The relevant question is not simply whether a buyer likes the product. It is whether the proposed selling price can accommodate landed costs, channel compensation, local services and the supplier’s commercial objectives.

01 / 05

Start with a comparable offer

Identify products a real target customer would consider instead. Compare specification, delivery terms, warranty, technical service and purchase quantity. An imported brand premium should be justified by value, not assumed.

02 / 05

Build the landed-cost worksheet

Record export price, currency, shipping terms, freight, insurance where applicable, customs classification, estimated duties and taxes, customs brokerage, inland logistics and handling. Confirm product-specific tariff and import treatment with the responsible importer or specialist.

03 / 05

Account for the channel

Different routes allocate commercial functions differently. Consider the cost of prospecting, customer support, distribution, promotion, samples, returns and payment collection. Avoid treating a distributor’s gross margin as the supplier’s profit.

04 / 05

Stress-test the assumptions

Calculate a base case and a downside case for exchange rate, freight, sales volume and discounting. Note which figures are verified quotations and which are planning estimates. A small change in sell-through or service cost can materially change the economics.

05 / 05

Use the result to choose a test

If the price is credible, test it with a narrow set of qualified buyers. If the margin is inadequate, consider different positioning, product configuration, channel or timing. Do not hide a weak economic case behind optimistic market-size figures.

Questions this work should answer

  • Buyer-facing price and comparison products.
  • Documented export and shipping assumptions.
  • Product-specific import charges and compliance costs.
  • Channel, service and promotion economics.

Sources and further reading

External references support independent verification. Requirements differ by product and may change.

  1. U.S. International Trade Administration — China: Distribution and Sales Channels
  2. U.S. International Trade Administration — China: Market Entry Strategy
  3. General Administration of Customs of China — Service Center

← All market entry guides