Expert: Michael A. Zakkour - 10/14/2007

Question
how i go about buying goods in bulk to sell over in the uk do i need a tradeing licence or what do i need to do please help

Answer
Hello Craig.  I hope you are well. Thank you for writing me.

In the USA you do not need a trading license, I am not sure about the UK, my guess is no but you should check.

There are four major steps to be taken when sourcing from and manufacturing in China (or any other country for that matter).

1. Identify your product.  Know everything there is to know about it.  Exact specs, materials used etc. and to know what your target quantities and delivery schedules are. Additionally you must learn what the import duty will be. This can be done through research in the US.

Ask yourself, "Am I buying enough of these goods that it makes economic sense to manufacture overseas and import.  If your quantities are too low then you are still in the "buying from local wholesaler" phase.  The right quantity depends on the product.

2. Research and get an understanding of all of the advantages and possible pitfalls of sourcing overseas. Identify qualified factories, do your due diligence on the factories, the owners, the managers, their reputation, their location, past pricing, know their equipment and customers.  This is the most crucial stage of the process.

3. Negotiate a price with the factory.  Have them make samples.  Agree on a working relationship and start the manufacturing process. At the same time arrange shipping and customs clearance.

4. Upon completion of manufacturing, you must inspect the products, pay the balance owed the factory and complete the shipping paperwork.

This process holds true for almost any product out of China.

It can be fairly smooth or fairly difficult depending on your experience and the kind of team you have working with you.

The right team can save you money on the price you would get if you negotiated yourself, ensure that you have a team on the ground in China working FOR YOU, not the factory, and provide you with the knowledge of long-term business involvement in China.

If you do not have in-house dedicated experts to handle the sourcing process for you, then you need an experienced China sourcing and manufacturing company to ensure that everything goes as planned in the aforementioned four steps.

Please let me know how I can help you further.

Best,

Michael

Michael A. Zakkour
Managing Director
China BrightStar, LLC
646-707-0587
michael@chinabrightstar.com