Economists can all agree that trade among nations makes countries better off. When a company or an individual purchases goods or services produced cheaper abroad, because of comparative advantage, trade raises the living standards in both countries.
However, although importing can be profitable, it’s not always as easy as it seems! It can get complicated! With all the taxes, tariffs, importation restrictions, language barriers, it can feel like a real challenge. But worry no more, this guide is here to help you get started on importing your goods from China and Korea and ship them directly to your Philippines address!
1. Why import? Why not just get locally?
- First off, let’s lay out why importing might be a better option than getting your stocks in Divisoria or wholesale markets in the Philippines.
- More often than not, overseas suppliers offer cheaper goods than what’s being sold here locally
- For Korea, their K-beauty or cosmetics and K-Pop merchandise are a billion dollars industry! By getting directly from Korea, you can buy low and sell high, increasing your profit margins big time! Check this service out here.
- Product variations here in the Philippines are pretty limited, but that doesn't mean it doesn’t have demand. So, if you want more product choices – the key is to source it abroad and bring it here. Get access to millions of new products on Alibaba!
- Hunting for a bargain or searching for something unique? You may shop your items directly from the biggest online stores in China and Korea and ship them conveniently to the Philippines. See how it works here.
2. Do your research
Research is always crucial. To avoid expensive mistakes, research is the key!
- Product selection: Think of what products you want to import from China and Korea. Check whether there’s a demand for it, are there sellers selling it locally already, if yes how are the local sellers doing in terms of sales for this specific product? If you plan to sell online, check Shopee/Lazada prices, analyze your soon-to-be competitors. Furthermore, we also did a webinar collaboration with Shopee, that tackles product selection and supplier negotiations, you may access it here.
- Buy product samples first before buying in bulk: This is where your testing phase begins, to test your product idea, buy samples in Alibaba or Korean shopping sites first before buying in wholesale! Good samples don’t necessarily mean a good supplier! Of course, when a supplier wants to land a deal, it’s a no-brainer to give the best available sample, however, even after getting and checking your sample order, don’t buy in bulk first. Try the product first in multiple small orders, although this can be time-consuming and costly, but always better to be sure, that quality is consistent so that you are not wasting your hard-earned money. Plus, cheapest doesn’t always mean the best, especially when the price is too good to be true, it definitely is! So, always remember that when buying stocks from Alibaba or Korean shopping sites.
- Dealing with overseas suppliers: Selecting a reliable supplier is hard. It comes with a lot of trial and error before finding a trustworthy supplier you can work with in the long run. However, thanks to the internet, we can find suppliers at the comfort of our home - Alibaba and Gmarket have provided us with a massive supplier database at our disposal but this comes with a challenge. Given that plenty of suppliers is available, we need more time to filter the good ones from the bad, this may be a little daunting, especially for first-time importers. As a result, it might be a good option to go for product sourcing services to mitigate the risks that come with importing for the first few times.
Language barriers and cultural differences are also common when dealing with overseas suppliers. Misunderstanding or misinterpretation can affect your product requirements. For instance, misinterpretation when communicating your quality requirements, shipping deadlines, etc, can directly affect your business. Not sure how to go about this, you may consult us or check our product sourcing services, saving you a lot of headaches.
After you find a reliable supplier it’s time to build a good relationship with them. Greet them during Chinese or Korean holidays, although a small act this can be a good start in maintaining a long term relationship with your overseas suppliers.
3. Paying your overseas suppliers
- When you’re buying goods abroad, you have to deal with international currencies. Most sellers quote the prices in USD however, this is not the most cost-efficient way in paying your overseas suppliers. Especially if you make multiple cross-border transfers regularly, this can directly affect your bottom line. If you pay your overseas suppliers through bank transfer, fees can quickly add up! These added costs are expensive. But you can avoid this with our RMB Payment Assistance when buying on Alibaba, we can exchange your PHP to RMB (China’s home currency), where you can enjoy discounts since suppliers are more willing to give discounts when paid in their local currency because that means, they don’t have to convert USD to RMB anymore, eliminating foreign exchange risks.
4. Shipping your goods to the Philippines
There are several shipping options available. Shipping options depend largely on your volume, items that you ship, and how fast you need the item. We offer 3 shipping options for China to the Philippines, while 1 shipping option for Korea to the Philippines. We’re gonna break down each of these options below.
Service Country: China
Fujian Transit Time: 20 to 25 days
Guangzhou, Yiwu Transit Time: 30 days
This shipping option is the most cost-effective option if you ship bulky items like ukay ukay bales, furniture, etc. Moving large volumes of products? Use Sea freight via CBM.
Service Country: China & Korea
Transit time for both China & Korea: 20 to 30 days
A purely weight-based shipping option. This shipping method is perfect for product samples that are lightweight like jewelry, kraft boxes, stickers, hair accessories, etc. Sea freight via KG is also a great option for personal packages. If you love shopping from Taobao, Jingdong, Gmarket, Coupang, then this is for you.
Service Country: China
Transit time: 3 to 5 days (But due to rising covid cases as of writing, shipping days last around 6 days)
If you want to get your items fast, then this is the shipping method for you. When shipping high-value items - air freight is your option. You can also ship your on-demand products via air, so you won’t miss out on sales due to stockouts.
If you are still not sure which shipping method is best for you, kindly consult us here. Want to know how we calculate your shipping costs or get an estimate of your shipping costs - click here, We listed step by step on how to calculate your international shipping costs, so you know how much your products’ landed cost is.
5. Tracking your shipments
- Your suppliers finally shipped out your goods to our warehouses, but not sure whether our warehouses have received your goods or not? Contact us here. Or you can also track your shipments by logging into your EZ Members portal account. Haven’t registered your account with us? Register here so you can track your cargos 24/7! Achieve peace of mind!
6. Claiming your China & Korea Cargos
Clients with Manila delivery locations:
- Reminders on how to claim your packages at EZ Manila warehouse
- Pay your China & Korea to Philippines shipping fee (you may check the shipping fee at your EZ Members portal
- Present your customer code and number of packages you’re picking up to our warehouse staff
- Voila! Claim your parcels and start selling!
Clients in Visayas, Mindanao areas:
Reminders on how to claim your packages!
- Pay your China & Korea to Philippines shipping fee (you may check the shipping fee at your EZ Members portal)
- Send your exact delivery locations to our FB Page here.
- We will send you the shipping fee for Manila to your delivery address via FB, Viber, or Instagram.
- We will send you a tracking number once goods have been shipped out from our Manila warehouse
- Claim your parcels and start selling!
Final Thoughts
Importing can greatly benefit your business! If done correctly, it can be lucrative. Although there are undeniably a lot of complex regulations, laws, and taxes, that can complicate the process. Worry no more, with the help of EZ Sourcing Group Team, we simplify the entire international shipment process for you! Everything can be done in the comfort of your home. Contact us here, to know how we can help you start and grow your business!