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Import from China – How Is It Profitable for Your E-Commerce Business?

Import from China is not only about cheaper prices. You also get access to high volume production and a wide range of products among other things so you can strengthen your business

Vaughn Cook RockWell Window Wells
Editorial Team
April 10, 2023

Businesses all over the world have their focus on China at present. The national income of China has grown due to numerous developments in the industries operating here. Foreign trade has made it possible to cross geographical boundaries so that customers of the global market can be serviced properly.

If you’re looking to find a way to boost the growth of your e-commerce business, importing from China is a good option for you. With an e-commerce business, you will be able to boost business growth and provide customers with all that they may want at one convenient location.

But why import from China specifically? What makes importing from China for your e-commerce business the go to option? Ultimately, the goal of any business is to achieve profits and boost business growth. When you import from China, your e-commerce business is highly likely to be a more profitable one. Why is that so? In this article, you will get a clear idea of how import from China can be profitable for your e-commerce business. Cost savings may seem like the most obvious benefit, but there are a lot more reasons to import from China that go beyond just competitive prices in China. Read on to find out what these are.

You will benefit from cheaper prices

This benefit should not come as a shock to anyone thinking about importing from China as low prices are the most obvious reasons for importing. While it may seem like the costs of importing may increase the overall costs of the product, that actually isn’t the case. Including all overhead costs, importing from China will actually work out to be a cheaper alternative to local production.

You will be able to access suppliers and get a price quote that is far less than what you would have to otherwise pay. The lower cost of the products will help you save money for your e-commerce business.            

Some additional importing costs that you should be aware of include:

  • Transportation costs
  • Customs Broker fees
  • Warehouse, inspection, and port of entry fees
  • Agent fees
  • Import duties

Keeping these costs in mind however, you will still be more likely to save on costs when you import from China. So don’t get scared seeing those expenses. Calculate the total cost and see for yourself.

You can get access to unique quality of goods for your e-commerce business

If you are planning to import from China for your e-commerce business, you will have a variety of options to choose from. You can get access to unique goods that aren’t easily available in the market, this is an advantage that can grow your business.

No matter what type of product you are looking for, you will most likely be impressed with the range of options available on Chinese imports. As a comparison- similar products, when produced domestically, are often priced exorbitantly as a reflection of higher overall costs.

Several Chinese products are popular among consumers all over the world and you can bring them to the local market by importing them from China. It will no longer be about sticking to what can be produced on home ground. The possibilities are endless and importing from China can make it happen for your e-commerce business.

Your profit margin will increase

Profitability is a key driving factor for every business. A business that is not able to make profit in the long run will end up shutting down their operations. When you choose to import from China, you will get the benefit of high quality goods becoming available at miniscule prices. This will save you on the cost of production and total landed cost per unit on the product.     

With lower costs, you will be in a position to increase your profit margins. The amount of profit earned will, of course, depend on the selling price of the products as determined by your e-commerce business.

Higher profit margins will drive the success of your business. The high quality products are likely to attract more customers. The relatively low investment will increase the gap between the cost price and the selling price, thereby enabling you to boost your e-commerce business success.

High quality goods become available

Cheaper prices of products from China don’t come at the cost of product quality. You don’t have to worry about compromising on product quality when you import from China for your e-commerce business. It is a common misconception that importing from China will typically give you access to products that are of low quality. This could not be further from the truth.

Suppliers in China operate manufacturing facilities that are known to produce high quality products that consumers can benefit from. They also have to comply with accepted standards and specifications. Whether it is licenses, quality guidelines, tariff details, or more, you can rest assured that high quality goods will be supplied for your e-commerce business.  

With stringent inspections being carried out pre-shipment and at other points, you can be confident that quality of the goods will receive special attention.

Easy customization of products is possible

If you’re the type of e-commerce business that doesn’t do standard, don’t worry. Importing from China will allow you room to make a lot of customizations and specifications tailored to your desired needs. Some of these customizations, when done domestically may increase costs so much it makes the customization impractical. While on the other hand- importing from China makes it possible for you to get access to products that are specifically customized to the needs of your company all at a lucrative cost. You don’t ever have to feel like you have got to settle. Provide customers with all that they want without having it eat into a large chunk of your budget. The ease of customization makes the entire process of doing business a lot more exciting.

Import from China - Lot's of rubber ducks
You can access large production capability when importing from China.

You won’t face issues with larger quantities

As an e-commerce business, being able to meet the requirements of large orders is especially crucial. When you’re working with larger quantities, you need to make sure you can rely on your suppliers to deliver. This isn’t just for the large order but also in terms of the time constraints of business operations. China is considered the world’s factory due to the many advantages it offers global businesses. It has significantly lower labor costs and the operating business system makes it possible for suppliers to meet large quantity demands within deadlines for such products. You won’t have to worry about any delays affecting your businesses’ bottom line.

You will have better control over your e-commerce business distribution

One thing that is very important for any business is to exercise control over your business distribution. There are strict guidelines that govern the import of goods from China. Relations with suppliers are also subject to agreements. While you may be importing products from China, you will enjoy a higher degree of control over the distribution function of your business operations. Better control will keep you on top of your functions and help you make improvements as you may see fit for your business. This will increase the efficiency of business operations.

When you import from China, there are 11 Incoterms that you need to be aware of. These Incoterms govern the mutually agreed upon responsibilities of sellers and buyers with regard to the international shipping of commercial products. The word “Inco” in the term represents international commerce.

By importing products from China, you will make a variety of options available to the local consumer and boost the growth of your business. The variety of products can help customers make more informed decisions. It will save them time and give them a convenient and safe way of shopping for the products that they need.

As a business, not only will it lower your costs, but it will be easier for you to scale up your e-commerce business. The tracking of customer data and inferences drawn from such data can also help you create a greater level of personalization for products imported from China.

When you are importing however, it is important that you know the difference between a trading company and a sourcing company. There are several sourcing support services that a sourcing company in China can offer you. But many businesses fail to realize the clear line of distinction between the two and end up signing with a trading company. You will protect yourself from a higher degree of risk when you choose the right sourcing company in China to meet the needs of your business.

Besides paying attention to this basic difference, it is also important that you have a written agreement stating the nature of the business relationship with your Chinese supplier. Make sure you understand the laws that specifically apply to such international operations and protect yourself in case any problems arise in the future.

Running inspections and even visiting facilities in China yourself can provide confidence that the supplier is the right one to import from. While China may be the world’s factory in many ways, there are still some risks involved that require you to get into an agreement prepared to protect yourself.

It’s always a good idea to have someone who understands the local language to be on board your team so that you can comfortably overcome the language barrier. This will prevent any misunderstandings and help you communicate your needs more clearly.

With so many benefits of importing goods from China, it is no wonder that businesses are quickly opting to go down this route. It is a smart choice for any e-commerce business that hopes to get an edge over the competition and continue to grow in the long run.


Sourcing Allies is a team of expert China sourcing agents that has helped western customers manufacture and source products from low-cost regions since 2006.

For more on China sourcing visit our website or write to us at info@sourcingallies.com.

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