Today’s supply chain is more dynamic, complex, and crowded than ever before, so logistics professionals must make critical decisions about their freight every day. This includes selecting the optimal modes of transport. If you are in the logistics industry, an important consideration is how to move your valuable goods or cargo. Also, when global shipping needs and tight deadlines collide, the decisions or choices become significantly more complicated.

When shipping internationally, you can choose air freight or ocean freight. Business owners usually find themselves at a crossroads, debating the merits of air freight vs. ocean freight. Are you one of them?

While there are some obvious differences between sea and air transportation, it is vital to consider various variables and potential unknowns. For example, the value of goods, sensitivity to shipment time, product density, and money spent often dictate whether ocean freight or air freight is the optimal shipping solution for your business.

As the year draws to a close, you may be facing critical decisions that will impact your business success and growth during the most pivotal seasons. Picture this -The holiday season is just around the corner, and you are eager to fill your shelves and warehouses with goods that will fly off the racks. Simultaneously, as the Chinese New Year draws near, your business will likely encounter a significant logistical challenge.

In this high-stakes and complex environment, the choice between two fundamental freight options, air freight, and ocean freight, takes center stage. The choice between air freight vs. ocean freight can shape the whole supply chain strategy of a company. Your decision now can mean the difference between meeting soaring year-end demand or falling short and between ensuring a seamless supply chain or facing delays that can disrupt your entire operation.

 

Do you want to go on a high-speed aerial adventure or embark on a steady ocean voyage? We will comprehensively explore these two distinct options to make things simpler for you. By the time we conclude, you will know the advantages and disadvantages of each shipping method. We will also share stories of businesses navigating these tricky decisions in real-time. You will also learn about a dependable shipping ally – Unicargo – ensuring that your cargo’s journey is smooth, secure, and successful.

Understanding Air Freight 

 

Definition and Explanation of Air Freight

We can define air freight as cargo or goods sent from one place to another by air carriers through air routes. Air freight is the dynamic hummingbird or Formula 1 of the shipping world, where products are swiftly transported via aircraft. 

In the logistics world, air freight is prized for its velocity and agility. Air freight usually follows the same routes as commercial and passenger planes and is the best option for rapid and safe transportation. 

Pros and Cons of Choosing Air Freight 

There are many benefits and downsides of air freight. This mode of shipping is ideal for businesses and companies that need urgent delivery or when time is of great essence. Here is another advantage. It is considerably less vulnerable to weather delays compared to other methods, like ocean cargo and road transportation, making it more reliable and convenient in certain circumstances.

Pros of Air Freight

• Quicker delivery lead times 
• Ideal for time-sensitive shipments, such as perishables
• Dependable courier service
• Usually comes with premium shipping insurance

Cons of Air Freight

• In most cases, it is costlier than ocean freight
• Not suitable for heavier or bulkier goods and shipment since it is more expensive
• Weather-dependent transportation mode 

Speed and Transit Times 

For time-sensitive goods, such as edible items, air freight is usually the best shipping solution. This is because the capability of air carriers to cope and adjust to disruptions swiftly and delays means faster transit than ocean freight. When it comes to swiftness and agility, air freight takes the crown. Your goods will reach their destination in a fraction of the time it takes by sea. That is remarkable!

To put things into perspective, if you have time-sensitive items, such as freshly caught seafood or the latest tech gadgets, air transport is your express ticket to on-time delivery. For comparison, a standard shipment from China to the United States can reach within 6 to 7 days by air, while it may take 30 days or even more via sea. 

 In many instances, you may have a spike in demand for part of the goods you sell, and meeting specific deadlines, such as “holiday season” (end of the year), is a MUST. Although you usually ship those goods by sea, when you have an opportunity to double down and re-order and ship quickly to replenish your shelves- air freight is the optimal solution. However, you still have to calculate your Cost of Goods Sold (COGS) correctly to make sure you’re still making a profit.

Cost Considerations 

However, as you can imagine, speed comes at a premium. Since this is the fastest way, it costs a lot more to transport goods compared to other methods. This is because air freight usually requires a heftier investment compared to its maritime counterpart. To put things in perspective, a $200 ocean shipment could cost up to $1,000 by air. Think of it as buying a first-class ticket versus a standard one; the perks and benefits are evident, but it comes at a cost.

Types of Goods Suitable For Air Freight 

Air freight thrives in situations and cases where time is of the essence. Air transport is the fastest and most reliable way to transport perishable goods, like fresh fruits and veggies, seafood, and flowers. You can also use it to transport high-value or precious goods, such as electronics, jewelry, and pharmaceuticals. Air freight is like the express lane on a highway, reserved for those in a hurry.

Year-End Scenario – Meeting Holiday Demand

During the holiday season, every day counts. This is where air freight becomes a valuable asset, catering to last-minute shoppers and meeting seasonal demand.

Picture this – the calendar flips to November, and the holiday season’s magic and festive spirit are in the air. Shoppers are on the hunt for the perfect gifts, such as chocolates, flowers, and tech gadgets, and retailers are working non-stop to stock their shelves with holiday treasures. This is the crucial time when air freight can be your invaluable secret weapon.

Let’s assume you run a small gourmet chocolate company in Switzerland. As December approaches, you know that chocolate buffs worldwide will be craving your exquisite and delectable creations. To meet this surge in demand, you can turn to air transportation. Wondering why? Within hours, your delicious chocolates will be loaded onto airplanes, ready to embark on a high-speed journey to international markets. Thanks to lightning-fast transit times, your sweet goodies arrive in stores just in time for the holiday rush, ensuring sweet smiles on the faces of eager customers.

Understanding Ocean Freight

Definition and Explanation of Ocean Freight

The term ocean freight or sea freight refers to the method of carrying products or commodities over marine commerce routes. Ocean freight is the most common method for transporting goods, particularly in international trade. This transportation mode allows you to deliver items in huge or bulk quantities efficiently.

Ocean freight is the steadfast and reliable turtle of shipping, utilizing colossal container ships that traverse the open seas. Goods are loaded and packed in intermodal containers for shipping by cargo carriers. This option is less expensive than transporting goods by cargo planes.

Pros and Cons of Choosing Ocean Freight

As a more affordable option than air freight, ocean freight is better suited for transporting and shipping bulk cargo. For example, the handling of large, bulky, or irregular-shaped loads is more straightforward and quicker when ample space is available, like in container yards, cargo holds, and ship decks. However, this method is slower than air freight.

Pros of Ocean Freight

• Affordable shipping method. It is usually cheaper than air freight.
• Ocean freight is built for bulk and large loads of goods, whether by container – FCL or by pallets – LCL.
• Reduced carbon footprint, making it environmentally friendly

Cons of Ocean Freight

• Longer delivery lead times compared to air cargo
• Not suitable for time-sensitive shipments

Cost-Effectiveness

On average, ocean freight is much more affordable than air freight. A World Bank study revealed that shipping goods and products by air can be as much as 16 times more expensive compared to sea freight. If you are moving furniture, large machinery, or vehicles, this is the option to consider.

Transit Times and Lead Times

You have to keep in mind that patience is a virtue in ocean shipping. Sea freight requires more time compared to the swiftness and agility of air freight. So, if your cargo isn’t on a tight schedule and you are planning well in advance, this leisurely journey across the seas is the best way to go.

Suitable Goods for Ocean Freight

Goods, such as heavy machinery and furniture, which can withstand a leisurely voyage across the ocean, are prime candidates for sea freight. Other examples include raw materials and items with extended shelf lives.

For instance, clothing, apparel, and textiles are major types of goods that are often shipped by sea freight. This is mainly because they are relatively lightweight and can be effortlessly packed into containers.

Year-End Scenario – Planning for Chinese New Year and Spring Sales

When preparing for major events like Chinese New Year or spring sales, the reliability and cost-effectiveness of sea freight truly come to the fore. In these cases, you can anticipate demand well in advance,

Here is a scenario that highlights the benefits of ocean freight. As the year winds down and the appetizing scent of gingerbread and mulled wine fills the air, businesses, and companies are already setting their sights on the next big events. These are Chinese New Year and the highly awaited spring sales. These are moments when strategic planning meets opportunity, and for these occasions, sea freight emerges as the unsung hero.

Imagine you operate a toy manufacturing company in China. With Chinese New Year around the corner, you know that families across the globe will soon be celebrating, exchanging gifts, and, of course, purchasing colorful toys for the little ones. To make sure that your toys reach stores worldwide in time for the grand festivities, you can opt for ocean freight.

If you plan well, you can cost-effectively and reliably ship large quantities of toys, such as dolls, in sturdy containers aboard cargo ships. The longer lead times of sea freight perfectly align with your advanced preparations. This allows your products to arrive at their destinations ahead of the Lunar New Year celebrations.

Unicargo – The Right Choice for Your Freight Needs

Introduction to Unicargo as a Holistic and Reliable Freight Forwarder

If you are looking to ship goods globally or internationally, Unicargo can be your trusted and reliable partner for simplifying and streamlining global logistics. With considerable experience and comprehensive industry knowledge, Unicargo can meet your shipping and logistic needs.

Global Presence and Network

Unicargo’s extensive and reliable global presence and intricate network of partners span the globe. This ensures that goods navigate international waters seamlessly. With an innate understanding of global shipping and logistics, Unicargo makes the cargo journey hiccup-free.

Complete Visibility through Digital Platform for Tracking 24/7/365

In today’s digital and tech-driven age, visibility is paramount. Unicargo offers a state-of-the-art digital platform akin to tracking a flight or monitoring a ship’s route. This provides clients with 24/7 tracking capabilities. With Unicargo, clients are always in the know about their cargo’s whereabouts.

Customer-Centric Approach

Unicargo’s customer-centric approach ensures tailored and seamless solutions for your unique needs and preferences. Whether you choose air freight for its speed or sea freight for its cost-effectiveness, Unicargo is your steadfast guide, ensuring a smooth and stress-free journey.

Unicargo takes a personalized approach, building and fostering strong partnerships with clients. The company offers quick and accurate solutions even when unexpected challenges arise.

Real-Life Success Stories – How Unicargo Assisted Businesses During Year-End Rush

Actions speak louder than words in the shipping industry, and Unicargo’s track record during the busiest times of the year speaks volumes. When the holiday rush is on and the pressure is high, Unicargo has been the unwavering partner for countless businesses and companies.

Consider a growing e-commerce business specializing in handmade holiday ornaments. As the holiday season approached, they faced the daunting task of fulfilling a surge in orders from customers worldwide. Unicargo stepped in with a meticulous plan, seamlessly coordinating the shipping of delicate ornaments via air freight. What was the result? The business not only met but exceeded customer expectations, with their ornaments adorning homes from New York to Tokyo in time for the holidays. Unicargo’s timely and dependable services transformed a potential logistical nightmare into a story of customer satisfaction and business growth.

Similarly, consider a high-end luxury fashion brand known for its exquisite and sleek handcrafted couture. With the holiday season and Chinese New Year celebrations on the horizon, they needed a partner who could seamlessly transport their high-end creations to discerning clients worldwide. Unicargo, with its mastery and insights of sea freight, ensured that the brand’s elegant gowns and accessories arrived at luxury boutiques on time.

These real-life success stories, and many others like them, illustrate Unicargo’s unwavering passion and commitment to its clients during the most demanding times of the year. When the world is celebrating, Unicargo is working tirelessly behind the scenes, transforming logistical challenges into success stories.

Making Informed and Prudent Decisions

Illustrating Year-End Dilemmas Faced by Businesses

Q4 Rush for Holiday Season Stocking

Imagine you are a toy retailer gearing up for the holiday season. You are pressed for time, and air freight is like Santa’s sleigh, ensuring your products land on the shelves before the festive frenzy.

Planning for Chinese New Year and Spring Sales

Now, assume it is October or November, and you are a clothing manufacturer preparing for next year’s spring sales. With the luxury of ample lead time, ocean freight is the prudent and pocket-friendly choice, offering cost-effectiveness and reliability.

The Role of Unicargo in Providing Solutions

In both scenarios, Unicargo can be your unwavering and dependable partner, ensuring your goods reach their destination smoothly and punctually in the most cost-effective mode, aligning with your business goals and needs.

Final Thoughts

The choice between air and sea freight for your cargo depends on your supply chain strategy. It’s often a conditional decision and multi-modal solutions are common. It is vital to consider these options carefully, as the suitability of air freight vs. ocean freight greatly depends on your specific cargo and shipping needs.

Various criteria, such as speed, reliability, cost, and environmental impact, influence this decision. It’s crucial to consider all factors, not just one, when making supply chain decisions. At the end of the day, you’re running a business and have goals and deadlines to meet.

Air freight excels in speed and reliability, making it ideal for precious products or items with short shelf lives. However, it comes with higher shipping charges. Ocean freight offers cost advantages but has longer transit times.

If you’re unsure about the best choice, consulting an international shipping expert like Unicargo can help you find a suitable solution for your delivery needs and help you navigate the complexities of this air freight vs. ocean freight decision, ensuring your cargo’s journey is safe and optimized to meet your goals and budget.

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If you want to start importing toys or children’s products into the USA and make sure that your goods are safe and legal, you’ve come to the right place-read on to learn everything that you need to know.

In this article, we will look at the safety and certification rules for toys and children’s goods sold in the USA, and what you need to do to comply with them so to avoid a big fine or even, G_d forbid, jail time!

Who regulates toys imported into the USA?

CPSIA (the Consumer Product Safety Improvement Act) regulates toys and children’s products sold in the USA, as part of the Consumer Product Safety Commission (CPSC). This body requires toys and children’s products to carry a Children’s Product Certificate or CPC to be imported and sold legally in America.

What is classed as a toy or children’s product?

The CPSIA regulations don’t just apply to toys-they apply to all products that are designed for use by children aged 12 or under. This means that as well as toys, a wide range of other goods including children’s clothes, furniture, fashion accessories, ride-on vehicles, and hobby and sports equipment like children’s fishing rods and footballs all fall under CPSIA too.

If a product is meant for a child to play with or use in any context, it is classed as a toy or children’s product. If you’re not sure if the products you want to import are classed as toys/children’s products, the CPSC guides to make it easier for importers and resellers to understand.

• Are the goods marketed as being suitable or appropriate for children aged 12 or under?
• Does the packaging present the goods as suitable or appropriate for children of 12 or under to use or play with?
• Will the retail display (or online retailer) for the goods present them as being appropriate or suitable for children of 12 or under?
• Is the product generally recognized as a toy or something designed and targeting mainly children of 12 or under?

If the answer to any of these four questions is “yes,” then your products are considered to be toys or children’s products and have to meet the CPSIA regulations.

What are the different categories of toys?

Toys or children’s products sold in the USA are subjected to different levels of safety regulation, depending on the age of the children that they are aimed at or designed for. The younger the child, the stricter the rules.

Toys or children’s products for children aged 3 or under (infants) have the strictest rules, followed by those for children aged 3-5 (toddlers). Toys or products designed for children aged 6-12 is the final category, with slightly less strict regulations, because older children are better able to keep themselves safe and are less likely to swallow or chew their toys.

Toys and children’s products are divided into age groups in this way to make sure that very small children are protected from extra risks like potential choking hazards or the toxic effects of putting toys and other products into their mouths.

The CPSIA regulations

To legally import toys or children’s products for sale in the USA, the products have to meet the CPSIA regulations, and when it comes to toys imported from abroad instead of made in the USA, this is up to the importer. To meet the CPSIA regulations, there are several steps that you have to take before you can sell your products in the USA.

Your products have to comply with all relevant safety regulations, have undergone laboratory testing to prove it, and have a tracking label attached to the packaging and potentially, the product itself. Your goods also have to have a Children’s Product Certificate accompany them for import, showing that they are approved for sale in the USA.

Labeling requirements for different types of toys

All toys and children’s products sold in the USA have to have a Children’s Product Certificate to be legal (more on this further down), and there are also rules for labeling children’s products and toys too.

The tracking label

A tracking label has to be attached to the packaging of the products, and if possible, to the actual toy or product itself too. The tracking label is an important part of compliance for legal import and sale of toys, and CPSIA outlines what needs to go on the tracking label.

To be compliant, the tracking label has to show:

• The date and place that the product was made.
• The batch number or another identifier that displays the batch or run line, and any other marks that the manufacturer might need to be able to trace the product back to its source, later on, such which of their factories made it, or the batch that a certain order’s products came from. This is so that any product faults or recalls can be traced quickly and accurately.
• Imported products need to have a tracking label showing the importer’s details too, including their business address and contact details, and information on the materials used in the product.
• If you intend to sell stuffed toys in Ohio, Massachusetts or Pennsylvania, or if you sell online and ship to these states, there are also local licensing and labeling regulations to follow too. You can click the individual state links to find out more or check with the relevant Chamber of Commerce.

Additional labeling rules for infant and toddler products

As well as the tracking label, toys and products designed for infants and toddlers (children aged 5 and under) have to be sold with a product registration card.

The product registration card must be fixed to the product itself, and display:

• The manufacturer’s name and contact details.
• The date the item was made.
• The model name and batch number for the product, and any other relevant identifiers.
• It must include a prepaid shipping label to be used by the buyer for optional product registration and in case of recalls.
• Buyers must have the option to enter their contact details on the card and register their purchase, and the card should also give buyers the option to register their details online instead of mailing back the card.
• Records of registered buyers should be retained by the importer in case of future product recalls.

Choking hazard labels

If your toys or children’s products are very small or contain small parts-like marbles, ball bearings, balloons, beads and so on-they also need to be clearly marked with a warning label to show that they can pose a choking hazard and noting the child age range that they are safe for.

The choking hazard label requirements are as follows:

• If the product or toy is meant for children aged 3-6 years old and contains small parts, it must be labeled as a choking hazard due to small parts, and not suitable for children under 3.
• If the product consists of a ball smaller than 1.75 inches in diameter and is meant for children of 3 or older, it must be labeled as a choking hazard due to a small ball, and not suitable for children under 3.
• If the product contains a small ball and is meant for children between the ages of 3-8, it must be labeled as a choking hazard containing a small ball, and not suitable for children under 3.
• If the product is a balloon or contains a balloon and is meant for children of 12 or under, it must be labeled as a choking hazard, and include the text: “Children under 8 yrs can choke or suffocate on uninflated or broken balloons. Adult supervision required. Keep uninflated balloons from children. Discard broken balloons at once.”
• If the product is a marble and is meant for children of 3 or older, it must be labeled as a choking hazard and state “This toy is a marble. Not for children under 3 yrs.”
• If the product contains marble and is meant for children aged 3-8, it must be labeled as a choking hazard and state “Toy contains a marble. Not for children under 3 yrs.”

Product testing rules for toys imported to the USA

All toys and children’s products sold in the USA-wherever they were manufactured-have to go through third-party testing before they can be sold, and before the product can be issued with the Children’s Product Certificate that they need to be legal for sale.

The importer or manufacturer doesn’t get to choose just any laboratory to test the product either-you have to use one of the CPSC’s accredited laboratories.

Product tests make sure that the toy is safe for the child age range it is intended for, doesn’t contain small parts or choking hazards for children of that age group, and that the product doesn’t contain any potentially toxic or dangerous substances.

Make sure to choose a manufacturer or supplier that provides toys and children’s products that are compliant with the CPSC rules-otherwise you might find yourself in business with a company that cannot produce goods to the American standard. When you are visiting or contacting manufacturers, only consider those that produce goods to CPSIA standard, and that can show evidence of this.

This can be more complicated if you are getting a supplier to make something for you from scratch rather than buying goods already made for the American market-but by following a couple of simple guidelines, you can avoid being caught out and making a costly mistake.

• Get your manufacturer to provide you with a replica of the toy or product before going into production-made using the exact same materials, finishes and production methods as the finished products will be. Has this sample tested and approved before giving the go-ahead for production? Your full production run will also need to undergo batch testing later, but testing a sample first will help to ensure that you do not commission a full batch that will not pass testing.
• When it comes to batch testing-testing a sampling of the exact products you will be selling-choose your samples, and don’t let your supplier pick them for you. The samples that you have tested have to be exactly the same as the products you are going to sell, and so, should be picked at random-not specially designed or made for testing.

What are toys and children’s products tested for?

Toys and children’s products will be tested to ensure that they don’t contain banned substances, are not highly flammable, are durable, and do not pose a choking hazard or other potential risks.

CPSIA sets rules to limit the amounts of certain types of heavy metals and chemicals used in the manufacture of toys and children’s products, which may be dangerous or harmful to children. Different types of phthalates, a common type of plasticizer used in toys, are limited to the following quantities in toys of all types:

• DEHP: 0.1%
• DBP: 0.1%
• BBP 0.1%

While for toys that a child could put in their mouths, limits are set for the following types of phthalates too:

• DINP: 0.1%
• DIDP 0.1%
• DnOP: 0.1%

Another limited substance is lead, which is commonly used in paint and coatings. The surface or outer part of any toy or part of a toy that a child may handle can’t contain higher than 0.009% lead.

When your products are tested, they will be rejected if they are found to contain any of these substances at higher levels than those permitted.

If your toys or children’s products are meant for infants (children aged under 3) then they have to comply with the Small Parts Regulations standards before they can be issued with a Children’s Product Certificate. This applies to things like pacifiers, rattles, cribs, and anything else designed for use by infants and babies.

The Small Parts Regulations are intended to prevent the risk of choking, and products for children aged under 3 are tested using a tube chamber of around the diameter of a very small child’s throat. If the product or one of its parts fits fully into the chamber, it is considered to be a choking hazard and will be banned for sale for use by children under 3.

CPC certification for toys and children’s products

After your products have passed laboratory testing, they have to be accompanied by a Children’s Product Certificate (CPC) which is drawn up by the importer, in order to be legal to import for sale in the USA. This, accompanied by the product labeling rules we outlined earlier on, makes up the rules that cover the legal sale of children’s products and toys in America.

The importer of the goods is responsible for supplying the Children’s Product Certificate for their goods, and this certificate has to accompany all toys and children’s products entering the USA.

The certificate must show all of the following things:

• Identifying details of the product the certificate is for.
• The exact rules and regulations that apply to the product, such as the need for testing, and for small parts or young children’s toys and products, the Small Parts Regulations too.
• The details of the importer who is certifying the product.
• The contact details of the person who keeps the records of the product’s test results, which will usually be the importer.
• The place and date of the product’s manufacturer.
• The place and date of product testing.
• The details of the approved testing facility that performed product testing for certification.

Case study: a magnetic building blocks toy

To make it easier to understand the whole process you need to follow to legally import and sell a toy for children, we’ve drawn up a case study to help you out.

If you wanted to import and sell this product for sale via Amazon (a set of children’s magnetic block toys for ages 3 and up) we will talk you through the steps that you would need to take to legally import and sell the toy in the USA.

The product is designed for children aged 3 and older-so the additional regulations for importing products for children under 5 comes into play here too. From start to finish, here are the steps to follow.

Step one: The rules your toy must adhere to

First of all, determine the rules and regulations that will apply to your toys. For these magnetic building blocks, these are:

• Laboratory testing for safety and materials compliance.
• The tracking labeling requirements.
• Product registration labeling because the toy is designed for toddlers.
• Issuing of the Children’s Product Certificate (CPC).

• Find a manufacturer or supplier for the toys that comply with the CPSIA regulations.
  
• For a brand-new product, ask for a replica to be supplied before full production beginning, and have this tested to ensure that you will not find yourself in possession of a full shipment of toys that won’t be legal to sell.

Step two: Laboratory testing

• Find a CPSC approved laboratory to test your toys to ensure that they comply with the regulations on phthalates, lead and heavy metals, flammability, and suitability for the over-3 age group.
• Contact the laboratory directly and confirm that they can test your toys for compliance with the regulations above.
• Find out how many samples the laboratory will need, and how to send them for testing. It is a good idea to ask how long testing will take as well.
• From the larger order of toys you will be importing, choose a random selection of samples for testing, and package them with all the information that the laboratory you are dealing with asks from you such as your contact details as the applicant for testing, the name of the product, and if possible, additional information such as what the toy is made from.
• Send these samples off to the laboratory you have chosen from the CPSC list. When they have been tested and passed, the laboratory will return a full test report to you indicating that the toys have passed.
• An example of the product testing certificate you will receive from the laboratory is shown below:
  Test_Results-1

Step three: The tracking label

Draw up a tracking label for the toys, which shows:

• The place and date that the toy was made.
• The toy’s batch number or production run, or anything else that will help the manufacturer trace the individual toy back to a specific factory or production run in the case of faults or recalls.
• Your details as the product’s importer, including your business address and contact details, and an outline of what the product is made of in this case, ABS plastic, and metal.
• Then, attach the tracking label to the packaging of each toy and if possible, each toy itself.

Step four: The product registration card

Because your toy is made for toddlers (children aged 3 and over) it must also have a product registration card. The information to put on the card is:

• The name and contact details of the manufacturer.
• The date the toy was made on.
• The batch number, model name, and any other details used to identify this specific toy.
• A prepaid shipping label with room for the buyer’s contact details, so that buyers can register their purchase if they want to, or using them in case of product recalls.
• Details showing how a buyer can register their purchase online if they want to, without the need to mail off the registration card.
• This product registration card should be attached or affixed to the toy itself.
• You should set up a system to record the details of buyers who register their purchases with you, in case of future product recalls.

Step five: The Children’s Product Certificate

Finally, you must issue your toys with a Children’s Product Certificate for import, which shows the following:

• The details (description) of the toy itself.
• The regulations that apply to the product, such as the product testing that your toys will have gone through.
• Your details as the importer who is certifying the product.
• The contact details of the person or office that holds the results of your product tests-usually yourself.
• The place and date the toy was made.
• The place and date of product testing.
• The details of the laboratory that tested and passed the toys as safe and legal.
• Make sure that the Children’s Product Certificate accompanies your toys for import-and that your freight forwarder also has a copy of the laboratory testing results to hand in case of queries upon arrival in the USA.
• Here is an example of a compliant Children’s Product Certificate for the magnetic building blocks: CPC-1

What happens if you breach the CPSIA regulations?

The CPSIA regulations are designed to keep consumers safe and ensure that toys and children’s products don’t pose a health hazard or risk to children. The rules are very strictly enforced, and breaching any part of them comes with heavy penalties.

After all, breaching the rules might place a child’s life at risk and this is something that everyone should take seriously.

If your products aren’t tested, properly labeled and certified, you could find yourself facing a hefty fine of up to $100,000 per violation, as well as, potentially, criminal prosecution that can lead to your assets being seized, and see you facing jail time of up to five years.

To avoid leaving yourself open to fines, penalties, and prosecutions, it is really important to make sure that your products are not only safe for the children that they are intended for-but that they are also properly tested, labeled and certified as legal for sale in the USA too.

It is important to understand exactly what is required of you before you attempt to import toys into the USA-if you are not sure if the products you plan to import are suitable for resale in the USA, or need assistance with meeting the requirements for compliance, leave a comment or contact us and we will be happy to help.

Further reading: POLYBAG REQUIREMENTS FOR AMAZON SELLERS – WHAT YOU NEED TO KNOW TO STAY SAFE AND LEGALLY COMPLIANT

The post Everything you need to know about importing toys into the USA appeared first on Unicargo.

Let’s explore.

When shipping by overland or by air, both volume and weight must be carefully calculated to forecast shipping costs reliably. Since package density can vary widely – a pallet of books versus a pallet of feather pillows, for example – it’s important for couriers / airlines to maintain a standard system to determine how much can actually be shipped (profitably) in a given airplane / truck.

The concept is simple: multiply a package’s length, height, and width measurements, then divide by a number known in the industry as the “DIM factor.” The actual DIM factor used varies by company.

The result? Your package’s “volumetric weight”, or “dimensional weight”.

Every package has a “chargeable” weight and it takes many people by surprise when it’s not even close to actual weight, especially with less-dense packages.

“Billable or “chargeable” weight is the larger of gross weight (actual) or volumetric weight. This weight will always be used to determine shipping fees.”

Here’s a simple example to illustrate how the formula affects shipping costs:Using the common DIM factor 5,000, let’s say you’re shipping a 10Kg package measuring 50Cm on all sides – the formula 50 x 50 x 50 / 5000 gets used to determine its volumetric weight:

50 x 50 x 50 =125,000 / 5,000 = 25Kg

In this case it’s 25Kg – which could be an expensive surprise: suddenly your estimated shipping costs have more than doubled; you’re paying for 25Kg instead of the 10Kg you expected. Is that okay for your business? Probably not – best to be aware.

Here’s a slightly more complex example, again using the DIM factor 5,000.

Now you’re shipping three boxes of books, weighing 15Kg each and measuring 40Cm on all sides- here is how your calculation should look like:

Actual Weight

3 (boxes) x 15Kg = 45Kg

Volumetric Weight

40 x 40 x 40 = 64,000 / 5,000 = 12.8 Kg x 3 (boxes) = 38.4Kg

Using the above formula, the total volumetric weight comes out 38.4Kg, but since the total actual weight, 45Kg, is higher – it will be used to calculate the chargeable shipping weight of 45Kg total.

Why do couriers and airlines do this?

On one hand, this helps them maintain profitability: if their plane is packed with pillows billed purely by actual weight, the cost of shipping them may exceed the revenue generated.

On the other hand, 1,000Kg of pillows takes up 10 pallets’ worth of space while 1,000Kg of books only takes 1-2 pallets. Knowing what to expect in advance helps them keep shipping efficient and profitably.

Why do I need to know all this?

As an entrepreneur, it’s wise to understand how shipping fees are calculated and keep track of any changes that occur – often, making a simple shift can cut shipping expenses considerably.

Consumers, of course, don’t need to worry about keeping track of various DIM weight calculations, but for you it could be business-critical: if volumetric weight’s too high to make air shipping reasonable you’ll need to consider other, more cost-effective methods to ship your inventory (ocean freight). This can take weeks, and you’ll need to plan accordingly to avoid running out of stock or disappointing your customers with unplanned wait-times.

Volumetric weight is also important to consider when designing your packaging, especially if it’s irregularly-shaped.                     

So… how does this help save me money on shipping?

At first glance, volumetric weight calculations can feel like you’re overpaying for shipping. Unfortunately, that’s quite possible. But there are ways to tip the scales in your favour.

In our example above, a single 0.5m³ package “weighs” 25Kg. You probably regularly import multiple packages and many of them are unlikely to be that dense – but our second example shows how consolidation and repacking can dramatically reduce shipping costs by treating multiple packages as a single shipment, with a single waybill and tracking number.

To avoid overpaying and keep chargeable weight to the minimum possible, let your freight forwarder know in advance when you’re expecting multiple or regular deliveries. They may be able to creatively combine your packages to simplify logistics and cut your shipping costs. This is especially effective with smaller-sized packages, which are often subject to minimum shipment fees regardless of their gross or volumetric weight.

That might mean shipping large-volume packages by sea – it’s much more economical and, if you plan in advance for the wait, maybe even splitting shipments (so you get “just enough” by air; right away, and the rest later on) you’ll be able to keep your inventory stocked and your customers happy.

Look at it this way: if you added another equally-sized but lighter box to our second example above – say, a 3kg box of clothing, you’d essentially get that part of your shipping for free because the gross weight provided by the books is still higher than the volumetric weight. But! Shipping the clothing separately, you’d be charged the volumetric weight, as it’s higher than gross (40 x 40 x 40 / 5,000). That’s how package consolidation saves you money.

Your goal should be to keep volumetric weight as close to gross weight as possible by mixing high and low-density packages.

Our example was small for simplicity’s sake, but you can cut your shipping expenses dramatically if you’re careful – half, three-quarters, and even more.

And don’t worry if this all seems confusing. You’ll get the hang of it quickly (use our volumetric weight calculator to get a head start, and play around with different package sizes and weights to see what works best for what you’ll be shipping).

And if you’d like to discuss creative shipping solutions or if you have any questions about volumetric weight, please don’t hesitate to contact a Unicargo freight specialist. We’re always happy to help.

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When will Trump’s new China import taxes be applied?

The increased tariffs applied by the Trump administration on Chinese imports are being introduced in stages.

• List 1 tariffs came into effect on July 6^th 2018. These tariffs affect a total of 818 different types of goods and product lines with an additional tax of 25%.
• List 2 tariffs will come into effect on the 23^rd August 2018, affecting a further 279 different import classifications, again at a 25% tax rate.

What happens next?

A third proposed list is currently in development by the USTR (United States Trade Representative) too. This will see the introduction of a third proposed annex of products that will be subjected to a further 10% import tax increase with a value of over $200bn over the coming months – List 3.

List 3 has now been scheduled for hearings and is expected to go live in September at the earliest. We’ll keep you updated as the situation develops.

How can I find out if my goods will be affected by the changes, and what can I do about it?

We’ve created a comprehensive list of products and materials affected by Trump’s import tax increases to get you started.

If you find that your commodities will be subjected to Trump’s increased import taxes, you might be able to work around the tariffs to avoid an unnecessary charge. There are a few ways that you might be able to do this, including:

• Filing for an exclusion for your goods or materials.
• Modifying your product designs to produce goods that don’t fall within the new tariff lists.
• Revising your existing product classifications.
• Sourcing your goods or materials from a country other than China.
• Checking your eligibility for duty drawbacks if you export goods from the USA as well as importing goods from China.

Talk to one of our China import specialists if you need advice on your options in tackling the new import charges, or if you have any questions.

Read more about the escalation in the US-China trade war – Amazon sellers are preparing for an increase in their supply chain costs

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The first round of tariffs

The first round took effect on July 6, 2018, and included a 25% increase in the existing customs on 818 products and raw materials used mainly by the technology industries (only 1% of the products included in this round were consumer goods). For example, customs on cylinders for machinery used in the textile industry were 2.6%. Upon coming into force, with the new tarrif addition, the current customs on them is 27.6% (original customs + 25%).
Due to the fact that there were almost no consumer products in this round, it was not widely covered in the media and had a minimal impact on small and medium-sized companies importing their products from China.

The second round of tariffs

The second round took effect on August 23 and, similar to the first round, also included a 25% increase in the existing customs on 284 products. However, in this round, a few more consumer products were introduced, mainly related to magnets – home and kitchen magnetic products, adhesive magnets and many other types of magnets used in products intended for the end consumer.

The third round of tariffs

As mentioned, the third round, which took effect on September 24, was much more drastic than its predecessors with 5,745 products worth just under $200 billion (compared to $50 billion worth of products in the previous two rounds). Beyond the much larger volume of this round in terms of the number of products, it includes many consumer goods popular among Amazon sellers, such as bags, wallets, pouches, kitchenware, tools, vacuum cleaners, computer parts, baby products, wooden furniture, metal furniture and the list goes on. Currently, following these three rounds, the tariff increase covers about 50% of all goods imported from China, and the chances of your products being included in the list will be significantly higher after the current round.
Unlike the previous rounds, the third round will include, at its first stage, an addition of 10% to the regular customs and at the beginning of 2019, after the holiday season, the addition will be updated to 25%.

The following example illustrates the impact of this round on importers in general and Amazon sellers in particular:
An Amazon seller engaged in import of bags, diaper bags, wallets, pouches or various cases would have previously paid customs of 17.6% of the goods’ value. As of last Monday, following the last round, the customs tariff is 27.6% of the goods’ value, while on January 1, 2019, it will be raised to 42.6% of the goods’ value.

How do I know if my products are included in one or several rounds?

We have developed an HS Code Tariff Rate Lookup tool which allows you to check whether your product is included in one of the rounds, and if so, you will be able to see the original customs, as well as the new addition. You can run a search by HS Code or by the name of the product or one of its components. Needless to say, this tool is used for a preliminary review and it cannot replace a consultation with an expert.

What can I do if my product is included in one of the rounds?

Many news websites in the US report that major retailers are already preparing for prices to rise immediately. Business owners now have two options – to adapt to the new costs and deal with profit erosion by streamlining and reducing expenses or raising prices while risking a drop in sales volume.
There are other, more creative ways of dealing with the new reality. If one or more, of your products, is in the list, there are several actions that can be taken to avoid the constraints:

• Request product exclusion.
• Change the product’s design that will allow it to be associated with a category that is not included in the product list.
• Review an option to reclassify the product.
• Review an option to produce and/or import the product in/from other countries (not China).
• Check whether you are entitled to tax benefits, in case you export from the United States, in addition to importing from China to the United States.

Since these changes may cause business operations to collapse, we recommend to review each case separately and consult with experts in the field of international shipping in general and US Customs in particular. As always, we would be happy to advise, free of charge, and together we will find the best way to deal with the new taxation. You are welcome to contact us at info@unicargo.com.

Click here to continue reading about the US-China Tariff war

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So what’s the best way to actually invest in freight forwarding? For many ecommerce sellers, outside financing can help you leverage their services while also maximizing your inventory management so you can turn more product more quickly and set your business up for long term growth.

With that, here’s everything you need to know about financing your international inventory management:

General Financing Tips:

• Prove your product(s). First and foremost, you want to continue selling products that are in demand and will actually make you money. It makes no sense to invest in something that you either aren’t sure of or that has already been a challenge for you sales-wise. In fact, you should really only consider financing if sales are skyrocketing, which leads us to our next tip…
• Watch for sales spikes. As a growing business, you’ll know you’re ready for financing when sales spike quickly and you have a hard time meeting demand. Not only that, if demand is consistently higher than your supply, you may need financing to invest in larger inventory orders. Along these same lines, if a busy season is approaching, you should plan ahead by bulking up on inventory.
• Time things right. Buying overseas can be complicated, what with language barriers, cultural differences, customs processes, longer shipping times, etc. So if you know you’ll need an inventory order in-hand in six months, start thinking about your order and how you’ll fund it well in advance. Fortunately, your freight forwarding service can help you come up with the right timeline so you don’t have to worry about gaps in stock or gaps in sales.
• Update your financial & business records. Lenders will want to see your business and sales performance, so make sure you have the latest reports ready. Depending on the lender, this could include sales volumes, balance sheets, profits & losses, assets and debts, future projections, inventory reports, etc. Most of this information should be updated in real-time in Seller Central or another third-party accounting service you might be using.
• Use an FX service. You can transfer money to different currencies to pay for suppliers and yourself using an FX service such as OFX. This is a lot cheaper and easier than using your bank for international transfers.

Financing Options: Term Loans

In general, with a term loan, you borrow a specific amount of money and have fixed payment terms — meaning you pay it back in fixed dollar increments over a certain period of time. These days, there are several types of term loans, including traditional bank term loans and short term loans, and the “terms” for each are quite different:

• Traditional Bank Term Loan. Bank term loans tend to be large dollar loans with long payment terms — think $1 million loans over several years. Interest rates tend to be low, but the bank loan process is tedious and approval rates are extremely low, especially for ecommerce businesses. In fact, unless you have a thriving and established business with a robust physical presence, years of experience, and a track record of stellar (and continuing) growth, you shouldn’t expect to get an approval.
• Short Term Business Loan. Some lenders offer shorter term loans as an alternative to a bank’s longer term loan. For small and ecommerce business owners, this can be an attractive option, especially when you have a fast-approaching ROI. For example, if you’re looking to invest in inventory that you can turn for profit within a month, it doesn’t really make sense to use a loan for it that you’ll still be paying back after a year. Not only are these loans shorter term (as low as three months), they’re also smaller dollar (five- and six-digit amounts), and more expensive.

Lines of Credit

Lines of credit essentially act as a revolving pool of funds that you can draw from as you need it — similar to a credit card, only you’re dealing with actual cash, not credit. You would pay interest on what you draw and, in some cases, a fee to keep your line open.

Inventory Financing

Because most retailers use financing to invest in inventory, there are actual inventory financing lenders that loan money to businesses for the expressed purpose of buying inventory. In many cases, that inventory is then used as collateral against the loan.

Ecommerce Financing

Last but not least, there are financing options designed specifically for ecommerce sellers like you. One such company is Payability, which offers a variety of solutions to help you bridge cash flow gaps and invest in inventory as you need it.

With Payability, credit checks are not required, collateral is not necessary, and terms line up with your actual needs. What’s more, the application process is simple (including an assessment of your sales performance and business health) and funding is nearly real-time (you could get financing in as fast as 24 hours).

Here’s how Payability’s financing options work:

• Payability Instance Advance: Payability buys up to $250,000 in your future receivables up front and at a discount, giving you a large lump sum of cash. Use this cash to invest in your overseas inventory and/or logistics service, without putting any such inventory up for collateral.
• Payability Instance Access: Get daily marketplace payouts on your prior day’s sales. So if you make $1,000 on Monday, you’ll get access to $800 of it on Tuesday (the rest of kept on temporary hold in case returns or chargebacks occur). Imagine what you could do with daily access to your own cash.
• Payability Seller Card: Get 365/24/7 access to your income, including on weekends and holidays as well as when you’re on the go. Enjoy 2% cash back perks, too.

At the end of the day, Payability understands how Amazon and other marketplace sellers do business and their solutions are designed to help you take better control of your business and its growth. Just ask one of the 2,500+ sellers that have benefited from Payability, like Wild & Gold Distributors, who grew their Amazon business by 50% in one month after her first Instant Advance.

To make smarter inventory investments overseas and really take your business up a notch, visit http://go.payability.com/Unicargo to learn more about their exclusive discounts for high volume sellers and get a $250 sign on bonus.

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If you haven’t already, you should really start thinking about how you’ll juggle processing huge volumes of incoming orders, dealing with multiple suppliers, advertising and running promotions, managing packaging, scheduling and more… And then, of course, there’s the challenge of navigating the inevitable knock-on shipping delays that tend to happen at peak shopping seasons. In short, it’s a hectic time of year!

Our friends at Amazon really get it! But they also know that by planning ahead, your deliveries can reach your clients on time. To help out, they’ve published this handy guide. This guide covers a week-by-week planner that will allow you to breathe easily through the busiest time of year.

Plan and pace yourself between now and the end of the year and you will enjoy the rewards!

Bearing in mind that inventory needs to arrive at the Amazon fulfillment center by November 6th  for Black Friday and Cyber Monday, and by December 3rd for Xmas, Amazon has prepared a simple to-do list that includes:

• preparing your product line-up (10-12 weeks before)  [Tip! Make sure that you are legally compliant with Polybags]
• managing your stock and shipping (7-9 weeks before) [Tip! Make sure that you understand an account for volumetric weight]
• fine-tuning your pricing and product pages (4-6 weeks before)
• advertising and promotions (final 3 weeks)

We have to say, the Amazon 2019 Holiday Guide is well worth a read. We’re impressed with how well they know our customers’ business and the challenges they face. They’ve even included links to top tips on a huge range of issues you’re currently dealing with: deciding what to sell, getting quality photographs, fixing inventory errors and more.

It’s never been easier to beat the holiday rush.

Our suggestion? Read this NOW  https://services.amazon.com/fulfillment-by-amazon/holiday-guide.html so you don’t have to leave your clients with an ‘out of stock’ message when then big rush comes.

The post Getting Ahead of The Game appeared first on Unicargo.

The coming Chinese New Year is the most significant holiday for the Chinese people and also the longest one. This is a chaotic period filled with stress and pressure, during which the entire Chinese industry, including the field of logistics, is shut down for almost a month. The impact of the production stoppage during this prolonged period spreads far beyond China and is reflected prominently in the global market.

The next Chinese New Year is officially scheduled for January 24-30 (2020). However, the vacation will begin a week earlier in order to allow the workers to get to their families on time for the holiday. Although the full holiday is celebrated for 15 days, most workers stay with their families for the first 7-8 days and then return to the factories and companies. Despite the fact that all employees are absent from their workplaces for about 21 days (a week of traveling to their families, holiday week and another week to return), the economic and logistical impact of this downtime is estimated at 35-40 days (yes, we have just recovered from Black Friday and the rest of the December sales…). Why? Let us explain.

Homecoming or “The World’s Largest Human Migration”

As we have already noted, Chinese New Year is the most significant holiday for the Chinese people – entire families are reunited during this period. Regardless of the distance that people have to travel to meet their loved ones, they will reach their destination to celebrate together. For many Chinese people, it is the only time of the year they get to see their parents and even children, who are often raised by their relatives living in the countryside.

Most workers in China’s industrial areas are migrants from distant rural areas with very limited employment opportunities.

Due to the country’s enormous size, the families of many workers are located more than 5,000 kilometers away from their workplaces. In such cases, traveling by public transportation, changing back and forth from bus to train, can take 4-5 days in each direction. Note that this is the travel time only, provided that there are available tickets and seats on the bus or train. However, the reality is different: before the holiday, the train and bus stations are flooded with tens of thousands of people, who stay at each station with their bags for days! The stations are overcrowded and there is no option to move or go back. There are no queues or clear timetables and the situation is quite chaotic. Tens of thousands of police officers and soldiers are mobilized to the train and bus stations in an attempt to maintain order.

Now you know why many workers start their vacation a week or two before the Chinese New Year. This is the time of the world’s largest human migration.

Back to work or the factory owners’ prayer for the workers to get back

Despite the difficulties involved in traveling back, all workers and their families always look forward to celebrating the Chinese New Year. This annual reunion is very significant and carries a great emotional value for them.

In recent years, a new practice has been introduced, according to which the workers’ return to work is contingent upon pay raise. Therefore, the workers feel that they are in control of this sensitive time for the factory – without workers, the factory is paralyzed, while orders keep coming and customers’ pressure increases.

According to the newly established custom, the workers inform the factory owners that they will not come back to work for the same wage. This is another factor that results in output decline and labor shortage a week or two after the holiday is over. Holiday’s end is a period of wage negotiations to determine the salary for the entire year.

Over the holiday break, the workers spend time with their family members and childhood friends. During these encounters, they share information on various wage levels and new employment opportunities.

Therefore, many factories lose a significant number of employees by the end of their vacation. For factory owners, it means they must recruit and train new employees – a process that takes up valuable time, while the factories’ output decreases, despite returning to full activity. For the customers, it means that even if they make an order before or during the holiday, there is no guarantee that the factory will be able to meet the production lead time it has committed to.

A job that allows you only a few days a year to spend with your family is clearly not a satisfying one and does not provide a high quality of life. The Chinese government is well aware of this fact and encourages projects aimed to move the factories and industrial sites from the coastline to the center of China and closer to its remote rural areas. As a result of such initiatives, more employment opportunities arise for the workers closer to their homes and therefore, negotiations with the distant factories are quite challenging for the factory managers.

Proper logistics planning of production and shipping from China

Chinese New Year is a unique event in the world of trade and industry. As mentioned, Chinese factories and service providers experience a massive decline in output, spanning a period of time that begins before the holiday and continues after the holiday ends, while the entire industry is paralyzed. Therefore, the factories must complete the ordered production at least ten days before the holiday. The demand is counterproductive in this case since the customers tend to order larger amounts than usual in order to be prepared for the long period, in which the Chinese economy falls into a coma.

In many cases, the tremendous pressure, along with the employees leaving for vacation, results in turning a blind eye to quality control and compliance with product specifications in order to complete the production on time. Keep in mind that managers, supervisors and those in charge of production go on holiday and quite often, there is no one capable of supervising the production in the period leading to the Chinese New Year.

In addition, the factories’ supply chains operate under constraints, like any other business. To produce the goods you ordered, the factory must order raw materials and components required for production, while the impact of the New Year must be taken into consideration, and raw materials and components must be ordered in advance. Otherwise, it might not be possible to carry out orders placed right before or during the holiday. Products that require a relatively large number of components take a longer time to produce and deliver, while the holiday-related time restrictions should also be taken into consideration.

It should be noted that the level of Chinese factories varies significantly. Some are managed better and more effectively than others. Well-managed factories often include warehouses with all the required inventory of products and raw materials. Their financial situation allows them to employ good workers and pay them a high salary, while also incorporating strict quality control. Products manufactured at such factories usually cost much more than similar products from smaller or less quality-oriented plants.

As mentioned, delayed deliveries and declined production quality also occur during the period of 2-3 weeks following the Chinese New Year, due to employee turnover, new orders accumulated during the holiday and the need to purchase components and raw materials for production.
It is important to distinguish between the production, sales, and management departments. The Sales Department keeps running its operations as usual in conjunction with customers worldwide via the internet and email. You can place your order before and during the holiday, and contact a sales representative and factory management. However, in practice, the production floor is completely paralyzed. Sometimes, the salespeople will provide you with production and delivery times that are not realistic, since the salesperson does not have a clue about the production plan and process, and there is no one to ask since the entire Production Department left for vacation.

In addition, some factories will transfer the orders they cannot finish on time to subcontractors. It is important to take into account that there is a reasonable chance that product quality will not comply with expectations.

And now… Logistics and Shipping

When the factory provides the customer with ordered goods, a new chapter begins Logistics, Customs, and Shipping in China.

The customs at China’s ports work throughout the holidays, except for three days. However, in a manner similar to Western holidays, customs work in accordance with a “holiday procedure”, which means fewer workers and longer processing time. The small ports, which redirect activities to the bigger ports, close for a week and many freight forwarders leave for a two-week vacation.
Land transportation fees spike during the holiday period, while employees willing to work two weeks before the holiday, as well as during the holiday, expect a significantly higher pay compared to their regular wage. Beware of the promises made by companies stating that they have “their own fleet of vehicles” and that regular delivery times apply to the holiday period.

After passing the stage of transporting the goods from the factory to the port by land, and after passing the customs, it is time to continue the journey to the next stop – the port – with more challenges ahead. During this period, ports are filled with containers and everyone wants their containers to get on the next ship. This is a peak period, in terms of demand for space on cargo- aircrafts and ships, therefore, the prices are skyrocketing.

This article is not aimed to frighten you, but rather to describe and elaborate on the facts proving the significance of careful planning of inventory, production timetables, supply and transportation during the Chinese New Year, in order to avoid unnecessary delays and expenses.

Preferred customers – factory priorities

Everyone wants to receive the ordered products before the holiday and as early as possible to avoid overpriced logistics and shipping delays as a result of the Chinese New Year. Unfortunately, not everyone will get their products on time.

It is important to understand that the sales agents in China will not refuse to take your order, even if they know that it will be impossible to complete the production before the holiday. This situation forces them to prioritize orders, regardless of the chronological order and commitments to complete the production at a certain time. During this period, a regular customer will be preferred over an occasional one and a customer seeking to order a large number of products will be preferred over customers with smaller order volume. In addition, in Chinese culture, as in the Western one, the relationship with the customer plays a major role and is reflected in gifts, personal acquaintance, salutation and greeting letters, restaurant meetings… All these factors will be taken into account in the process of customer prioritization during the Chinese New Year.

If you use external quality control services, keep in mind that you will need more time to prepare, since it will take longer than usual to replace defective goods or products that are incompatible with the specifications.

In conclusion, the impact of the Chinese New Year lasts for about 40 days and therefore, it is recommended to plan your orders for this period in September-November.

For further questions and consultation, please contact us by commenting below, our contact page or at info@unicargo.com.

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