How do I choose a broker for importing?
Like any unknown area that you move into in your life, when you are first dealing with China, it can appear quite daunting. Just as you use an accountant to do your tax, a bookkeeper to do your books, and a lawyer to do law-related business, you can also use an import adviser to deal with your importing matters.
Getting professional advice from an import adviser will assist you through the whole importing process, allowing you to have a better insight and understanding into your rights, the rights of the supplier, trade laws, and so on.
One of the questions I’ve been asked by clients is about agents they’ve found on the internet that will source products from China for a 5% commission, or less.
Be aware these agents also receive a commission from the manufacturer or supplier who supplies your products, and to cover this cost the manufacturer or trading company will build in their commission into the offer price for the goods.
The result is that the commission paid by you to the agent can be anywhere from at least 12% to 100% and not 5% – you can never be 100% sure.
As most agents are profit driven, they may refer your business to the supplier with the cheapest price, resulting in substandard product, or to the supplier which offers them the highest commission (which isn’t necessarily the one with the most suitable product for you!).
If you choose a reputable Australian company, your company may be eligible for a $20,000 government grant.
Enterprise Connect is a $251 million Australian Government initiative that provides practical support to thousands of small and medium enterprises (SMEs).
The first level of service offered through Enterprise Connect is a comprehensive Business Review, which is delivered at no cost to a client firm. Skilled and experienced Business Advisers carry out Business Reviews on-site at your firm’s premises.
Your company may also be eligible for Tailored Advisory Services which reimburse your firm half the cost, up to a maximum of $20,000, of engaging consultants like ChinaDirect Sourcing(www.chinadirectsourcing.com.au) to help implement changes that improve your business performance.