Of course, it is.
But before we dive fully into answering this question, let take a look at these stats first.
Data from China Internet Watch shows that AliExpress has over 150M buyers from 220+ countries and a daily visitor of over 20 million people and between April 2017 and October 2018, the platform added over 50 million new users.
This is purely impressive and also don’t forget that it is just one single Chinese cross-border online store that is raking up these stats.
Of course, when you factor in data from stores like 1688, Taobao, Alibaba and Pinduoduo. You would be overwhelmed by how much people are spending daily to import from China.
In fact, it is on record that the transactions of China’s top 10 cross-border e-commerce stores reached $1.22 trillion in 2017 with an increase of 20% from 2016 and this is expected to reach $3.5 by 2023.
Of course, this re-enforces the general belief that mini importation from China is one of the most profitable business models for small retail businesses.
The truth is any business model where people buy cheaply from one point and then sell in areas where prevailing prices are quite higher is bound to be profitable.
Luckily, this is an opportunity mini importation offers to any discerning mind.
So, in this article, I will walk you through a few things that make mini importation from China very profitable.
So, let get started.
5 things that make mini importation from China profitable
We have established that mini importation from China is a profitable enterprise using few data from the country; of course, certain factors come into play to make this possible.
So, this article has profiled 5 reasons that make mini importation business super profitable.
So, let’s get down to them.
Chinese products are super cheap
Of course, you already know this.
The good thing about sourcing from China is that you can still bargain the prices offered to you by the Chinese suppliers.
The cost of labour in China is relatively cheaper than other countries and this is partly responsible for the low cost of their products and again, Chinese exports enjoy zero per cent value-added tax.
So, these make China a hot zone for super cheap quality products.
Leveraging mini importation from China helps firms to buy more than they would have bought if they had imported from other countries using the same amount of capital.
Of course, when people sell the products in their home countries, they would still cash-out very big.
You can ship from China with just $10
Perhaps, you don’t even know this,
The truth is shipping from China is a lot easier than people think, especially if you are using a mini importation agency to handle the freights.
The good thing about using them is that you don’t have to deal with the stress of handling lots of paper works, the annoying immigration officers, the soul-crushing queue at shipping offices, the epic rush for forex and of course, the clearing at the home port.
All these are taken care of by them at ridiculously low prices and some would even deliver to your location.
On average, it costs about $8.5 to ship 1kg of any product safely to Nigeria from China and about N500 to clear the product in Lagos.
The logistical cost of importing from China is near zero
When you exclude the cost of shipping from China, the logistical cost of mini importation from China is near zero.
Of course, in ideal situations importing from China as a Nigerian would require Chinese visa, a flight ticket, an interpreter for those that don’t understand the Chinese language, a hotel to sleep in, food and of course, local transportation within China.
The good thing about mini importation is that you don’t need all these to get the goods safely to Nigeria.
All it requires is a good internet connection and a good mini importation agency with proven experience in international logistics to get started.
The profit margin is high
Profit margin is the difference between the cost of acquiring a product and the price it was sold for in the market.
Of course, when it comes to products that were sourced from China the profit is always high and this makes mini importation a very lucrative venture.
The reasons for this high-profit margin are because of the low cost of procuring the products from China and of course, the relatively low shipping and clearing costs.
Chinese products are in high demand
One of the reasons this is so is because most sellers that source from China tend to sell at prices that are relatively lower than the prevailing market prices.
Of course, the extra incentives tend to drive the demand for the products.
The truth is consumers are rational.
Average buyers would invest their money in products they believe would give them the highest level of utility.
Getting started with mini importation business in Nigeria
One good thing with mini importation is that you don’t have to be in China to get started and of course, you can always with any amount you have, no matter how little.
At Hugo Diamond, we combine people, experience and technology to deliver unique solutions that help people to buy from China with ease and then ship safely to Nigeria in 2 weeks, right to their door-steps.
You can sign up with us to get started immediately.
We also recommend you check out our comprehensive guide on how to get started with mini importation business in Nigeria, spot winning products to import and of course, how to promote the products.
But first, use the share button below.
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