How to Be Profitable in 2022?- Sourcing Secrets Revealed

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Whether you are thinking about starting your importing business or going to scale up your existing business, you may have to face more challenges in 2022. In this article, I will tell you the things you can do to run a profitable business in 2022.


According to our sourcing experience, 2022 is going to be more challenging than usual. You may encounter raw material prices rising, inflation and so on. As a small businessman, you need to bear more pressure and keep the following things in mind.

Sourcing Secrets for Importers to Be Profitable in 2022

Though business in 2022 may be a little difficult, there are still some things you can do to avoid loss.

Prepare More Cash

You may already know that the delayed shipping situation has become normal. In the past, you were able to get your products from China to UAS in 30 days by sea. However, at present, you may have to wait for another 20-30 days. There are some reasons for the delay.

  • Container Shortage. Here we take L.A port as an example. More than 40% of the importing ships are docked here. There is a visible vicious circle as inefficient unloading leads to more ships staying in ports and fewer returning to Asia, creating container shortages. All these leads to longer lead time.
  • Longer Production Time. As your supplier, they have to extend the production time because of the material shortage and power shortage. You used to get your products from the day of down payment to the day of delivery in 3 months. Now, you have to wait for more time since the supplier needs more time to produce.

When you are waiting for products, your cash is trucked. And there is no way for you to get more cash until the product delivered and you can sell them. Thus longer lead time means you need to prepare more cash to get your business started to make sure you don’t run out of money while you’re waiting. And if you want to scale up your business, you’d better check your balance sheet carefully.

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Plan Your Profit Margin Carefully

There are two major costs for you before getting your product. One is the material cost or product cost, and the other is shipping cost. Thus, the rising shipping freight and rising raw material prices mean higher cost input. If you don’t plan ahead, you can’t guarantee your profit margin. When you calculate your landed cost, I suggest that you can add 10% to your product cost in case the price increases again when you launch your product or after you launch the product. And on the shipping side, you’d better add an additional 10% to your shipping cost. This will give you at least some buffer to know after you commit your payment. And you will have room to have your profit margin drop and you still can make money. If you don’t know how to calculate your landed cost, please refer to this article:

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Source From China

Apart from China, where can you get your product manufactuered? You may say vietnam. Yes, Vietnam has been really popular in recent years. However, in my opinion, if you are a small businessman or a newbie to importation, you’d better forget about vietnam for language barriers, infrastructure issues, labor shortage and so on. You’d better to get your product from China because the manufacturing, import and export trading practice in China are so mature. If you already have your own business and it’s doing well, you can consider sources from different places like vietnam to diversify your supply chain and minimize your sourcing risks.

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2022 is a year full of challenges as well as opportunities. Keep the mentioned 3 tips in mind and you can make your own business. Any problems about importing from China will be appreciated, feel free to contact us for help.

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