Importing toys from china

Invasion

Invasion

Invasion

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To cut a loong story short I want to start selling Rc stuff via an Ebay shop this will be a new venture and just have a few questions.

Say for example I want to sell rc cars
The supplier wants to know how many I will be ordering? now to be honest I haven't a clue what would be a good number to start with? I dont want 100's sitting around if they dont sell but, I also dont want to run short. I was thinking my first order is just like testing the water so to speak and if they sell well I will order more, but how many do I order first time?

Conveyance:
once again somthing I need to learn about they want to know if it will be by sea or air-I am gusseing Air-also would these be delivered directly to me or would I have to collect from port? and then Import duty :confused:

Anygood websites that would explain the procedures to me?

thanks for any help
 
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Tell the supplier both your initial order size and your intended order quantities going forward. They should understand that your first order will be small as you test the market.

You can entirely choose the conveyancing method so it depends basically whether or not the goods will fit on a plane. Given that they're small toys they will fit on a plane so it would be quicker and possibly even cheaper to use air freight.

Again you can choose whether or not you want them delivered straight to your door (I'd advise this as long as there are no issues receiving shipments direct to your place of business, such as items in the deeds preventing preventing business activities on the premises).

Regarding import duty you will get a bill from customs but you can either choose to pay before they release the goods, or pay a bit extra in advance and then pay the duty after they've released the goods.
 
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Robbie G said:
Tell the supplier both your initial order size and your intended order quantities going forward. They should understand that your first order will be small as you test the market.

You can entirely choose the conveyancing method so it depends basically whether or not the goods will fit on a plane. Given that they're small toys they will fit on a plane so it would be quicker and possibly even cheaper to use air freight.

Again you can choose whether or not you want them delivered straight to your door (I'd advise this as long as there are no issues receiving shipments direct to your place of business, such as items in the deeds preventing preventing business activities on the premises).

Regarding import duty you will get a bill from customs but you can either choose to pay before they release the goods, or pay a bit extra in advance and then pay the duty after they've released the goods.
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Thanks for the help much appreciated that has made things a little clearer;)
I was thinking an order of 10-20 to start off with, just to see what the market is like does that sound ok or could it be considered to small ?
 
Invasion said:
Thanks for the help much appreciated that has made things a little clearer;)
I was thinking an order of 10-20 to start off with, just to see what the market is like does that sound ok or could it be considered to small ?
Click to expand...

This is where you will need to make a decision based on

- freight costs, and how they scale with order size
- order quantity discounts
- the expected demand based on your extensive market research (;))
- what the supplier is willing to send as a minimum order quantity
- how much capital you can afford to invest

Assuming freight costs are linear with order quantity, I would go for the smallest allowable order to test the water, unless you have information that points to promising demand.
 
You mind find China post a little crazy right now due to the olympics. I've just ordered some PCB's from China and they had to be shipped to HK first, then sent from there...
 
Robbie G said:
This is where you will need to make a decision based on

- freight costs, and how they scale with order size
- order quantity discounts
- the expected demand based on your extensive market research (;))
- what the supplier is willing to send as a minimum order quantity
- how much capital you can afford to invest

Assuming freight costs are linear with order quantity, I would go for the smallest allowable order to test the water, unless you have information that points to promising demand.
Click to expand...


I have just mailed them back explaing the situation and that this is a new venture, and as such I would only want a small amount. Then went on to ask if 30 is possible as an introduction order.

I will see what reply I get
 
Most manufactures are very used to your situation, bottom line will be that it costs an amount to set up the job (tooling etc) and then an amount per part. So your cost will be setup plus manufacture cost of each item.
So maybe £100 to set the machine plus 50p to make each one.

You can see if you order 10 parts they will charge £100 + 10 x 50p if you order 100 parts it will be the same plus 100 x 50p.. so sometimes you need to gamble to make the money :)
 
As well as the import duties you will need to track profit and loss of your business for the taxman. I hear there is a lot more scrutiny of peoples bay trading these days.
 
Make sure the items you import conform to UK/EU safety standards.

There have been lots of stories in the past about Chinese imports not meeting safety standards (lead based paint etc.).
 
Writing "Gift" on anything from outside the EU does nothing to stop customs ;)

Gifts have been liable to tax/duty for sometime now (thanks labour lol)

You could plaster Gift allover and it won't make a jot of difference

Now that is clear, Sometimes it's a hit n miss game of whether you get nobbled as they come into the UK

On several occasions i've had goods from brazil come, Average i guess is 75% of the time i have to cough up ££ 25% of time i don't get stung

Seems it's down to how/who the customs decide to check

EDIT: Maybe if goods are valued under £38 you'll be ok (you will have to double check this on .gov site etc)
 
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Defiance_co said:
Writing "Gift" on anything from outside the EU does nothing to stop customs ;)

Gifts have been liable to tax/duty for sometime now (thanks labour lol)

You could plaster Gift allover and it won't make a jot of difference

Now that is clear, Sometimes it's a hit n miss game of whether you get nobbled as they come into the UK

On several occasions i've had goods from brazil come, Average i guess is 75% of the time i have to cough up ££ 25% of time i don't get stung

Seems it's down to how/who the customs decide to check

EDIT: Maybe if goods are valued under £38 you'll be ok (you will have to double check this on .gov site etc)
Click to expand...


Told by a guy working at parcel force that, if the parcel's value exceeding £36, you have to pay tax, no matter it's business or gift.
 
Invasion said:
and then Import duty :confused:
Click to expand...

You have to pay around 5-9% import duty on the cost of goods + cost of shipping, then you have to pay 17.5% vat on the import duty + cost of goods + cost of shipping. Then when you sell you have to pay 17.5% vat and 20-40% income tax as well as NI (hooray for rip off Britain).

Say 10 cars cost £200, shipping is £20 and customs is 5% .

1.05 x £220 = £231

1.175 x £231 = £271.43

Then say you sell them for £500 and your a basic rate taxpayer.

£500 / 100 x 17.5 = £87.50 VAT

£425.15 / 100 x 20 = £82.50 Income Tax

£425.15 / 100 x 8 = £34.01 National Insurance (possibly more or less the NI system is complex)

Leaving you with a total profit of £37.21.
 
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