Transit Trade of Bedroom Furniture: The Profitable Model Unknown to 90% of People
When Mr. Zhang first heard the term "transit trade", he thought it was just a professional term in the foreign trade industry. It was not until he witnessed in Lianyungang that those high-end bedroom furniture branded with European and American brands, after simple relabeling and packaging, were sent to the third-country market with a new identity that he realized the huge business opportunity hidden behind it.
As an important coastal port city in China, Lianyungang has unique geographical advantages. It is not only the eastern bridgehead of the New Eurasian Continental Bridge but also has a complete logistics system and rich warehousing resources. For bulk commodities like bedroom furniture, Lianyungang offers three key advantages:
- Cost Advantage: Compared with first-tier ports, the warehousing and logistics costs in Lianyungang are lower
- Efficiency Advantage: The special customs supervision area enables rapid customs clearance
- Policy Advantage: The local government provides a number of facilitative measures for transit trade enterprises
Ms. Li's company is one of the typical practitioners. She revealed to us the industry's standard operation process:
- Purchase products from domestic furniture production bases
- Relabel and repackage in the Lianyungang Free Trade Zone
- Declare as transit goods and enjoy tariff preferences
- Send to the target market by sea or rail
Although the profits are substantial, risks also exist. Mr. Zhang shared his lessons learned:
- Sudden policy changes in the target market may lead to cargo detention
- Exchange rate fluctuations directly affect profit margins
- Logistics delays may trigger a chain reaction
With the application of blockchain technology, transit trade is becoming more transparent and efficient. Enterprises such as Zhongshitong have already started to try to put the entire supply chain on the chain, realizing full-process traceability from production to delivery. This not only reduces compliance risks but also significantly improves the capital turnover efficiency.
The transit trade of bedroom furniture may seem to have a high threshold, but in fact, as long as you master the core points, small and medium-sized enterprises can also get a share of the pie. You might as well start by understanding the local policies in Lianyungang or participate in professional trade training courses. What do you think of the development prospects of this niche area? Welcome to share your insights in the comment section.
- Further Reading
- Import Label Agency: A Profitable Industry Ignored by 90% of People
- Unveiling Import-Export Trade Models: Self-Operation or Agency?
- Door and Window Export Agency: A Profitable Industry You Don't Know
- The Profitable Truth of Fruit Wine Exports
- Transit Trade of Dongguan Hand Trucks
- The Profitable Truth of Guilin Jewelry Export Agency
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