Step-by-step guide: Manufacturing and importing – everything you need to know

Manufacturing and importing can end in disaster. Here is the guide that helps you avoid the most common pitfalls and gives valuable tips for a successful business.

Do you have a bright idea and need to find the right manufacturer, but don't really know where to start? No problem, then we'll make sure to help you on the trot.

In a new article series on Ehandel and Ehandel Plus, we will give you valuable tips on how to choose the right manufacturer, ensure quality and avoid the most common pitfalls when importing. To help us, we have e-commerce expert Martin Granberg with extensive e-commerce experience from, among others, the Bygghemma Group.

Since the turn of the year, Martin has been living in Norway where he works for Priceindex, which has just started a branch in the country. With his extensive experience in purchasing and quality control from China, he will now also guide us through the import jungle.

"Previously, I lived in China for a little more than six years, where I worked with purchasing and quality control, while helping Western companies set up purchasing offices in China and Hong Kong. But right now I'm sitting with many of the biggest ecom stores in Sweden and discussing both price and overall strategies", says Martin Granberg.

Choose the right product

It is primarily China and Asia that we will look at more closely. Which in many cases is an easier market to start on, and has a lower threshold for developing new products on a small scale. According to Martin, it is usually easier and cheaper to find manufacturers in China than alternative suppliers within the EU.

But there are advantages and disadvantages, and we will therefore also look at little other alternatives for those interested in manufacturing in Europe.

We will also take a closer look at which types of products are particularly suitable for import. If you don't already have a ready-made idea or product that you want to manufacture.

"that is popular but not just a trend. Or something completely unique. It is easiest to choose something that is small and easy to transport because of all the costs associated with bulky products", says Martin.

Common mistakes

But even if it is getting easier to find good manufacturers, it is not completely risk-free. Being cheated is not very common, but it is not entirely unusual to encounter a quality problem. Which can manifest itself in many ways.

In many cases, it is a misunderstanding that leads to the supplier choosing cheap and substandard material or colours. Pure communication errors that can be avoided with the help of clear and detailed product specifications, or by visiting the manufacturer on site.

"Depending on the volume and cost of what you order, I always think you should visit your suppliers, it's more a question of when in time it becomes relevant. If you work with the right tools and processes, you can get around a lot of the problems you get when you can't visit your suppliers frequently. But it is always important to visit the manufacturers to understand the whole", says Martin.

Laws and rules

How to avoid these mistakes is something Martin will go into more deeply in subsequent articles. Among other things, by taking a closer look at how you ensure the quality of your products. Both so that they meet the standards purely in terms of quality, but also so that they comply with all regulations and safety requirements for the markets where they are to be sold.

Namely, far from all factories in China have a handle on which rules apply in Sweden and the rest of the EU. They simply expect importers themselves to know which requirements apply in their own countries.

"Here there are different strategies, and a digital QC system that provides support. It also depends on how much you want to work with traceability and transparency, as well as what type of product and where it is manufactured. But it is a very important part and we will delve deeper into the subject", says Martin.

The right amount

Another important point is to choose the right amount to buy in. Both to reach the right price level for their products, but also so that you don't buy in too large quantities.

"It is always a difficult question before you have volume, or before you know whether a product will succeed. But it is almost always better to order too little than too much, and depending on the product life cycle it may be better to order smaller collections/batches and product development between these."

According to Martin, there are a few different ways to calculate this. Sometimes it is better to fly home products on a smaller scale, in order to be able to spin the capital more quickly and manage more cycles. But it depends on many variables.

"Just product development and purchasing, as well as all parts within this, is a very broad topic that should be easy to dive deeper into together with Ehandels readers, concludes" Martin Granberg.