AboutMichael Zakkour Expertise I can answer questions about manufacturing, sourcing products in China and India including design, engineering, quality control, factory auditing, packaging, shipping and customs clearnce.
I can answers question regarding the macro and micro views on doing business in China, India and Asia.
I can offer my expertise regarding Chinese business culture, Chinese culture, cross-cultural understanding and training.
Experience President of China BrightStar, LLC a Sino-American manufacturing, sourcing and consultig company with factories and offices in Beijing, Guangzhou, Ningbo, Bangalore and New York.
Organizations China Institute
Asia Society
Publications Numerous national magazines and newspapers.
Education/Credentials B.A. in Communications
B.A. in Marketing
Seton Hall University
Awards and Honors Guest lecturer at the Wharton School of Business at UPENN, Eli Broad School of Business at Michigan State University, Stern School of Business, NYU
Past/Present Clients Fortune 1000 client base in addition to many small and mid-size businesses.
Question I am investigating companies that I can source electronic consumer products from in China. I would like to resell in the us on my web site or through online auctions. the products will cost me under $100 each to buy and should retail for $250 or more. what do I need to be aware of regarding laws, taxes, import regulations etc... ?
thank you
Answer Hello John. Thanks for writing.
Here are some rules of thumb for you to follow.
1-Make sure you are buying in the right quantity. What makes China special and such a good deal is its ability to manufacture on a large scale and its excellent infrastructure that provides a reliable way to export goods.
If you are looking to buy small quantities of electronics (less than a full 20ft container) you are probably not ready to buy from China yet.
Why?
-You have to move your goods 8,000 miles and that costs money. On average it is $3,000 for a 20ft container. You need to add that to your cost.
-There are tariffs on electronics - anywhere between 10-30 of the per unit cost.
If you add these costs to the per unit cost and your profit margin is still satisfactory, then you are in good shape.
But, to get the best prices (and to get a reputable factory to talk to you) in China you must be buying in a significant quantity. That depends on what the product is. If I know that and I know what quantity you are thinking about I can better help you.
