When considering importing products from China, the most crucial step is choosing the right products to buy. Whether you’re running an e-commerce business or operating offline stores, selecting the right products is vital to your success. The type of products you should choose depends on your country’s business environment and your business model.
For many entrepreneurs, especially those who are new to importing or lack extensive market experience, it is easy to make the wrong product choices, leading to wasted money and time. Some may even abandon their business dreams as a result. In this post, I’ll provide practical tips on choosing products by analyzing six different product types. This will give you a better understanding of what kind of products you should import from China to make good money.
Trending products are those that spread quickly in the market, attracting many new sellers. These products, often described as viral or hot-selling, can create a buzz in both online and offline markets. Typically, it takes six months to a year for these products to go from being unknown to widely recognized. When everyone wants to buy them, countless sellers rush to import them from China to get a share of the market.
However, entering the market at this stage might be too late. The demand starts to decrease, and the market becomes oversaturated, leaving little profit margin for new sellers. The key to making good money with trending products is not just being early to the market but also having a robust distribution system and strong promotional capabilities. For instance, during the COVID-19 pandemic, products like masks were in high demand, but only those with the right qualifications and timely entry into the market could capitalize effectively.
In conclusion, trending products are not recommended for new importers unless they have excellent market insight and can start at the right time to make quick money.
Low-value but high-demand products, such as toilet paper, printer paper, baby diapers, and disposable cups, often seem like attractive options for new importers. The wholesale prices of these products in China are significantly lower than in many other countries, and they are always in demand.
However, these products are not ideal for new importers. Despite their low cost in China, the shipping costs can be disproportionately high relative to their value. For example, importing disposable paper cups requires purchasing large quantities to minimize the shipping cost per unit. Additionally, many countries have local manufacturers producing these items, making the price difference negligible when you factor in shipping costs.
Unless you’re importing for your own company or have strong relationships with large local buyers, it’s better to avoid these types of products as a new importer.
Ordinary consumer products like towels, T-shirts, hoodies, backpacks, and sunglasses might seem like good choices due to their consistent demand. For example, high-quality cotton socks might cost $0.30 to produce in China, with shipping costs ranging from $0.02 to $0.20 per pair, depending on the shipping method and quantity. Selling these socks in the U.S. could yield a profit of 6-7 times the cost.
However, these products are not suitable for new importers for two main reasons. First, in developed regions like North America or Europe, large retailers dominate the market for ordinary products. Competing with them can be challenging due to high store rents and labor costs. Second, selling these products online requires significant marketing investments, similar to the costs of running a physical store.
That said, there are opportunities if you can differentiate your products or if you are operating in developing countries where large retailers do not monopolize the market.
Solution 1: Improve or adjust the products to make them stand out. For example, the Swedish brand Happy Socks achieved success by offering unique and interesting designs.
Solution 2: In developing countries where small stores still dominate the market for ordinary products, there may be opportunities to sell these items.
Products with small demand in a specific niche market are often the best choices for e-commerce businesses. Although these products cater to a smaller audience, they offer unique business opportunities. With fewer competitors, customers are often willing to pay more, allowing you to make a good profit.
Many successful e-commerce businesses focus on niche products. For example, some clients who sell expandable garden hoses or acrylic makeup organizers have reached annual revenues of over $300,000. Although the return on investment (ROI) for some of these products may decrease over time, the niche market remains a lucrative opportunity for new importers.
If you focus on a specific product type, making good money is not difficult. Concentrating on niche products can yield significant revenues with the right approach.
Many new importers mistakenly believe that they can easily import brand products like Nike shoes, Xiaomi smartphones, or Huawei smartphones from China at a lower cost. However, most brand products have their own established distribution networks, and it’s not possible to purchase them directly from manufacturers.
There are two situations where importing brand products from China might be viable:
Situation 1: If there are no official retailers in your country, and you can manage the costs associated with importing, you might consider this option. However, you must ensure that your supplier has the authorization to sell brand products in China. This authorization is crucial for customs clearance and avoiding issues with counterfeit goods.
Situation 2: Importing second-hand brand products or parts can be profitable. For example, you can import second-hand iPhones or iPhone components for repair centers in your country. Many repair businesses rely on parts imported from China.
In addition to small niche products, focusing on a specific product category can be a successful long-term strategy. By dedicating yourself to a particular category, you can explore various product opportunities and build your own brand over time. This approach allows you to develop a stable customer base and grow your business.
For example, one of our clients from Singapore specializes in women’s underwear. With our help, she grew her business from a small operation to a million-dollar enterprise in just two years. Another client from Italy developed a luxurious cosmetic product line named after his resort, achieving similar success.
If you plan to develop your business into a multi-million dollar enterprise over 5-10 years, start by choosing a product category that interests you and gradually expand within that category.
If you have questions or need advice on whether a product is worth importing from China, feel free to leave a comment or contact us. If you found this article helpful, please share it with your friends.