1. Logistics is Expensive

Shipping can be challenging and is expensive to South Africa. It’s important to know different shipping terms in order to negotiate better pricing and understand exactly how your goods will be transported to you.

Choosing a reliable shipping partner is crucial. We went with Aramex, who not only handled our freight but also helped with customs clearing, ensuring our shipment complied with all requirements. Even then, the process was costly and required constant follow-ups to avoid delays.

Logistics decisions are important because they can directly influence your profit margins. A small misstep in choosing the wrong shipping method or misunderstanding duties can eat into your profits before you even sell a single item.

2. Quality Control and Product Samples

Before importing at scale, it’s vital to verify product quality.

Trade fairs are impressive, but the samples you see on display aren’t always identical to what you receive in bulk. Many importers skip detailed sample testing or third-party quality inspections in China because it adds time and cost. But if products arrive with defects or aren’t what you ordered, this can turn into money wasted. It’s important to establish good supplier relationships with quality-led companies in China before you make big orders.

3. Minimum Order Quantities (MOQs)

Most Chinese manufacturers require a minimum order quantity.

On paper, it sounds like a standard business condition, but in practice, MOQs can lock you into large upfront investments before you’ve validated demand. For example, you might need to buy 2 000 units just to start production, even if you only plan to test 200 units locally.

This hurdle ties directly into cash flow and storage. The more units you commit to, the more capital you tie up and the more warehousing space you’ll need once the goods arrive.

Negotiating lower MOQs is possible, especially when building long-term supplier relationships, but for first-time importers, it often means taking on bigger financial risk than expected.

4. Currency Transfers and Cash Flow Management

Our suppliers in China charged in U.S. dollars, which introduced another layer of complexity, foreign currency transfers.

Fortunately, I was working at a bank at the time and could navigate the foreign exchange process, purchasing dollars at a decent rate and transferring funds securely. But for most small businesses, this step can become a headache.

The payment structure also affected our cash flow. Typically, suppliers require a deposit upfront and final payment before shipping. That means you could pay for all your inventory in one month and only receive the goods one or two months later, depending on shipping and customs timelines.

During that waiting period, your money is tied up, not earning, not moving, while you still have operating expenses to cover. This experience taught me that importing isn’t just a product game; it’s a cash flow management exercise.

5. Customs, Duties, and Compliance Costs

Clearing goods through South African customs is another hurdle. Import duties vary depending on the product classification, and the tariff codes used during declaration determine how much you’ll pay in tax.

Even a small error in documentation can cause delays or result in penalties. Some goods also require import permits or safety certifications that aren’t obvious until your shipment is already en route.

It’s essential to do your research when it comes to duty percentages, and VAT implications before placing large orders. Without this groundwork, your final landed cost can end up far higher than you budgeted for.

6. Paperwork and Importer’s Codes

Importing goods into South Africa requires proper documentation, specifically an Importer’s Code from SARS.

The process involves submitting various forms, identity documents, and company information to get approval. It’s not overly complicated, but it does take time — and without it, your goods can’t legally enter the country.

For first-time importers, this step often becomes a bottleneck. It’s one of those administrative hurdles that doesn’t feel like business-building but is absolutely necessary to stay compliant.

7. Warehousing and Distribution

When our 20-foot container finally arrived at my mom’s house, reality hit, hundreds of boxes needed to be offloaded within a limited time window.

If we hadn’t had space at home, we would’ve had to pay warehousing fees immediately, and those costs add up fast. But storage is only half the battle, distribution is the other.

We quickly realised that having inventory is one thing, moving it efficiently is another. We didn’t yet have the networks, partnerships, or retail channels to sell large volumes quickly. It’s easy to underestimate how much effort goes into building those systems before you even make your first sale.

8. Insurance and Risk Management

Once goods are in transit, they’re vulnerable to damage, loss, or theft. Not having marine insurance or freight coverage is a mistake many small importers make to save on costs.

However, one damaged shipment can offset years of effort. Always confirm who bears the risk at each stage, you or your supplier, under international trade terms (known as Incoterms, such as FOB, CIF, or EXW). These define who’s responsible for shipping, insurance, and customs fees.

The Real Lesson: Importing Is a System, Not a Shortcut

Most people see importing as a way to find cheaper products and make a higher margin. The reality is far more intricate.

Importing requires a systematic approach:

• Understanding international logistics
• Managing currency volatility
• Ensuring product quality
• Navigating customs, duties, and regulations
• Coordinating warehousing, distribution, and sales
• Balancing MOQs against market demand
• Protecting shipments with insurance
• Maintaining clear supplier communication

Miss one of these, and profits quickly vanish.

Every challenge is also a learning opportunity.