The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Sharing my lifetime experience in export/import. Product sourcing specialist.

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
Read through the thread, bought the book. Reading it now and planning on starting importing this week.

Great info so far!
Thanks. Don't forget to post any questions.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
Dragon Boat Festival

This festival starts on June 20 and is for 3 days. It is also known as Tuen Yang or Tuen Ng Festival. When sending greetings or just a note wishing your suppliers a happy holiday, use the Chinese name Tuen Yang (Manadarin) or Tuen Ng (Cantonese) and that will impress them. Most business in China is carried on in Mandarin. If your supplier is in Hong Kong or Southern China use the Cantonese version.

This calendar month is considered unlucky by Chinese people, so you might like to add some comment wishing them good luck.

Don't miss any possible occasion to exchange greetings with your suppliers. Building a good relationship has great value.
 

ken_aerts

PARKED
User Power
Value/Post Ratio
0% - New User
Jun 17, 2015
2
0
40
Dear Walter,

I'm from The Netherlands, my aim is to import from West-Africa mainly agricultural products like coffee, cotton, and cacoa. Do you have any experience with agricultural products from West-Africa?

Verstuurd vanaf mijn GT-I9505 met Tapatalk
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
Dear Walter,

I'm from The Netherlands, my aim is to import from West-Africa mainly agricultural products like coffee, cotton, and cacoa. Do you have any experience with agricultural products from West-Africa?

Verstuurd vanaf mijn GT-I9505 met Tapatalk
No I don't have direct experience with agricultural products. My first suggestion, which is straight from my book, is that before going very far with your project you should consult a Customs Broker to be sure you will be able to comply with quarantine and other regulations such as labeling.

The EU does not have any licensing system for Customs Brokers, so you will usually have to rely on the in-house customs expert employed by a freight forwarder. Most forwarders have such a person on their staff but in the absence of any formal legislative requirements, finding a good one is a bit of a lottery.

As far as labeling is concerned, new regulations came into force late 2014, so you might make some inquiries about “Food Information to Consumers (FIC)” Regulation 1169/2011
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

ken_aerts

PARKED
User Power
Value/Post Ratio
0% - New User
Jun 17, 2015
2
0
40
No I don't have direct experience with agricultural products. My first suggestion, which is straight from my book, is that before going very far with your project you should consult a Customs Broker to be sure you will be able to comply with quarantine and other regulations such as labeling.

The EU does not have any licensing system for Customs Brokers, so you will usually have to rely on the in-house customs expert employed by a freight forwarder. Most forwarders have such a person on their staff but in the absence of any formal legislative requirements, finding a good one is a bit of a lottery.

As far as labeling is concerned, new regulations came into force late 2014, so you might make some inquiries about “Food Information to Consumers (FIC)” Regulation 1169/2011
Okay many thanks for the advice.

Verstuurd vanaf mijn GT-I9505 met Tapatalk
 
D

Deleted2BB3x9

Guest
Hey Walter,

Long time no see.

I have a question regarding pricing that i did not find addressed in your book.

I would have messaged you, but I figured it would be more beneficial if it was posted here.

Anyway, so I emailed one of my manufacturers last night, inquiring about placing a trial order of 100 pieces.

They originally quoted me 9.05$ for wholesale pricing, however now they have changed the price for the trial order to 15.7$ per piece.

My other manufacturer did not do this.

So would you say this manufacturer is still reliable?

Thank you once again for everything you do here.
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
Hey Walter,

Long time no see.

I have a question regarding pricing that i did not find addressed in your book.

I would have messaged you, but I figured it would be more beneficial if it was posted here.

Anyway, so I emailed one of my manufacturers last night, inquiring about placing a trial order of 100 pieces.

They originally quoted me 9.05$ for wholesale pricing, however now they have changed the price for the trial order to 15.7$ per piece.

My other manufacturer did not do this.

So would you say this manufacturer is still reliable?

Thank you once again for everything you do here.
I would tell them that an extra $665 to handle a small order is unacceptable. Offer to pay an extra $100 and see how they react. In other words your offer means paying $10.05 per pc. An additional $200 (11.05 per pc) might be OK if they come back to you wanting more, but otherwise I would go elsewhere.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Bosstradamus

Bronze Contributor
User Power
Value/Post Ratio
112%
Dec 22, 2013
135
151
38
Los Angeles, CA
Dragon Boat Festival

This festival starts on June 20 and is for 3 days. It is also known as Tuen Yang or Tuen Ng Festival. When sending greetings or just a note wishing your suppliers a happy holiday, use the Chinese name Tuen Yang (Manadarin) or Tuen Ng (Cantonese) and that will impress them. Most business in China is carried on in Mandarin. If your supplier is in Hong Kong or Southern China use the Cantonese version.

This calendar month is considered unlucky by Chinese people, so you might like to add some comment wishing them good luck.

Don't miss any possible occasion to exchange greetings with your suppliers. Building a good relationship has great value.

How should you wish them happy holiday?

"happy tuen yang" or just "tueng yang"?
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
How should you wish them happy holiday?

"happy tuen yang" or just "tueng yang"?
Sorry I have been offline for a couple of days. I would say now that the festival is under way:

I hope you have enjoyed the Tuyen Yang festival.
 

mikeobi

Contributor
Read Fastlane!
User Power
Value/Post Ratio
63%
Mar 4, 2015
40
25
28
California
Hi Walter,

When it comes to naming your importing business, what are somethings to keep in mind (besides trademarking and all the legal stuff)? Should the name be related to what it is we are selling?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
Hi Walter,

When it comes to naming your importing business, what are somethings to keep in mind (besides trademarking and all the legal stuff)? Should the name be related to what it is we are selling?
If you look at many of the best known names in business, you will find that their names don't relate to the product or the industry. Think of Apple, Nike, Yahoo, Google, Diesel, Van, etc.

They are easy to remember, and some sound strange as a brand name. Apple was a name chosen to fit the logo, which is an apple with a bite out of it. The not so subtle message being: This is a product for those who don't follow the rules.

As I typed the small list above, I thought of such a name: Ettcetera. You will notice that I added an extra t. That is to make it registrable as a trade mark. Too late though; Etcetera is registered as a clothing brand and the extra t would not be sufficient to get my new name registered.
 

Bosstradamus

Bronze Contributor
User Power
Value/Post Ratio
112%
Dec 22, 2013
135
151
38
Los Angeles, CA
Walter thanks again.. I have another question. I requested samples of a few products to check quality (not a trial order). It's 8 skus 1 item of each. They are all roughly the size of a shoe box.

This is what they sent me in regards to the shipment.

the size of outer box is 58X32X20cm

Gross weight 4.5kg

Cost of freight $350 usd

Does this seem right?

Sent from my SM-G900V using Tapatalk
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
Walter thanks again.. I have another question. I requested samples of a few products to check quality (not a trial order). It's 8 skus 1 item of each. They are all roughly the size of a shoe box.

This is what they sent me in regards to the shipment.

the size of outer box is 58X32X20cm

Gross weight 4.5kg

Cost of freight $350 usd

Does this seem right?

Sent from my SM-G900V using Tapatalk
That high freight charge is due to size, not weight, but still seems too high. I would ask them to see if they can get a better quote from another courier.

Your alternative is to contact a local freight forwarder near you and ask them to quote you for air freight on a door to door basis. (Not air courier.) The quote must include the Customs clearance procedure. Tell the forwarder that you are willing to wait for a standby rate if they can do that for you. That could delay your shipment by a week or even 2 weeks, but could save you a lot of money.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Phones

Break your boundaries
FASTLANE INSIDER
Read Fastlane!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
202%
Aug 13, 2011
610
1,234
29
Praia da Areia Branca, Portugal
@Walter Hay , getting some problems with my supplier, mainly damaged product. I've tracked down one of the two "hubs"/cities were my product is manufactured, almost all factories on sourcing websites are from these two cities, one is a "small" city, really heavily based on this product, the other is more general.

After unsuccessfully trying to improve quality on my product, I'm thinking of getting a ticket and going there directly to the factories to 1.deal directly with them 2.Check personally for quality and make sure they understand what I want 3. See if I can get it gone quickly, we are on peak season and most factories will give me 30 days lead time, probably face 2 face we could agree to a shorter lead time

Do you think this is a good approach, any tips?

I'm finding it harder and harder to get things on good terms on Skype, when things are looking great they send yet another un-improved batch. Two of the models of the initial shipment had a damaged part, they sent replacements, damaged, they send 2nd replacements (On their costs, this time they said they checked themselves), still 80% damaged.

Now due to damaged stock I somehow forgot to discount from stock levels, we are unexpectedly out of stock and they are giving me 30 days lead times :/

Thanks in advance
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
@Walter Hay , getting some problems with my supplier, mainly damaged product. I've tracked down one of the two "hubs"/cities were my product is manufactured, almost all factories on sourcing websites are from these two cities, one is a "small" city, really heavily based on this product, the other is more general.

After unsuccessfully trying to improve quality on my product, I'm thinking of getting a ticket and going there directly to the factories to 1.deal directly with them 2.Check personally for quality and make sure they understand what I want 3. See if I can get it gone quickly, we are on peak season and most factories will give me 30 days lead time, probably face 2 face we could agree to a shorter lead time

Do you think this is a good approach, any tips?

I'm finding it harder and harder to get things on good terms on Skype, when things are looking great they send yet another un-improved batch. Two of the models of the initial shipment had a damaged part, they sent replacements, damaged, they send 2nd replacements (On their costs, this time they said they checked themselves), still 80% damaged.

Now due to damaged stock I somehow forgot to discount from stock levels, we are unexpectedly out of stock and they are giving me 30 days lead times :/

Thanks in advance
Sorry to hear such bad news. Going personally can help in many cases, but from what you say I would not hold out great hopes of getting those manufacturers to improve their QC. It could be that they can produce what you want, but at a higher price. You need to calculate whether that would be worthwhile. Personally seeing their production facilities and quality of recent production could help you determine that.

A cheaper and possibly more effective option is to tell them that you want to have production or pre-shipment QC inspections done before you will pay the balance. That is often sufficient to smarten them up, but you may need to follow through and do it. I suggest using SGS or one of the others I mention in my book. You will need to give the inspection service precise specifications.

If you push them regarding faster delivery, what usually happens is that they will agree but not perform. Don't forget: "Yes" means whatever you want to hear, but very often does not mean yes.
 

exclusives88

Silver Contributor
FASTLANE INSIDER
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
166%
May 28, 2014
520
861
37
Hi Walter,

I was quoted $3,500 for door to door shipping (Air Courrier) from Hong Kong to US. The total weight is 68kg for 70 units. Does this sound reasonable or will I also need the dimensions? I tried putting in the postage calculator but it does not ask for the dimensions.

Thanks!
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
Hi Walter,

I was quoted $3,500 for door to door shipping (Air Courrier) from Hong Kong to US. The total weight is 68kg for 70 units. Does this sound reasonable or will I also need the dimensions? I tried putting in the postage calculator but it does not ask for the dimensions.

Thanks!
It sounds totally unreasonable unless the items are very bulky. You will need the dimensions in order to get a precise quote. I suggest you contact a few US freight forwarders for quotes. By way of example, a recent quote I have seen for air freight China to Germany (usually higher than freight to the US) was at the rate of less than $4 per kg, plus numerous charges, so be sure to get the quote door to door.

It might be just as fast, but lower cost, to have the shipment sent on a door to door basis via air freight, not air courier. The difference might only be a delay of a couple of days. A forwarder can arrange air freight service, but air couriers will invariably want to sell their more expensive courier service.
 

exclusives88

Silver Contributor
FASTLANE INSIDER
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
166%
May 28, 2014
520
861
37
It sounds totally unreasonable unless the items are very bulky. You will need the dimensions in order to get a precise quote. I suggest you contact a few US freight forwarders for quotes. By way of example, a recent quote I have seen for air freight China to Germany (usually higher than freight to the US) was at the rate of less than $4 per kg, plus numerous charges, so be sure to get the quote door to door.

It might be just as fast, but lower cost, to have the shipment sent on a door to door basis via air freight, not air courier. The difference might only be a delay of a couple of days. A forwarder can arrange air freight service, but air couriers will invariably want to sell their more expensive courier service.

Can you refer me to a US freight forwarder?

It is difficult to calculate the actual size as there are 5 different types of items in the 70 total units. Each unit on average is size: 38*26*24.5cm.
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
Can you refer me to a US freight forwarder?

It is difficult to calculate the actual size as there are 5 different types of items in the 70 total units. Each unit on average is size: 38*26*24.5cm.
The chargeable (volumetric) weight of your shipment works out at around 280 kg. That is a lot more than the scale weight, but even at 280kg the price quoted you is excessive.

You should get quotes from several freight forwarders. I will PM you in a few minutes with details on locating forwarders in locations near your US destination. They will want individual package dimensions as well as weight.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Paul David

Gold Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
199%
Feb 17, 2015
873
1,740
43
England
Hi Walter

My business is based around Power Products. We basically resell any type of power related item. I've mainly sold chargers and have suppliers for these but i'm trying to add batteries. I would like to stock a large range of batteries but first i need to test the market by buying maybe 5pcs as samples but the costs i'm getting quoted are too high because the qty is low. I don't want to buy 30pcs of batteries and be stuck with a lot of SKU's i can't sell.

Any suggestions? Alternatively if you know of a manufacturer of batteries you can put me in touch with that would be great. I'm also considering visiting the Hong Kong Electronics Fair in September. I know you don't recommend importing Electronic products but have you any experience with that fair?

I have purchased your book via Jim C but cannot find the link to download again, if you could point me in the right direction so i can read it again.

Thanks

Paul
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
Hi Walter

My business is based around Power Products. We basically resell any type of power related item. I've mainly sold chargers and have suppliers for these but i'm trying to add batteries. I would like to stock a large range of batteries but first i need to test the market by buying maybe 5pcs as samples but the costs i'm getting quoted are too high because the qty is low. I don't want to buy 30pcs of batteries and be stuck with a lot of SKU's i can't sell.

Any suggestions? Alternatively if you know of a manufacturer of batteries you can put me in touch with that would be great. I'm also considering visiting the Hong Kong Electronics Fair in September. I know you don't recommend importing Electronic products but have you any experience with that fair?

I have purchased your book via Jim C but cannot find the link to download again, if you could point me in the right direction so i can read it again.

Thanks

Paul
If you have located a manufacturer that produces a range of batteries that might suit you, you could try requesting a quote for an assorted order of 5 pcs of various types. Make it clear that this is a sample order. I don't have experience in batteries so I can't recommend any individual supplier.

The Hong Kong Electronics Fair is well worth a visit, as are all the fairs conducted by the HKTDC. I have attended many of them. Please read my post Traveling to source supplies. Do you need to visit China? on Page 1 of this thread. Preparation is vital if you are not to waste valuable time.

While in HK I suggest you also consider hopping across to Taipei to visit the permanent exhibition at the Taipei World Trade Center, but again, get a list of permanent exhibitors first. There may not be sufficient permanent exhibitors there of interest. The permanent exhibition consists of offices/showrooms operated by numerous companies. Bear in mind that as a general rule, quality of production in Taiwan is superior to that of mainland China, although many Taiwan companies manufacture in both places. They produce cheap stuff in the mainland and better quality in Taiwan.

There are over 1000 permanent showrooms located there, located in about 5 or 6 floors of the building. You can find a list of permanent exhibitors here: http://www.twtcmart.com.tw/English/home/ Allow at least 2 exhausting full days to get around if you haven't chosen in advance which showrooms to visit.

To get download access again for my book, contact my support team at:
msteamwebmaster@gmail.com and give details of name and email address used when you purchased the Proven Amazon Course.

Walter
 

exclusives88

Silver Contributor
FASTLANE INSIDER
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
166%
May 28, 2014
520
861
37
You have discussed inquiring with many different manufactures and choosing the best one.

There wasn't much on how to correctly reject the manufactures you don't choose from. Any advice on what to say to the manufactures that made me samples but the quality wasn't up to my expectations and therefore was not chosen over other manufactures?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
You have discussed inquiring with many different manufactures and choosing the best one.

There wasn't much on how to correctly reject the manufactures you don't choose from. Any advice on what to say to the manufactures that made me samples but the quality wasn't up to my expectations and therefore was not chosen over other manufactures?
It is important to deal with them with the utmost politeness. Don't burn your bridges.

Thank them for the samples, and tell them that although they were of reasonable quality, you need a higher quality and that has been provided by another company. Assure them that you will contact them again for other products as required. Finally tell them that you hope to establish a good relationship with them in future.

They will quite possibly offer to improve the quality, in which case you respond that if they can do so, you would hope they would send a sample of the improved item at their cost.
 

mikeobi

Contributor
Read Fastlane!
User Power
Value/Post Ratio
63%
Mar 4, 2015
40
25
28
California
Hi again! I have a couple questions bugging me.

1) Does one get an option to use FOB or CIF or do suppliers already have that set up? If the former is the case, what should a beginner start using?
2) Is duty incorporated into FOB or CIF or is it a separate fee you pay?

Thanks so much for all your help!
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
Hi again! I have a couple questions bugging me.

1) Does one get an option to use FOB or CIF or do suppliers already have that set up? If the former is the case, what should a beginner start using?
2) Is duty incorporated into FOB or CIF or is it a separate fee you pay?

Thanks so much for all your help!
Hi Mike,

1. You should always have the option to choose FOB or CIF, or any other freight option you might prefer. It is almost universal for suppliers to initially quote FOB, but depending on the size and value of the shipment you might want to use air courier, air freight, or sea freight. For either of the last two everyone, not only beginners, should ask two or three local freight forwarders near you to quote. The written quotes should include door to door delivery, including customs clearance. If using air couriers, ask the supplier to quote. They will usually be able to get better rates than you can. The I in CIF stands for Insurance. Insurance is optional.
2. Duty is very rarely included in any freight quotes. If it is, that is known as Delivered Duty Paid. (DDP) In almost every case you have to pay the duty separately. Air Couriers automatic all pay it for you and bill you for it, sometimes before and sometimes after delivery to you.

Regarding FOB quotes, it is common in China for that term to be incorrectly used. In practice a supplier will often mean Ex Works (EXW), so you need to know where the FOB begins. It should be at the port (air port or sea port) of loading. If it is EXW there can be massive internal charges from the supplier's dock to the point where it is loaded on overseas transport. Never accept an EXW quote unless your freight forwarder advises you to do so.

Walter
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
FAKE CERTIFICATES

Today a young entrepreneur asked me to help him by checking the validity of CE and ROH Certificates for an item he had considered importing. He told me that the sample looked good, but I had to give him the sad news that the certificates are fakes. The certificates were the best looking forgeries I have yet seen.

According to the certifying authority the Certificates do not exist. This is the notice they posted in response to my search:
"Sorry, the certificate does not exist
warn of fake CE certificates


Fake CE conformance certificates are a growing menace in the safety industry. An increasing number of products are being sold, which have never been properly tested and are accompanied by fake CE certificates. This is putting lives at risk and exposing employers to possible prosecution. The certificate shown on the right is a fake, supposedly issued by a Anbotek test house, but in reality this product was never tested by them. The product does not perform to the strict requirements of EN xxxxx."


The forging of certificates of every kind is endemic in China. This not only refers to such safety issues as those involved with CE and ROH certificates, but even business registration certificates are being forged.

This brings into question the validity of verification of suppliers on many B2B sites such as Alibaba, DHGate, TradeKey, GlobalSources etc., where the first step in the verification process involves inspection of business registration certificates. This issue highlights why I only recommend using certain safe sites where verification is taken seriously.

For those who have not read previous posts I would add that the second and final step in the verification process involves a visit by the B2B site operators to the business premises to confirm that the business is operating at that address. I am familiar enough with China to know that rent for the day offices abound. This means that scammers can rent an office for a few dollars until the visit has taken place, then close the door and operate their "business" from another location where they can't be traced.
By the way, after passing that rigorous :totalbs:verification process, they can then send a check for as little as $699 and provided the check is paid by the bank, they become much more trustworthy :totalbs:Gold Suppliers (or premium, or 5 Star etc.)
 
Last edited:

Gallus

New Contributor
User Power
Value/Post Ratio
33%
Jul 9, 2015
3
1
33
First of all, I want to thank you for having started this thread here. I have been reading it and I like the wealth of information that only comes from first hand experience.

My question is about starting an Export Management Company (EMC). From what I have read, the difference between an EMC and a regular import-export trader is that the former is basically an outsourced international trade department for companies wanting to export, while the latter, which is what you have been describing here and most people think when one speaks of import-export, is about reselling a foreign product, or private-labeling it. So from what I understand, an EMC would entail less risk but also less rewards as you’re working for a fee or even a retainer instead of keeping all the profits from buying and then selling the product in another market.

As to why I’m thinking of starting an EMC, I see many benefits: There is less risk involved and thus less potential profits, yes, but also you could get to establish more stable and longer relationships with the manufacturers as they will see you as their partner instead of merely one of their buyers; also if you do your job well there is less of a possibility of being replaced by another company. Looking at the medium and long term, I think (but I might be completely wrong) that many manufacturers will eventually try to sell directly to other markets on Amazon, EBay or by using their own stores online by themselves, instead of waiting for the middlemen to come. And as FBA, for example, grows and its service is being established in more countries, it could be a matter of time before it starts happening en masse. So starting an EMC specializing in e-commerce would be to a certain degree a “if you cant beat them, join them” kind of thing. EMC’s also seem to be more adaptable and wide ranging in the kind of things they do: they can do everything from consulting, doing the market research, contacting buyers to basically taking care of the whole export process.

Am I right in my analysis of what an EMC does? Are there other things to consider if one would want to start an EMC? Is it a business one can start as easily (easy being a relative term here, of course) as importing and reselling? Would it be impossible to do as a one-man operation?
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
First of all, I want to thank you for having started this thread here. I have been reading it and I like the wealth of information that only comes from first hand experience.

My question is about starting an Export Management Company (EMC). From what I have read, the difference between an EMC and a regular import-export trader is that the former is basically an outsourced international trade department for companies wanting to export, while the latter, which is what you have been describing here and most people think when one speaks of import-export, is about reselling a foreign product, or private-labeling it. So from what I understand, an EMC would entail less risk but also less rewards as you’re working for a fee or even a retainer instead of keeping all the profits from buying and then selling the product in another market.

As to why I’m thinking of starting an EMC, I see many benefits: There is less risk involved and thus less potential profits, yes, but also you could get to establish more stable and longer relationships with the manufacturers as they will see you as their partner instead of merely one of their buyers; also if you do your job well there is less of a possibility of being replaced by another company. Looking at the medium and long term, I think (but I might be completely wrong) that many manufacturers will eventually try to sell directly to other markets on Amazon, EBay or by using their own stores online by themselves, instead of waiting for the middlemen to come. And as FBA, for example, grows and its service is being established in more countries, it could be a matter of time before it starts happening en masse. So starting an EMC specializing in e-commerce would be to a certain degree a “if you cant beat them, join them” kind of thing. EMC’s also seem to be more adaptable and wide ranging in the kind of things they do: they can do everything from consulting, doing the market research, contacting buyers to basically taking care of the whole export process.

Am I right in my analysis of what an EMC does? Are there other things to consider if one would want to start an EMC? Is it a business one can start as easily (easy being a relative term here, of course) as importing and reselling? Would it be impossible to do as a one-man operation?
Hi Gallus,

What you describe is the activity of an export broker.

Your biggest hurdle will be your first one, and that is to learn the basics of both importing and exporting. You need to learn to talk the language of the industry, and that is very important. It is not only the exporting industry for which you need to learn the language. The same applies to the industry you are offering to represent as their export broker.

If for example you want to be a broker handing wallpaper, it is essential that you know all there is to know about wallpaper. Both the sellers you want to broker for, and the buyers you want to sell to will expect that you know what you are talking about.

Any very slight mistake in the description on a Bill of Lading could make it difficult or impossible for money to be collected on the Letter of Credit. There you are - I have used two import/export industry jargon terms that you need to understand, but there are heaps more.

I know it looks tempting, but I advise against rushing in. Educate yourself first.

My book is probably not suitable for you because although it deals with those terms you need to know, as well as things such as container shipping, freight forwarders etc, and the basics of importing, it is not an exporter's book. It deals primarily with safely sourcing products overseas and importing them the easy way.

I have some experience as an indent broker, which is the opposite of an export broker, and I know how hard it can be. Selling on indent means acting as an import broker, selling product on behalf of an overseas supplier and obtaining a commission on the sale. It can be a long time between meals.

The same principles apply when acting as either an import or an export broker. There are many small manufacturing businesses that produce items that could sell competitively in another country, but the owners are ignorant of the fact that it is even possible. Your task would be to find those manufacturers, identify their strengths, locate potential markets overseas, and convince the business owner that you could give them a trouble-free boost to their turnover.

There is a short cut for you in finding those potential markets overseas, and that is Alibaba. You could register as a vendor, and advertise your client's products there. You might even be able to make some sales, but I can assure you that in the process you will be swamped with opportunist, wannabee importers who will waste a huge amount of your time.

If I seem negative, it is only because I have seen the process first hand and I want you to understand that it is not easy.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

M&A

Bronze Contributor
Speedway Pass
User Power
Value/Post Ratio
141%
Jan 13, 2015
142
200
Paris
@Walter Hay

In your opinion what is an acceptable ROI% for a successful deal ?

How to make businesses take you seriously when trying to sell them large amounts of goods without a track record, no employees, not incorporated, just a website and a phone.
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,318
World citizen
@Walter Hay

In your opinion what is an acceptable ROI% for a successful deal ?

How to make businesses take you seriously when trying to sell them large amounts of goods without a track record, no employees, not incorporated, just a website and a phone.
It depends on the nature of the deal. If you are brokering, as little as 10% can be extremely rewarding. If you have to buy the inventory I would never work on less than cost x 250%.

When I refer to cost, I mean all costs, except overheads. This leaves you a gross profit of 60%. If you keep your overheads low, as you would appear to be doing, your net profit might then be 50% of the sale figure.

In order to be taken seriously, I would make a virtue of my one person operation. Promote yourself as a no-frills supplier whose low overheads mean better prices for the customer. You still need to show that you know what you are talking about. As I pointed out to Gallus in the post above, buyers you want to sell to will expect that you know what you are talking about.

The first thing you must do is to research the subject so that you really do know. This can be laborious, but have you ever encountered a salesman who knew nothing about what they are trying to sell? I have - often, and it is a signal to look elsewhere.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top