Mini importation business in Nigeria thrives because our country is not a product type. This is so because many companies or industries that should be producing many things are either dead or not efficient in their production.
Hence, many Nigerians entirely depend on imported materials to enjoy themselves or to meet their needs or taste.
Therefore, starting a mini importation business in Nigeria is a lucrative business idea because Nigerians do not value products that are made in Nigeria.
Whereas most of these products made in Nigeria are fake or are of low quality, and they do not provide satisfaction.
In today’s post, I will show you everything you need to know about mini importation from China to Nigeria.
Mini importation from china basic requirements
The essential requirement for starting a mini importation from china are as follows:
- The Basic Needs of People
- Cost of clearing
- Trusted contact in China
This is the cash available at hand. The total amount of money you want to use to start your mini importation business.
The Basic Needs of People
This is an important option in your mini importation business. You have to consider what people need most, the significant demands of people.
It will be a total waste of time and resources if you invest your money to import products that are not really in need around you.
If you are a student in the university environment, you will agree with me that gadgets, clothes, cosmetics will sell faster than motor parts on campus.
Cost of Clearing
This is another major thing that has to be considered before starting an import business. The cost of clearing is the money paid to the clearing agent that clear the goods through customs. It differs from product to product.
Some products are classified as contraband. These are products that the Nigerian government does not want to encourage their importation so as the locally made ones can sale.
Therefore, what the government usually does to discourage importation of such products is to increase the customs duties that will be paid on such products.
Rice importation is classified as contraband for now. It does not necessarily mean you cannot import rice at all, but you will have to pay more for clearing.
Trusted contact in china
Now, this is one of the most vital things to consider when importing from China. Since the purpose of this post is to educate you on mini importation from china with or without traveling outside Nigeria.
In fact, this is essential, it is not just having somebody that matters too much, but how trusted and reliable is the contact.
Procedures to mini importation from China
The following are the practical step to mini importation from china after you have considered the essential requirement above.
Step 1. Identify your import rights
When you buy your goods from China, you become the importer. The courier such as DHL/UPS/FedEx will handle everything and deliver the goods to you.
Step 2. Choosing the goods you want to import
Choosing the wrong product or products that are of low demand means you are losing time and money.
So, if you’re going to be a successful importer, the first thing that is needed to be done is to look around for those products or goods that their demands are high.
Also, you have to gather as much information as possible about the goods that you want to import. So, you don’t import a product that you will not be pleased with.
- You go for a product that you have passion for.
- You go for a product that is unique and can sell at a high price.
- You go for a product that you can ship in large quantities and at a low shipping cost per unit.
Step 3. The Cost of Clearing
Endeavor to import goods that are allowed in Nigeria (non contraband products) so that the amount you will pay for clearing will not be much.
It is your responsibility to ensure that the goods comply with a variety of specific rules and regulations.
Also, determine the 10 digit tariff classification for each item you are importing. Pay attention to calculate the total landed cost before you place your order.
Step 4. Your Trusted Contact in China
At this stage, you must have had a reliable someone in China. So you go ahead to place your order with your trusted contact (vendor, shipper, or exporter) and identify shipping terms that will be imitated.
Once this is done, you have to request a quote sheet [Proforma Invoice (P/I)] for your prospective purchase to include the description and value per item.
Your Proforma Invoice must show the weight and the packed dimensions as well as your terms of purchase.
Step 5. Arrange and Track your Cargo Transport
The cost that is associated with imported goods is mainly shipping costs, packaging fees, container fees, broker fees, and terminal handling. Each of these costs should be taken into accounts.
Since it from China, it will take a few days for it to arrive. During this time, check your commercial invoice, packing list, the bill of lading, and other related freight documents.
Step 6. Goods Arrival in Nigeria
After a few days, the goods will arrive, so you have to make arrangements for your customs broker to clear them through customs (and quarantine if applicable).
And when everything goes right, your right to pick up your shipment. Or you may choose a door to door service, and you will get your shipment to arrive at your designated address.
Goods to consider when starting a mini importation business
Bags are good importation products
shoes are good product to be imported
This product of choice that is going to list below is based on the normal marketing trends in Nigeria.
So, you also have to look around your marketing arena to identify what will sell best.
I am doing this because it is necessary so that you will know what trending in the Nigeria society and for you to be able to scale your capital for a startup.
Consider the following items.
- Phone & Gadgets
- Ladies Bag & Ladies Sandals
- Shoes & Canvas
- Computer Accessories
- Flash Drives
- Weight loss products e.t.c.
How to raise capital for your importing business
This is just a bonus; raising money for a business startup is a major challenge for potential entrepreneurs.
The importing business we are talking about is not exempted from this challenge.
You need money to start any business! So how do you get this money?
Here are my favorite tips for raising capital for startups
1. Family and friends
The easiest way to raise cash for your importing business is through family and friends.
Assuming you want to raise an N100,000 (Hundred thousand naira) for your importation business, it means you need N10, 000 (ten thousand naira) from 10 people or N5,000 (five thousand naira) from 20 people.
Whichever of this option is easy for you, work on it, and you will be surprised that you will raise the capital within a short time, especially if you are the type that people can trust with money.
2. Participate in Cooperative Society
This method of raising capital is suitable for those employed in government service or other cooperate organizations where a cooperative exists.
3. Engage in Monthly Contributions/Meeting
This is a superb method of raising capital that is popular among people who receive salaries.
It involves joining a group where an individual member of the group contributes a certain amount of money per month.
At the end of the month, a member collects the whole amount, and everyone keeps contributing monthly until the cash collected at the end of each month goes round to everybody.
4. Form a Trusted Import Team
This is a method that is best for those starting out mini importation newly. This method is not directly attached to fundraising, but it will save you much money in the long run.
It is just when two or more importers come together in an agreement to join force and import sets of goods, while they both share the cost for shipping, packaging and other related costs.
My final thoughts.
I would love to encourage you to take the time to think about this mini importation business.
For the fact that the profit margin is high, also take note of its pros and cons