Category: Recommended Articles

How to Find a Design Freelancer for Your Customized Products

Posted on by Fredrik Gronkvist — 2 Comments

design freelancer

In the age of Amazon brands, Aliexpress and Wish, it’s becoming increasingly difficult to succeed with generic private label products. Creating unique, custom designed, products is the only way forward for smaller E-commerce businesses that can’t compete on price alone.

Yet, while many E-commerce businesses have great ideas for custom designed products they want to bring to market, they lack the in-house design expertise, or budget, to turn their visions into practical 3D design files and technical drawings.

But, as I explain in this article, the creation of a custom-designed product is not nearly as complex or difficult as you might think. Continue reading How to Find a Design Freelancer for Your Customized Products

What’s the Difference Between OEM and ODM Products?

Posted on by Fredrik Gronkvist — 13 Comments

Difference OEM and ODM

Many suppliers on Alibaba.com, and other supplier directories, claim to offer Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) products. In this article, we explain what OEM and ODM mean in the context of manufacturing in China, and other Asian countries.

Whether you decide to get an OEM or ODM product manufactured impacts the entire process, from supplier sourcing and RFQ to product samples and manufacturing. Continue reading What’s the Difference Between OEM and ODM Products?

Minimum Order Quantity (MOQ) Requirements in China: A Complete Guide

Posted on by Fredrik Gronkvist — 28 Comments

Suggestion: Watch the 10 minutes video tutorial before reading this article

The Minimum Order Quantity (MOQ) requirement sets the minimum number of units that you can buy from a supplier. For example, an MOQ of 500 pcs means that you cannot order anything less than 500 units of a certain product. The MOQ requirement can therefore be an obstacle for small buyers, especially as it tends to be set on a per-product basis rather than on a per order basis.

That said, there are ways to reduce the MOQ requirements, while also allowing the supplier to keep a fair profit margin. This, and much more, is explained in this guide covering everything importers must know about MOQ requirements in China.

Overview

  • MOQ Examples
  • What is the Minimum Order Quantity (MOQ)?
  • How to confirm the MOQ requirement
  • Minimum Order Value (MOV)
  • MOQ and COVID-19
  • Why the MOQ exist
  • Different types of MOQs
  • How to reduce the MOQ
  • MOQ in China VS Vietnam & India
  • Issues when buying below the MOQ
  • MOQ reduction strategies

MOQ Examples

Continue reading Minimum Order Quantity (MOQ) Requirements in China: A Complete Guide

Global Recycling Standard (GRS): What Importers & Manufacturers Must Know

Posted on by Fredrik Gronkvist — 1 Comment

Recycling Bin

Recycled materials are used to manufacture everything from apparel to phone cases. These days it seems like every single supplier can ensure that their materials are “eco friendly”. But, how can you be sure that the materials are actually recycled?

That’s where the Global Recycling Standard (GRS) comes in. In short, GRS helps importers and manufacturers ensure that their materials are recycled, and also comply with certain standards concerning chemicals and environmental practices.

Keep reading this article written by Shufen Lee, to learn what you must know about Global Recycling Standard (GRS) and how it can help your efforts to make your products more sustainable. Continue reading Global Recycling Standard (GRS): What Importers & Manufacturers Must Know

Using Eco-Friendly Materials When Manufacturing in Asia: A Complete Guide

Posted on by Fredrik Gronkvist — Leave a comment

Looking for ways to make your e-commerce product more eco-friendly? You’re not alone. I estimate that roughly half of the customers we work with today have some sort of ‘eco’ dimension as part of their product concept.

After all, if Adidas can make shoes from recycled ocean plastic, then I guess anyone can?

While I wish it was that simple, it does take more than a cool website and good intentions to make your product more eco-friendly.

Keep reading, and learn what it takes to use eco-friendly materials when manufacturing products in China, Vietnam and other countries in Asia.

It’s not as easy as you might think.

List of Eco-Friendly Materials

Shufen Lee, an independent research collaborator with Asiaimportal (HK) Limited, contributed to this article. She did extensive research to create a list of various types of eco-friendly materials.

  • Recycled materials
  • Natural materials
  • Bio-plastics
  • Organic cotton
  • Wood and paper
  • Types of Eco-Friendly Materials

Continue reading Using Eco-Friendly Materials When Manufacturing in Asia: A Complete Guide

US-China Trade War Tariffs: An Essential Guide for Importers & Amazon Sellers

Posted on by Fredrik Gronkvist — 24 Comments

US-China Trade War

Like many others, I assumed the US-China trade war would be a short affair. I envisioned some deal involving mutual trade concessions taking place in a matter of weeks.

How wrong I was.

Now we are facing the prospect of a decade-long trade war, that will possibly mark the end of an era. Given that the United States is our main market, in terms of users, the trade war has a severe impact on our business too.

I’m not here to discuss which side is morally right or wrong. But I do have an obligation to share my views of how the US-China trade war may impact small businesses in the US, importing from China.

  • Why the trade war could massively benefit Chinese sellers
  • Which products are affected by the new tariffs?
  • Which products are not affected by the new tariffs?
  • What does this mean for US importers?
  • Will China or the US win the trade war?

The trade war also comes with some unintended consequences, that have the potential to backfire massively. Continue reading US-China Trade War Tariffs: An Essential Guide for Importers & Amazon Sellers

Sea Freight & Shipping from China: The Ultimate Guide

Posted on by Fredrik Gronkvist — 161 Comments

Suggestion: Watch the 10 minutes video tutorial before reading this article

Shipping by sea is the most cost-effective transportation method when importing from China, and elsewhere in Asia. That said, understanding how the shipping process works is as error-prone as it is tedious and mind-numbing – especially for small businesses without prior experience.

In this comprehensive guide, you will learn everything Amazon sellers and small businesses must about sea freight when importing from China.
Continue reading Sea Freight & Shipping from China: The Ultimate Guide

Canton Fair Spring 2020: The Ultimate Guide

Posted on by Fredrik Gronkvist — 11 Comments

Suggestion: Watch the 10 minutes video tutorial before reading this article

The Canton Fair is the longest-running and the largest trade show in Mainland China. Think of it as the ‘offline version’ of Alibaba.com, and you’re getting close. In this guide, you will learn everything importers must know about the Canton Fair:

  • Why should I visit the Canton Fair?
  • Canton Fair Products and Phases
  • Canton Fair Dates 2020
  • Traveling to the Canton Fair
  • Visitor Registration
  • Visa Requirements
  • How to get an invitation letter

Continue reading Canton Fair Spring 2020: The Ultimate Guide

VAT on Imported Goods from China: A Complete Guide

Posted on by Fredrik Gronkvist — 95 Comments

Suggestion: Watch the 10 minutes video tutorial before reading this article

Imported from Asia to the EU, or selling cross-border? In this guide, we explain what importers, Amazon sellers, and cross-border e-commerce companies must know about the Value Added Tax (VAT) in the European Union.

We also collaborated with Alex Wyatt from SimplyVAT and Dr. Matthias Oldiges from KMLZ, two of Europes leading experts, to create this comprehensive VAT guide.

This is covered

  • VAT calculations for European importers
  • VAT rates in EU member states
  • How and when to pay VAT
  • VAT registration for EU companies
  • VAT registration for non-EU companies
  • VAT when dropshipping products
  • VAT when selling products online within the EU
  • VAT registration when selling from overseas to the EU
  • VAT when selling on Amazon

What is Value Added Tax (VAT)?

The VAT is a consumption tax in the European Union. In B2C transactions, VAT is always included in the price. If you, for example, buy a product online from an EU based online store, the price you pay includes VAT.

The seller can then subtract the VAT paid on imports, from VAT added on top of the sales price.

Below follows an example:

  • Sales: $10,000 (Including VAT, 20%)
  • Expenses: $5,000 (Including VAT 20%)

This allows us to make the following calculation.

  • Sales VAT: $2,000
  • Paid VAT: $1,000
  • Total: $2,000 – $1,000 = $1,000

Thus, I would need to pay a VAT of $1,000. If I’d spent more on VAT than I added on top of my sales, I would instead get money back from the state.

Continue reading VAT on Imported Goods from China: A Complete Guide

Trading Companies in China: A Complete Guide

Posted on by Fredrik Gronkvist — 17 Comments

Trading Company

Everyone wants to stay away from Trading Companies and go directly to factories when buying from China. That said, it’s not always clear when the trading ends and the manufacturing begins. In this article, I aim to explain what a trading company is, and how they differ from manufacturers.

Further, I also cover the different types of trading companies, some of which are good and some of which are less so. Continue reading Trading Companies in China: A Complete Guide