Doing business in any Asian country carries risk, but if you research well and take certain precautions, it can be highly profitable.

We have all heard a great deal about substandard merchandise from Hong Kong, or non-availability of spare parts, or poor after-sales service. These annoyances may be prevalent to some extent.

Nevertheless, there are always hiccups when buying merchandise from Hong Kong. Traders need to tackle these problems head-on if they want to expand their frontiers beyond the US. Here are some important pointers a newbie should take note of before plunging into buying agreements with Chinese dealers.

Delivery Time

If you are buying Chinese goods, especially from a wholesaler, check out the availability of the stock. Quite often, when you buy from Hong Kong, your merchandise can be on a waiting list. Buy directly from the factory instead to avoid costs of transport: from the port of entry to the distributors’ storehouse.

Check For Spares

Getting spares can be a drawback when buying merchandise from Hong Kong. Check for spares. As a test case, ask for a vital replacement component. You would not like to sell your products back in the US without being able to store adequate spares.

Ensure Warranty

China tends to skip a warranty in many cases. It is good business to write your own warranty and negotiate it with the Chinese.

Authenticate Dealer License

You may have verified goods from Hong Kong in all respects, but it is vital to check if the dealer has a valid license.

Other Issues

In the US, consumers buying goods expect certain conditions. China is a different story. They push sales whatever way they can. A sensible way to protect your business when buying Chinese products is to get everything in writing. In addition, also check for a money back guarantee and factory recall agreement. Many dealers in China may not have any of these.

Finally, you must realize that there is a difference between products the US has outsourced to China and wholesale indigenous Chinese products. The former is certainly very dependable, but the latter can be of good quality, too. More than 70 percent of consumer goods sold in the US today are made by the Chinese.

If you ensure frequent quality checks and good planning, merchandise from Hong Kong will be up to standards and can be sold hassle-free to the discerning US consumer.