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8.How to Import Outdoor Furniture from China?

8.1 Find an outdoor furniture manufacturer or supplier

Working with the factory that matches your needs is vital. The right factory will give you the right prices, top-quality, workable lead-times, and good cooperation. These all translate to a good outcome and bigger profits for your business.

Find the right manufacturer or supplier through online B2B platforms, furniture trade fairs, furniture marketplaces in China, or work with a furniture sourcing agent.

Before choosing the right furniture manufacturer or supplier, come up with a shortlist of at least three of them and do an audit on them.

Auditing outdoor manufacturers or suppliers will help you know who they are, their production capacities, the equipment and machineries they use, their manufacturing process, as well as the sustainable and ethical standards they adhere to.

After the audit, you can go ahead and send out a formal Request for Quotation for your requirements from your three probable manufacturers or suppliers.

8.2 Calculate landed cost

When importing from China, the cost quoted by the manufacturer or supplier is not the only cost of your outdoor furniture order. You will need to account for all costs to have your orders delivered from China to your warehouse.

• Make sure the quotations you get from prospective manufacturers or suppliers are the standard FOB quotations. Free on Board (FOB) means the quotation includes not only the cost for the outdoor furniture but also all costs to get the products onboard the vessel at the port of origin in China.
• Know the freight costs to get your goods to the port of destination and the local charges to get them to your warehouse. These costs include ocean freight, local port and handling charges in your country, and the trucking/delivery charges to your warehouse.

The furniture sourcing agent should be able to get all these charges for you. Some buying agents have good working relationships with shipping lines and freight companies because of the export volume they give them and can offer the lowest possible rates.

8.3 Negotiate Prices

Negotiating for the lowest possible price is an essential step in buying outdoor furniture from China. At this stage, it is assumed that you are negotiating with a qualified manufacturer whose production capacity and quality standards can meet that of your orders.

Choosing the manufacturer or supplier with the most reasonable cost is more important than one who is the cheapest. Based on these, you should be able to select the best manufacturer or supplier to negotiate with seriously.

If you cannot personally meet with the representatives of the manufacturer or supplier, a sourcing agent can help you negotiate the best price possible. Many factors affect the cost of outdoor furniture.

Here are some details you need to understand when negotiating prices:

8.3.1 Minimum Order Quantity

Minimum order quantity (MOQ) varies among outdoor furniture manufacturers. Buying direct from a factory will give you different MOQs than when buying from furniture wholesale markets.

Buying direct from a factory

If you are ordering mass-produced outdoor furniture, expect the minimum order to be a container load, typically, a 20ft container. Factories are able to give you low prices if they are also able to buy the minimum quantities of raw materials and component products.

One container can contain different outdoor furniture SKUs or outdoor furniture items for instance, 3-5 different items to fill your container. Often manufacturers who want your business can bend their standard MOQs for your first order.

Buying from Furniture Wholesale Markets

Wholesale furniture markets in Guangzhou, Foshan, Beijing, Shanghai, and Tianjin vary in operation. Some of them operate for the Chinese domestic market and others are for the international export market.

You will find almost all types of outdoor furniture from branded Italian furniture to small local Chinese furniture manufacturers. When you buy through furniture wholesale markets, you can be given a low minimum order, as low as one for each item.

Volume and Continuity

Chinese manufacturers want volume and continuity of orders. If you can give them what they want, you will be in a great position to get the prices you want.

8.3.2 Furniture Quality Assurance

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You need to be sure of the quality of the outdoor furniture before finalizing your order. This means you have to order a sample to have quality assurance.

Quality assurance should include all facets of the outdoor furniture including the product itself and everything that goes with it including the packing system.

All issues pertaining to the product needs to be ironed out between the buyer and manufacturer based on the agreed sample.

Compliance

When importing outdoor furniture from China, it is important that the products comply with all the legalities of your country.

Safety Compliance

Different countries have various standards to ensure product safety for the protection of consumers. This includes standards pertaining to structure, stability, and load of the outdoor furniture. Different materials also need to undergo specific tests.

It is your responsibility as a furniture importer, not the China furniture manufacturer’s, to ensure the furniture you are importing from China has been tested for product safety. You need to have the test certificate to prove that the product has been tested.

Chemical compliance

Chemicals used and emitted by the outdoor furniture also need to pass specific standards. In Europe, for instance, chemicals used in the furniture (glues, paints, etc.) need to comply with the standards of the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH).

Sustainability

People and businesses around the world today are more aware and make sure what they are buying is coming from a sustainable source. The Forest Stewardship Council (FSC), for instance, certifies that the wood used in outdoor furniture comes from a sustainable source.

8.4 Purchasing

When buying from China, the first thing you need to make sure is you have a valid purchase contract that includes:

• Specifications
• SKUs/ Quantities
• Payment Terms
• Agree tolerances

• Agreed quality standards ( AQL standards or Acceptance Quality Limits)
• Late fines

All these items have been previously discussed and agreed upon between the buyer and manufacturer.

8.4.1 Payment Options

There are various payment options the buyer can negotiate with the manufacturer including:

• 100% payment before production. Typically used when furniture order is minimal, something in the range of below USD 5,000.
• 30% deposit, 70% before shipment
• 30% deposit, 70% against the bill of lading
• 0% deposit, 100% against the bill of lading
• 0% deposit, 100% after 90 days

Most furniture companies in China that are into export will work along the line of the buyer (importer) making a deposit and pay the balance against the bill of lading.

8.4.2 Quality Control

This is the most basic function you should do with all your outdoor furniture from China. Missing out on quality control will have a severe effect on your business. Outdoor furniture should go through various forms of quality control.

• Mid-production inspection. This is to ensure the furniture is of the right materials, colors, specifications, etc.
• Pre-shipment inspection. This is to inspect the batch of furniture after production.
• Container load inspection. To ensure the right quantity of outdoor furniture is loaded and properly loaded in the container.

The basic rule is, the more quality control inspections done, the more you reduce the risk.

If you are working with a sourcing agent, he/his company will have a Furniture Quality Control team who can implement the right quality control for your furniture.

8.4.3 Shipment

The most ideal way to ship furniture is by container load. You can choose between a 20ft, (5898mm (L) x 2352mm (W) x 2393mm (H) 20’GP), 40ft (standard / )12032mm (L) x 2352mm (W) x 2393mm (H) 40’GP , or a 40ft HQ (12032mm (L) x 2352mm (W) x 2698mm (H) 40’HC).

You can either fill up a whole container – Full Container Load (FCL) or a Less than a Container Load (LCL).

FCL means, the container will be delivered to the factory in China and they will load the goods into the container. When it arrives in your country, the container will also be delivered to your warehouse.

LCL means your goods will have to be brought to the port and loaded into a “shared container. When the goods arrive in its point of destination (your country), the container needs to be unpacked at the port so your goods can be delivered to you.

When an FCL or LCL arrives in your country, you will need to pay the trucking cost for your goods to be delivered to your warehouse. The freight forward will arrange the customs clearance and schedule the delivery to your warehouse.

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