Best routes to sell to China for foreign brands
There are different ways to sell and distribute your products to China. Each route may accompany with its own pros and cons in terms of business risks and commercial viability. Check out a simple diagram below and our analysis:
Normal importer model – This is the traditional #importexport model. It may be difficult for foreign brands as you will need to register a China domestic company or find local distributors (TP, #tradepartner) that own a #importexport license to complete this route. If opting in registering your own company in China, it may require hefty upfront investment (estimated at USD 100K) and lengthy process (1 to 3 years). If working with TPs, their focus is selling SKUs and may not market your products with a good story-telling that is essential these days in China marketing.
CBEC direct – Foreign brands can sell their products directly on China #crossborderecommerce qualified platform operators such as #promo2china CBEC eMall services. Products can be shipped over local postal mails or courier services as door-to-door delivery to your Chinese customers. It is recommended for new brands or brands with smaller SKUs. It is fast and low in China's custom tax. If shipping over the local postal office, the normal postal rate applied, and Chinese buyers will need to pay clearance taxes. Total taxes combined is estimated around 6 to 7%
CBEC FTZ warehousing – For foreign brands that have large sales volume, it is recommended you adopt CBEC FTZ (#freetradezone) warehousing model. Your products will be properly registered with China custom, the order record, payments record, and delivery record are matched seamlessly (3 单一证). The products can be dispatched directly from FTZ warehouses to customers for door-to-door delivery. This model is most beneficial to Chinese buyers as the delivery time to Chinese buyers is immediate.
Buy from overseas (Haitao) – It is more a P2P purchase rather than a legitimate route for commercial trading. Chinese buyers could buy overseas products on #Haitao eCommerce stores, the products will be sent to a transit storage warehouse and deliver in one bulk together with other buyers. If you don’t like your purchase, you could even trade the products with other buyers. It may be risky to sellers as well as buyers as sellers may not receive their payment, and buyers may receive fake products