The 6 most common mistakes when importing from China

Importing from China sounds fairly straightforward on paper. You find a supplier on Alibaba, order a few thousand units of your chosen product and, a few weeks later, everything arrives at your warehouse.

In an ideal world, that is exactly how it works. But in the real world, things often turn out a little differently.

At Redjumla, we work with entrepreneurs who encounter the same pitfalls time and time again when importing from China. Some mistakes may only cost you a little extra money, while others can put an entire order at risk.

So, it is time to take a closer look at the six most common mistakes made when importing products from China.

Mistake #1: Choosing based on price alone

The temptation is understandable. You compare around eight suppliers on Alibaba and choose the cheapest one. That makes sense, right? After all, it immediately gives you a much better margin.

Unfortunately, it is not that simple. The lowest price is certainly not always the best option.

An unusually low price is often a sign that costs are being cut somewhere. And this rarely happens in an area that benefits you. Think of cheaper materials, less stringent quality controls, inexperienced employees and missing or incorrect certificates.

That is why you should look beyond the price and also consider:

• How long the factory has been operating
• References from other customers
• Whether they have previously manufactured products for your market
• The quality of their communication and how quickly they respond

A slightly higher purchase price is often still a bargain compared with the cost of a failed production batch.

Mistake #2: Not requesting proper samples

We still see it happen far too often: an entrepreneur immediately places a large order without first receiving and approving a sample.

The risk is that you only discover the product does not meet your expectations when the entire shipment is already halfway from China to Europe.

And even when a sample is sent, things can still go wrong. The sample may have been manufactured with additional care—a so-called ‘golden sample’—while the quality of the actual mass-produced goods turns out to be significantly lower.

Always request a representative sample before placing an order and document the exact specifications the final product must meet. This helps you avoid unpleasant surprises later on.

Mistake #3: Skipping quality control

The third mistake may also be the most expensive one we encounter. Entrepreneurs often place complete trust in their supplier and skip an independent quality inspection to save money.

The problem is that the factory you are working with has its own interest in completing production as quickly and cheaply as possible. An independent inspection before shipment is therefore not an unnecessary luxury. It is more like insurance against costly mistakes.

We have seen plenty of shipments that later had to be largely rejected, simply because no inspection took place during or after production. That is a waste of your money and time, and it can also damage your reputation with customers.

Mistake #4: Underestimating import costs

Many new e-commerce entrepreneurs only consider the product price and forget that a considerable number of additional costs still need to be added. Examples include:

• Transport costs, whether by sea or air freight
• Import duties
• Import VAT
• Customs clearance and possible storage costs
• Transport from the airport or seaport to your warehouse
• Special import measures for certain product categories

The result? You calculate your expected profits based on the product price, only to discover later that your margin is much smaller than anticipated.

Always calculate your full cost price in advance, including every additional expense, before determining your selling price.

Mistake #5: Making incorrect or unclear agreements

Miscommunication between you and the factory you work with is one of the most common causes of problems when importing from China. In most cases, there is a lack of clarity regarding:

• The exact product specifications
• Who is responsible for transport, such as with EXW versus FOB
• Delivery times and deadlines
• Payment terms

Make sure everything is documented as clearly and specifically as possible. Ideally, you should do this in writing and include photographs or technical drawings.

Something that seems obvious to you may not always be obvious to the factory in China. Cultural differences and language barriers regularly cause agreements to be interpreted differently from how they were intended.

Mistake #6: Failing to account for inventory and cash flow

The final mistake we want to mention relates to inventory and cash flow. When you place a large order with a factory in China, the supplier will often request a deposit. You then pay the remaining balance when the goods are shipped. Meanwhile, your products may spend several weeks at sea before they can finally be sold.

This creates a significant cash-flow challenge, especially for growing businesses. We often see entrepreneurs get stuck because of this. They want to scale up, but simply do not have enough working capital available to finance a larger order in advance.

It is therefore important to think carefully about how you are going to solve this beforehand. Inventory financing can provide a solution. It prevents your company’s growth from having to slow down purely because of a temporary lack of capital.

How can you avoid these mistakes?

The good news is that every mistake on this list can be avoided, provided you think things through beforehand or work with the right partner.

At Redjumla, we take the entire process off the entrepreneur’s hands and manage everything from A to Z. We understand every detail involved in importing products from China.

Curious about what we can do for you? Feel free to contact us. We would be happy to discuss the possibilities with you.

FAQ

What is the most common mistake when importing from China?

Skipping an independent quality inspection is often considered the most expensive mistake. Entrepreneurs place complete trust in their supplier, while an independent inspection can prevent an entire shipment from failing to meet expectations.

How can you avoid quality issues with products from China?

To avoid quality issues when importing products from China, you should always request and approve a sample before placing a large order. Make sure that this sample is identical to the products that will later be manufactured during mass production.

Is it risky to import from China through Alibaba?

Alibaba can be a perfectly good starting point, provided you proceed carefully. Always check the supplier’s background, request references and arrange an independent quality inspection. It is not wise to rely blindly on reviews or simply choose the lowest price.