AMA - Ask me anything on sourcing/importing from Asia..

[Walter Hay]

Hello, thank you for setting up this thread.

Wat is your experience of buying EXW, rather than FOB? Is there anything I need to watch out for?

Hi Damien, The OP has not been around since April, so I will answer your question.

I have dealt with this matter in my AMA, but not in detail. Here is what I wrote on July 6: "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."

The internal charges I refer to should have read inland charges. These can include: loading charges at their factory, document preparation fees, export license fee, freight to an airport or sea port, road tolls, Chinese Customs charges and maybe some other charges that they are busy dreaming up right now. Risk of loss of cargo is also your responsibility once it leaves the factory.

When buying on an FOB basis, most of those charges could still apply if they quote FOB works or factory. If they quote FOB at a specified port that means all charges and loss of cargo are their responsibility until the goods are loaded on board the aircraft or ship.

Regards,
Walter

 

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[DamienP]

Hi Damien, The OP has not been around since April, so I will answer your question.

I have dealt with this matter in my AMA, but not in detail. Here is what I wrote on July 6: "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."

The internal charges I refer to should have read inland charges. These can include: loading charges at their factory, document preparation fees, export license fee, freight to an airport or sea port, road tolls, Chinese Customs charges and maybe some other charges that they are busy dreaming up right now. Risk of loss of cargo is also your responsibility once it leaves the factory.

When buying on an FOB basis, most of those charges could still apply if they quote FOB works or factory. If they quote FOB at a specified port that means all charges and loss of cargo are their responsibility until the goods are loaded on board the aircraft or ship.

Regards,
Walter

Awesome advice, thank you very much for your insight, it really is appreciated.

I think I've decided to source this particular product domestically, as it is a shampoo product and would require expensive certifications if sourced from China. Nevertheless the last few days has been a massive learning experience, and will no doubt be put to good use soon.

One new execution thread coming up

 

[caezlar]

Phew! I was wondering why nobody was selling it, thank you for helping out a newbie, Walter.

yes, "brand" items from Alibaba are dangerous, even our Chinese don't trust them!

 

[lovecharm]

yes, "brand" items from Alibaba are dangerous, even our Chinese don't trust them!

Oh Yeah they have the genuine Gucci's there :joyful:

I think the spelling of Gucci is a give away...

 

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[Chitown]

b) Build a good relationship with the supplier, treat them like friends, ask them about their life and things etc.. If you have a good relationship with the supplier then a lot of rules can be bent..

@lovecharm,

If I can please dovetail on what you stated...

A fellow Fastlaner recently asked my opinion on networking.

What you said above is a gold networking first step because, essentially, you're recognizing someone's humanity when you pose those questions to a supplier, the lady bagging your groceries or the person serving your meal in that high end restaurant. Obviously, if being that outgoing doesn't suit your personality don't attempt any of it - you'd rather be authentic not phony.

Get to know the people you daily interact with. By name! Benefits could come out of left field or - worst case scenario - you make a person feel good about themselves when they encounter you. I've had...

- Meals comped in high-end, popular restaurants simply because the person to whom I extended my hand at the valet stand turned out to be the restaurants' Wine Director/Partner.

- Food donated on one days' notice to a school fundraiser - from one of our favorite neighborhood gastro spots because, years ago, I made it a point to introduce myself to the owners and thank them for being in the neighborhood. My family also knows all the servers by name.

- Had the office of one of my former clients - a prior Governor of California - intercede in my behalf with a state reg board on a Thursday and had the issue resolved by the following Tuesday. With apologies!

All that stuff was made possible because I took an interest in the person in front of me and I listened when they opened their mouths.

@lovecharm,

Nice thread. Glad you started it!

 

[liveitorloseit]

Hey every one,

Since every one has been helping me out and giving me tips on online marketing, so I thought why not give some value back to the community by sharing my knowledge..

I have offices in China, Hong kong and Bangladesh. We manufacture clothing in Bangladesh and export to major brands in US, UK and EU. We also source tons of stuff (raw materials) from China, India, Hong kong pretty much every week.

So if you have any questions regarding importing or sourcing or how to deal with suppliers in Asia then ask away, I will try my best to help you out.

LC

I'm only getting started at this importing thing; trying to start with my first product. It was fairly easy to order a sample and have it shipped. However, I've ran into an issue of posting the item. Being that it's the first item, and only a sample, I'm attempting to use Amazon as the medium for sales. And I'm not sure if this is the proper place for the question, but the problem that I have is that I do not have a UPC code or anything of the like. From what I see, this information is needed to post to Amazon. Is there a workaround for this?

I only look to begin on Amazon. The end goal is to build a brand and sell on my own site.

I'm also fairly new to the forum, so take it easy on me if this isn't the place or if this has already been addressed.