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

[Rand56]

Hi all. I'm new to this forum. I've read this whole thread and decided to buy @Walter Hay 's ebook. For now, Ive just skimmed thru it, but I already know there is lots of golden nuggets of info. Walter, I applaud you for not only this great ebook of yours, but also your replies back to posters not only on this thread, but other threads I have perused where you have replied. It's refreshing to know that you show concern about other people learning what you know. That is awesome!

I'm going to be a newbie in getting into the PL sourcing game thru amazon FBA. Great to know there are better avenues to resource than what others tell you to go thru alibaba.

I have a question, and forgive me if this is not the best thread for it. If not, it would be great if anyone can direct me to a thread where this topic is discussed. It concerns CGL insurance. I'm trying to do some DD ahead of time so I don't have any surprises. I don't know if I am needlessly worrying, but I am in "stuck" mode, and not totally sure on how I need to proceed. I have not even selected a product yet, but came across a youtube video explaining a negative viewpoint on doing PL, coming at it from the angle of insurers being hesitant to insure overseas products, and even if they do, you may have to pay an arm and a leg to get it. I brought up this issue in another group I belong to, and currently waiting on some replies. I understand that Amazon requires sellers to carry CGL insurance once you reach a certain threshold of sales. But what to the majority of FBA sellers do before they even get to that threshold of sales? Are most just winging it without insurance, thereby taking a risk, even if it's a slim risk with a low liability product?

I heard someone say, and I do not know at this point if this is misinformation, that insurers can charge anywhere from hundreds to thousands "a month". Obviously that is a broad brush, and I know it depends on what type of product one has and the potential liability associated with that particular product. I actually called Insureon to see if they can give me some general info so I can have some kind of ballpark numbers in my head. Figured if they'd ask, I'd just think of a low liability product in my head to see if they could give me some quotes. Didn't even get that far. They told me they don't insure Import/Export products. They did give me another contact, so I'm waiting to hear back from them.

Any other newbies, or experienced FBA sellers have any insight? Insurers to contact that will leave my arm and legs intact? LOL. I do understand insurance is a cost of running a business, but starting out, and knowing I have to test products first before I know what sells, having a "bigger" expense of insurance sure would eat into funds that I would rather put towards marketing my products.

 

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

[Walter Hay]

Hi all. I'm new to this forum. I've read this whole thread and decided to buy @Walter Hay 's ebook. For now, Ive just skimmed thru it, but I already know there is lots of golden nuggets of info. Walter, I applaud you for not only this great ebook of yours, but also your replies back to posters not only on this thread, but other threads I have perused where you have replied. It's refreshing to know that you show concern about other people learning what you know. That is awesome!

I'm going to be a newbie in getting into the PL sourcing game thru amazon FBA. Great to know there are better avenues to resource than what others tell you to go thru alibaba.

I have a question, and forgive me if this is not the best thread for it. If not, it would be great if anyone can direct me to a thread where this topic is discussed. It concerns CGL insurance. I'm trying to do some DD ahead of time so I don't have any surprises. I don't know if I am needlessly worrying, but I am in "stuck" mode, and not totally sure on how I need to proceed. I have not even selected a product yet, but came across a youtube video explaining a negative viewpoint on doing PL, coming at it from the angle of insurers being hesitant to insure overseas products, and even if they do, you may have to pay an arm and a leg to get it. I brought up this issue in another group I belong to, and currently waiting on some replies. I understand that Amazon requires sellers to carry CGL insurance once you reach a certain threshold of sales. But what to the majority of FBA sellers do before they even get to that threshold of sales? Are most just winging it without insurance, thereby taking a risk, even if it's a slim risk with a low liability product?

I heard someone say, and I do not know at this point if this is misinformation, that insurers can charge anywhere from hundreds to thousands "a month". Obviously that is a broad brush, and I know it depends on what type of product one has and the potential liability associated with that particular product. I actually called Insureon to see if they can give me some general info so I can have some kind of ballpark numbers in my head. Figured if they'd ask, I'd just think of a low liability product in my head to see if they could give me some quotes. Didn't even get that far. They told me they don't insure Import/Export products. They did give me another contact, so I'm waiting to hear back from them.

Any other newbies, or experienced FBA sellers have any insight? Insurers to contact that will leave my arm and legs intact? LOL. I do understand insurance is a cost of running a business, but starting out, and knowing I have to test products first before I know what sells, having a "bigger" expense of insurance sure would eat into funds that I would rather put towards marketing my products.

Product liability insurance is a big concern, and I know that many are just winging it without insurance. The question has been asked numerous times on the forum, but I have been unable to find any definitive answers. There are some brief comments of interest in the thread Product Liability Insurance

My policy, even when I was producing industrial chemicals was to use asset protection methods. If I had ever been sued, the plaintiff would have found nothing to take. No business assets - no personal assets. For that to be safe you must have excellent legal advice.

If you search for Product Liability Insurance or CGL Insurance on Google, you won't find a lot, but if you search for "CGL insurance quote" you should find plenty to keep you busy.

Walter

 

[Rand56]

Product liability insurance is a big concern, and I know that many are just winging it without insurance. The question has been asked numerous times on the forum, but I have been unable to find any definitive answers. There are some brief comments of interest in the thread Product Liability Insurance

My policy, even when I was producing industrial chemicals was to use asset protection methods. If I had ever been sued, the plaintiff would have found nothing to take. No business assets - no personal assets. For that to be safe you must have excellent legal advice.

If you search for Product Liability Insurance or CGL Insurance on Google, you won't find a lot, but if you search for "CGL insurance quote" you should find plenty to keep you busy.

Walter

Thanks for the info Walter! Interesting indeed about the info I read on the other thread that you linked. Doesn't surprise me at all that many sellers on amazon just might be winging it without insurance, until they hit that threshold in sales that amazon requires. No doubt it would be too costly, particularly for sellers just starting.

I see what you mean, just adding the word "quote" to a google search gives plenty more info to research.

 

[Walter Hay]

Buying in One EU Country and Selling in Another.

I recently received an urgent request for help from one of my book readers. She buys retail in an EU country other than the UK where she lives, then ships the goods to the UK and sells at a lower price than the UK manufacturer! The brand owner threatened legal action although they did not have a leg to stand on.

The UK manufacturer is making exorbitantly huge profits in the UK, and desperately wanted to avoid competition.

Although I never offer legal advice, when I informed her of the relevant EU legislation that unequivocally allows resale rights anywhere in the EU if the goods are purchased in the EU, she resisted their demands. They huffed and they puffed, but did not proceed with litigation. She is now continuing to run her very profitable business, giving a fair deal to customers who are denied that fair deal when they buy from the manufacturer.

It is worth noting that the manufacturer sells direct and does not sell to wholesalers or resellers in the UK.

In practice it seems that trademark owners in the EU have almost iron-clad protection from the sale of goods imported from countries outside of the EU, but the EU is a single market and those who profiteer in one EU country can get caught out as in this case.

Walter

 

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

[MattR82]

Bought the book and read it, now currently reading through all 27 pages of this thread. Walter you are a saint! This is quality material. Incredible how much of your time you give. Extremely appreciated. Still quite a lot to get my head around but thank God I found this thread before doing something stupid.

Thank you.

 

[Walter Hay]

Bought the book and read it, now currently reading through all 27 pages of this thread. Walter you are a saint! This is quality material. Incredible how much of your time you give. Extremely appreciated. Still quite a lot to get my head around but thank God I found this thread before doing something stupid.

Thank you.

Thanks MattR82, but I am not quite saintly. I am pleased that you have found the help you need.

Walter

 

[Walter Hay]

Questions about China based freight forwarders.

I am more often lately being asked about the benefits of using freight forwarders based in China as against using ones local to the importer.

The big appeal that China based forwarders have is that they will usually quote lower prices for the freight. This is not always the end of the matter, because unless you read and re-read the contract, you might find that you will have extra unexpected costs. This can simply be due to the fact that they don't have regular reciprocal arrangements with forwarders at the destination, so they don't know all the costs until they get the bill.

I advise finding a freight forwarder that is local to where the importer lives or local to the delivery address.

If those local forwarders are regular international freight forwarders they will either have branches in China themselves, or have arrangements with local operators there who handle the China side for them. In my experience those China operators they use will usually be western forwarders who have actual branches in China.

Using a nearby forwarder gives the importer the benefit of dealing with someone nearby, but still having the shipment handled for them all the way from the supplier to them.

Walter

 

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

[MattR82]

I've been researching sourcing for a specific product I am wanting to buy as equipment for a venture (not for resale), but have not been able to find any manufacturer at all with any kind of audit/verification from a reputable agency (Intertek, SGS, Dunns, KRT etc). And I am of course excluding alibaba and the similar websites with their simply paid for gold member status (no red tick on verified supplier either). The units are quite expensive, different types ranging from 1k to 2.5k USD. MOQ for both is 10 units. Have had a sample offer from one though although at that price I will just go and visit the factory and showroom myself.

One of the 2 manufacturers I have narrowed it down to seems the most legitimate with a HK office and Chinese factory (Guangdong), and are now in a tie-up with a major UK manufacturer of a similar product. However their export sales manager I have been communicating with has been a bit of a nutjob, discussing highly personal things about his wife's mental illness and trying to also sell me on permaculture! (not heavily though I must say). It's a pity as their products are the best quality.

The other supplier seems legit as well, but are a cheaper version, and say there are French designed. Factory in Shenzhen. Both have welcomed the idea of visiting their factory.

Has anyone found that a product they are trying to source is not manufactured by a verified supplier anywhere?

 

[S. Brown]

Hey @Walter Hay ,

First, I want to say thank you for all the valuable information that you are providing to us all in this thread and the fastlane forum on importing as it is worth GOLD. I just bought your book as I just reached a obstacle and felt that your book would benefit me and it has.... your book is GOLD.

By sticking with the process and using what I learned and from mistakes I made, I learned:

1) Its much easier to find unmarketed products by looking through trade show and company (manufacturer) specific websites, e-magazines, and articles. As many manufacturers do not display all their products on sites like globalsources, hktdc, and such.

2) Knowing importing terms is very important

3) Don't outright ask for a sample at first contact. Build rapport and ask for a catalog.

4) Don't read and research without taking any action. Learn as you go and get help, if needed, when reaching a obstacle.

I have been in contact with a couple suppliers/manufacturers that have unmarketed products not sold in USA as I seem to be able to find tons of unmarketed products with ease now though it took me a few weeks of persistence and research to get that process/system down packed.

I am at the shipping/payment portion and I need to be thoroughly careful at this point and it would be best for me to get an experts advice. Before I make payment I've been looking to see if there was a way to know the customs cost as my supplier said they (DHL) don't quote the door to door shipping with customs clearance charge. I also tried to get it pre-paid as you suggested in your book but that did not work out. They said customs clearance charge can not be prepaid, as they also don't how know much for the parcel the local will charge. The shipping is door to door DHL and I have a quote for the freight but customs clearance is not included.

What would you suggest in this situation based on your experience and knowledge?

 

[MattR82]

1) Its much easier to find unmarketed products by looking through trade show and company specific websites, e-magazines, and publications. As many manufacturers do not display all there products on sites like globalsources, hktdc, and such.

Good idea (trade show sites). Will try this myself.

 

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

[Walter Hay]

I've been researching sourcing for a specific product I am wanting to buy as equipment for a venture (not for resale), but have not been able to find any manufacturer at all with any kind of audit/verification from a reputable agency (Intertek, SGS, Dunns, KRT etc). And I am of course excluding alibaba and the similar websites with their simply paid for gold member status (no red tick on verified supplier either). The units are quite expensive, different types ranging from 1k to 2.5k USD. MOQ for both is 10 units. Have had a sample offer from one though although at that price I will just go and visit the factory and showroom myself.

One of the 2 manufacturers I have narrowed it down to seems the most legitimate with a HK office and Chinese factory (Guangdong), and are now in a tie-up with a major UK manufacturer of a similar product. However their export sales manager I have been communicating with has been a bit of a nutjob, discussing highly personal things about his wife's mental illness and trying to also sell me on permaculture! (not heavily though I must say). It's a pity as their products are the best quality.

The other supplier seems legit as well, but are a cheaper version, and say there are French designed. Factory in Shenzhen. Both have welcomed the idea of visiting their factory.

Has anyone found that a product they are trying to source is not manufactured by a verified supplier anywhere?

I've been researching sourcing for a specific product I am wanting to buy as equipment for a venture (not for resale), but have not been able to find any manufacturer at all with any kind of audit/verification from a reputable agency (Intertek, SGS, Dunns, KRT etc). And I am of course excluding alibaba and the similar websites with their simply paid for gold member status (no red tick on verified supplier either). The units are quite expensive, different types ranging from 1k to 2.5k USD. MOQ for both is 10 units. Have had a sample offer from one though although at that price I will just go and visit the factory and showroom myself.

One of the 2 manufacturers I have narrowed it down to seems the most legitimate with a HK office and Chinese factory (Guangdong), and are now in a tie-up with a major UK manufacturer of a similar product. However their export sales manager I have been communicating with has been a bit of a nutjob, discussing highly personal things about his wife's mental illness and trying to also sell me on permaculture! (not heavily though I must say). It's a pity as their products are the best quality.

The other supplier seems legit as well, but are a cheaper version, and say there are French designed. Factory in Shenzhen. Both have welcomed the idea of visiting their factory.

Has anyone found that a product they are trying to source is not manufactured by a verified supplier anywhere?

@MattR82 to answer your last question first; yes there are times when it is impossible to locate a manufacturer for a specific product, but before you give up you should try the WTC approach and the Consular approach that I outline in my book. Let me know if you need help with that.

Regarding the two suppliers you refer to, I would be happy to check them out for you if you care to PM me with the details. You can be sure of absolute confidentiality.

The one who seems a nutcase might just be overdoing the friendliness that he has learned is helpful in establishing a good relationship. It could be a very good sign that he sees you as a valuable prospect.

Walter

 

[Walter Hay]

Hey @Walter Hay ,

First, I want to say thank you for all the valuable information that you are providing to us all in this thread and the fastlane forum on importing as it is worth GOLD. I just bought your book as I just reached a obstacle and felt that your book would benefit me and it has.... your book is GOLD.

By sticking with the process and using what I learned and from mistakes I made, I learned:

1) Its much easier to find unmarketed products by looking through trade show and company (manufacturer) specific websites, e-magazines, and articles. As many manufacturers do not display all their products on sites like globalsources, hktdc, and such.

2) Knowing importing terms is very important

3) Don't outright ask for a sample at first contact. Build rapport and ask for a catalog.

4) Don't read and research without taking any action. Learn as you go and get help, if needed, when reaching a obstacle.

I have been in contact with a couple suppliers/manufacturers that have unmarketed products not sold in USA as I seem to be able to find tons of unmarketed products with ease now though it took me a few weeks of persistence and research to get that process/system down packed.

I am at the shipping/payment portion and I need to be thoroughly careful at this point and it would be best for me to get an experts advice. Before I make payment I've been looking to see if there was a way to know the customs cost as my supplier said they (DHL) don't quote the door to door shipping with customs clearance charge. I also tried to get it pre-paid as you suggested in your book but that did not work out. They said customs clearance charge can not be prepaid, as they also don't how know much for the parcel the local will charge. The shipping is door to door DHL and I have a quote for the freight but customs clearance is not included.

What would you suggest in this situation based on your experience and knowledge?

@S. Brown, Thanks for you kind comments. It is great to see that your learning process is bearing fruit.

You have introduced an issue that is of great importance to other members and I hope others will take note. Persistence is a very important factor. Maybe some will also contribute their ideas on sourcing unmarketed products.

Many manufacturers don't advertise at all. I once needed a supplier for a small product that I was selling lots of, but I knew I was not sourcing direct from the manufacturer. Ultimately I found the factory - probably the only one in China - via the Chinese Yellow Pages. I visited them and found them on a hillside above a small rural village. Unlike most others that I visited the reception area at the factory was tiny and dirty. (Barrier to Entry?) The dirtiness was due to the dirty nature of the production process. When the owner came out to meet me he was wearing dirty overalls because he was a hands-on manager. It did not put me off, because now I was one of their very few direct customers, and that gave me a great market advantage.

Now to your question: Your supplier might have misunderstood your request for a quote to include the customs clearance charge. DHL normally include standard customs clearance work in their door to door express service. I think the supplier might think you wanted the quote to include duty. The Incoterm for that is DDP. You could make it clear to them that you are not asking for DDP. Suppliers will almost invariably pre-pay the freight charge, but DDP is near impossible to get.

Because it is difficult to explain once a supplier is confused, I suggest that it is worth the small risk that the freight quote will not include the clearance work, and just accept the freight quote on the basis of door to door delivery. I would be very surprised if there will be substantial charges. DHL normally charge about $35, plus 2% of the amount they pay out for you (duty and tax).

For your benefit as well as for other readers, I always refer to customs clearance as "customs clearance work", not as "customs clearance charges." It is very important to make allowance for the low level of English ability in dealing with people in China.

Walter

 

[S. Brown]

@S. Brown, Thanks for you kind comments. It is great to see that your learning process is bearing fruit.

You have introduced an issue that is of great importance to other members and I hope others will take note. Persistence is a very important factor. Maybe some will also contribute their ideas on sourcing unmarketed products.

Many manufacturers don't advertise at all. I once needed a supplier for a small product that I was selling lots of, but I knew I was not sourcing direct from the manufacturer. Ultimately I found the factory - probably the only one in China - via the Chinese Yellow Pages. I visited them and found them on a hillside above a small rural village. Unlike most others that I visited the reception area at the factory was tiny and dirty. (Barrier to Entry?) The dirtiness was due to the dirty nature of the production process. When the owner came out to meet me he was wearing dirty overalls because he was a hands-on manager. It did not put me off, because now I was one of their very few direct customers, and that gave me a great market advantage.

Now to your question: Your supplier might have misunderstood your request for a quote to include the customs clearance charge. DHL normally include standard customs clearance work in their door to door express service. I think the supplier might think you wanted the quote to include duty. The Incoterm for that is DDP. You could make it clear to them that you are not asking for DDP. Suppliers will almost invariably pre-pay the freight charge, but DDP is near impossible to get.

Because it is difficult to explain once a supplier is confused, I suggest that it is worth the small risk that the freight quote will not include the clearance work, and just accept the freight quote on the basis of door to door delivery. I would be very surprised if there will be substantial charges. DHL normally charge about $35, plus 2% of the amount they pay out for you (duty and tax).

For your benefit as well as for other readers, I always refer to customs clearance as "customs clearance work", not as "customs clearance charges." It is very important to make allowance for the low level of English ability in dealing with people in China.

Walter

Thanks Walter!

I will keep you up to date with my progress on my importing journey.



Sent from my SAMSUNG-SM-G920A using Tapatalk

 

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

[MattR82]

A

@MattR82 to answer your last question first; yes there are times when it is impossible to locate a manufacturer for a specific product, but before you give up you should try the WTC approach and the Consular approach that I outline in my book. Let me know if you need help with that.

Regarding the two suppliers you refer to, I would be happy to check them out for you if you care to PM me with the details. You can be sure of absolute confidentiality.

The one who seems a nutcase might just be overdoing the friendliness that he has learned is helpful in establishing a good relationship. It could be a very good sign that he sees you as a valuable prospect.

Walter

Absolutely, I of course have no problem with showing you anything confidential and appreciate it. Will PM you.
The problem was not so much finding manufacturers, just that absolutely none of them had any kind of reputable verification.

 

[MattR82]

deleted - incorrect thread, will start a progress thread.

 

[kwodzilla]

Walter, thank you very much for your contribution to this forum and sharing your experience. I have bought and read your book and am applying the information in my own venture.

I contacted a manufacturer/trading company through one of the sources you recommend in your book (Your 2nd preferred source). The audit report suggested they had no production capabilities and are just traders. 4 different companies replied with a quote for the product I requested. The one offering the highest quote claimed to be the manufacturer. What's going on here? The prices are very low but I don't want to request 4 samples if it is just going to be the exact same product from 4 different traders (or the same trader under 4 different names). The quotes are also 5 times as low as the original price listed on the B2B website, so I'm suspicious. What do you think?

 

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

[Walter Hay]

Walter, thank you very much for your contribution to this forum and sharing your experience. I have bought and read your book and am applying the information in my own venture.

I contacted a manufacturer/trading company through one of the sources you recommend in your book (Your 2nd preferred source). The audit report suggested they had no production capabilities and are just traders. 4 different companies replied with a quote for the product I requested. The one offering the highest quote claimed to be the manufacturer. What's going on here? The prices are very low but I don't want to request 4 samples if it is just going to be the exact same product from 4 different traders (or the same trader under 4 different names). The quotes are also 5 times as low as the original price listed on the B2B website, so I'm suspicious. What do you think?

I would not be deterred by the extremely low price because many suppliers post very high prices in their listings but they are what in trade union circles are known as "ambit claims." When that happens, some people think that price is good and order anyway, but those who go through the multiple quotes process will get the genuine price. If you are worried about them, send me the name and I will check them out for you.

If the report on #4 states that they are manufacturers, then it is most likely the others buy from them. If #4's report says they are traders, I suggest the next step is to do a product search on that platform in the hope of finding others.

Should that fail, PM me with details and I will do a search for you.

Walter

 

[kwodzilla]

I would not be deterred by the extremely low price because many suppliers post very high prices in their listings but they are what in trade union circles are known as "ambit claims." When that happens, some people think that price is good and order anyway, but those who go through the multiple quotes process will get the genuine price. If you are worried about them, send me the name and I will check them out for you.

If the report on #4 states that they are manufacturers, then it is most likely the others buy from them. If #4's report says they are traders, I suggest the next step is to do a product search on that platform in the hope of finding others.

Should that fail, PM me with details and I will do a search for you.

Walter

Thanks for the prompt response. I received some more emails quoting for the product. So in total I sent out a request to one contact on the B2B website and received a response from 7 different companies quoting for it (non of the companies were the original one contacted). All 7 quoted different prices, one actually quoted two different prices from different email addresses at the same domain. I checked out the websites of all 7, they all had only electronic goods listed (nothing to do with what I am attempting to source). That includes the company claiming to be the manufacturer, who only had certification on safety standards for their flash drives. Any ideas as to what is going on here? I'll PM you the specifics, but I posted this in public so others can gain insight into how some of the manufacturers and traders in China operate.

 

[Walter Hay]

Thanks for the prompt response. I received some more emails quoting for the product. So in total I sent out a request to one contact on the B2B website and received a response from 7 different companies quoting for it (non of the companies were the original one contacted). All 7 quoted different prices, one actually quoted two different prices from different email addresses at the same domain. I checked out the websites of all 7, they all had only electronic goods listed (nothing to do with what I am attempting to source). That includes the company claiming to be the manufacturer, who only had certification on safety standards for their flash drives. Any ideas as to what is going on here? I'll PM you the specifics, but I posted this in public so others can gain insight into how some of the manufacturers and traders in China operate.

I am currently checking out the list of names you gave me via PM, and also looking for real manufacturers of the product you are interested in.

At this stage I can say that the product is very non-technical and is easy to make, so there could be a lot of manufacturers, but not necessarily. The first one I checked is definitely a trader, and at first glance most of them appear to be so.

It is quite possible that the manufacturer is not advertising at all, being content to work through middle men. If that is the case, locating the manufacturer won't be easy.

I will continue checking and get back to you via PM, but will also report the outcome here, without disclosing anything confidential.

Walter

 

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

[Walter Hay]

I am currently checking out the list of names you gave me via PM, and also looking for real manufacturers of the product you are interested in.

I will continue checking and get back to you via PM, but will also report the outcome here, without disclosing anything confidential.

Walter

I have found one genuine manufacturer among the masses of traders. See your PM for details.

Having seen many advertisements for the product category, I am satisfied that the ones quoting extremely low prices are suspect and I would avoid them.

Walter

 

[Walter Hay]

A

Absolutely, I of course have no problem with showing you anything confidential and appreciate it. Will PM you.
The problem was not so much finding manufacturers, just that absolutely none of them had any kind of reputable verification.

For the benefit of other readers I would like to comment that MattR82 has worked hard trying to locate suppliers of a unique product that most people would never dream of importing.

The lack of reputable verification was a barrier, but I think that was because there is probably only one manufacturer in China and that company sees no need to go to the trouble or the cost of inspections by SGS and other forms of verification.

MattR82's progress report will be interesting to follow when he gets to the stage where he has positive progress to report. As it is right now, I am satisfied that he is on the right track.

My latest book revision, due out soon, includes a section dealing with sourcing from unverified suppliers. There are good reasons why doing so can put you one jump ahead of the competition.

Walter

 

[Phones]

Questions about China based freight forwarders.

I am more often lately being asked about the benefits of using freight forwarders based in China as against using ones local to the importer.

The big appeal that China based forwarders have is that they will usually quote lower prices for the freight. This is not always the end of the matter, because unless you read and re-read the contract, you might find that you will have extra unexpected costs. This can simply be due to the fact that they don't have regular reciprocal arrangements with forwarders at the destination, so they don't know all the costs until they get the bill.

I advise finding a freight forwarder that is local to where the importer lives or local to the delivery address.

If those local forwarders are regular international freight forwarders they will either have branches in China themselves, or have arrangements with local operators there who handle the China side for them. In my experience those China operators they use will usually be western forwarders who have actual branches in China.

Using a nearby forwarder gives the importer the benefit of dealing with someone nearby, but still having the shipment handled for them all the way from the supplier to them.

Walter

And can we trust a western forwarder not to mess up customs and bureaucratic stuff in China? AWB details, and transport when it requires pick up from the factory.

As you know I import to Portugal, this year I will start importing through Amsterdam to avoid paying VAT upfront and I was thinking of splitting the job, freight and China stuff with Chinese company and customs and AMS-> Portugal with a Portuguese company.

The main reason for this was price, I was quoted outrageous amounts by 2 big companies, but I have now received a quotation from a mid sized local PT forwarder which is using similar freight cost, so I might to with the PT company, just wondering if even FOB stuff would be better handled in China by a Chinese company.

Side note, Canton fair was nice, found some suppliers with much better pricing than what I'm currently dealing with, I'm booking a flight to Wenzhou to go check them and their sample showroom. Also went to Dongguan for other product, small factory, 3 floors in a adapted residential building, pricing is good but they are mainly doing the "cheapest" possible, I'm looking for that price/quality ration where things are still cheap but quality is still decent, I'm questioning if they can handle my requests properly but we've talked custom samples down to 30$ each so I will have everything tested out beforehand. (This was more of a feedback to everyone, it's not that hard to do business in China, but don't even think of just landing here and suppliers magicly showing up, you need to have your research done beforehand and come here with an objective)

Thanks in advance Walter

 

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

[Tim Mitchell]

Great thread and im only 1/4 the way into it. Walter your book.. where can i buy it? I tried sending you a PM but it wont let me.

Sent from my SM-G900I using Tapatalk

 

[Walter Hay]

Great thread and im only 1/4 the way into it. Walter your book.. where can i buy it? I tried sending you a PM but it wont let me.

Sent from my SM-G900I using Tapatalk

Hi Tim,

The site name in my signature is a live link, but here it is again:Proven Global Sourcing - Proven Global Sourcing.

Walter

 

[Walter Hay]

And can we trust a western forwarder not to mess up customs and bureaucratic stuff in China? AWB details, and transport when it requires pick up from the factory.

As you know I import to Portugal, this year I will start importing through Amsterdam to avoid paying VAT upfront and I was thinking of splitting the job, freight and China stuff with Chinese company and customs and AMS-> Portugal with a Portuguese company.

The main reason for this was price, I was quoted outrageous amounts by 2 big companies, but I have now received a quotation from a mid sized local PT forwarder which is using similar freight cost, so I might to with the PT company, just wondering if even FOB stuff would be better handled in China by a Chinese company.

Side note, Canton fair was nice, found some suppliers with much better pricing than what I'm currently dealing with, I'm booking a flight to Wenzhou to go check them and their sample showroom. Also went to Dongguan for other product, small factory, 3 floors in a adapted residential building, pricing is good but they are mainly doing the "cheapest" possible, I'm looking for that price/quality ration where things are still cheap but quality is still decent, I'm questioning if they can handle my requests properly but we've talked custom samples down to 30$ each so I will have everything tested out beforehand. (This was more of a feedback to everyone, it's not that hard to do business in China, but don't even think of just landing here and suppliers magicly showing up, you need to have your research done beforehand and come here with an objective)

Thanks in advance Walter

@Phones Arranging all the paperwork to collect a shipment in China and get it on board an aircraft or ship is very complex, but any international forwarder would either know what is involved, or would have a reciprocal arrangement with a forwarder in China. It simply can't be done from a distance.

Freight rates will vary and like any purchase it pays to shop around. I would be inclined to use the link to medium and small forwarders in my book because they will mostly give you the best prices. The very big international forwarders tend to want to handle container loads and they charge a lot extra for smaller shipments. One reason for their higher charges is that they will usually have their own offices in China and that is more expensive than working through local operators.

A small factory such as you visited in Dongguan could be more adaptable than a big manufacturer, so it is quite possible that they can upgrade their quality for you. There is no doubt that face to face discussion can achieve results a lot faster than doing it via email or phone.

Your comment about doing research before visiting China should be noted by all.

Walter

 

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

[Tim Mitchell]

Thanks Walter. Found it and got a copy. Will have some questions soon

Sent from my SM-G900I using Tapatalk

 

[wholehog]

I would not be deterred by the extremely low price because many suppliers post very high prices in their listings but they are what in trade union circles are known as "ambit claims." When that happens, some people think that price is good and order anyway, but those who go through the multiple quotes process will get the genuine price. If you are worried about them, send me the name and I will check them out for you.

If the report on #4 states that they are manufacturers, then it is most likely the others buy from them. If #4's report says they are traders, I suggest the next step is to do a product search on that platform in the hope of finding others.

Should that fail, PM me with details and I will do a search for you.

Walter

Walter do you offer any sort of discount codes for the ebook?

 

[Walter Hay]

Walter do you offer any sort of discount codes for the ebook?

Sorry, but I don't. The level of support that goes with the book is considerable, and with a paid support team to ease the load on me, I have to maintain the price as it is.

I have had book users write to me with thanks for having saved them amounts ranging from hundreds to thousands of dollars, so I know that I give good value.

Walter

 

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

[edward222]

Hi Walter,

This is really a GOLDen thread for
all the entrepreneurs here.

I just have a question to ask, this question is originally a question
from my cousin, well I am no expert, good and didn't even have any experience at importing/exporting products,
and since you are really good in this field, I'll pass the question to you

He contacted a manufacturer in China, the product is clothing, well its his first time to try importing products,
his question is: what is the exact scenario if you have to import in china?
After you close the deal, what will happen next, and next and next,
he really doesnt know what will be the process after dealing with the price,
and I dont even know it my self, he doesnt even know if the product will be delivered
door to door...

Thank you in advance.

Ed

 

[M&A]

Just ordered a sample but the manufacturer said since it is a new product it does not have the necessary certification markings (CE) for safety in Europe.

Does this mean the product will be seized ?

Obviously I can't sell the product without certification that it meets the minimum requirements for safety but can I accept the sample and make improvements ?

How do you go about getting CE approval for a manufacturer in china ?