IMPORT BUSINESS IN KENYA

The Ultimate Mini Importation

Guide

By: Joseph Wambua

Want to know how to start an importation business in Kenya? This ebook is packed full
with valuable information for you!

The world is indeed becoming a smaller place. Who would have thought that ordinary
people like you and I (who do not have a fat bank account) can now import goods directly from
overseas suppliers?

Before I started researching on this ebook, I thought international trade was reserved for
the government and rich big importers who had strong connections with manufacturers and
suppliers abroad.

Well, not any more.

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 This ebook reveals how small scale businessmen and entrepreneurs in Kenya and even
Africa can become part of the import business with little capital investment. With the knowledge
contained in this eBook, you too can import products at low wholesale prices and sell them for a
much higher profit.

By the time you’re done reading this eBook, you’ll know everything you should to
become an importer and international businessperson!

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 Copyright

Written By: Joseph Wambua

Business Writer

Copyright © 2017 by J.W.

All rights reserved.

First Edition: November 2016

This guide is geared towards providing exact and reliable information in regards to the
topic and issue covered. In no way is it legal to reproduce, duplicate, or transmit any part of this
document in either electronic means or in printed format. Recording of this publication is strictly
prohibited and any storage of this document is not allowed unless with written permission from
the writer.

All rights reserved.

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 About The Writer

Hi, I am Joseph Wambua; an impact entrepreneur,

SME Business Coach, and Co-founder of Smallstarter
Africa. You can contact me through my email
[email protected]. I work with entrepreneurs and
investors to start up and grow businesses in Kenya and the
wider Africa.

I am also the co-author of '101 Ways To Make

Money in Africa', the widely-acclaimed book which reveals
several interesting business ideas, market opportunities, and
inspiring entrepreneur success stories across Africa.

For the latest updates on business and entrepreneurship across Africa, follow
Smallstarter on Twitter, @smallstarters. My email is [email protected]. Feel free to
email me in case you would like to consult from me anything about import business.

If you’re thinking about getting into the import business in Kenya this may be the most
important ebook you'll ever read...

Why?

Because the import-export business is extremely lucrative, exciting and prestigious.
 


However, without the right information and being armed with the right tools, it’s easy to lose big
in the import business.

But once you know the tricks of the trade, you can make amazing profits. Many times
without any risk using other people's money. That’s what makes the import-export business so

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attractive. You rarely meet people in this business who are not WILDLY successful. But most
importers are greedy and tight lipped.

They don’t tell anybody about what they do or how they do it. They don’t want anybody
else in their business. Here's why, they are on a runway cash train with no end in sight. I know
there is plenty of room for new importers.

I’ve been in this business for ten years now and people ask me all the time what I do and
how I do it. Even when I tell them a lot of times, they don’t understand right away.

So I finally had to write this ebook for some friends and some colleagues, and I’ve also
decided to share it with you. 
 


For the first time I’m going to reveal facts to you that have been kept secret in this
industry for years. It’s almost like a secret society or an “old boys” club and nobody tells
anybody about what they do. I didn’t see why.


Well, after a period of time I made up a list of answers and I have shared them with a lot
of friends. But I never actually made an ebook or anything that really tells the whole story until
now. I don't think anybody has in Kenya.


Let me tell you a little bit more about me. I’ve been in the import business now for ten
years. I started off importing candles, watches and home decorative items.

Eventually, I started importing pharmaceutical equipment and packaging equipment,

even crowd control equipment and all sorts of different equipment and tools.

I’ve imported gift items; I’ve imported toys; I’ve imported just about anything that could
be imported. That’s the beauty of this business. 
 


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 The thing that really attracted me to the import business is that I never get bored easily.
Maybe you do too; most entrepreneurs do. With the import business you never get bored. It
changes every day. If you want to do something different, just pick another line of business. It’s
really easy.


My partners and I have personally imported millions of shillings worth of merchandise. I

actually do it every day. I bring in ten to 12 containers of brand new products to Kenya from
China, Viet Nam, South America, Columbia, USA, India and other places like that every year;
sometimes it’s even more. My friends bring in hundreds and hundreds of containers, and I’ve
asked them and quizzed them and learned everything that they do, too.

So I am pretty much of a repository of information and as far as I know I’m the only
guy that’s ever been willing to share.


There are a lot of different models in importing. People import to as wholesalers, and
that’s the most common model; that’s been going on for years. 


You want too to start an import business in Kenya? Read on to learn...

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 Chapter 1

How the importation business works

One of the very first profitable businesses I ran was importing products from China and
selling them online – mainly through Facebook and OLX. It was difficult when I was getting
started, due to my lack of experience and the fact that there were few people ready to help me. I
had hundreds of questions racing around my head:

❖ How do you know what products will sell?

❖ How do you determine what product to sell first?
❖ How do you find trustworthy suppliers?
❖ How do you eliminate the risk of scams & bad quality products?
❖ Where the hell do I get started?

When you’re trying to learn a new business model from scratch, you’ll find your mind
running in circles – unless you have a clear direction to run into…

So my goal is to make this ebook the definitive A-Z guide to starting an importing
business from scratch. It’s what I would do, step-by-step, if I was starting over from scratch.

I’ll give you every step of the process, and also give some insights on the ‘why’ behind
my strategy. I’ll also be updating this ebook over time (as I get questions from readers).

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 I encourage you to follow this guide step-by-step, and to avoid jumping around.
Importing products from China or anyway in the world and selling them in Kenya is an
incredibly simple business model – it’s only when you do things out of order that it becomes
risky & complex.

First things first, let’s wrap our heads around the concept…

This is a simple business model that’s easy to overthink. There are lots of moving parts
that can feel risky or confusing. It reminds me of one of my favorite quotes:

“Everything is simple until you make it complicated”

Understand that starting this business, is like starting any business, will require taking
some risks. If you don’t know what you’re doing, it’s easy to end up with $1,000 worth of
imported phones knockoffs in your store (or $1,000 worth of nothing at all)…

That being said – if you’re careful, have a solid roadmap (this ebook), and a bit of hustle
– you can build a profitable business for yourself with a relatively small amount of time/work.

Before we get into the thick of this eBook, it’s important that we understand the basics of
buying and selling.

How is money made in the ‘buy-and-sell’ business?

Simple; you buy something (wristwatches, for example) at a low price and sell them at a
higher price to make a tidy profit.

To increase the size of profit you can make, there are basically two options you have.
You can either find a way/place to buy wristwatches at a lower price or look for customers who
will buy them at a higher price.
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 This is how everybody in the retail (buy-and-sell) business makes money (profit). Buy
low, sell high. It’s simple math!

To make sure you understand the opportunity am about to share with you, i shall use a
quick illustration:

Let’s assume you are the owner of a small business that sells foreign-made wristwatches.
You have a small shop in which you display all your lovely wristwatches for customers to
admire and possibly buy.

Because you can only afford to stock about one hundred wrist watches at a time, you
have no option but to buy from big importers who, because of their large capital, can buy
thousands of watches from foreign manufacturers at very low wholesale prices.

Although you would love to enjoy these low wholesale prices too (which will increase
your profits), you don’t have the kind of capital the big importers have. Even if you could buy
directly from the foreign product manufacturers, it would still be tough.

Most manufacturers and suppliers have a Minimum Order Quantity (MOQ) requirement.
MOQ is the minimum quantity of products a supplier will sell to you in order to make a
worthwhile profit. This is why they prefer to sell to the big importers who buy large volumes
(container loads) of their products. Since you can only afford a few hundred watches, most of the
big overseas suppliers won’t want do business with you.

As a result, you are stuck with the big importers. The profit you can make in your
business is limited by whatever price they decide to fix on the imported goods.

The infographic below shows how the big importers act as ‘middlemen’ between you and
the watchmaker thereby reducing the profit potential of your business.

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 Thankfully, things have changed.

The internet has brought down the walls which used to restrict access to manufacturers
located thousands of kilometers away. Improvements in transportation and logistics now make it
possible for small businesses with little capital to import smaller amounts of stock at low
shipping costs.

Finally, entrepreneurs and small businesses can enjoy the same low wholesale prices that
the big importers have enjoyed for a very long time.

The illustration below shows how this new business opportunity cuts out the middleman
and allows you to buy directly from foreign manufacturers at lower prices that allow you to make
a larger profit.

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 Something you should know before we get started…

Many of the products and suppliers that shall be introduced to you in this ebook are made
or based in Asia and mostly China.

Although i shall also talk about products from the US and Europe, the tips in this ebook
reveal more about buying products from Chinese manufacturers and suppliers. The most likely
question on your mind right now would be: Why China? Good question.

I’ll tell you why.

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 As you may already know (or don’t know), most products in the world today are
manufactured in Asia, particularly China. Toys, home appliances, accessories, computers,
laptops, mobile phones and even Apple’s iPads are made in China.

Let’s try to verify this by doing a quick check of the products that are around you right
now. You would be amazed that roughly 4 out of 5 things around you were manufactured in
China.

I’d like to use myself as an example.

The laptop I am using to type these words is a HP Notebook made in China. The shirt I’m
wearing, my earphones, my wristwatch and my iPad – all made in China. My mobile phone is
probably the only thing that’s ‘Assembled in Brazil’. So the 4 out of 5 theory is true in my case!

Apart from food products, China is the Number One source of all the hot-selling and fast
moving consumer products you know.

China is one of the cheapest manufacturers in the world because of its low labour and
production costs. As a result, many of the big brands that you know (Apple, HP, Louis Vuitton
etc) make their products through factories and contractors based in China.

To ensure the quality of their products are not compromised, US and European countries
set very strict standards which the Chinese usually comply with.

Why am I telling you all this? It’s because many people in Africa have come to suspect
Chinese products to be low quality.

While this may be true, I don’t think we should blame the Chinese. After all, China also
produces many of the high quality products in America and Europe.

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 If our governments could enforce strict quality and safety standards for products coming
into Africa, the Chinese would comply as they do for their clients in the USA and Europe.

However, you don’t have to worry about importing low quality products. In the later part
of this ebook, I’ll share with you the secrets of finding high quality products and suppliers that
meet US and European standards.

What do you need to get started?

To join the new and growing league of small business men and women who can now
import products at low wholesale prices directly from overseas suppliers and manufacturers, you
would need just the following:

■ A computer or mobile phone with access to the internet;

■ A valid email address
■ A valid and traceable home or office address in your country where the items you order
will be shipped to.
■ A little money in your bank account. (We’ll talk about this a little later in this ebook)

Yes, you’re right, that’s all you need!

This means that you can shop for, order and import all the products you want to sell from
the comfort of your bed, breakfast table or while you are sitting on a bus (via your mobile
phone).

Please note that a P.O Box or PMB (Private Mail Bag) does not qualify as a valid and
traceable address.

Let’s get started!

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 You should be excited to start your new and promising small-scale import business. But
before you get on your computer or mobile phone to start shopping and ordering products, let me
walk you through eight chapters dealing with the most frequently asked questions.

By the time you’re done reading these ebook, you would know the best and most-trusted
places to buy from, how to confirm the quality of products, the payment process and several
more.

Let’s dig in!

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 Chapter 2

Identify What To Import

All over the globe, import and export is rampant. There are countries that just cannot do
without import and export e.g Kenya. This is because no nation can survive totally on its own
without interaction with other countries. There is always a need to relate and engage in exchange
of goods, it can either be in terms of raw materials, semi-finished good or finished goods.

This important gap can be monetized by you in a form of movement of goods from where
it is in abundance and above the demand to a nation where there is a high demand for such
products. International trade is one of the hot industries of the 21st century.

But it’s not a new endeavor. The history can be traced to the great caravans of the biblical
age with their cargoes of silks and spices, even further back to prehistoric man trading shells and
salt with distant tribes. Trade exists because one group or country has a supply of some
commodity or merchandise that is in demand by another.

And as the world becomes more and more technologically advanced, as we shift in subtle
and not so subtle ways toward one-world modes of thought, international trade becomes more
and more rewarding, both in terms of profit and personal satisfaction.
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 As with any other investment project you may be trying, make sure you have a clear
understanding of what you are going to be doing before going into it. Find some good products
which can attract demand locally.

Examples sanitary wares, plumbing fittings, electrical fittings, tiles, electronics and cheap
jewelry. Consult the customs office to make sure the products you are planning to import are
acceptable under Kenyan laws.

Also, make sure you have an active KRA pin. If you don’t have one visit the KRA
website at http://www.kra.go.ke and obtain one. This will help a lot during the custom clearance
process once your goods arrive in the country.

If you think that starting an import business is what you want to do, then you may want to
consider starting an import business in Kenya. But before we talk about some of the profitable
products you can import to Kenya, I would like to list and explain some business ideas in the
import-export business world that you can begin to act on. You can cash in on international trade
with any of the under listed business ideas;

1. ONLINE IMPORTATION

You must have heard about Alibaba.com, Aliexpress.com, DHgate.com, IPmart.com and
several other online based marketplaces. All these websites listed above deal with online trading
as they ship to other part of the world. You make your order and payment online while they ship
your product to your provided address. You are also to pay for the cost of shipping.

The internet has brought down the walls which used to restrict access to manufacturers
located thousands of kilometers away. Improvements in transportation and logistics now make it
possible for small businesses with little capital to import smaller amounts of stock at low
shipping costs. The beauty of this business is that with little start-up capital and access to the
internet you can start earning a good income.

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 2. IMPORT/EXPORT BROKERAGE

An import-export agent or broker, also known as a trade agent or customs broker, is an

individual or a company that sends and receives goods to and from different countries. Import-
export agents or brokers work with both importers and exporters by helping them prepare
necessary documents for exporting or importing their products. They also help their clients
establish connections in foreign companies.

So, they work on both ends of import-export deals that of the origin and that of the
destination. To become an import-export broker, you must understand the basic jargon of import-
export law, currency transactions, trade policies, and everything else that goes into making
profitable import-export deals.

3. PRODUCT SOURCING AGENT

As a product sourcing agent you can conveniently plug into the export value chain. What
a good way to build up a successful exportation business from nothing and have fun doing it?
Not only does it require little financial investment to start you don’t need previous experience in
the field to get started, but you should have a good head for organizing and paying constant
attention to little details. As a product sourcing agent, you will need to make contact with
exporters.

You can register with some trade portals where you will have access to their chosen
commodities, specifications and contacts details. You can also send a mail to them and inform
them that you can meet their requirement. As a product sourcing agent, you will deal majorly
with farmers. You will need to go to their farms and deal with them directly and you might need
to transport the commodity to the city. You can also deal with the local buying agents and the
commodity merchant.

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 4. CLEARING AND FORWARDING BUSINESS

If you have the logistic and business management skills, as well as an entrepreneurial
spirit, you may just be fit to learn how to start a freight brokerage business. As a freight
brokerage company, it is your duty to act as a mediator between shippers and client companies
who need their services and facilities. Their tasks also involve clearing your goods from the
ports, paying up your duties and taxes, transporting your consignment to your desired
destination, etc.

Sometimes, freight brokers are referred to as clearing and forwarding agents. There’s
much money to be made as a clearing and forwarding agent. The sweetest part is that this
business can be done anywhere, in any country; as long as international trade still exists and
Kenya is a partaker, you are in business.

5. USED CAR IMPORTATION

This is another money raining business in this field. A buy and sell opportunity can turn
into a lucrative business provided that you do it well. This is especially true especially if you are
considering the idea of how to buy and sell used cars. As technology increases and state-of-the
art cars are being produced, people will always have the need to buy new vehicles; thus also
creating the need to dispose old ones. You can import and sell used cars.

6. MANUFACTURERS REPRESENTATIVE

If you are specialized in a certain industry, you can very well go to an oversea
manufacturer and ask to represent them in Kenya or the countries of your choice. A
representative has the edge because you are the expert in the industry or a certain market.

For example, if you are an expert in the electronics selling business and you have been
selling electronics in Kenya, you have the great opportunity of going to a Chinese electronics
manufacturer and ask to be a representative of their Kenya region market. Most of the

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manufacturers love people like you because you are their free labor (no base, only commission)
to help them get into the market. It’s a win-win situation for both you and the manufacturer.

7. ONLINE EXPORT/IMPORT DIRECTORY

Publishing a biannual import/export opportunities directory in printed and electronic

format has the potential to make you rich, as millions of budding entrepreneurs worldwide are
constantly on the lookout for income and business opportunities.

Simply create an import/export directory that features information about worldwide

manufacturers, wholesalers and agents that are seeking to expand their product lines into foreign
countries and new markets, or individuals or companies that are seeking to import particular
products into their regions. Charging a fee to be listed in the directory, as well as selling the
directories to people who are seeking this type of valuable and potentially profitable information
and contact sources would earn revenue for the business.

8. DISTRIBUTION WAREHOUSING

Starting a warehousing and distribution service means you can act as a warehouse,
shipping and receiving agent for as many as 20 or 30 different companies. This business venture
does require a great deal of research and investment capital. However, with careful planning and
exceptional organizational skills, this type of business venture is capable of creating a six-figure
income per year, all within a very short period of time for the enterprising entrepreneur.

9. IMPORT AND EXPORT CONSULTANCY

Considering the many red-tape barriers and all the issues surrounding importing products
into this country, or exporting products out of this country, it’s no wonder that so many
businesses don’t know where to start and just plain give up out of frustration. Of course, the
smart business owners who don’t want to miss a single opportunity to grow their businesses and
revenues don’t give up.

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 Instead, they hire an import/export specialist to guide them through the complex issues of
the import/export business legal, transportation, warehousing, distribution, marketing,
employment, environmental, political and financial.

Starting an import/export consulting business will require experience in the industry, or

the willingness to learn about the industry. One simple way to market your services is to develop
and host a free informational seminar on importing and exporting and use the event to sign up
businesses and individuals who want to get started in import and export.

10. BEAUTY PRODUCTS IMPORTATION

While beauty products are typically quite expensive to purchase in salons, they can be
imported quite cheaply from overseas and resold for considerable markup and profit. Regardless
of the economic climate, these items are typically always in demand – especially with the female
demographic.

11. IMPORT/ EXPORT MERCHANDISING

You will be responsible for purchasing goods directly from a domestic or foreign
manufacturer and then pack, ship and resell the goods on your own. If you are interested
importing goods from global retailers in bulk then packaging goods up individually for resale,
then going into this line of international trade is good for you.

12. CLOTHING IMPORTATION

Clothing is another basic need of man. Regardless of the economy, people must wear
clothes and this includes shoes, bags, underwear, perfumes, etc. Now there is a fast growing
trend and that is “Used clothes” or “Mitumba.” Since the economy is getting tougher and there’s
need to be clothed, the masses have resolved to buying used clothes rather than new ones. Still
yet, there is a market for new clothes; for men, women, and kids. You can source your materials
from China, Hong Kong, Italy, France, Dubai, India, etc.

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 13. SMART PHONES IMPORTATION

Although smart phones may appear to be “every day” items in market, they are just
beginning to scratch the surface in many developing nations. The cost to produce this type of
technology is extremely inexpensive – especially if you can find import opportunities in China
for these items.

14. HOUSEHOLD ITEMS IMPORTATION

Home accessories are another area that is booming when it comes to profitable import
opportunities. This can mean anything from picture frames to candle holders to soap dispensers –
and everything in between. Most items for the home are easy to manufacture and can be shipped
and sold in wholesale packages.

15. SHIPPING SERVICES

With the increasing demand for shipping services that offer reasonable prices and
promise convenience, speed and reliability, no other time could be better than now for taking a
plunge into the shipping business. The industry is growing and rapidly changing—thanks to the
increasing dependence on online shopping. However, you must realize the fact that the maritime
/ shipping industry is highly capital intensive and competitive.

Secondly, starting your own shipping company requires that you have in-depth
knowledge of import and export procedures as well as the shipping, container, and logistics
industries in Kenya. You also need to know the legislation for crew members to work on-board
your vessels, how to operate vessel within and outside specific ports, how to handle dangerous
goods and other types of goods, and how to operate certain communication equipment on-board
your vessel and many other legislation.

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 16. DROP SHIPPING

Drop shipping allows business owners to sell products and ship them directly to their
customers without having to maintain an inventory. Drop shippers handle all packaging and
shipping concerns, allowing the business owners who use their services to focus on getting the
products in front of potential customers. Bad business practices from some business owners have
soured the idea of drop shipping for others, but it is still possible to run a reputable business
using drop shipping.

17. SPARE PART IMPORTATION

Just like used cars, you can go into the importation of either used or new spare parts.
Since it is very hard to return cars to factory especially from Africa, importation of the spare part
is a goldmine if you have the knowledge and can import in large quantities.

18. CARGO TRACKING

As an importer or exporter, there is always a risk involved in the business especially

when you do not have the knowledge of the location of your goods on sea. But this risk can be
reduced with cargo tracking firms which you can employ their service in tracking and updating
you in real time the location of your goods. The safety and timely arrival of your cargo is
paramount.

But keeping track of where it is and whether its journey is going as planned can be hard
without the right tools. Cargo tracking solutions is about monitoring cargo while it’s moving so
you can make sure it’s where it needs to be when it needs to be there. Moreover, you’ll be able to
receive real-time notifications about departures, arrivals and checkpoint clearances so you can
document you cargo’s journey easily and efficiently.

It’s the smart way to: monitor and document the temperature of perishable cargo while
it’s in transit, document where your goods were and when they reached their destination, locate

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and recover lost or stolen goods quickly. This business helps you improve the productivity and
efficiency of importers and exporters operation because they can organize the rest of their
logistics around the predicted arrival of their cargo.

19. AIR CARGO BUSINESS

The sea is not the only means through which cargos can be brought in, the air can also be
utilized in transporting containers. In 2016, airlines transported 51.3 million metric tons of
goods, representing more than 35% of global trade by value but less than 1% of world trade by
volume. With the right tools and equipment even though very costly, you can start an air cargo
business by helping businessmen transport their goods faster and in a safer way.

If you have the ability to sell, and an air of diplomacy, the import/export business might
be right for you. All you need is the desire and determination to make it work. As you progress
in the business, many factors become obvious and easy to handle. Once you get the business
underway, the commission for setting up sales is very profitable. And after you establish and
maintain a number of exclusive accounts, you’ll find the time you spend is highly rewarded with
money.

Let's now have a look at some of the most profitable products to import to Kenya.

Hot Selling Products To Import & Make Profits in Kenya

If you have been wondering what items to import into Kenya and make your profits,
here’s your chance.

The good thing is that the Kenyan market is so wide enough and demand for items that
improves their lifestyle is forever increasing.

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 Therefore, smart importers like you and I can jump on this golden opportunity to reap the
gains attached.

Mmmh!…that depends on if you know exactly what item to import that sells really fast.

The first thing to do before importing is to take a good look around you to see what
people’s needs are.

● Survey the market,

● ask your friends what their needs are,
● check out what devices people use daily,
● Find out which products can be used to alleviate their frustrations, sufferings or improve
their lifestyle.

So let’s move on to the top fast-selling products you can import into Kenya starting right
now.

Why I say ‘fast-selling goods’ is because these items are the most sought-after products
in Kenya.

You can purchase them from China, Dubai, India and Europe at an affordable price. Let’s
check them out.

1. MOBILE PHONE ACCESSORIES:

Kenyans love to pimp out their phones with the latest reigning accessories out there. The
good thing is that these products are cheap to buy outside the country and import.

All you need to do is check out the latest accessories out there by visiting popular e-
commerce websites like alibaba.com, made-in-china.com, amazon.com and other merchant sites.

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 Read the customer reviews on those e-commerce sites or on forums like and then make
your decision on what will sell in Kenya.

2. WOMEN HAIR WIG & EXTENSIONS:

What can I say about this sought-after hair beauty product?

Kenyan women can’t be caught without their gorgeous human hair extensions on fleek!

So if you want to make it big, you can start small and test the waters by importing
affordable but good quality hair extensions with your budget.

3. FAIRLY USED CLOTHS, BAGS & SHOES

Do i need to say more about Kenyans’ insatiable appetite for fairly used fashion
accessories that are imported from Cotonou and the U.S? Go to Gikomba market in Nairobi and
see with your eyes.

Second-hand fashion business (normally termed as Mitumba) is booming in Kenya. So

long as Kenyans value these affordable long-lasting clothing over the brand new China wears,
it’s not going anywhere.

Traders import these fashion items very cheaply and sell at a high cost. A real profitable
business, isn’t it?

4. NEW CLOTHES, BAGS & SHOES

If you are targeting the elite customers or big spenders, you can test the market by
importing brand new clothes, shoes and bags from Dubai, China and the U.S.

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 5. FAIRLY USED TELEPHONES:

Remember USA-used iphones that are being sold in Kenya? You can start an iphone
importation business and make big money. If you have a relative or friend in USA or China, call
him/her now and make deals on how to start importing iphones.

6. JEWELRIES:

The Jewelry industry is huge in Kenya and the ladies love to show off their newly bought
earrings at parties or work. Visit River road street in Nairobi and see the amount of jewelries
being sold wholesale or retail. You can start with importing affordable beads, G.L earrings and
necklaces to sell.

7. COMPUTER PARTS

Computer Village in Nairobi is a testimony to the fact that the computer parts business is
a profitable one. But before you rush off to import, you need to do your research and analyse the
cost of purchase, sale and the profits before importing.

8. FABRICS

The reason why the textile business is so popular is because Kenyans are proud socialites
and unapologetic fashionable people. Visit Eastleigh town in Nairobi and see the billion-shillings
business on display. Kenyans love dressing uniformly when attending parties, funerals or
weddings. So if you want to attract their wallet and make profit, start importing attractive fabrics
and make your profits.

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 9. NEW TELEPHONES

New China phones are selling like hot cakes, especially if your target market are the low
end buyers who can afford between Ksh.2,500 to Ksh.5,000 phones.

10. NEW BEDDINGS.

Who doesn’t need a comfy bed sheet to sleep in at night? In a country that has over 40
million people, the market is large enough to import more bed spreads.

12. Candle (With Sweet Fragrance Used For Decorations)

13. Power Bank: Nobody likes carrying a smartphone without empty battery.

14. Memory Cards: To save those precious files.

15. Apples: Because an apple a day keeps the doctor away. We love apples! Import them
cheaply from South Africa and make big money.

16. Ear Phones: For music lovers

18. Decoder: DSTV, Startimes, Gotv, etc.

19. Screen Guard: To protect smartphone screens from cracking when it falls on the
floor.

20. Car Trackers: To track unsuspecting driver’s whereabouts.

28
 21. Wireless Server: You know what it is. All things wireless.

22. Wrist Watches: To monitor tight schedule.

23. Camera: Who doesn’t need to capture beautiful moments such as weddings,
birthdays, seminars, etc.?

24. Rechargeable Lamps/Solar Lamps: Because of epileptic power supply by KPLC.

25. Printers: Because people need to print documents and business cards.

26. Scanners: To scan documents in offices.

27. Vacuum Cleaners: To clean the homes of the nouveau rich.

28. CCTV Cables & Cameras: Needed to secure a location from theft. Banks, hotels,
homes and businesses need this.

29. Projectors: For summits, events, seminars and demo presentations.

30. Shoes: We all need shoes on our feet.

31. Fashion Bags: Kenyan ladies love to own one in their wardrobe.

32. Lawn Mowing Machines: For maintaining beautiful gardens and lawns across
homes and cities.

33. Fumigating Machines: To keep those annoying pests at bay in offices and homes.
29
 34. Computer Accessories: a must-have for a functional computer or laptop.

35. Cookers: So our wives, aunties and mothers can keep serving us those delicious
meals without stress.

36. Electric Bulbs: Let there be light in our homes and offices! Nobody loves groping in
the dark.

37. Motor Parts: So that our cars remain on the roads and not in the garage. Even
mechanics need those.

38. Tricycle Parts: For our tricycle owners to remain in the transportation business.

39. Generator Parts: Until our electricity becomes constant, we will continue to buy
generators.

40. Motorcycle Parts: For our thousands of Boda boda riders.

41. Electronic Home Appliances: For a fully functional home and happy housewife.

42. Car Batteries: “I love it when my car battery refuses to start”, said no car owner
ever.

43. Car Stereos: For car owners to listen to while caught up in traffic jams.

44. Electrical Equipment: For powering the nation’s energy resources.

45. Clinical Equipment: For medical treatment and surgical operations.

30
 46. Musical Instruments: For our music artists to entertain their adoring fans.

47. Building Materials: For building construction companies and landlords.

48. Female Make-Up Kits: Because our ladies love their makeup to be on fleek!

49. Sports Kits: For sportsmen and women and lovers of fitness.

50. Laboratory Equipment: For the medical and healthcare industries.

51. New Toys: Both kids and adults need toys for various reasons.

I hope you learnt a lot from the above list. Now go and import them. Think like a smart
importer and grow rich this year!

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 Chapter 3

Where should you buy from?

In order to make large profit when selling an item, you need to buy at a low cost so that
you can offer a lower price than your competitors. When looking for items to sell, many people
turn to drop shipping companies as a way to buy products cheaply. While drop shipping
companies do sell items for cheaper than retail value, it is not an effective sales strategy.

To receive good deals on products, one must learn how to import from China because
buying true wholesale items directly from the manufacturer in China is the best option. Buying
Chinese products wholesale means you can eliminate the middleman, earn a higher profit for
yourself and still manage to stay competitive.

Drop shipping used to be an easy way for people to buy and sell products for a profit. The
idea behind drop shipping is that drop shipping companies do not have a storefront, but will
instead order products directly from the manufacturer and ship them to you.

However, with the Internet making it easy to buy directly from wholesalers yourself, drop
shipping is an out-of-date practice. With drop shipping companies, you are usually charged a fee
and the product is also marked up so that the drop shipping company will make money from the

32
transaction. When you go to sell these products, you will need to raise the price to make a profit,
which makes your item less competitive.

The other problem with drop shipping companies is that anyone is able to utilize them.
Therefore, even if you have an item that is a popular seller, there is nothing stopping a
competitor from going to the same drop shipping company and buying the product for the same
price. This can lead to a flooded market.

The best way to buy products at a low price to sell for profit is to purchase them
wholesale directly from the manufacturer in China. The products made in China are the same
name brands sold in retail stores, only the price is much more affordable.

By using a Chinese wholesaler instead of a drop shipping company, you will eliminate
some of the cost, allowing you to have much more competitive prices. Chinese wholesalers can
be easily found online and the best ones are listed as trusted sources at the Federal International
Trade Association’s website. You will not need to understand Chinese to buy directly from
China either. These wholesalers will often have English speaking representatives to help you.

You can start importation today with any capital you have depending on what you want
to import. There are a wide range of things to import from fashion products, jewelries, wrist
watches, laptops, android tablets, phones etc.

As a way of starting, there are a couple of popular sites where you can import stuff from
China. One of them is www.aliexpress.com.

The truth is it is not as difficult as some people paint it. All you need is some careful
research.

The first thing you need to ask yourself is your reason for the importation. Are you going
into it just to get stuffs for yourself or you want to start selling them?

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 Whichever way, you can be sure you will get the stuff very cheap.

If you intend to import stuffs to sell, then you have to do a good research to know the
things that can easily be marketed. You can find so many things on the site that you may end up
getting distracted which is why you have to be focused on importing the stuffs that have a good
potential for selling in Kenya. I have sold so many human hair with 100% profit. It depends on
what I'm selling and who I'm selling to.

Right Now I’m expecting Some Peruvian Hair I got from Aliexpress and it is being
shipped via DHL, customers are on ground waiting for the hair which will be available by Friday
3rd feb 2017 or Monday 5th feb 2017. I got 20 bundles of 100gram Peruvian body wave, 18inch
for Ksh.40,000 and usually sell them for Ksh.70,000 – Ksh.90,000 for the 20 bundles, like I said
earlier depends on who you are selling to.

The following websites are my top recommendations as best and legit online
marketplaces that sell products at low wholesale prices:

Aliexpress.com

Aliexpress.com has become the leading destination for small scale importers looking to
buy goods at wholesale prices from China.

Aliexpress is one of the subsidiaries of the Alibaba Group which dominates internet-
based commerce in China.
34
 In fact, in 2012, Alibaba’s portals handled sales of up to 1.1 trillion Yuan ($170 billion),
more than its competitors (eBay and Amazon.com combined). The Alibaba Group is estimated to
be worth between $55 billion to more than $120 billion.

The Alibaba Group launched Aliexpress in 2010 as an online retail service made up of
mostly small sellers offering products to online buyers. It has more than 20 major product
categories and sells to registered users and buyers in more than 220 countries around the world.
You can visit its homepage at www.aliexpress.com

I will take you through the process of registering on www.aliexpress.com and also the
basics on using aliexpress.

Before I continue, let me share the top 5 reasons why Aliexpress should be your number
1 choice:

1. Millions of Products

● Huge selection only found here

● 40 categories with easy navigation

2. The Best Value Online

● Uneatable prices, thousands of sellers

● Free shipping on almost all products

3. Fast Shipping to Kenya

● Shipping to over 200 countries and regions

● Express delivery options

4. Buyer Protection Guarantees

35
 ● Transactions protected until you confirm satisfactory delivery
● Full refund if goods not delivered or not as described

5. Secure, Easy Online Payment

● VeriSign & PCI protection keep your information safe

● Visa, MasterCard & local payment methods

Aliexpress.com is a good website for Kenyans and other Africans shoppers that wish to
buy products and items from China.

Let’s Go….

The first thing you need to do is to open an account with aliexpress.com by typing
www.aliexpress.com to on your browser. After filling in all your details to the space provided,
you will see the following message:

“Congratulations! You have successfully joined aliexpress.

All you need to do now is to log in to your email address to confirm the link being sent
by aliexpress.com

SEARCHING FOR THE RIGHT AND CHEAP PRODUCT.

For you to buy goods on this portal, you need to know how to search for the product you
want to buy and you need to know how to compare the price of one seller to another so that you
can go for the one who offer best and better price.

36
 You also need to know how to search for the seller who will ship your product free to
your Kenya business or home address and also need to know how to select a seller who has a lot
of review i.e Recommendation from their buyer.

Let assume, you want to buy a 14 inch laptop. Here is how to search for it.

Once the homepage is opened, you will see

“I AM SHOPPING FOR” click on it and type 14inch laptop and press ENTER. You will
find varieties of `14inch laptop.

Click on Top Rated to see Supplier with the highest Rating; Any seller that has 100
percent feedback is a good seller and you can buy from him or her. Moreover, any rating that is
between 95 percent and above, they are a good and reliable seller. You can deal with them.

Before buying any of them, you need to click on it and see the review of other customers.

Once you are through with your research, you can click on BUY NOW!!!

But Make sure to chat with the supplier before buying to be sure the product is still in
stock, and also to adjust the price if need be.

HOW TO TRACK SHIPMENT AND CONFIRM DELIVERY

After buying goods from this portal, the seller will send you a tracking number either by
DHL,EMS, Fedex, Honk post, China hair post etc…. It depend on the method he used to ship out
your product…But DHL is the fastest…

37
 Once you receive your tracking number (which you will receive by email) all you need to
do is to go to the website where the seller instructs you to track your goods. If the seller use Dhl
to send out your goods All you need to do is to go to www.dhl.com enter the tracking details sent
to you and track your goods.

I will talk more about tracking your goods later in this ebook..

WHAT IS ESCROW AND HOW CAN IT PROTECT YOU WHEN YOU ARE
SHOPPING ON THIS WEBSITE….

Escrow is a third party arrangement which serves as a protection for the buyer and the
seller….. Whenever you shop on this shopping website, your money will be held by escrow and
they will release the money to the seller once you receive your product in good condition….

In short, your money will not be released to the seller if you don’t receive your goods in
good condition because they are there to protect you. So, you don’t need to be scared about the
genuineness of the website. I have used them time without number and they are real.

Another benefit of this website is that, If you order for goods from any seller and you
found out that the seller did not deliver what he or she promised, you can return the goods and
they will credit your credit card with the equivalent amount… That’s just it.

HOW TO AVOID CUSTOMS DUTIES ( IF YOU DON'T KNOW THIS SECRET, YOU
WILL BE PAYING HEAVILY WHENEVER YOUR GOODS ARRIVE IN KENYA

If you are buying a product worth $500 or more, You will need to pay custom duties,
Because when your goods arrive in Kenya, the customs officer will seize your goods and you
will need to pay them in order to release your good to you.

When you have paid for the product, just tell the supplier to devalue the price, If you are
buying a product worth $500, you need to tell them to devalue it to $250 or Less in order to
38
avoid custom duties you can also tell them to declare it as gift… (You can see that chatting with
the supplier is very important).

Things to Watch out for When Buying from AliExpress

AliExpress gives the buyer a measure of protection which is almost a necessity especially
when you buy from another country with particular emphasis on Chinese goods which barely
come along with any warranty. Yet this doesn’t reduce the significance of the risks which are
involved when you buy from AliExpress.com.

Now if this is your first time of buying from AliExpress, here are some tips that would
make sure you get the best of your shopping experience.

a. Buy from Established Sellers.

Make sure you always try to purchase goods from sellers which have been in the business
of selling on AliExpress for a long time and have earned a couple of good feedback. This
category of sellers are more concerned for their ratings and would only be glad to assist you
should a problem occur with your order. Make sure you keep an eye at the previous feedbacks
they got on that very item. If it is also favorable, you’ve found a good seller to buy from. Your
transaction is unlikely to suffer hitches with such sellers. On the product page, take significant
notice of the following things:

39
 Top Rated Seller: This is a badge which is given as a reward to sellers who have been
excellent in providing excellent service for a period of time. AliExpress performs reviews on
these sellers monthly, selecting just the best of the cream as Top Rated Seller.

Feedback Score: the feedback score displays the amount of 4 or 5 star ratings you have
earned while 1 or 2 star feedback received is subtracted from it. Sellers who have high feedback
score tend to have stood their ground in the selling business and are thus expected to give you the
prospective buyer commendable support around the clock.

Positive Feedback: this shows the prospective buyer the percentage of positive feedback
the seller had received in the past 6 months. It is a better indicator of better business transaction
when the seller you want to buy from has higher positive feedback. Another thing you need to
have in mind here is that new sellers will also have close to 100% positive feedback due to the
fact they haven’t really had enough sold so owing to this there is no real feedback from end users
so you should ensure to compare the Positive Feedback with Feedback Score.

Number of product orders and feedback: considering the quantity of the item you
intend buying that the seller has sold is not a bad idea at all. If you do so, you will see buyer
feedback which relates to the product hence making it easy for you to make your judgments
regarding the quality.

Sellers who have made their mark have a very responsive sales & support team which is
dedicated and easy to reach around the clock and you have the concrete opportunity to get in
touch with them should any issue pop up.

b. Read Complete Item Details/Description.

Don’t neglect the Item Details/Description as very helpful information could be seen in
the item details/description section. It is not the best practice when you place the order by simply
looking at the product title and photos negligently rather take your time to check the description
as you could find specific explanations that the seller intends passing on to the buyers.

40
 Let us take for instance, the seller may specify the features, compatibility, specifications
and the quality of the item stating precisely if it is a just a copy or an original product. The
information could also include answers relating to likely Shipping, refunds and support related
questions and even FAQs on the product and their respective answers.

c. Communicate with the Seller before Purchasing.

It is good you have an interactive section with the seller prior to making a purchase. You
will be using the Chat or Messaging system which is designated for such communication by
AliExpress. Make sure to air your views and reservations about the product so as to clear your
doubts asking about such details as shipping or delivery.

Some listings will not publish the brand of the item while some others might have very
close spelling to a branded product. These items might just turn out to be knockoffs so always
ensure to verify with the seller in such situation.

d. Think twice for items with a super low price.

If you have the feeling that the price of a particular item is just too low compared to its
real value, it would be in your best interests to keep off. These would likely be the Chinese
knockoffs which are designed to share a deceitful resemblance with the genuine product, but in
reality, they don’t boast similar quality.

e. Avoid Free Shipping for Expensive Items.

Most times an expense free shipping is done through the National Post service but this
could take too long to arrive. There is also that sad possibility of the desired products being
delivered as damaged or even never getting to the arranged destination. So, while free shipping is
not that bad for low priced goods, make a worthwhile attempt to get reliable shipping service
(like the DHL, EMS; etc) when purchasing items with significant prices. You could as well
request for shipping insurance if that is compatible with the operation of the seller.

41
 f. Do not open a dispute before receiving the items.

You have a right to lay a complaint to Aliexpress in a situation where you have paid for
the goods but still have not received it from the seller in an interval of 60 days. In a normal
circumstance, you will get notifications via email from Aliexpress if your buyer protection
period is on the verge of expiring hence you should make good use of it while it is yet valid.

Aliexpress will no longer have the capacity to protect you if you complain after that 60
days period. Even if the seller messages you begging for your tolerance that the items would
soon be delivered, make sure this doesn’t dissuade you from making your complaint before the
60 days expires. You can basically verify if the buyer has shipped the goods via the tracking
number he gave you as well as the location of the goods prior to the expiry of the 60 days. The
availability of a tracking number adds to the trustworthiness of the seller.

AliExpress gives you the avenue to dispute a transaction in a situation when the
purchased products do not meet your expectations or say you don’t get it delivered within the
arranged delivery date. According to the way it is designed in AliExpress, the buyer has just one
chance of disputing a transaction and you must make sure to use it carefully so as not to waste it
should the seller be delaying in shipping in the items purchased. This is one cunning resort
sellers take to protect them from disputes which could arise later on in course of the transaction.
Let us have an example here,

A buyer on AliExpress places an order on 22nd of August. Now working shipping details
have not been exchanged till 25th and the buyer is getting exhausted on the trade so he opens a
Not Shipped dispute against the seller. The seller now quickly ships the items within the
following few days and then proceed to deny your dispute by updating or providing the shipping
details. Technically your issue has been resolved, so your dispute is no longer practically valid
hence you will be needed to accept the resolution and then close the dispute.

The moment you take the seller’s resolution and then close the dispute, the seller is now
very protected because you no longer have the single chance of disputing the transaction you are
obliged to after you have exhausted it. And if the quality if the goods doesn’t meet your taste,

42
you don’t even have the chance to even leave a feedback for this transaction so that the seller has
nothing to lose.

So, in view of this, make sure to carefully use your dispute so that it counts rather than
wasting it on another complaint other than for Damaged or Undelivered product received.

g. Use it before confirming receipt

In the event when you get your ordered products, please ensure you don’t get lost in
excitement so that you even forget to confirm the receipt of the item. Make sure you use the
product with thorough scrutiny for a day or even two before you confirm the receipt. When you
notice an unfavorable condition with the item you have received, get in contact with the seller
and request for resolution. If his replies do not help the situation, then you are justified to chat
with an AliExpress’s support representative and table your complaint. You could best open a
dispute when they tell you to.

When you have gone through all this, leave your feedback which would account for your
experience with the product and how nice or terrible your ordeal with the seller. Leave negative
feedback (1-2 stars) should his service fall below your approval and if you are impressed the
smoothness of the transaction, it would help to leave a good review too.

iPmart.com

43
 iPmart.com (started in 2001) is a huge wholesale market that ships products from China,
USA and Malaysia. Unlike Aliexpress.com which have a wide range of products, iPmart.com is
focused on electronic gadgets like mobile phones, game consoles and their spare parts and
accessories. If you’re interested in technology products, iPmart.com is the place for you. You can
visit its homepage at www.ipmart.com.

For you to start importing from this website, these are the following steps you need to
take.

Create an Account

To start shopping and placing your orders on any of these websites, you need to sign up
to become a registered member. To sign up or register is usually very easy.

By clicking on the ‘Join Free’ or ‘Register’ link at the top left/right corner of the home
page, you will be sent to a registration page to complete a short form. All that is usually required
is a Name, valid Email address and Password. If you prefer, you could sign up or register using
your Facebook account.

Once your account is created you can now login to your account.

Browse Through the Product

After CREATING YOUR ACCOUNT successfully, the next step is to browse through
the product section, categories by categories. Once you find the product that suit your taste, add
it to your shopping cart. After adding, proceed to checkout. From there you will be directed to a
page where you are expected to fill in your billing and shipping information. Check the ipmart
terms and agreements box and fill in your billing information and proceed to the next step.

44
 Choose Your Preferred Shipping Agency

Here you are expected to choose the shipping agency of your choice. These shipping
agencies are the courier services that would deliver your goods to your doorsteps. You have a
wide range of shipping agent to choose from ranging from DHL, EMS, FedEx, UPS, AIR
MAILS, AIR PARCELS and hosts of others. Though their prices vary so also is the length of
days in which they would deliver your goods. As for me I use DHL due to the fact that they
would deliver my goods in 3 to 5 days’ time compare to AIRMAILS which takes 1 to 3 weeks.
But if you don’t have enough budget, you can go for the AIRMAILS Services.

For those importing from www.aliexpress.com which is a Chinese portal, some of the
listed goods there comes with free china shipping which means you don’t have to pay for the
shipping charges. But the goods would have to be delivered to the nearest Post Office in your
area.

Also there are some smart Kenyan import agents that offer the services of helping you to
ship your goods from wherever you are buying to your locality for little charges. All you have to
do is to give them the links to the product you are interested in buying, pay into their account the
amount equivalent of the product with the shipping charges and wait as your goods arrives. I will
talk more about them later in this ebook.

Choose a Payment Method

Here, you are to choose your preferred payment options as show on the site. If you don’t
have a PayPal account you can use the method I explain above (the Kenyan import agents). You
can also use your local ATM Cards, a MasterCard or Visa Card. I will talk more about making
payments in the next chapter.

By now you should get an email address asking you to confirm your order. From there,
you would be taken to the next page where you would enter your correct card details. Once that
is done click on continue and you are DONE. The next page you would be taken to is a page that

45
would congratulate you on your successful transaction. You will also get an email message
detailing the successful transaction.

Other Import sites

www.Dhgate.com

Just like aliexpress, this is another retail marketplace based in china that is meant to serve
small and medium buyers. They offer a lot of great products at very cheap prices. They also are a
general merchandise store so they offer just about anything you want.

DHgate.com is a business-to-business (B2B) e-Commerce website connecting China-

based small and medium enterprises with buyers overseas.

The website is a fast trading marketplace where users can order Chinese-manufactured
products directly through the site. The company has been in business since 2004 and is backed
by investors KPCB, JAFCO and Warburg Pincus.

46
 www.DealExtreme.com

Deal extreme just like aliexpress is a china based site that sells different range of
products; it is a very good place to get quality products for cheap price. They are as well a
general merchandise site, so that means that they are lot of things you can get at great price.

www.1688.com

A b2b (business to business) website based in China where things can be gotten for far
cheaper price, unlike every other site in the list which is made to service the international market,
1688 is specifically made to service the Chinese market. It is somewhat like the china’s version
of konga except on a much larger scale. Due to the fact that this site was meant for the chinese
populace, it is therefore strictly written in chinese language thereby making foreigners to back
off but then there is a way around. If you can find a chinese translator, you will be able to get
cheap goods from this site and make a killing.

47
 www.Ebay.com

With millions of quality products to choose from, ebay has been rooting itself as the best
online shopping website for years. Based in the US, ebay runs as an auction site that is you get to
bid for the price you want to pay for a specific product but also with the option to “Buy Now”. It
is a good place to get London used phones, laptops and lots of other gadgets; it is also a general
merchandise store.

www.Amazon.com

Ebay’s No 1 competitor and top rival, there have been lot of arguments about which is
best among the two. Some say ebay is the best while amazon is the largest e-commerce website
while some say amazon is both the largest and the best e-commerce website.

Well whichever way it goes, the fact is amazon is really one great place to get products.
They have different products ranging from clothing to new, refurbished or used electronics,
computers e.t.c from amazon.

www.NewEgg.com

48
 A site that deals with the technology aspect of life. Here you can get products ranging
from laptops, computer and phone parts, convertible tablets, accessories and high tech products
at very great prices. This site has been great resource for those in the electronics line.

www.CellularCountry.com

This website deals majorly in selling phones. Here you can get different phones from
different top quality brands. They deal in refurbished, used and new phones. You can get
blackberry phones, I-phones, Samsung tablets and other phones for very cheap prices. This is a
great resource for those that deal in London used phones.

www.Martview.com (Formerly IpMart)

Martview formally known as impart is an online store that trades majorly in GSM
unlocking device, computer/phone gadgets and electronic accessories. They are based in china,
so their products are china made notwithstanding that, their products are of great quality and they
offer them at great prices.

There you have top ten guaranteed portals that you can import from but then the list is not
limited to these as there are more portals that offer quality product as great prices. You need to
understand that while they have their similarities, they are distinct in operations. So you need to
understand how each one works, well if you are able to get the basic principles behind
importation and sourcing, you will most likely be able to find your way around each and every
one of them.

49
 To start shopping and placing your orders on any of these websites, you need to sign up
to become a registered member. To sign up or register is usually very easy.

By clicking on the ‘Join Free’ or ‘Register’ link at the top left/right corner of the home
page, you will be sent to a registration page to complete a short form. All that is usually required
is a Name, valid Email address and Password. If you prefer, you could sign up or register using
your Facebook account.

As soon as your registration is complete, you can start shopping and adding items to your
cart. When you’re ready to order, you will be led to the Payment page.

In fact travelling to China is a waste of time and resources. If you end up going there
without the necessary contacts, I bet you will still come back empty handed.

But there are secret websites where you can import goods at a very cheap rate. I’m not
talking about the usual Alibaba or Aliexpress. If you are really serious about this mini import
business the necessary sites are listed below.

● www.1688.com
● www.taobao.com
● www.tmall.com
● www.jd.com

These are the four websites I really concern myself with this days. There are other great
ones like DHgate.com and Alibaba. Whatever sails your boat is ok.

As you might have noticed, most of these websites are published in Chinese language.
Don’t worry about it, I will show you how to translate them to English.

50
 Translating Chinese websites to English

If you are using Chrome as your web browser, simply download the translate plugin. To
do this click on the hamburger icon on the far right of your browser and click on settings.

This will bring out a fly out menu. Click on the extension button and click get more
extension. Search for ‘Google translate’ and click Add to Chrome.

51
 After installing the Google Translate head over to http://www.1688.com and click the
translate icon on the far right of the browser and click translate.

As you can see page translated successfully

52
 How I imported my first goods from China back in 2010

The good news to me is that I have finally cracked it on how to source stuff from china
and import them into Kenya. (Lesson learnt, be patient, don’t be loyal to anyone business wise
and just do it!)

This is well in line with my strong desire and ambition to limit the number of hours i
have to have a boss bossing me around....plus the thought of being a millionaire doesn’t mix well
with being someone else, employee.

So after trying to source what i really wanted to sell, it was finally that time when you
send your hard earned money or that loan which you will pay back with all the sweat, blood and
tears in your body to the Chinese sellers. For me the decision on what to buy was simple, i am
mad about this product and i buy it all the time, so i know what am look for and what others are
looking for plus i know the pricing like the back of my hand.....literally.

I used my favorite website back then - www.alibaba.com to source the suppliers and the
goods.

It took me a month just to narrow down to 10 potential suppliers, and clever me I asked
for samples.

The samples are free but with the DHL shipping of 50 dollars a sample, well it doesn’t
feel free. But whatever I did I was keen to make sure to have samples because trust me a medium
size shirt to a Chinese is not a medium size shirt to the rest of the world. You need to be
absolutely clear on what the sizing is, initially i didn't know that i was required to use cm or
inches and yards. Don't use Medium, Long, small etc. even shoe size 39 means different things
to an American, European, Uk and Chinese person. Know what it is you are buying, for there is
no use having the cheapest products in the market with no one buying them.

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 After 2 months, I was ready to order, please remember i am a small man with a small
order to make. This makes more complication than i ever thought it were possible. That is a story
for another day.

After narrowing down who i will use, there is still the fear that they will run away with
my money. As is the case with most transactions, I was required to make a 30% down payment
for the production of the goods to start, that took a month. So now we are 3 months down!!!!!
Still no goods.

After the month - it worked out to be 5 weeks for the Chinese - the conversation that
followed was something like this

Chinese man: We have now completed the production.

Me: So you want the 70% sent over?

Chinese man: NO!!!

Me: WTF, you don't want my money??

Chinese man: We need to sort the packaging first.

Me: Oh, LOL.

He then proceeded to send me a list of packaging options all of which were free. The
options were like 22. I thought to myself that, the butcher down the road doesn't give me these
options how come they give me so many options? I should have expected this as he had initially
sent me 10 options of colour white.

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 Me: Oh! You just pick one as they are all free and just let me know when completed!

Chinese Man: Am afraid you have to pick the option yourself

So i choose the packaging, polythene (am thinking it is lighter than cardboard so cheaper
for shipping)

A week later (well 10 days from the end of production) he informs me that the packing is
complete.

At this point I’m thinking, you know it takes 3 working days to send money from
wherever to China, why didn’t you tell me this a couple days ago?

After sending the money then there was shipping, my goods were less than a container
(LCL) so they are shipped together with load others shipments. This is not the cheapest way to
ship goods but we all got to start somewhere don’t we?

Long story short, it took another 2 weeks before the good were loaded to the container
and another 4 weeks before the goods got to Mombasa Port. I had to clear the goods at the port.
Back then import VAT and Duty were 20% and 5% respectively.

That is how i did my first import. A lot of things have changed over the last 7 years. It is
much simpler doing it now if you know your way around the corridors or very complex if no one
is holding your hand.

For me, i never thought I had the balls to import anything commercial size by myself....
but i did it, and now am even smarter. For me, having almost done it has somewhat given me the
license to do whatever that i know i am capable of...

This leads us to the next important step…

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 Chapter 4

How can you pay for products?

Payment was one of the reasons why it was nearly impossible for small businesses to
import directly from overseas manufacturers and suppliers.

Banks had to issue a Letter of Credit or Bank Guarantee which often involved a long and
complex process.

Today, through easy online payment systems, the websites i mentioned above accept
payment through a wide range of channels. You can do a simple bank transfer or pay with a
credit/debit card. Yes, the same card you use at the ATMs can be used to make purchases on
these websites.

Just make sure your bank account is sufficiently funded so you can make payments. Fast
and easy! No banks or long processes involved!

The biggest concern for all new importers is payment. How should they pay their
supplier. The truth is that there are many scammers online. And at the end of the day the only

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real way to protect yourself is to develop a relationship with your supplier and have that trust.
Because let’s face it, if you send 1,000 USD to a supplier half way around the world, what is
really stopping them from taking you money and disappearing?

A key rule is to always purchase a small order first. Do a test payment to see how the
supplier handles the orders. Make sure you do your background check and verify them as a legit
supplier. Here is a list of of payment methods you should use when making payment overseas.

PayPal

www.paypal.com. You may think that people who don’t have PayPal are scammers. The
truth is that it is kind of difficult to open a PayPal account in China. But many supplier do accept
it. so if you can find those suppliers you are good. PayPal is great because they have an awesome
depart for scams and you can open up a dispute. While you may not always win, you are more
protected with PayPal than sending money order or doing Western Union. They have shifted
more to a buyer friendly structure. So the power is on your side.

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 Escrow

What is escrow? With escrow you send the money to a 3rd party who holds the funds. the
funds are only released when you confirm that you have received your items and they are
satisfactory. This is the safe payment method because you pay when you get your product.
AliPay is Alibaba’s escrow service. I have used it a couple times to get some watches and to do
big order of adhesive collar strips. No problems.

If a supplier doesn’t do escrow or just accepts Western Union or Money Gram, it is

possible you can pay and not hear from them again. If someone is selling you Beats by Dre and
you can only pay them with wire transfer, you are going to get scammed. No if, ands, or buts
about it. For one they shouldn't be selling a branded product and not wanting to give you that
extra layer of protection is a sure tell sign of a scammer.

Wire Transfer

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 So with this method of payment you send money from your bank account to a supplier’s
bank account. Sounds a little fishy? Well it depends. To start with, it offers NO protection from
scammers.

You should only do this with suppliers you trust. When i attended the Kenya Traders
Summit 2016, I had a chance to interview Ajit Nawalkha of Mindvalley Productions. He imports
and manufactures for people. He said that he does wire transfers with suppliers now who he has
done business with for long periods of time. The wire transfers are automatic.

These transfers take 3-5 business days and the transfer fees with vary from bank to bank.
Fee will vary depending on your bank. You should alway be sending money to a business
account, never a personal one.

Credit/Debit cards

Think of this as another layer of protection. Its one of the safest ways to operate. Why?
Because you are using other people’s money. And banks don’t play about their money.

Chinese companies may be a little hesitant, but American companies usually won’t have
a problem with it. Legit companies who accept credit cards, more than likely have a merchant
account and they had to go through verification to get it.

There are a couple reasons you may want to use credit cards when dealing with suppliers.
One is the added layer of protection. If you use this with PayPal, you have two layers of

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protection. Most companies will do a charge back if something goes wrong with your order. So
the advantage is on your side. Next advantage is that you can use points. My friend Ahmed who
imports electronics recently realized that he has tons of points from all the order he has made
over the years.

Taxes

Look out for taxes when importing from China. Like regular income taxes, you can be so
caught up that you “forget” it. The taxes you will deal with

Import Duty

This is tax collected on imports and exports by Customs Authority. It is based on the
value of goods or the weight, dimensions, or other criteria of the item such as its size. It is also
called tariff or import tariff. This tax is used to raise state revenue.

These import duties vary based on the product. Check the rates with
http://www.dutycalculator.com

Value Added Tax (VAT)

A type of consumption tax that is placed on a product whenever value is added at a stage
of production and at final sale. Value-added tax is most often used in the European Union.

Here is an example. A computer is built by a company in Europe the manufacturer is

charged a value-added tax on the suppliers purchased to produce the computer. Once the
Computer reaches store display, the consumer who purchases it must pay the value-added tax.
VAT is the value of the good + the shipping + the import duty.

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 The purpose of VAT is to generate tax revenues to the government similar to the
corporate income tax or the personal income tax. A VAT is like a sales tax the consumer sees. It
differs from the sales tax in that, with the later, the tax is collected and remitted to the
government only once, at the point of purchase by the end consumer. This tax is paid every time
an order is made.

To put it into perspective, VAT was implemented in China in 1984. In 2007, the revenue
from VAT was 15.47 billion yuan ($2.2 billion). It made up 34 % of China’s total tax revenue
for the year. Thats a lot of cash!

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 Chapter 5

Scams and fraud Issues

Scams and fraud have been a big issue in internet-based transactions and e-Commerce for
a long time. What if you receive the products and they are fake or not exactly as the supplier
described? What if you pay for the products but they are never shipped and delivered to you?

How can you make sure that you get the EXACT products you paid for without getting
scammed?

Good and important questions!

The two websites i have recommended to you in this ebook have some form of ‘buyer
protection’ mechanism built into the payment process.

This mechanism, also known as ‘Escrow’, is the same role the banks have played in the
import business and international trade for a long time. The way ‘escrow’ or buyer protection
works is simple. Rather than pay the seller directly, Aliexpress and iPmart withholds your
payment until you receive the products you ordered and confirm that they are not fake/damaged.

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 The image below is an example of the escrow system operated by Aliexpress. It’s a
simple five-step process that ensures that the buyer is never scammed and gets what he/she pays
for.

Sites like Aliexpress.com and DHgate.com offer reimbursements and return your money
if you are not satisfied with the products you receive. All of this is done to reduce the risk/fear
that you’ll lose your money.

We cannot say that it’s a 100% risk-proof process. However, we can say that it’s often
unlikely that what you fear the most (getting scammed) will happen.

How to Avoid Quality Issues and Fraud

The biggest risk with importing from China is not getting scammed or receiving a
container filled with brick stones. It’s the exposure to quality issues. Regardless of whether you
are a businessman based in Germany, Ghana, USA, Canada, Australia, South Africa, Kenya or
Japan; your consumer does care about quality, and your years of hard work building a reputation
can be ruined by just one bad shipment.

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 So what is a quality issue? Well, quality concern is not reserved for people with PhD’s
and expensive suits, it concerns every business from the smallest street vendor to global
corporations. I will give you a few examples of common quality issues that China importers are
faced with.

● Damaged items
● Functional defective items
● Wrong items
● Wrong colour
● Cosmetic defects
● Substandard materials
● Substandard components
● Transportation damages
● Substandard product packing
● Sub Standard export packing

The two main causes of quality issues are:

Cause A – Misunderstanding between the supplier and the importer

Many importers assume that the supplier in China will understand that they “require
good quality.” The problem is that there is no standardized definition of “good quality” and the
idea of “good quality” differs between different people, companies, countries and continents.
The quality of a certain product is defined by the sum of its parts; such as the materials and
components used to make the product, etc. I will explain this in a comparison chart of a “high
quality” and “low quality” wristwatch.

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 A Comparison Chart of a High Quality Watch and a Low Quality Watch

Product Specification High Quality Watch Low Quality Watch

Movement Citizen IL22 (Made in Japan) No name (Made in China)

Case Material Stainless Steel Zinc alloy

Strap Italian Leather (authentic) PU Leather (plastic)

Water Resistance 5 ATM None

Factory Price US$22.5 US$4.5

Retail Price US$219 US$29.95

For a business that is into low cost products, the “Low Quality Watch” is of course the
product of choice. The problem is that the less you know about your product, the harder it is to
ensure that it reaches a certain quality level. Thus the key to avoid disastrous misunderstandings
is to: Know your quality requirements and product specifications and Communicate these to
the supplier.

Let’s stick to the wristwatch example; If you don’t know that the Case Material is an
important quality factor and don’t specify, to the supplier, that you want a certain material, then
the supplier will choose for you!

You cannot compare a “wrist watch” with a “wrist watch”. Instead you compare product
specifications – otherwise you can never be sure whether or not you have been quoted a good
price. I am sure you wouldn’t want to end up paying 22.5 dollars for a cheap zinc alloy watch.

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 Cause B – The supplier is cheating the importer quality

Yes, some Chinese suppliers deliberately cheat importers. Since a product is defined by
its product specifications, a supplier can simply use cheap and substandard material and
components to increase its own profit margins. The supplier is more likely to cheat importers
who make one of the following two mistakes listed below.

1. You don’t communicate clear product specification requirements. When you leave
product specifications “open” you invite the supplier to “fill in the gap” with a material or
component that is cheap and low quality. (I.e.You forgot to mention that you want a Stainless
Steel case so the supplier shipped a bunch of Zinc alloy watches instead.)

2. Even if you are successful in drafting a detailed list of very precise product
specifications, this is not worth anything unless you can make the supplier believe that you will
follow up on quality.

This one is simple, always tell your supplier that you will check and inspect for quality
control on the products in China before you make the final payment. Even if you think a Quality
Inspection is too expensive, you can still deceive your supplier into believing that you will make
one.

The most important thing here is that the supplier complies with your quality
requirements, something that is more likely to happen if they believe that cheating you is too
risky.

My 3 Step Plan for Preventing Quality Issues When Importing from China

Step #1 – Understand your product specifications

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 Now you understand that product specifications are critical to success, but identifying
them is not always easy. However, even a beginner can follow the task list below to break down
a product into a list of specifications;

● Review the product descriptions of various suppliers on Aliexpress.com

● Review the product description on various English e-commerce websites such as
Amazon.com
● Review Wikipedia.com for detailed material information

Anything that describes the following shall be included in your list of product
specifications:

1. Design
2. Dimensions
3. Components
4. Materials
5. Certificates
6. Colours
7. Print / Type of print
8. Logo / Logo position / Type of logo print
9. Treatments
10. Modifications
11. Size

The more information and documentation you have, the more likely you are to get what
you order. I also suggest you consider to create more supplier material such as the following:

1. Logo design files

2. 3D Designs with dimensions
3. 2D Designs with dimensions
4. Photocopies of existing products
5. Physical reference samples

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 Step #2 – Draft an Agreement

It’s true that Chinese suppliers are not very concerned with honoring agreements in case
of a dispute. Instead, an agreement can be used as a tool to communicate the following to the
supplier;

1. Your product specifications (What you want your product to look like).
2. What you will not accept (What you don’t want your product to look like).
3. That the supplier should think twice about cheating you (Because you will send an
inspector to the factory before shipping).

The 3 main components mentioned above are useless if you don’t have a good bargaining
tool. Going to a Chinese court is expensive and time consuming, so instead I suggest you rely on
a much simpler mechanical tool such as a; A 2 stage payment plan;

1. Deposit payment (30%) before production

2. Balance Payment (70%) after quality inspection and completed production

The key is to withhold the final payment until you have confirmed that the supplier
actually made what you asked for! As soon as they got all the money, they won’t be as easy to
deal with. Remember that Chinese suppliers have very low profit margins (2 – 4%), if they
cannot secure the final payment they make a huge loss.

In other words, you can force them to remake or repair your products if you discover a lot
of damaged items during the Quality Control as long as the money is in your hand.

Step #3 – Quality Control

A core part of the plan is to verify the quality of the products before they leave the
country. However, it’s equally important to make the supplier know that they have something to
lose if they try to cheat you, and that is by telling them well in advance that you will inspect the
products in China, before they are shipped.
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 A Quality Inspection is not expensive and costs around US$250 – $300. If you for some
reason cannot afford a Quality Inspection, you still have the following option;

● Keep telling your supplier until the final day of production that you will send an
inspector. Yes, it’s deception but for a good cause. As long as the supplier believes that
they got something to lose by cheating you, they are a lot less likely to try to pull any
tricks on you.

I want you to engrave this on your mind that importing from China is risky and not even
my strategy can offer a 100% guarantee for success. But by applying this 3 step plan, you can
greatly improve your chances and enjoy less defects, lowered risks and better profit margins.

How To Avoid Common Mistakes And Why You Shouldn’t Be Afraid

Most people who start their own ecommerce stores are often hesitant to import their
goods from overseas. And their fear is understandable.

After all when you’re dealing with a vendor that is over ten thousand miles away, every
little bit of miscommunication is magnified by 10X. And if you factor in the language and
cultural barriers, it can be quite intimidating to pay a large sum of cash to someone in a
completely different country.

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 But the reality is that importing goods from China or any foreign country is not that
difficult as long as you are careful and know what to expect.

I will address some of the most common fears and myths involved in importing your
goods from China and hopefully show you that buying goods from overseas isn’t as intimidating
as it sounds.

Myth #1: Asian Vendors Can’t Speak English

Most people think that doing business with a Chinese vendor requires an interpreter. But
in all my years of doing business overseas, not once have I ever felt the need to hire a translator.

I learnt chinese language some time back when i was at the university but the truth is that
my Chinese is horrible.

In fact one time I tried to bust out my Chinese with a vendor at the Canton Fair and he
gave me a puzzled look and ended up replying to me in English!

The reality is that almost every Chinese vendor has at least one person who can speak
English semi-fluently. And more often than not, they all have a decent grasp of written English.

As a result, communicating with your vendor should be relatively straightforward if you

simply stick with email.

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 Don’t be intimidated by the language barrier!

Myth #2: Most Asian Vendors Are Out To Rip You Off

While it is true that there are scammers and con artists in every industry, I have yet to
encounter a vendor who intentionally tried to rip me off. In fact if you do just a little bit of due
diligence, you can easily sort the bad vendors from the legit ones.

For example, you can arrange a Skype chat with your vendor to get an idea of who you
are dealing with. You can have them provide you with a virtual tour of their facilities.

You can also ask if they work with other businesses in Kenya and take a look at their
existing clientele. Use services like Panjiva or Import Genius to verify their claims. In general, I
try to stick with vendors who are accustomed to working with East African companies to keep
things simple.

One thing that my wife and I also like to do is to attend the Canton Fair which takes place
in GuangZhou, China twice a year. If a vendor has a booth at the fair, then you can pretty much
bet that they are a legit vendor.

And even if you can’t make it all the way out to China, you can still find legit vendors by
looking at trade show catalogs. For example, you can go to the Canton Fair website and
download a copy of their directory to see if your vendor is on the list.

In general, as long as you are careful about who you work with and do the research, you
can easily avoid the scam artists.

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 Myth #3: Quality Control Problems Can Not Be Avoided

One of my biggest early concerns with importing a large quantity of linens into Kenya
was quality control.

Most transactions with overseas vendors are done via wire transfer. As a result, once you
have received your merchandise, you are pretty much stuck with it and there’s no easy way to
make a return.

So what’s stopping a vendor from shipping you incomplete and unsellable crap? Nothing
really. But there are many steps that you can take to prevent this from ever happening.

The first line of defense is to request samples made from the exact batch of materials
from their production run. Note: The last part of this statement is extremely important.

When you initially ask a vendor for a sample, chances are that they are going to ship you
something that was made from excess material from a different production run. Sometimes,
they’ll ship you left over stuff that’s been sitting on their shelves for months.

As a result, the sample you receive may not be representative of the final finished
product.

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 My wife and I made this mistake many times when we first started out. We would ask for
a sample which would look fantastic only to get shipped product made from a much thinner,
lower quality material when we purchased in bulk.

Today, we always ask for samples made from the exact fabric that is going to be used in
final production.

We also have the option to enlist a 3rd party inspection company to physically go
through our goods in China before they are shipped. Not a big deal.

Myth #4: Asian Vendors Are Just Out To Make A Quick Buck

With all of the bad press coverage regarding manufacturing scandals in China, the media
has led us to believe that all Asian vendors are out to make a quick buck regardless of quality.

But while there are vendors like that out there, I’ve found that most Chinese businesses
that I’ve personally dealt with are in it for the long haul. In other words, establishing a long term
business relationship with you is their primary goal.

For my wife and I, we always begin every new vendor relationship with a small purchase
and gradually work our way up to larger orders over time as our mutual trust builds. Over the
years, our vendor relationships have become so strong that we’ll often get shipped merchandise
without having to pay anything in advance.

One time, a vendor accidentally shipped us a large batch of bad product and we decided
to complain about it. Now technically the shipment was paid for, we were stuck with it and they
could have told us to beat it. But instead, they worked with us to find an acceptable resolution to
the problem.

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 When we could not come to an agreement on price, we ended up returning all of the
merchandise back to China. But here’s what was hilarious.

Instead of shipping the merchandise back to China which would have been expensive,
they ended up sending a random relative/friend to pick up the merchandise and take it back with
them in suitcases on their next visit back home to China.

Anyway the point that I’m trying to make is that all of the Asian vendors that we’ve
worked with legitimately care about the relationship. The purchases we make are not one and
done. They are our partners for the long haul.

As long as you start out with small orders and gradually expand, you can weed out the
“get rich quick” guys and focus on the factories that you want to work with on an ongoing basis.

Conclusion

When it comes to sourcing product for your store, chances are that you will be able to
find much better pricing overseas. Now importing goods from Asia can be intimidating if it’s
your first time.

But if you start out with very small orders to get your feet wet and gradually grow over
time, the process instantly becomes much more manageable with less perceived risk.

Importing your products from overseas is quite doable. You don’t have to buy an
enormous quantity of goods. You don’t have to risk a lot of money. You just have to be willing
to take a small chance.

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 Chapter 6

Find high quality products and reliable sellers

This is usually one of the biggest concerns most people have about buying products from
China.

Unlike the strict quality and safety standards which protect buyers in the US and Europe,
African small businesses are vulnerable to low quality products. So how can you be sure that
you’re buying good quality products from a reliable seller?

This is where the beauty of customer feedback ratings come in.

A Feedback Rating is a measure of a seller’s reputation on AliExpress.com and

DHgate.com. After every transaction is completed, buyers can leave a positive or negative
feedback based on their experience with that seller. This rating adds up to affect the overall
rating of that seller.

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 If the seller usually delivers as promised, he/she often gets more positive feedback from
satisfied customers. On the flip side, if the seller’s service is crap, dissatisfied customers will be
happy to give him/her a negative feedback which brings down the seller’s rating.

Some of these ratings are based on a scale of 0 to 100% or between 1 (low) and 5 (high)
stars. So, when you find a product you’re interested in, i strongly recommend that you take a
quick look at the seller’s feedback rating.

I advise that you only consider sellers who have an average positive feedback rating of
90% or 4 and higher.

However, this rule is not absolute. You should take your time to read the actual
comments and feedback by previous buyers. From reading these, you will get some vital insights
and pieces of information about the quality of the seller’s product, early or late deliveries and so
on.

I also strongly advise that you take your time to read the product descriptions/details,
seller guarantees and shipping conditions which are usually at the bottom of every product page.
You need to confirm that the product you’re buying has the features you’re looking for.
Remember, what you pay for is what you get.

Suppose you come up with a product idea or think you have market channels for certain
products, and you want to find a supplier in China because of the low product development cost
and low production cost there. If you Google the product name or concept, you will find tons of
China suppliers/manufacturers. However, you still think you have not got one, because you want
to find a capable and reliable one that would satisfy your specific needs and have a strong desire
to do business with you.

Many people get frustrated because they have been communicating with suppliers in
China for months, but fail to move forward. The reason, most likely, is that they did not find the
suitable one at the beginning. To successfully find a suitable China supplier, you need a strategy.

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This strategy will consist of awareness, knowledge and a good amount of homework. Below are
some practical steps to find a suitable Chinese supplier for you.

1. Understand what you need.

You need to first know what is available and have a way to categorize the information.
Here are some categories to help you think about Chinese suppliers: manufacturer vs. 3rd-party
supplier; Big corporation vs. small family-owned; 3rd-party supplier with in-house product
development capability vs. 3rd-party supplier that just buys-in and sells-out; vertically integrated
manufacturer vs. assembly-based manufacturer; etc.

Properly categorizing the suppliers will help you understand what you need. For example,
if you need to import products in a narrow range, you may choose a manufacturer other than a
3rd-party supplier. If you are a small business and need dedicated attention, you may want to
develop a good relationship with a small family-owned business.

2. Do some preliminary Internet research to further develop your category system

towards your specific needs.

Create a data table to help you record the search result, so the job can be done more
efficiently and effectively. The table should include columns like company name, contact
information, business scale and scope, category check boxes (important), and notes.

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 3. Use search engines to search information related to your product name.

The first 100 results would be the most relevant websites related to the product of your
concern. You can also find your competitors' information and develop a better sense of market
segment and marketing channels.

4. Use trustworthy B2B websites or popular business directory websites to obtain

very structured information for Chinese suppliers.

Famous B2B websites providing valid information of hundreds of thousands of suppliers

are great choices. Be sure to use local ones, such as alibaba.com, bossgoo.com, made-in-
china.com, as you can contact Chinese suppliers on these websites and get quick responses. The
directory websites are also excellent resources to obtain industrial knowledge.

5. Narrow down the list of suppliers you want to work with to a manageable
amount.

At this stage, you may already know what your real needs are and what is available.
Initiate contact with the suppliers you want to work with, and further develop relationships with
them. Eventually, you will find the one. The process can be a fun and friendly experience.

6. Find a Chinese local business to help you.

The local men know how to check the supplier, some special business manner is
unknown by the foreign ones, once you have a local guide, all your business work will be easy.

7. Make a phone call

In order to avoid being traced by law enforcement authorities, most scammers do not
provide genuine registration information online. For example, they will provide a false company
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address, telephone number and fax number, or persuade buyers to contact them by mobile phone
only.

Therefore, you should make a phone call by the supplier’s telephone, not mobile phone,
and ask for the company registration number and business license number while you’re at it. An
alarm should sound off in your mind if a supplier only has a mobile number and not a telephone
number. Normally, legitimate businesses will use a land line telephone instead of mobile phone
number. In China, it is possible for people to buy hundreds of mobile phone numbers if they like,
without any restriction or limitation. This is why scammers always use mobile phone numbers
instead of landline telephones.

Also, a standard Chinese landline will look like this – 86 10 3333 3333. “86” is the
country code of China, “10” (or another 2 digit number) the area code, and “3333 3333” the
telephone number. Thus, you can do some basic check on the location of the telephone number
using the area code.

8. Check business licenses

Legal companies in China have to register with the Chinese government authorities and
obtain a unique company registration number. If your supplier is unable to provide you a unique
company registration number, it's risky to continue dealing with them. To verify the registration
number, you need to visit their local administrative government website or contact their local
Bureau of Industry Commerce.

9. Ask for references

Don’t be shy about that. To verify the supplier’s financial credit worthiness, ask for their
bank’s reference letters. To check up on the supplier’s track record in producing top-quality
items, ask for their previous customers for reference.

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 10. Get a sample

Even if you have to pay for it. We’re trying to rule out as many points of doubt and areas
of ambiguities as we can. When you have a sample in your hands, you can check the quality to
ensure that the product is exactly what you are looking for.

Also, if you have to pay for the initial sample charge, insist on wiring money to your
potential supplier’s company bank account. If they can’t provide you with that information, they
are probably not serious about doing business.

Moreover, you can refer to the supplier’s Audit Reports (if available) for an independent
onsite report of their manufacturing and trading capability.

11. Money matters

While you are on the topic of money, when it comes to payment, tell your potential
suppliers that you want to get your products picked up by your local agent in China from their
address, and that he will pay cash on delivery. See if they allow for it. Scammers will never
agree to it but real legit suppliers will.

In addition, TT, Western Union, and Money Gram are the most common mode of
payment in China, but good suppliers accept Paypal as well. Always be cautious of using
untraceable wire service transfers with suppliers you do not know – these are highly risky and
susceptible to fraud.
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 12. Conduct factory audits (or at least pretend to)

Tell potential suppliers that you’ll have their factory audited before any Purchase Order is
issued, and later their production inspected before any shipment is authorized. Mention it right
away in your first encounter or email. If the supplier refuses or looks flaky, it’s a red flag!

Factory audits are the right tool to verify a supplier’s claims about their production
capability. Most quality control firms, and some sourcing agents, can audit a factory based on a
checklist that corresponds to your needs. Prices range from 300 to 900 USD for a day of work in
the main production areas.

13. Make good use of databases

Search through this database http://shixin.court.gov.cn of the Chinese Supreme Court.

Type in the Chinese name of your supplier and see if you find it there. You will be able to find
out if they have been given a sentence and if they failed to pay damages. Unfortunately, this site
is available only in Chinese. However, a Chinese contact or your Chinese sourcing agent would
be able to help you with this step.

14. Background checks, on the cheap

You can order a report from third party authentication services such as GloBIS at
http://glo-bis.com/china.htm, where their business credit report service will provide information
on your potential supplier, including legal representatives, shareholders, business scope, financial
records of the last three years and many more.

You can also try China Checkup at https://www.chinacheckup.com/en, which offers very
similar services and cater them more specifically for foreign buyers’ needs.

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 15. Visit the company or factory in person

This is the best way to verify your suppliers – you can’t know much about an
organization unless you visit it. You can also discuss your products, prices, quality inspection,
and delivery time face to face. However, it would be impossible for you to go visit every
potential supplier you have in mind, so go through the earlier steps outlined in this above, and
narrow down your selections before making the decision to visit their office or factory in person.

The best way to reduce fraud (regardless if you’re trading online or offline) is for buyers
and sellers to conduct proper due diligence and research before entering any transaction. Be
meticulous with this verification process and you will know if your potential supplier can be
trusted.

Tips for Sourcing Good Suppliers on Alibaba.

When it comes to discussing about how to source products (or how to find suppliers) in
China, most people will come up with Alibaba.com. Because it is the largest B2B trading
platform in the world, with millions of Chinese suppliers in every industry. In each product
category, there are still thousands of suppliers, and most people don’t know how to select their
most suitable supplier. I have been dealing with all kinds Chinese suppliers for years, I’d like to
share some tips to find a good supplier on Alibaba.

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 I will provide you certain tips for choosing your desired product from Alibaba. Here we
will use ‘x hose’ as an example product. (All the companies i will mention have no relationship
with me)

#1. Gather relevant information about the product

a. Know the key word of the product and make related searches

For instance you search for ‘X hose’ on Alibaba. The resultant webpage will show you all
products related to ‘X hose’ that are available on Alibaba. Do a thorough check on the search
results and identify that particular word for ‘X Hose’ as used by suppliers for sales purposes.
Most suppliers sell your desired product by the name of ‘X hose. Other suppliers might use
words like ‘magic hose’ or ‘garden hose’ for selling the same product i.e. ‘X hose’. Thus you can
also search for ‘magic hose’ or ‘garden hose’ and get relevant results for your desired product.
The search results will lead you to more suppliers of ‘X hose’ in China.

b. Identify the places where the product is manufactured to reduce suppliers’ scope.

When you search for ‘X hose’ on Alibaba, you will find that most manufacturing plants
for ‘X hose’ are concentrated in two areas of China. The Zhejiang Province leads with about
14,827 suppliers of ‘X hose’. Guangdong falls second in place with about 3145 suppliers of ‘X
hose’ registered on Alibaba. There are very few number of ‘x hose’ suppliers from other
provinces of China.

Buyers with certain familiarity about China are well aware of the fact that this commonly
used product is usually produced in Guangdong and Zhejiang Provinces. Suppliers in other
places are not manufacturers, but generally middle men. Do not consider them for purchasing ‘X
hose’ as their price per piece is very high.

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 (Also bear in mind that most daily used products are majorly manufactured in Zhejiang
and Guangdong, and only a few of them in Fujian. Other regions of China produce Machine,
Farm Products, and chemical products.)

If you compare the suppliers from Guangdong to those in Zhejiang, you will find that the
number of suppliers in Zhejiang is 4.6 times to the number of suppliers in Guangdong. Most
suppliers in Guangdong are trading companies and not manufacturers or factories. These trading
companies purchase all their products from manufacturers based in Zhejiang. This clearly means
that the quality of product supplied by both is similar, but products supplied by trading
companies are about 10-20 % more expensive in comparison to those supplied by manufacturers.

Suppliers from Guangdong claim to supply better quality products than manufacturers
located in Zhejiang. However, this can never be true because Zhejiang has advantages in terms
of availability of low cost material and cheap labor. The cost of material and labor are high in
areas, like Guangdong and so suppliers cannot supply good quality product at similar prices. Out
of the total 3145 suppliers in Guangdong, just two or three are manufacturers. The rest of them
are all traders, selling their products at high prices. With all the competitive advantages suppliers
in Zhejiang offer excellent quality product at low prices.

#2. Identify your actual requirement and choose an appropriate supplier on Alibaba

The most crucial part here is to identify the actual demand for a particular product. The
process of manufacturing ‘X hose’ is quite easy and simple. It is for this reason that there are
numerous manufacturers of this product. You now need to decide whether you should make your
purchases from manufacturers or from trading companies.

If you wish large quantity .i.e. around more than 2,000 pieces, you can buy from
manufacturers. But, you only need 200-2,000 pcs, i suggest that you should buy from trading
companies, even if their price per piece is a bit high as compared to manufacturers.

The following suggestions will help you in choosing a good trading company for making
your purchases:
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 a. Look for the company’s name and address

Usually professional companies always choose their names according to the product they
manufacture. For e.g. there are two companies named ‘Tiantai Fuhua Rubber Co., Ltd’ and
‘Yiwu Huancai Jewelry Co., ltd’. Out of the two the former one appears to be associated with the
production of magic hose. This is, because production of magic hose requires the use of rubber
and ‘Tiantai Fuhua Rubber’ can produce it at low material cost. On the other hand ‘Yiwu
Huancai jewelry’ might have just uploaded the sale of magic hose on Alibaba to supply this
product to two or three customers in a year.

b. Search for other products of the company

Usually professional trading companies sell similar type of products. This means that if a
trading company deals in the supply of ‘magic hose’, the other products in its portfolio will also
be similar. Unprofessional companies are involved in the sale of mixed and disorderly range of
products. For instance they might be selling ‘X hose’ along with related products like toys and
totally unrelated products like cosmetics.

So if you look at the catalog of two companies discussed above, you will surely find
‘magic hose’ as prominent product in the catalog of “Tiantai Fuhua Rubber”. Whereas the
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catalog of “Yiwu Huancai Jewelry”, will not have “magic hose’’ as product, because it is
primarily involved in the production of cosmetics.

c. Read the description of their products carefully

Professional trading companies describe their products in detail, but the description of
unprofessional trading companies is extremely simple. Professional trading companies usually
supply good quality products. This is primarily due to their experience in manufacturing that
particular product since years.

#3. Correspondence and communication are important

After carefully following the above mentioned steps, you will have a long list of
suppliers, ready to choose the most suitable supplier. At this point of time, it becomes extremely
important for you to communicate with the chosen list of potential suppliers. On the basis of

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this communication you will surely be able to judge the right supplier for your product. Use the
following suggestions before placing the final orders for your desired product.

a. Learn more product details from professional suppliers

It might so happen that you do not know much about the product you desire to purchase.
You can prepare a list of questions and ask those from the supplier. This will help in
understating the product and its features.

Usually professional suppliers are enthusiastic to answer all your questions related to
quality, process and price of the product. But, professional suppliers usually sell products at
higher price as compared to other suppliers on Alibaba.

b. Ask suppliers’ enough questions to judge if they are qualified

Ask sufficient questions about the product and manufacturing process. This will help
you identifying whether your supplier is a factory or middlemen (too many middlemen in
Alibaba claim that they are themselves involved in manufacturing.). Another advantage is that
suppliers won’t quote high price of product, because they think you are experts for that product.

Taking Xhose as example, you can ask supplier what’s the price for 50FT, 75FT, 100FT
and 10FT hose, the width and weight of the textile, rubber’s materials, specifications related to
rubber, kind connecting accessories available, maximum water pressure and so on. Inexperienced
suppliers and traders are not able to answer all questions well, because of lack of product
knowledge and little or no experience in selling the product

c. Compare the price, choose your best supplier

By the time you receive the price quote from professional suppliers (usually they are
good trading companies), you already know the appropriate product price in accordance to the

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quality. In most cases this price is higher than others. If this high price is acceptable and you
don’t want to take any risk, then buying from these traders is the best available option. At the
same time, you can ignore suppliers that are quoting a price higher than these professional
traders.

If you want to buy same quality but at a lower price, then you should make your
purchases from suppliers who quote around 10% lower than the professional traders. These
suppliers usually are very small trading companies with low profit, or small factories (2 staff
operating Alibaba, and 15 workers producing). But, trading with them is not an easy task as
such suppliers are not very experienced.

To avoid unnecessary issues, you as a customer need to tell them every minute detail
about your requirement. Suppliers quoting 15% lower price than the professional, tend to supply
products that might be different from your expectations. It is vital to order a few sample products
to check quality, before making bulk purchases.

Hope the above mentioned tips will help you choose a reliable professional supplier on
Alibaba.

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 Chapter 7

How will the products be delivered to you?

Some products on Aliexpress.com and DHgate.com come with a ‘Free Shipping’ service
to many countries around the world. Free shipping is often delivered through China Mail Air
Post or Hong Kong Mail services.

While the free shipping option is very attractive, it often takes the longest time to get
your goods delivered to you; usually between 15 to 60 days depending on the product and your
location.

In addition to a longer delivery period, it may be impossible to track the location of your
package all through the delivery process. If security and early delivery are not serious concerns
for you, the money saved through free shipping can significantly increase the profit potential of
the products you import when you sell them.

Other common options for delivery on Aliexpress.com, DHgate.com and iPmart are
DHL, EMS and Fedex.

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 Although these are much more expensive options, they usually deliver your products to
you in a shorter time and allow you to track them on their way to you. However, using these
options is very likely to reduce the profit potential of the products you order unlike the free
shipping option.

Tip: Whether you decide to use a free shipping option or a faster delivery service for your
order, i advise that you include your mobile phone number in the shipping address you provide.

More often than not, you will receive a telephone call from local post office or local
DHL/Fedex office to come pick up your items. Including a phone number may mean the
difference between a delivered packaged and a lost one.

As an importer, there are many considerations when sourcing goods from China. When it
comes to shipping, you want your cargo delivery safe, on time, with competitive freight cost.

Choosing the best delivery option is completely dependent on your unique circumstance,
but i hope the content below will give you some helpful ideas about what you should consider
when getting your goods back home.

Let me assist you on the following top 2 things about freight transportation.

1. Which shipping method you can choose?

2. Which party will manage your shipping?

Shipping Method: by Post, Courier, Air or Sea?

As with most businesses, cost can’t be the only consideration but it is usually a primary
and determining factor. After all, we are all in this and making each decision to help our
customers and ourselves save or make money.

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 Different logistics methods can make a vast difference both in transit time and freight
charges. Therefore we always need to determine which method will be the most cost effective
one.

1. Regular Post

This means normal, regular China Post (or Hong Kong Post) which can take up to 2~5
weeks to arrive. If you can wait, this is the cheapest option for small shipments, like samples and
parcels. You may track and trace online, but the information cannot be updated in time.

I don’t recommend this way at most times.

Plus: Pretty economical.

Pitfalls: Unsafe. Lost packages are hard to find.

2. Express courier

Transportation with a courier company will be the most suitable method for most people
starting out. Courier company, widely used in China is DHL, UPS, and FedEx. TNT is popular
in Europe, but it’s not so popular like the others in China.

With courier service, you get fast delivery times and an online tracking facility. Most
courier shipments take just 2~5 business days to arrive in anywhere around the globe.

Please note that the advantages of different courier may vary from different weight.

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 There are kinds of delivery methods when it comes to shipping from China. But any type
of importer or buyer you are, courier logistics is a must for the following two kinds of specific
cases.

● A sample or small quantity goods transportation needs a courier

● Original shipping documents transportation need a courier

With express courier services, you get every package hand-delivered anywhere in the
world within 1 week. No need to clear shipments personally if low value. Besides, you can save
on freight charges for smaller package, even more competitive than LCL sea shipping.

As you may know, DHL/FedEx/UPS/TNT (FedEx acquires TNT on May 25, 2016) are
the top 4 couriers of the world. All of them have a sizable share of the express market.

Though many Chinese sellers from Aliexpress or eBay choose China Post, Hong Kong
Post or EMS as their first worldwide delivery option, the transit time are not so dependable.

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Especially you are waiting for the documents provided by China vendor, such as original B/L or
Certificate of Origin for customs clearance and pickup.

Time cost and money cost are the two main concerns when you make a decision in
international trade business. There’s no big difference of the top 4. Normally all the delivery can
be done within one week.

DHL/FedEx/UPS/TNT are famous brands known by people in every country. They have
a worldwide shipping network. So choosing either one of them will never be wrong. But if
there’s a chance for saving dollars, nobody says no.

A lot of people would think that international shipping is a complicated and expensive
task. This doesn’t have to be the case and you might just be surprised at how easy it is using the
cheap courier services available.

1. First of all, find a courier agent. As you may know, prepaid is always cheaper than
collect. Prepaid through a broker, which is the super VIP of the carrier, is the key point to save
money on courier shipping.

2. DHL vs. UPS

● ＜5.5kgs, DHL win

● 6-21kgs, UPS win
● 21-100kgs, DHL win
● ＞100kgs, UPS win

3. Courier to Kenya, DHL and FedEx are the king, no matter small shipment or big
shipment.

4. I don’t recommend TNT, it is best for Europe or Middle East.

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 5. Most big businesses just pick one carrier and focus on them, because it has much
bigger discounts on pricing, while small and medium businesses tend to utilize two to three
carriers to maximize cost savings.

6. Use reinforced cartons and take care of the packing quality.

Note: The carrier uses advanced laser scanning machines to calculate the volume of
packages. This means, even a small bulge in your cartons can lead to a significant difference in
volume.

7. The trade term between you and your supplier should be FOB, which is for your best
interest if other shipping methods, but EXW for courier shipments.

8. There are special lines for some specific destination and specific weight. Such carriers
are not so famous, but also reliable and more cost-effective.

Pluses: Get seamless delivery. All you have to do is sign for the package when it arrives.
In most cases delivery is quick and reliable. When there’s a problem, there is a tracking number
that can help resolve the matter.

Pitfall: The price is much higher than postal service.

3. Air freight

If the weight of sourced products is too large for couriers, example 500kg, air shipment
might be the best bet. With air freight, costs will be significantly lower than with courier
companies.

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 This way is for not so heavy cargo, and there are tight deadlines or a tighter control on
the security. Transit time varies based on the schedule of airlines, but in general range between
2~10 days which is not bad.

While extra work is involved when the goods arrive at the destination airport. You have
to handle documentation and customs clearance on your own (unlike with courier companies),
which for many newbies may seem impractical. Of course, you can always outsource these tasks
to a customs broker or a trucking company at an additional cost.

I suggest if the chargeable weight is over 250kg, you can try to choose air freight. If
under 250kg, stick to international couriers.

Air freight is a safe and efficient way for immediate transportation. Air cargo always has
high value-to-weight or have a severe timeline.

I will guide you to China air freight, including the advantages, cargo types, a sample
airway bill, shipping process, china main airports list and more. Keep reading.

Air Freight Advantages

The best thing with air shipment is speed. In general, the transit time from China is no
longer than 10 working days. Only 3~5 days in most cases. This is a vast reduction compared to

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ocean freight. Nowadays, the fast delivery time alone can make a huge impact on a business
niche.

Besides, air shipment is safe and can be tracked online via the airline’s official website.

Please note that air freight is just to-airport delivery. You have to handle the customs
clearance and inland transportation to your warehouse or store, while courier services such as
DHL/FedEx/UPS/TNT can be the one stop to-door delivery provider.

Air freight = airport-to-airport

Air courier = door-to-door

That is the biggest difference between them.

Air Cargo Types

By cargo properties, they can be divided into

● General cargo
● Special cargo

1. General cargo

Such as electronics, Jewelry, pharmaceuticals, wristwatches are high value. The

electronics industry accounts for around 40% of the value of the entire international air cargo
industry.

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 They need to be transported in a very good condition. The air shipping cost more than sea
shipping, but means nothing compared to the value amount of products.

2. Special cargo

Including living animals, goods that are dangerous or need temperature control. For
example, some chemicals are dangerous goods, and seafood that requires refrigeration and
freezing during the whole-course cold chain transportation.

Perishable or hazardous goods are subject to different regulations, compared to general

cargo. They have to pass through various inspections and need to meet numerous requirements,
and not every airline can accept these items.

Make sure that you advise in detail about special goods you want to ship. Because
leaving out any detail might lead to penalties/extra fees and denial of shipment.

3. One exception.

Sometimes you choose delivery by air no matter what the cargo type is. The
manufacturing process delayed, or a market opportunity right now, or you are pushed by your
customers, makes you have to choose air shipping.

You can plan ahead to avoid most cases, but there are always circumstances out of
control.

4. Prohibited Items

There are additional restrictions on air cargo for items that may endanger the aircraft or
passengers’ health or safety, or cause property damage, the main categories being:

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 1. Explosives: fireworks and firecrackers, detonating fuses, etc.;
2. Gases: such as compressed gas, dry ice, fire extinguisher, gas cartridge, inflated ball,
respirator, explosive automotive airbag, aerosol, gas lighter, gas cylinder, and lamp bulb
etc.;
3. Flammable liquid: e.g. paint, gasoline, alcohol, engine oil, camphor oil, engine starting
fluid, turpentine, thinner, mucilage, perfume, insect sprays, air freshener etc.
4. Flammable solid, pyrophoric substances, and substances that emit flammable gases in
contact with water: e.g. activated carbon, titanium powder, copra, castor products, rubber
debris, safety matches, dry white phosphorus , dry yellow phosphorus, magnesium
powder, and solid gum, etc.
5. Toxic and infectious items: pesticides, lithium batteries
6. Corrosive items: e.g. batteries, alkaline battery electrolyte
7. Magnetic substances without degaussing packaging, magnetic steel and other strong
magnetic products: e.g. currency detectors, speakers, magnets
8. Items dangerous to public health: e.g. corpses & bones (inc. incinerated), untanned hides,
animal bones not processed with chemicals
9. Oxidizers, organic peroxides, radioactive materials & corrosive items: e.g. chemical
medicines, lab chemicals (potassium permanganate, sulphuric acid)
10. Powder, liquids, pastes, and other items with danger signs on their packaging
11. Biochemical products and infectious materials of all kinds: e.g. bacillus anthracis,
dangerous pathogens, medical wastes

Other restrictions will apply due to national laws and regulations of specific airlines.

Please note that most of the airlines are saying NO to the following names or descriptions
of the commodity: Lithium Battery Toys, Scooter, Hoverboard, Power Supply, Power Bank, Air
Bag, Electric Board, Electronic Board.

Air Waybill (AWB)

AWB is almost the same structure as Ocean Bill of Lading (OBL).

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 An Air Waybill is a documentary proof of the contract of carriage between the shipper
and the carrier.

It also serves as:

● a delivery receipt
● a receipt of goods for shipment
● a document required for Customs clearance
● a form of invoice for the carriage of the goods
● an insurance certificate (if the insurance cover was arranged through the airline)
● a dispatch note, bearing a list of all accompanying documents, and any special
instructions given by the shipper

Difference between AWB and OBL

The rule of AWB played in an international shipping is almost the same as OBL, but
AWB doesn’t serve as a document of title. This is the most significant difference.

The words non-negotiable are printed at the top of the Air Waybill, and must not be
changed or removed.

The AWB will be delivered with the air cargo. So as soon as the plane departs from the
loading airport, the cargo rights will be transferred to the consignee. The consignee can only
show their identification to claim the shipments. The AWB cannot be transferred. That’s why
you have to pay freight costs before departure from China.

“Rate Charge”

There’s a column called “Rate Charge” in the middle of an AWB. This rate will be
automatically generated by the airlines according to International Air Transport Association, and
can NOT be modified. The charge shown is higher than you really paid.

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 This is the all-in billable weight rate, calculated by:

● GCR (General Cargo Rate)

● SCR (Specific Commodity Rate)
● CCR (Commodity Classification Rate or Class Rate)
● BUC (Bulk Unitization Charge)

Air cargo tracking

Each AWB has its unique number. You can find this number on the head section. By
submitting the number on the tracking page of the airline’s official website, all updated tracking
information will be available.

The bill format is 2 airline code + 3 numbers as prefix + several numbers. Example, Air
China Cargo, CA as the airline code, 999 as prefix.

Tracking & Tracing from Air China Cargo at http://www.airchinacargo.com/en/

Some carriers will provide a free service called email alert. When the goods moved, the
updated status will be sent to you shortly. Take advantage of that.
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 There are also specialized tools online from third parties for flexible tracking. You can
google and find them easily.

Top 10 International Airports in China

In international air transport, there are standard short name of each airport created by
IATA. The airport short name is formed by three capitalized letters for easy recognition.

❖ PEK – Beijing Capital International Airport

❖ HKG – Hongkong International Airport
❖ CAN – Guangzhou Baiyun International Airport (CA/QR/TK/EY/MS/NH to Middle
East and Africa)
❖ PVG – Shanghai Pudong International Airport
❖ SHA – Shanghai Hongqiao International Airport
❖ CTU – Chengdu Shuangliu International Airport
❖ SZX – Shenzhen Baoan International Airport (CA/HU/CZ/MU to Europe and North
America)
❖ KMG – Kunming Changshui International Airport
❖ XIY – Xian Xianyang International Airport
❖ HGH – Hangzhou Xiaoshan International Airport

Based on the status of the cargo shipping in 2016, Shanghai PVG is the 1st busiest
logistics center with 3.27 million tons, followed by Beijing PEK 2.814 million tons, Guangzhou
CAN 1.53 million tons and Shenzhen SZX 1.0131 million tons.

Attention: A city can have more than one airport. Make sure there will be no
misunderstanding when you request an air quote.

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 4. Sea freight

Transport by ocean can take a very long time but can carry a massive amount of goods,
which drives down the costs. The diversity of cargo that can be shipped is also a major benefit to
this mode. That’s why it’s popular and widely used mode in logistics.

Despite the lengthy delivery time, if you plan ahead, and have enough time to wait, sea
freight will be your top choice. Depending on where you’re located, it will be in the vicinity of
3~60 days.

Just like with air freight, you’ll have to take care of the documentation, customs clearance
and delivery of goods from the port to your warehouse or facility. But if you choose to-Door
services, which is popular to USA/Canada/Europe/Australia, all you have to do is pay the freight
charges and wait for your cargo sent to your specified address.

Pluses: Can be economical, particularly, if you’re prepared to handle the logistics of

clearing the goods through Customs yourself. Also, the best way to handle large bulky
purchases.

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 China Sea Freight Shipping – Everything You Need to Know

Sea freight, or ocean freight, is the main shipping method for international export &
import. Low prices, large volumes, FCL or LCL options, all these advantages make delivery by
sea a first choice for most importers.

Top 10 Busiest Container Ports

Sea shipping starts from a port and end at a port, which means a standard container rate
or less than container rate is port-to-port.

Among the world’s top 10 ports in 2016 (credit: Hong Kong Marine Department), more
than half are located in China, actually 7 of 10.

It means you don’t have to pay much attention on the geographical location of your
potential vendor. No matter where your Chinese supplier located, your goods are never too far
from one of the world’s largest and most productive ports ready to ship your goods out of China.

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 Here’s a rundown of top 10 seaports by container volume.

Port Volume 2014 Rank in China Rank Worldwide

(Million TEUs)

35.30 1 1

Shanghai

Shenzhen 23.55 2 3

Hong Kong 22.95 3 4

Ningbo-Zhoushan 19.20 4 5

Qingdao 16.70 5 7

Guangzhou 16.50 6 8

Tianjin 14.20 7 9

Dalian 10.95 8 12

Xiamen 8.80 9 16

Lianyungang 5.49 10 23

1. Shanghai

Location: Shanghai Municipality, East Coast

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 Website: www.portshanghai.com.cn

The port of Shanghai is the world’s largest and its volume is still increasing rapidly. It is
the most important port for foreign trade as it’s located near to the innumerable factories of
neighbouring Jiangsu and Zhejiang provinces.

2. Shenzhen

Location: Guangdong Province, South Coast

Website: www.szport.net

The port of Shenzhen is the gateway to Hong Kong and the Pearl River Delta, making it
another key port as it connects China’s southern hinterland to the world.

3. Hong Kong

Location: Hong Kong Special Administrative Region, South Coast

Website: www.mardep.gov.hk

Due to historical reasons, the port of Hong Kong has been an ocean traffic hub for
centuries. The advanced international concepts and experiences make it more competitive.

4. Ningbo-Zhoushan

Location: Zhejiang Province, East Coast

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 Website: www.nbport.com.cn

Ningbo-Zhoushan port is heavily involved in the shipping of raw materials, manufactured

goods and cargo into and out of China. Like the port of Shanghai it is also close to China’s
developed Eastern provinces and is located next to the Yangtze.

5. Qingdao

Location: Shangdong Province, East Coast

Website: www.qingdaoport.net

Located on the Yellow Sea, the port of Qingdao serves Shandong Province and in 2011
entered into an alliance with the largest port in South Korea and three other Chinese ports in
order to create a shipping and logistics center in Northeast Asia.

6. Guangzhou

Location: Guangdong Province, South Coast

Website: www.gzport.gov.cn

The port of Guangzhou transports goods to and from nearby Guangxi, Guizhou, Jiangxi,

Sichuan and Yunnan Provinces, as well as Guangdong itself and ships many agricultural,
industrial and manufactured products.

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 7. Tianjin

Location: Tianjin Municipality, North Coast

Website: www.tianjinportdev.com

The port of Tianjin is one of the best connected ports in China, as it is linked to 21 other
cities and districts via its dry ports. With its location so close to Beijing and the Northern central
provinces, it is able to serve areas from the very North West in Xinjiang, to the North East of
Inner Neimenggu.

8. Dalian

Location: Liaoning Province, North Coast

Website: www.portdalian.com

The port of Dalian is the most northern ice free port and is the largest port in North East
China with links to ports in over 160 countries. It also serves seaports in East Asia, North Asia
and the Pacific Rim.

9. Xiamen

Location: Fujian Province, South Coast

Website: www.portxiamen.gov.cn

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 The port of Xiamen sits in the mouth of the Jiulongjiang River and has over 68 shipping
routes, shipping to over 50 countries and has strong links with Kaohsiung in Taiwan.

10. Lianyungang

Location: Jiangsu Province, East Coast

Website: www.lygport.com.cn

Lianyungang has been an important gateway into China for centuries as it was one of the
ports originally opened to foreign trade by the Qing. It is now among the world’s biggest ports
and largely serves the provinces of Shandong and Jiangsu.

20’GP/40’GP/40’HQ

These three types are the most common ones used for container shipping.

20’GP = 20FT = 20′ = 20 feet general purpose

40’GP = 40FT = 40′ = 40 feet general purpose

40’HC = 40HQ = 40 feet high cube

* General purpose commonly means Dry Container (DC). Sometimes if fluid goods are
packed by a flexible container bag, it can also be delivery by standard DC.

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 20’GP is designed to carry more weight than voluminous cargo. Example – minerals,
metals, machinery, etc. all of which are heavy goods.

40’GP is designed to carry voluminous cargo rather than heavy cargo. Example –
furniture, tyres, clothes, etc. all of which are voluminous goods.

Though the volume of 40ft is twice than the 20ft, the max load of both is the same, no
more than 27~28 ton in China, most cases under 20 ton. While you can load more than double
the 20ft cargo volume into a 40ft, you cannot load double the 20ft cargo weight into a 40ft.

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 The ocean rates from China for a 40′ container is less than double of a 20′ container – you
may take it as rough 1.5 times for easy reference. And the 40’HQ cost the same as the 40’GP,
sometimes higher US$100~200.

In addition to the above three common containers, there are special types if your cargo is
not so regular. Check this PDF at https://www.cma-
cgm.com/static/Communication/Attachments/CMACGM_Containers_17_02_2014_web.pdf
from CAM CGM to learn more.

No matter which type of the container is, you can find many useful data printed on the
door, such as CNTR NO., MAX. GROSS, TARE, NET, CU.CAP…

FCL/LCL

FCL, full container load, which means your goods loading into a full container. You buy
large quantity, and the freight cost per unit will be less. It’s from CY (container yard) to CY.

LCL, less than container load, which means your goods and other importers’ goods
consolidating together from the same loading port to the same destination port. You buy the just
right quantity suitable for your specific target market. It’s from CFS (container freight station) to
CFS.

You can choose FCL or LCL as you wish. But there’s a basic rule you should follow.

● If 1cbm~8cbm, choose LCL;

● If 8cbm~15cbm, choose FCL or LCL based on practical situation;
● If over 15cbm, choose FCL without any hesitation.

Why? Click here https://cargofromchina.com/fcl-lcl/ to dive into.

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 One more question for you.

If your shipment is less than 1cbm, for example, 0.5cbm with 90kg, then LCL or courier?

You may think delivery via sea is always cheap. But in fact, courier such as
DHL/UPS/FedEx is more competitive for this kind of small package. Generally speaking, it’s
better to choose express courier than LCL for the billable weight of a shipment under 100kg,
sometimes even 200kg for certain destination countries.

FOB/CIF/DAP

These are three common incoterms when delivery from China.

Basically how much of the shipping you pay the supplier to handle. Based on the
incoterm you select, you can let the supplier handle the goods transportation to

● a nearby port in China, which is FOB

● a nearby port in your country, which is CIF (including maritime insurance)
● all the way to your facility, which is DAP/DDU (not including tariff and taxes)

If you are new to importing, and haven’t found the right forwarding agent, you’d better
choose an incoterm that takes the cargo as far as possible.

Even to-door service, unlike parcel delivery companies (Fedex, UPS, etc.), common
FTL/LTL carriers typically only provide dock-to-dock service or curbside delivery where the
driver does not touch the freight. This is known as “Dock to Dock” or “Shipper Loads / Receiver
Unloads”. So commercial dock or curbside delivery only. Residential or inside delivery means
extra fees.

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 Ocean Rates

The general shipping rates includes the base rate and surcharges, but NONE customs
clearance and port charges at both sides, duty & taxes may occur, and other miscellaneous
charges.

Please note that all international shipments are subject to destination charges:

● Destination country customs related fee (i.e. duty)

● Destination port/terminal handling fee (i.e. THC)
● Destination agent service fee （i.e. D/O）

1. Type

1.1 FCL rates

By the loading port, the destination port, the container type/weight/quantity. For example:
How much does it cost to ship a 40′ container to Australia? It cost abt US$1400 for shipping
1×40’GP from Qingdao port to Sydney port.

1.2 LCL rates

By the loading port, the destination port, the volume, the weight, the volume/weight ratio.
For example: How much does it cost to ship 10 cartons to Canada? It cost abt US$65 per cbm
for shipping 6cbm light goods from Shanghai port to Vancouver port.

1.3 To door rates

By HS Code/volume/weight/quantity/packaging/value/… Also please note some related

costs during an import process,

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 ● Transportation to Port of Loading
● Export customs declaration
● Loading port fees
● Ocean freight charge
● Insurance
● Destination port fees
● Import customs clearance
● Customs duty/tax
● Transportation from the Port of Destination

To-door means the destination charges and fees are prepaid. All these fees make up the
landed cost. Never assuming the basic shipping rates plus the products cost as your total cost.

For example, a port-to-port quote, exclude all destination charges, which may include:
terminal fees, handling charges, customs clearance/inspection, duty and Tax (if applicable),
delivery to your address, storage, insurance, etc.

Destination charges vary depending on a destination country and carrier. Guiding the
consignee in the complexity of cargo recovery procedures is responsibility of carrier’s
destination agent/broker.

2. Change Frequency

Rates for ocean shipping change with demand and time.

Unless you have a rather large consistent quantity (10 plus containers per month) then
you’ll not likely to get a quote for longer than two weeks.

It may vary every week. Sometimes, if your supplier could catch up the cheap route by
finishing the production one or two days earlier, you can save quite a bit. The price for 1x40ft
container may increase US$1200 in the next week schedule.

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 US$1200+? Yes, it happened.

So knowing the rough date your shipment ready is essential for requesting the exact
quotation.

3. Season Impact

Seasons with rain, storm or snow may impact the in-and-out for trucks and vessels, but
busy seasons for shipping don’t necessarily coordinate with any other typical seasons of the year.

Peak season for China exports, is typically the month before Chinese New Year
(January), and the Third Quarter of each year (From July to September) when many made-in-
China products shipping for Back to School, Halloween and Christmas.

The rates will be relatively high at these times, because too much shipments waiting for
delivery. You need to plan accordingly as there is a finite number of containers and vessels
available.

This is only a brief introduction. It’s so complicated to calculate the freight rates. You
can learn more from here https://cargofromchina.com/shipping-rates.

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 Container Tracking

Normally the consignee will be notified via an arrival notice within 5 days or less of port
arrival.

The consignee is then responsible to arrange customs clearance with the local customs
office, arrange for payment of any duties, taxes, and other fees. Then arrange final pick up and
delivery from the destination port.

Container tracking means you are being aware of where your shipment is located, so you
can prepare accordingly.

Why cargo tracking is so important?

Sometimes your shipment is late than schedule. Maybe the bad weather, the port
congestion, the routing change, etc. But

● Your customer is relying on you. Cargo delays without notice will screw up your
relationship and waste all your work.
● Your company is waiting for the materials for final assembly, to launch a new product
● Your manufacturer is waiting for the machine to increase productivity and manufacture
economically

The schedule reliability is about 73% among the global lines (data of 2016). Cargo
tracking will let you well known the most accurate ETA, then you can get prepared and notify
every party involved.

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 How to track your shipment?

In order to track a container, you need to know which shipping line is transporting your
cargo, and the container number, booking number or document number (any of them is usually
good enough).

All the information you can easily find on your Bill of Lading. The booking number &
B/L number are listed on the top right, and the container number is usually under the item of
“Marks & Nos.”.

According to our practical experiences, the container number should be preferred. This
number consists of four-letters owner code (prefix), six-digits serial number and a check digit.
For example:

Where category identifier can be:

● J: detachable freight container related equipment

● R: reefer (refrigerated) containers
● U: general freight containers
● Z: trailers and chassis

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 A quick suggestion

Importer Experience Incoterms Quantity Shipping Management

CIF or DAP LCL Supplier

New

Medium CIF or FOB LCL or FCL Supplier or freight

forwarder

Veteran FOB FCL Freight forwarder

If you are brand new, let the supplier handle the delivery as far as possible. Then you can
focus on booming your business. Simple but costly.

If you have gained some experiences, then you can try to control your goods delivery
through a forwarder by yourself. Simple and cheap.

It’s your choice. I suggest contact a good forwarding agent as early as possible, especially
a local one with international shipping options. They can be helpful in many ways, not only the
logistics process, but also supply chain management.

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 A quick summary

Each method of shipping comes with unique benefits and it’s often a combination of
these shipping methods to get the Chinese sourced goods to your business. There should be some
deliberation over the time frame you need your products, the security of your shipment, and
usually the biggest factor, the cost.

Shipping rates will make up a substantial percentage of your total product landed cost, so
it’s important to keep them as low as possible at all times. But sometimes, time is more crucial
than money.

It’s all about balance. Choose the right way after considering all the actual situations.

Shipping Management: by yourself or by an agent?

Letting the supplier manage the shipping is common among inexperienced importers. It’s
very simple and all you need to do is to tell the supplier that you want them to ship the cargo as
CIF “Port of destination” or DAP “Your facility address” and they’ll do the rest.

The downside is that you’ll probably end up paying a bit more than really needed. In fact,
there are better options for saving money & time.

1. Do it all internally, for full control

I have only seen big groups follow this strategy. They book space directly with shipping
lines, airlines, trucking companies and they manage Customs Declarations on both sides (the
exporting and the importing countries).

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 If you choose this option, you need to make your own order follow up, you need to check
with the carriers yourself to receive the proper info that is crucial for you. If a problem occurs,
you need to deal with it in order to avoid paying extra charges.

Your time is the most valuable. When you work directly with a carrier, you cannot save
that time, unless there’s a specialized department with professional crews in your company.

I don’t think this is a viable option for small and medium enterprises.

2. Work with a freight forwarder in Kenya, for convenience

This is what some importers do, and it is the most convenient option.

So what happens is this: small and medium companies try to work with a freight
forwarder of the right size, who care about their business. But most of the forwarders don’t
always have their own office in China. They usually work with local agents, and add their
margin on top of that agent’s fee.

You can visit https://softkenya.com/directory/clearing-and-forwarding-companies-and-

agents-in-kenya to find a list of freight forwarder companies in Kenya

This is not a cheap option, and not so efficient.

3. Work with a freight forwarder based in China, for speed

More and more importers have chosen this option.

The advantage is speed. The forwarder can keep close touch with your supplier, and keep
you informed everything. When trouble happens, your local partner will solve that asap.

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 4. Work with a forwarder on each side, for speed and savings

A fourth option is to be in direct contact with each party. For example, a Kenyan importer
will be in touch with a forwarder in Kenya, and one in China.

This is probably the right choice for SMEs transport from China. For some buyers, every
dollar saved is worth fighting for. And it allows for a higher degree of control, too.

A quick summary

Whether your supplier and you manage the transportation, you should always need to
source the logistics solution from a third party.

No matter your forwarding agent is located in Kenya or in China, when you find the right
partner, just stick to it.

As a decision maker, you may already be at the point where these options mixed with
your goals become more automatic. The more information and experience you gain, the easier
these decisions become.

I suggest considering the above two issues and get the answers before any movement in
international trade. The answers will help you make your supply chain management more
smoothly and efficiently.

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 How to Clear a Container in Mombasa Kenya. Procedures & Costs Explained

Am going to explain to you the Kenya Ports Authority (KPA) and Kenya Revenue
Authority (KRA) procedures of clearing a container in Mombasa. 4 days of hectic clearing
procedures. The daunting costly task demystified

The task of clearing a container in Mombasa, Kenya takes about 4 days. The procedures
involved can be confusing and the paperwork required is technical. It is not based on common
street language.

Clearing and forwarding agents in Kenya tend not to reveal this information to the public,
primarily because it takes the business away from them into your own hands. While clearing and
forwarding task should be done by qualified educated professional, with the correct guidance,
you should be able to clear your own container with little or no help from a clearing agent.

Kenya Customs Declaration: Simba Tradex & KWATOS

Simba Tradex is nearing its final days if not already eliminated by KPA. The systems has
been in use since year 2000 and more innovative faster software has come up with better cargo
clearing procedures, verification and efficiency.

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 KWATOS which stands for Kilindini Waterfront Automated Terminal Operations
System was launched in 2008, is a KPA system used for automating cargo clearing procedures

Before your container gets to Mombasa, your shipping line lodges your container
information and manifest into Simba TradeX system and KWATOS. This means if you have
access to these systems, you can be able to see your container Estimated time of arrival (ETA) so
you can be there ahead of time.

The keyword here is…. the manifest lodged to these systems explaining what is
contained in your container.

A manifest number given to you by your cargo forwarder or shipping line is what you
need when you go to Simba Tradex & KWATOS systems. It tells you all what you need to know
before you head down to Mombasa including container freight station, type of goods contained
etc.

Obtaining Container Clearance Forms: Declaring it is Your Container

The manifest uploaded by your shipping line is cross checked with your duly endorsed
Bill of Lading (BOL) by the consignee. Once verified, your shipping line issued a release order,
meaning, you are the right person and this is the right container and it contains the right items as
described in the manifest and BOL

The release order is NOT sent to you, you will get the release order once you pay all
charges, fees and taxes due. It is your container at this point but it is in the hands of KPA & KRA
until all dues are paid.

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 Clearing a Container Duty Free in Kenya: Not all that Free

Returning Kenyan Residents who have been abroad for over 2 years, missionary groups,
foreign workers with valid work permit, Non-Governmental Organizations (NGO), non-profit &
missionary related products can be shipped into Kenya and cleared duty free.

Certain categories of products like construction and agricultural equipments, medical

equipment and those products in high demand in Kenya can be imported duty free but NOT TAX
FREE. Value Added Tax (VAT) must be paid.

Duty free does not mean TAX FREE

Container Verification Process in Mombasa – Kenya

This is where the nightmares of clearing a container begins. This is where if you do not
have a qualified clearing agent familiar with the procedures, you’re going to get a headache, lose
money and sometimes, accrue demurrage.

A set of documents is prepared and sent to the so called “Long Room” in the port. In the
long-room, the verification process begins. The contents of the container must be verified and
must match the manifest lodged by your shipping line to Simba Tradex & Kwatos systems. Any
discrepancies will result to delay, penalties and in some cases, legal suit.

If your cargo seems obvious in the long room, your container will be sent through
scanning and to the final point without a problem. This happens if only a few obvious items are
in the container…. say a motor grader, 4 units of generators, etc.

In a situation where your container is carrying multiple items of all assortments, your
container is likely to be sent for manual verification. Here, your container is opened, stripped and
each item scrutinized.

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 Small items are STOLEN here a lot. My friend lost 24 laptop computers and 10 new
iPads during verification process and had multiple damaged items. This is a loss of nearly
KES.450,000. This will not happen when using a clearing agent. Corruption in Kenya and Africa
in general makes this process a nightmare.

Pickup Order & Release Order Issued

Now that you have gone through the toughest part of the clearing process, you are almost
done. Remember i mentioned earlier that the release order issued by shipping line is not given to
you until all dues have been paid.

Now you have paid. Your container content have been verified. You have paid duty and
taxes and you have been issued with receipts. Customs will issue you with Customs Release
Order (CRO).

This information is sent to KWATOS and a pickup order is issued. You’re ready to go
pick-up your container and head on to the KPA gate.

Before you head on to the gate, you should have a set of 3 documents and all receipts of
payments made.

1. The delivery order

2. Passed customs entry
3. Customs Release Order.
4. BOL (Bill of Lading)
5. Customs duty and Tax receipts

These documents are presented to Customs Documentation Office (CDO) at Port. Once
verified, the CDO office will issue you with a gate pass.

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 With this gate pass, you can head on to load your container into a truck or train and ship
it where-ever you want. You must keep all documents with you and present them at any police
check point you’re asked to.

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 Chapter 8

How much capital do I need to start?

As you will notice when you visit any of the websites e.g aliexpress.com, i
recommended, many of the products on sale are very cheap. Not all of them, but many of them
sell at very low prices. In fact, the more units of a product you buy, the lower the price you pay;
that’s the benefit of buying wholesale.

And don’t forget, the lower the price you pay, the higher the profits you can make.

You don’t need to break the bank or get into debt to start this business. As i always
advise, start small!

Start with products that cost little but are in high demand in your area or in Kenya. Use
this to test the viability of this business idea and grow your confidence.

For most of the products you import, you can make over 50 to 100% profit margins if you
can find the right buyers to sell to. As you make some money in your new import business, you
can start to try out other products that cost a little more.

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 Tip: Never let your excitement about this business get the better of you. Avoid the
temptation to invest a lot of capital when you start out unless you already have ready buyers for
your products.

Start small and then grow gradually. This strategy may take a little more time but it’s less
risky and helps to build your experience and confidence.

Starting an Importing Business Takes Less Money than you Think

That initial purchase order you place with a new supplier may take less money than you
think. The biggest misconception about importing is you need lots of money for a large
minimum purchase order, or you need to buy enough to fill a 40-foot container.

Minimum purchase order requirements

Every day businesses large and small are looking for new suppliers with fresh ideas and
products. In the early days of the relationship suppliers and buyers will treat each other with
caution. The importer will want to ensure he can trust the new supplier, and the new item will
sell quickly. A supplier will want to be sure the importer can come through on a purchase order
with a valid letter of credit (L/C) and can move his product in the market as promised. Because
of this, nearly all initial transactions are done on a small trial basis, even by big corporations with
big budgets.

The small order from your company or business may be the same amount as the initial
order from a major department store or mail order catalog. What will be of more interest to the
supplier is your business model: who are your customers and how are you reaching them? If you
are selling direct to the end consumer, are you doing this from a storefront with a geographic
region that is limited? Or do you have a website with impressive traffic? Are you well connected
with a community of buyers? Do you have established relationships with retailers and a team of
sales reps that assist you in moving product on a wholesale basis?

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 These answers are more important than the size of your initial purchase order. Offshore
suppliers are looking to grow long-term relationships, and are willing to work with you to
establish trust. Minimum orders are often a guide of what they would like to see on a re-order
basis. Remember: everything is negotiable.

From a cash outlay point of view, the dollars needed depend on what product you will
import and the shipping method. If you are buying children’s apparel and want an initial
selection of products that have an offshore average cost of US$1.00 per unit, a $500 initial
purchase order will give you a nice selection of styles, colors, and size. If you plan to import teak
furniture and need to ship by sea freight, the shipping costs may only make sense if you fill half a
40-foot container. And if the teak furniture ships as knock-down furniture, it may require
$10,000 to buy enough units to fill half a container. The cash outlay of your initial order depends
on the product you will carry, its bulk when shipped, and typical shipping method.

Shipping small sample orders

The logistics of getting a small order imported may be a greater challenge than meeting a
minimum purchase requirement. Imported goods travel by either sea freight or air cargo. The
product you carry will place you into one of these categories. For example, it doesn’t make sense
to ship jewelry parts by freight, and furniture is too heavy for air cargo to be practical. But what
about a sample order of apparel? Automotive parts or toys? These small sample orders can either
be shipped via air cargo (at a higher cost, but maximum speed), or consolidated on a ship with
other items from the same country.

Shipping via air cargo is relatively simple for the supplier who may book directly with
the air carrier. The order arrives quickly, clears customs quickly, and you are ready to test the
market within a matter of days.

If you are shipping less than a container load by sea, you will wait longer to receive your
initial order. Your goods will be held in the country of origin until a consolidator can bundle
your goods with other products to fill the container.

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 Your shipping costs on a small initial order may eat up a good deal of your gross profit
margin. But the initial order is a trial run at your dream. After you test the supplier, marketability
of goods, and review potential profits, you can reorder on a larger scale. This will result in lower
shipping costs per unit.

Other business expenses

Along with your initial purchase order, there are other ordinary business startup costs,
such as licensing, accounting software, business logo and marketing collateral. These startup
costs are outside the scope of this ebook. But these costs are small in comparison to acquiring
your product line for resale.

Given a successful importing company can be managed by one person, it’s conceivable
that an importing business or company can be started with Ksh.100,000 to Ksh.1,000,000 or less,
depending on the cost of the product to be imported. There are hundreds of success stories of
small business owners buying directly from suppliers overseas and selling the products in Kenya
as a most basic example. Your business model may be quite different, but recognize this industry
does not have a high cash requirement to break into.

Most importing companies are small operations, especially in the early days. Because so
much of the ongoing value in an importing business is the ability to develop relationships, the
product or commodity you trade in may differ from one season to the next. You may move
product merely for its profitability. Or you may stick with one product industry and become
specialized in that item.

Sharpen your pencil and calculate typical startup costs for your business, including cost
of space (if leasing), employee salaries, etc. Many entrepreneurs find ways to cut corners in these
areas in the early days in order to launch their business. Then add an estimated minimal sample
purchase order budget required of your product. Get clarity around your marketing strategy and
ready yourself for selling your importing business to suppliers overseas.

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 Locate several suppliers with a solid reputation, introduce your company, and ask for
preliminary prices. Explain you’re in the early days of your business and focus on the energy you
will give to moving the supplier’s goods to market. Keep the upper hand by stating what your
minimum purchase order amount will be to test the waters, not what the supplier wants of you.

As you can see, how much money it takes to start an importing business depends largely
on the product and the required shipping method, not the minimum purchase order size. Whether
you have Ksh.50,000 or Ksh.500,000, you can start an importing business.

Now you know how to start a small scale importation business in Kenya.
When will you start?

Like i mentioned earlier, the opportunity for small businesses and entrepreneurs like you
to import directly from overseas manufacturers and suppliers has not always existed. It has now
become possible partly because big businesses around the world have come to recognize Africa
as a strong and emerging economic powerhouse.

If export-dependent countries like China must continue to grow, they will need to sell
more of their products to markets like Africa that have a huge and growing consumption. Africa
is now one of the fastest growing markets for consumer products and the Chinese are doing
everything they can to deeply penetrate our market.

One of the ways they are doing this is by eliminating middlemen from the import process,
making the payment process easier and faster, and reducing the risk of scams, fraud and low
product quality.

During my research and writing this ebook, I decided to put my money where my mouth
is.

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 The stainless steel pocket watch above is a sample product I found and paid for (about
$6) on Aliexpress.com. I decided to use the free shipping option offered by the seller and the item
will be delivered by China Mail Air Post.

The seller’s customer feedback rating was 96.6% and when I read through the 67
customer comments, many of them were quite positive. I received a tracking number and some
follow up emails telling me that my order has been shipped.

Although I have been told that delivery will take between 15 and 60 days, I expect it may
take longer due to the Christmas holidays. This is how i test suppliers before buying in bulk from
them.

I believe that the opportunities i have shared with you in the small-scale import business
ebook will be taken further by your creativity and energy.

To your success!

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