and at first you will have to do most of the work.
- Do not believe those who say that they will teach you to work 2 hours a day and earn big money, this is a scam. It has long been proven.
- Everything needs to be touched. Therefore, order the goods for yourself, touch and then sell. So you will be more confident in the quality of the product and be able to tell more about it.
- At first, do everything yourself, and then delegate. Otherwise, you will not be able to grow quickly.
- Do not focus only on sales in your city, do not make my mistakes. Immediately sell to the whole of Russia.
- Do not be afraid of competition, it is in any business. And where there is none, there is no business.
- Be honest with customers, provide great service, fight for the quality of goods and come up with all sorts of promotions, discounts, gifts, etc. Please your client and then the client will please you.
Business with China and laws
Everyone should understand that any entrepreneurial activity must be registered and taxes must be paid for any income. Therefore, business with China is the same business and the same rules apply to it. Which means:
- It is necessary to register a business (IP or LLC);
- Pay taxes;
- Have documents for goods.
But I will make a reservation. Everyone, without exception, begins to earn without registering and paying taxes. This is logical! And I would advise you to try it first too, and when things go well and you get a stable income, then register your business.
Forgive me sir. authorities, but personally I see no reason to register a business for those who have sold 3-10 goods and no longer work. As a result, activities are terminated. But when you have been working in profit for several months and you know that you will continue to do this, then you already need to register a business. If we had done the first year without taxes and contributions when registering an individual entrepreneur, then I would have changed my mind, because. nobody loses anything. But not yet.
We have been working as an individual entrepreneur for a long time and there is nothing terrible in this, as it may seem to many.
(much easier to work with).
That's all. Nothing complicated!
Answers to frequently asked questions
Is it possible to start a business with China without investments?
No. Only with investments, but it is possible with the minimum.
- With what amounts of income to open an IP?
With what conscience will allow. There are no such amounts. By law, you must open immediately from the first day! If logically, then I described above. But there are no fixed amounts, it all depends on you.
— Is it possible to buy in China without an intermediary?
You will get a bunch of hemorrhoids, believe me! Everyone who does not believe and tries, then asks me questions in the form: “Nikolay, what should I do, the goods were detained at customs” or “Nikolay, what should I do, all the goods came to me defective.” To avoid all this, there is an intermediary.
- Give me the contacts of your intermediary!?!
In the article about the intermediary (given above), I wrote where to apply for an intermediary. Those who apply through the site (Ask a question), they all receive the contacts of a person I verified in China.
- Nikolai, advise me, of course not for free!
I do not provide consultations, paid and free. If you want to learn, then above gave a link to Roman's course, he is a pro!
– If I don’t understand anything about this, I don’t have a computer, only a phone, how can I start?
No way! Better look for yourself something else. And in some cases it is better to look for a job. I'm not judging you, I just have nothing to help you.
Do you think no one asks these questions? Catch:
As questions come in, I'll add them here.
In conclusion, I want to wish you good luck in all your endeavors! Do what you love, learn and get better! Read my site, but rather subscribe to new articles, there are a lot of interesting things here!
Sincerely, Schmidt Nikolai