Nine Mistakes to Avoid When Importing from China to Kenya

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November 9, 2017

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Every first time importer we meet has the same look in their eyes. It is the look of someone who has just found a supplier in Guangzhou selling for 300 shillings what the shop down the road sells for 1,500. The calculator is already out. The shelves are already imagined full.

That energy is good for business. It is also where the costly mistakes are born. In our experience it takes two to four shipments before a new importer feels at home with the paperwork, the acronyms and the timelines. You can shorten that apprenticeship considerably by skipping the nine mistakes below.

1. Marrying the first supplier you meet

Most new importers start on platforms such as Alibaba or Made in China. They are useful, but never take the first supplier the search throws up. Compare at least three suppliers for the same product, with the same specification, and ask each the same questions. Small differences in material, finish or packing are easy to miss on a screen and impossible to miss in a carton at Mombasa.

2. The urgent order

Rushed orders are one of the biggest causes of poor quality. When a factory squeezes production to meet your deadline, the quality checks are the first thing squeezed out. Be wary of a supplier who promises delivery much faster than everyone else. Sometimes a short lead time is quoted simply to close the sale, and the calendar sorts out the truth later.

3. Vague product specifications

Put the exact specification in writing: materials, dimensions, colours, weights, packaging, labelling and logo placement. A photo is not a specification; it is a hope. If it is not written down, you have no grounds to complain when the goods differ. Our guide to avoiding low quality goods from China shows what a good specification sheet contains.

4. Falling in love with the factory price

The factory price is the opening line, not the whole story. Add the freight, clearing, duty, VAT, the Import Declaration Fee, the Railway Development Levy, inspection fees, transport from the port and your selling costs. Many importers meet their real margin for the first time when the clearing bill arrives, and it is rarely a happy introduction. Work out the landed cost per unit before you order.

5. Choosing on price alone

A price far below the others usually means cheaper materials or a corner cut somewhere you cannot see yet. Unless you are ordering large volumes, a supplier will not give you the prices it gives big brands. Build your business on reliable quality, not on the cheapest quote.

6. Ordering too little, or too much

Larger orders usually bring a better unit price and more attention from the supplier. But stock you cannot sell is just cash that has learned to sit still. For a first order, a small trial quantity shipped by sea as LCL, where you pay per CBM and share a container, keeps your risk low. See air or sea from China: per KG or per CBM.

7. Forgetting KEBS and the Certificate of Conformity

Many products need a KEBS Certificate of Conformity issued in China before shipping. If your supplier ships without one, your goods face destination inspection at Mombasa, with higher fees and delays. Raise PVoC with the supplier before you sign the order, not after the container is sealed. Read our guide to PVoC.

8. Agreeing the wrong delivery terms

Three letters on a quote can move thousands of shillings from one column to another. “EXW” (ex works) means you pay for everything from the factory gate. “FOB” means the supplier delivers the goods on board at the Chinese port. “CIF Mombasa” means the supplier pays the sea freight and insurance, but you still carry the risk once the goods are loaded, and you have less control over the shipping. Know which term you are agreeing to, and compare quotes on the same basis. Our guide to shipping terms explains each one.

9. Calling the forwarder when the goods are already packed

Bring your forwarder in at the start. We can tell you the likely duty on your HS code, whether a permit or CoC is needed, and how to pack for the cheapest freight, before you commit a shilling. We arrange consolidated sea and air shipments from Guangzhou, Yiwu and Shenzhen, and from Dubai and Turkey, with partner consolidators, for delivery to Mombasa, Nairobi, Uganda and Tanzania.

Planning your first order from China?

Send us the supplier’s proforma invoice and packing list and we will give you a clear picture of the landed cost. LCL is priced per CBM and air freight per KG; full containers are quoted once we have the invoice and packing list. Ask for a quote.

Call +254 722 375 423 or +254 741 444 444, WhatsApp @sidoman254 or @Sidoman_, or email info@sidoman.com. Sidoman Plaza, Ground Floor, Lumumba Road (Sidoman Street), King’orani, Mombasa.

Keep the calculator out. Just make sure it has every line on it.

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