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4 Facts You Should Know About Buying Branded Goods From China

couMaking money online from importation is probably one of the easiest ways to make money online, hundreds of people are into it and they’re making nice income from it on daily basis, ( I am a living proof) the market is not yet saturated, which means you can still join the league and make nice income from online importation. You can head over to my previous articles to get a head start on how to make money importing goods from china at a relatively cheap price. However, the purpose of this post is on something different entirely, I have discovered that most newbies make several mistakes when starting out as a mini importer, one of those mistakes is the importation of branded good from China.

Buying Branded Goods From China

In this post, I will share the dangers entailed in importing branded goods from china and what you can do instead of importing branded goods from China. It is no news that most of the branded products we buy from USA and UK are actually made in China, but later shipped to USA where they’re sold for premium price. It is therefore logical to think about ordering this product directly from China and make huge money selling it as a premium product in Nigeria. I will highlight the major reasons why you should refrain from importing from china below, with concise note to enlighten you further.

MUST READ:6 Hot Products You Can Import Now From China and Sell Fast In Nigeria

  1. Counterfeit Product: Most of the branded products you see on Asia B2B websites are counterfeit, they’re not genuine product of the company they claim to be. The popular story behind this product is that, the company workers do work on a “night shift” project when they make this premium products without the knowledge of the company’s CEO or Supervisor, hence they are able to make this product and sell them at a relatively cheap price.

First, I’d like to point out that, the “night shift” project is real, but mostly they’re not done in companies that handle popular premium products like Samsung, Apple, e.t.c. Reason being that, the manufacturing company would not risk a multi-billion dollar business contract for some cheap night shift profit, hence the idea of working in the night to make this product is highly prohibited in companies like this.

Most of these paraded premium products are similar products to the original ones, when writing this post, I was able to reach out to a friend of mine who lived in China for years before returning back to the UK, he made me understand that, there are many counterfeit products that would get you fooled into buying them as premium products. He reiterated that most of these products are locally made with substandard specifications.

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However, premium products packaging are always outsourced to smaller companies in China, which means the company that assemble the hardware is not responsible for making the boxes where the products are packed. As a result of this, anybody can always get a standard Apple (or any other company’s packaging box) and put a counterfeit product into it.

  1. Confiscated Goods: Let’s assume that you are chanced to actually order a “Fake” Samsung Galaxy Tab for instance, and it has Samsung name and logo written all over it. Let’s assume it’s a perfect counterfeit product that can get anybody fooled, another reason why it’s not advisable to import branded goods is that; the custom officers would confiscate the branded products until you show yourself in person to claim the materials.

If the order is in small quantity, let’s say a piece or two, there is every tendency that it might slip through custom check and you would be able to get your item without any hassle, but once the quantity is higher, then the package would definitely get noticed by the custom officers.

MUST READ:Why Start an Importation Business?

Normally, custom officers issue certificates for authorized importer of such products, you would therefore be summoned to present your dealership certificate, issued directly by the company (i.e. Apple of Samsung as the case may be), failure to produce the dealership certificate that authorize you to import such product will bring about some penalties, first of which is the confiscation of the goods, you might be asked to pay certain amount of money as fine or go to jail.

It’s the law, and nobody will change that because of your ignorance, it’s therefore important that you understand the magnitude of what you’re getting yourself into, when you try to import branded goods from China.

  1. Payment Fraud: Chinese market is full of fraudsters, and what they do basically is attract newbies with cheap prices, once you take the bait, you’re in for some money loss. The idea is to create a store on popular B2B websites, and post pictures and specifications of premium products. Generally, newbies don’t know what to check out for when ordering products from china and other online store.

A newbie, naïve as the case may be would generally be interested in buying a premium product at a giveaway price, hence he would establish communication with this fraud company and probably make payment for the product, after which all communication link would be cut-off by the supposed company.

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This happens all the time, and it is mostly due to the ignorance, and naivety of newbies. In a bid to order premium product at very cheap rice, you might end up losing your entire investment capital.

  1. Warranty Issues: Let’s assume at this point in time that all odds worked in your favor, that you were able to get the supposed “premium” product down to Nigeria without running into any issue with the custom office, let’s also assume you were able to sell off the product at a premium price to somebody that cannot identify the difference between the original and counterfeit.

Two weeks into the usage, the product developed a technical fault (it’s a counterfeit product and this is bound to happen sooner than later), with the assurance that he/she bought a genuine product, he walks into Samsung service center, to register his displeasure and probably claim warranty on his gadget. The service representative collects his/her gadget only to tell him that the product is not genuine and as a result cannot enjoy any after sales service.

It is important to take note that for every genuine product made by a company, there is always a unique serial number attached to it, this serial number is registered in the company database, and can be accessed from any service center worldwide. I simple terms, warranty cannot be claimed on counterfeit products.

Things You Should Know About Mini Importation Business

Conclusively, importing branded products from China will not only get you in trouble, as it is totally against the law. It would also ruin your business reputation and as an importer, it is very important that you maintain a good reputation for your business both online and offline.

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Since I was a 22-year-old undergraduate in University, I've run a home-based business importing products from China and generating millions of Naira on a yearly basis. Since then, I've made China and its culture not only a key part of my business but also of my personal life.

3 Comments

  1. Hello Wale, Thanks for this article. You are exeperienced. I like your website. But i would like to know, if importation of chinese branded item can also get one into trouble. I will not import popular US brands like Apple, Samsung. But if i want to import a chinese branded gadgets like Chuwi, Teclast, Xiomi. Can this Chinese brand get me into trouble?

    Reply
    • Obviously not! They are Chinese product, getting them won’t land in you in any problem whatsoever

      Reply
  2. Hello Wale;
    You’ve made some really salient points here. So many people still don’t believe that apple ipads and phones are assemble in CHINA by Foxconn- a Chinese manufacturing and assembling firm. But it will be a suicide buying same from China.
    Branded products might be manufactured or copulated in China under the Branding company’s nose (contract manufacturing) but these Chinese manufacturers and suppliers are not in anyway licensed to sell those products to directly. The big brands have their own distribution channels.
    However, these Chinese suppliers may covet the innovative products of the outsourcing brands (say SAMSUNG, NOKIA, APPLE) and try making something close to it – COPY TECHNOLOGY.
    The general rule of thumb when buying from China:
    1. Avoid buying Branded products from China
    2. Make your Product specifications clear enough to avoid surprises when breaking bulk
    3. Formalize the process Negotiation process as much as possible
    4. Don’t be afraid to walk away when you suspect fraud
    7. Rather than buying products with cheapest price buy products with high orders, feedback
    8. supplier feedback rating must be around 98%
    9. Don’t be tempted to give the supplier more time outside of the dispute window
    10.Always receive or send samples before buying (WHOLESALE)
    11. Escrow is the way to go
    12. leverage Trade assurance feature
    13. Talk to only Gold and assessed suppliers with more than 3 years trading experience
    14. use Pre – shipment inspection; hiring an inspector for $50 or thereabout can go along way to save you millions.
    15. Avoid extremely cheap offers.

    I hope this few hints help!

    Reply

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