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

[BlokeInProgress]

@Walter Hay - first of all thanks for all your contribution in the field of importing. I am interested in importing as I do have a product that I wish to sell here in my country.

I read and re-read this thread, took some notes and am trying your advice as a newbie. I do have a couple of questions though just to insure that I am moving along correctly.

1. I did a search for a product and found a couple of search results (Assessed Supplier - checked). I saw that these 3 products are from one Verified Supplier or Company, so I clicked on the company itself to be redirected to its own alibaba page. I did noticed something, on the company's own alibaba page, there is a contact supplier option which is different from those from the product results page. Does this indicate that the Contact Supplier name in the product result page can possibly be a wholesaler and not the manufacturer itself?

2. I have been going through a couple of suppliers and their assessment report has been verified mostly by Bureau Veritas, is this as trust worthy as INTERTEK, SGS, SINOTRUST?

3. When contacting the suppliers, you said to introduce yourself as a Established Importer, does using a generic email like gmail, yahoo, etc...a concern to them?

4. Once I find a supplier and ready to order just a couple of the product < minimum, to test the market, the options of payment are: T/T,Western Union,MoneyGram,Paypal. Its a no to consider WU, what other types of payment is considered safe?

Thank you in advance sir.

 

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[Arman]

Need to make business decision. help me.

How can i approach a supplier in United States to make me a sole distributor in Indonesia? last time i call them, they seems so busy and did't answer well.

To import it to Indonesia, we will need Bpom registration and permit (BPOM is indonesian FDA but regulate cosmetic also). So I will need need some document and certificate : certificate of Good Manufacturing Product, letter of aggrement, Certificate of analysis, Certificate of Free Sales. )

How to approach the cosmetic supplier in the united states to make me their official distributor in indonesia?
Many people in Indonesia already buy from them but without registering to the BPOM actually.

Thank you

 

[ljb7]

@Walter Hay - first of all thanks for all your contribution in the field of importing. I am interested in importing as I do have a product that I wish to sell here in my country.

3. When contacting the suppliers, you said to introduce yourself as a Established Importer, does using a generic email like gmail, yahoo, etc...a concern to them?

4. Once I find a supplier and ready to order just a couple of the product < minimum, to test the market, the options of payment are: T/T,Western Union,MoneyGram,Paypal. Its a no to consider WU, what other types of payment is considered safe?

Hey, I'd like to chime in and help you here.

Regarding question 3... I used a standard gmail account up until a few days ago. I did have a crafted message which got a lot of replies but I wasn't going outside the box. It was OK - not bad, but not great.

So I decided to fake my own empire by using @AlterJoule 's template (but altered the message to my liking), so I got myself an 0845 number (UK Business number), and crafted a little website... Now I use an email with my websites domain e.g. products@xxxxxxx.com

My reply rate is basically 100%, and I'm seeing the more established manufacturers really put effort into their replies and have even been offering free samples. Found this one funny earlier (big manufacturer left this at the end of his long detailed message)...

So yes, IMO it's definitely beneficial to use your own website and email.

Regarding question 4.. I'm sure the answer will be to use PayPal or Escrow. Preferably PayPal. Never use WU or MoneyGram, and don't consider bank transfer until you have had a long relationship with your supplier and fully trust them.

Hope this helps.

 

[Walter Hay]

@Walter Hay - first of all thanks for all your contribution in the field of importing. I am interested in importing as I do have a product that I wish to sell here in my country.

I read and re-read this thread, took some notes and am trying your advice as a newbie. I do have a couple of questions though just to insure that I am moving along correctly.

1. I did a search for a product and found a couple of search results (Assessed Supplier - checked). I saw that these 3 products are from one Verified Supplier or Company, so I clicked on the company itself to be redirected to its own alibaba page. I did noticed something, on the company's own alibaba page, there is a contact supplier option which is different from those from the product results page. Does this indicate that the Contact Supplier name in the product result page can possibly be a wholesaler and not the manufacturer itself?

2. I have been going through a couple of suppliers and their assessment report has been verified mostly by Bureau Veritas, is this as trust worthy as INTERTEK, SGS, SINOTRUST?

3. When contacting the suppliers, you said to introduce yourself as a Established Importer, does using a generic email like gmail, yahoo, etc...a concern to them?

4. Once I find a supplier and ready to order just a couple of the product < minimum, to test the market, the options of payment are: T/T,Western Union,MoneyGram,Paypal. Its a no to consider WU, what other types of payment is considered safe?

Thank you in advance sir.

Thanks to ljb7 for his answers to your questions 3 and 4. I agree that an email fromm your own website address is much more likely to produce a good response. If you can't do that, gmail would be preferable to the other free addresses because many businesses are now using gmail. The general format for first contact emails as provide by afterjoule is very good.

ljb7 is also right about payment methods. PayPal gives you a lot of protection. Escrow provided by Alibaba has considerable drawbacks in my opinion, but is still much better than risking payment via WU or moneygram. T/T still carries some risk and you must be sure exactly who is receiving the funds. Take great care if you pay by T/T.

Regarding questions 1 and 2.

1. It could well be the same company using a different name. Almost every company I know in China uses several business names, and some of them are careless about which ones they display in different places. For example you might see one name on the listing on a B2B site, but another name appears when you click on the more details button. Then there can be yet another name on the business profile and another on their website. All very confusing, but it can actually help you. Yo may now have 4 business names to check out as part of your due diligence.

You can search for all of them on Google, on review sites, and on Ripoffreport.com etc. You can also search for them on other B2B sites. It may be tedious, but it is your money, so why not make the effort to protect it?

2. Bureau Veritas is totally reliable. I will soon post a full list of independent inspection services that I consider to be reliable.

 

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[Walter Hay]

Need to make business decision. help me.

How can i approach a supplier in United States to make me a sole distributor in Indonesia? last time i call them, they seems so busy and did't answer well.

To import it to Indonesia, we will need Bpom registration and permit (BPOM is indonesian FDA but regulate cosmetic also). So I will need need some document and certificate : certificate of Good Manufacturing Product, letter of aggrement, Certificate of analysis, Certificate of Free Sales. )

How to approach the cosmetic supplier in the united states to make me their official distributor in indonesia?
Many people in Indonesia already buy from them but without registering to the BPOM actually.

Thank you

What you are trying to do will not be easy to achieve.

Most importantly, you must give the supplier some very good reasons why they should appoint you as sole distributor. BPOM registration will involve a big commitment by the US company, so they need to have confidence that your appointment would be of great benefit to them.

Have you found out what BPOM registration will cost? In Indonesia registration must be applied for by the US company through a local sole agent unless the US company sets up a legal entity in the country. If a local agent is appointed government regulations limit that to 5 years.

This leaves open the possibility that if you are successful the US company might terminate your license and set up their own business in Indonesia after you have done all the hard work.

Calling them is not likely to result in you making contact with the right person unless it is a very small business, so your first contact will need to be to find out who is the person you should talk to. Don't expect to then be immediately connected to that person. When you get their name, ask the person that you are talking to when would be the best time to call.

You will need to have a business plan worked out so that you can send it to the executive immediately after your discussion.

You may get a good start if the business is currently looking for export markets. You could look up http://www.thinkglobal.us to see if they are advertising there.

 

[PopEmersen]

Any Freight Forwarders you suggest? I am in the process of getting my first big non DHL shipment so it has to go via container. Need help. Thanks/

 

[Walter Hay]

Any Freight Forwarders you suggest? I am in the process of getting my first big non DHL shipment so it has to go via container. Need help. Thanks/

If you are in the US, try http://www.universalcargo.com They have several branches at major ports but they can handle shipments to any port for you. You will find them very helpful.

If you are located in another country let me know and I will give you another link.

 

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[Walter Hay]

If you are in the US, try http://www.universalcargo.com They have several branches at major ports but they can handle shipments to any port for you. You will find them very helpful.

If you are located in another country let me know and I will give you another link.

Silly me! I didn't take note of your location. Universal Cargo have a branch in Atlanta.

 

[BlokeInProgress]

Hey, I'd like to chime in and help you here.

Regarding question 3... I used a standard gmail account up until a few days ago. I did have a crafted message which got a lot of replies but I wasn't going outside the box. It was OK - not bad, but not great.

So I decided to fake my own empire by using @AlterJoule 's template (but altered the message to my liking), so I got myself an 0845 number (UK Business number), and crafted a little website... Now I use an email with my websites domain e.g. products@xxxxxxx.com

My reply rate is basically 100%, and I'm seeing the more established manufacturers really put effort into their replies and have even been offering free samples. Found this one funny earlier (big manufacturer left this at the end of his long detailed message)...

So yes, IMO it's definitely beneficial to use your own website and email.

Regarding question 4.. I'm sure the answer will be to use PayPal or Escrow. Preferably PayPal. Never use WU or MoneyGram, and don't consider bank transfer until you have had a long relationship with your supplier and fully trust them.

Hope this helps.

@ljb7 thank you very much for your reply...very helpful. going the extra mile to be perceived as a seasoned or established company/business really would help and I will be going the same path. thanks a lot!

1. It could well be the same company using a different name. Almost every company I know in China uses several business names, and some of them are careless about which ones they display in different places. For example you might see one name on the listing on a B2B site, but another name appears when you click on the more details button. Then there can be yet another name on the business profile and another on their website. All very confusing, but it can actually help you. Yo may now have 4 business names to check out as part of your due diligence.

You can search for all of them on Google, on review sites, and on Ripoffreport.com etc. You can also search for them on other B2B sites. It may be tedious, but it is your money, so why not make the effort to protect it?

Very very helpful, thank you and I will do my due diligence before contacting them.

2. Bureau Veritas is totally reliable. I will soon post a full list of independent inspection services that I consider to be reliable.

Thank you once again @Walter Hay, I'm actually getting more excited everyday. Will check a lot of audit reports today.

 

[Unknown]

You are close to the mark, but the value you should declare for duty and tax purposes is:

Purchase cost + freight + insurance if any. Your duty and sales tax will be calculated on that total figure.

If you are selling in a jurisdiction that requires you to charge Sales Tax, you then have to charge your customer the local sales tax rate, but that has no connection to the sales tax that the Customs dept may impose when you import.

It is a serious crime to understate the value. With duty rates in most cases now being so low, I cannot understand why anyone would take the risk. When I first started importing, average duty rate was around 15%. Now that the world is a global village, average US duty rates have fallen to 5.63%.

If your buying price doe not allow you to bear that small amount, then you are buying in the wrong place from the wrong people.

My supplier has only been declaring the actual product cost. Does UPS/FedEx include the shipping cost when paying the duties for me, or do I need to tell my supplier to declare the total as the product cost + the shipping cost?

 

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[Walter Hay]

My supplier has only been declaring the actual product cost. Does UPS/FedEx include the shipping cost when paying the duties for me, or do I need to tell my supplier to declare the total as the product cost + the shipping cost?

They should include the shipping cost and they normally do.

You don't have to ask your supplier to declare the shipping cost as part of the total cost. That is a matter for you or for your agent (UPS, FedEx etc.)

I have seen many people state that you only have to declare the product cost and not the shipping cost, but that is not correct.

 

[Walter Hay]

Inspection Services.

I promised to post full list of inspection companies that I consider to be reliable so here it is. They are not in order of preference, and just because a company is not listed that does not mean that I consider them unreliable.

If any fastlane member wants to know about other inspection services, please ask.

Bureau Veritas
TUV Rheinland
SGS
Intertek
Sinotrust
*KRT Audit Corporation (US based)
*Cotecna

*About 100 years newer than most on the list.

TUV Rheinland publish a blacklist of companies in countries everywhere who have improperly claimed that they have been certified by http://www.tuv.com/en/corporate/business_customers/product_testing_3/blacklist.html

This list highlights the fact that forging of certificates is rampant in China. You cannot be sure that a certificate is genuine unless you check it with the authority that has supposedly issued it.

HK Accreditation service also provides a list of inspection companies accredited in HK, but I have had no experience with them.

 

[ddall]

Walter,
This thread is one of my favourites. Thanks as always.

I have a question: Two of my suppliers do not have a product I am looking to source. Rather, they offered to help me source it from elsewhere. I presume this is not a free service. Can you advise what is typical in this scenario, that is how the deal would break down if they find a supplier I would like?

Also, is this advantageous to find products not listed on alibaba?

 

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[Walter Hay]

Walter,
This thread is one of my favourites. Thanks as always.

I have a question: Two of my suppliers do not have a product I am looking to source. Rather, they offered to help me source it from elsewhere. I presume this is not a free service. Can you advise what is typical in this scenario, that is how the deal would break down if they find a supplier I would like?

Also, is this advantageous to find products not listed on alibaba?

The service will not be free. Typical charges for sourcing services are 10% commission, but as you will see in an article that I am currently drafting, you might finish up unknowingly paying a lot more than that 10%. I expect to post it later today.

You will have noted that Alibaba is one of my least favorite sourcing platforms, mainly because it is so difficult to determine if you are really dealing with a manufacturer, but for those who like to use it, here is an important hint: Use a big variety of keywords in your search. For example, if you are looking for acrylic key chains, you could search for...... acrylic, acrylic key chains, acrylic key rings, plastic key rings, plastic key chains, key chains, key rings, promotional key chains, promotional key rings.

This is important because Alibaba's search function is quite limited at times. Also, as you will see above, I have used both US and British keywords (key chains, key rings). There is also the limitation caused by lack of vocabulary on the part of the suppliers. Much patience is required.

Although Alibaba has a massive number of suppliers listed, with millions of products, there are many more suppliers who don't list there, and many more products that are not listed there either.

I could have made a lot of money as a a product sourcing agent because I know where to find virtually any product imaginable, but I have chosen to teach others how to do it for themselves and save lots of money in the process.

 

[Walter Hay]

Sourcing Agents and Quality Control

There are quite a few importing information sites operated by people wanting to sell their services as sourcing agents, sometimes including quality control inspections. Some of the big B2B websites have advertisers offering those services.

The information provided on those information sites is heavily skewed to worry intending importers so that they will believe that unless they use the services of a reliable sourcing agent they are courting disaster. The things that generate income for them are fear and ignorance.

The pitch is that if you go it alone in product sourcing you won’t know who is a reliable supplier and you may finish up paying for faulty goods.

However if you employ someone such as (here insert the name of the sourcing agent operating the site or affiliated with it) you can sleep soundly, knowing that they will eliminate every risk for you.

It sounds good in theory, but who polices the policeman? Are they really working for you, or are they secretly working for the supplier?

This is not theory. Don’t forget that I have been importing since 1987 and I know it happens. Sourcing agents sometimes work on commission from the suppliers, and sometimes they charge you a commission. In reality, sometimes they get both, but they will never tell you that. Sometimes the great supplier they find is a relative or friend.

Straight out quality control services do exist and some of them, particularly those based in Europe have a fine reputation. In my post “Inspection Services” yesterday I listed a number of utterly reliable independent inspection services.

The problem is that for small businesses their charges can soak up too much of the possible profit. A small shipment inspection will cost about $250 to $350 provided the inspection service is located in the city where the manufacturer is located. Most of the big European inspection services do have branches in the main manufacturing centers throughout China, so most are covered.

Once you get to the point of ordering in the five figure or more range, inspection services may be well worthwhile. Some of those companies will also provide sourcing services, but I believe that doing it yourself can be a very safe process and can save you hundreds and even thousands of dollars.

Since retiring due to a botched operation, I have taught hundreds of people how to source safely. Prior to that, I ran my importing and marketing business for 22 years. I appointed franchisees in 4 countries and my franchise was an unusual system. I did not supply products to any franchisee. Instead I taught them how to find the products they wanted to sell.

A large part of the royalties they paid me was my reward for the successful B2B marketing system I taught them, but without safe product sourcing direct from manufacturers who would give them incredibly low prices, they could not have afforded those royalties.

None of those franchisees ever used a sourcing agent, even with orders as large as $50,000. None of them ever reported being scammed. All of them enjoyed huge profits. In other words, use of a sourcing agent was totally unnecessary because they knew all about safe sourcing practice and safe sourcing sites.

TOPIC HEADINGS PREVIOUSLY POSTED IN THIS THREAD:
■ Introduction. Dealing with myths and misinformation.
■ Some things you should know or do before you start product sourcing.
■ Part 1. Traveling to source supplies. Do you need to visit China? Trade Fairs.
■ The difference between Alibaba and Aliexpress.
■ Alibaba and the 2236 Thieves.
■ Part2. Traveling to source supplies. Visiting factories in China.
■ Do your suppliers use child labor or slave labor?
■ Inspection Services.
■ Q & A 1,2,3,4,5,6,7

 

[ljb7]

Inspection Services.

I promised to post full list of inspection companies that I consider to be reliable so here it is. They are not in order of preference, and just because a company is not listed that does not mean that I consider them unreliable.

If any fastlane member wants to know about other inspection services, please ask.

Walter,

Can't thank you enough for continuing to provide golden value.

I have two inspection services I could use your help with, ECM - Ente Certificazione Macchine (http://www.entecerma.org) and Anbotek (http://www.anbotek.com)

Edit: They contain the correct EU directives on them and many standards are also listed on the certificates. It all appears to be very official but just wanted to confirm. I appreciate the help!

 

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[Walter Hay]

Walter,

Can't thank you enough for continuing to provide golden value.

I have two inspection services I could use your help with, ECM - Ente Certificazione Macchine (http://www.entecerma.org) and Anbotek (http://www.anbotek.com)

Edit: They contain the correct EU directives on them and many standards are also listed on the certificates. It all appears to be very official but just wanted to confirm. I appreciate the help!

I need to do some more checking before I can fully reply, but my first impression is that entecerma is a legitimate certification body, established about 14 years ago, and still struggling to gain wide acceptance. It does not help their cause when they display an address in London UK and identify themselves as a UK registered LTD company, but there is no record of them at Companies House.

Anbotek is a Chinese company about 4 years old, and I will have to do some more checking to see if their certifications are recognized internationally. I know of several Chinese "accreditation" services that sell certificates of dubious value. Anbotek is not on my list, and appear genuine, but I will let you know more tomorrow.

 

[ljb7]

I need to do some more checking before I can fully reply, but my first impression is that entecerma is a legitimate certification body, established about 14 years ago, and still struggling to gain wide acceptance. It does not help their cause when they display an address in London UK and identify themselves as a UK registered LTD company, but there is no record of them at Companies House.

Anbotek is a Chinese company about 4 years old, and I will have to do some more checking to see if their certifications are recognized internationally. I know of several Chinese "accreditation" services that sell certificates of dubious value. Anbotek is not on my list, and appear genuine, but I will let you know more tomorrow.

Walter,

I appreciate that a lot, thank you. Are there a series of steps you can list so I can carry out my own research into the validity of an inspection service for future reference?

 

[1step]

Hey Walter, was hoping to get your insight into holiday shipping.

I have a shipment that is ready now but the current airfare price is quite high. I think it may just be a scenario of the perfect storm with prices destined to fall soon but I wanted to run it by you and see what you have experienced as far as air shipping increasing leading up to christmas.

A few months ago I got a shipment at considerably less than half the price per kg that they are currently quoting. Currently they have the APEC meeting in Beijing that has shut the airport down for a week or so, they also have high volume getting closer to holidays and then there is the sea port issue on the west coast that has a lot of suppliers looking to ship by air. I think all this has created the perfect storm for very high prices right now but my supplier is saying they will continue to climb as christmas get closer. Thoughts?

 

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[ddall]

Hey Walter, was hoping to get your insight into holiday shipping.

I have a shipment that is ready now but the current airfare price is quite high. I think it may just be a scenario of the perfect storm with prices destined to fall soon but I wanted to run it by you and see what you have experienced as far as air shipping increasing leading up to christmas.

A few months ago I got a shipment at considerably less than half the price per kg that they are currently quoting. Currently they have the APEC meeting in Beijing that has shut the airport down for a week or so, they also have high volume getting closer to holidays and then there is the sea port issue on the west coast that has a lot of suppliers looking to ship by air. I think all this has created the perfect storm for very high prices right now but my supplier is saying they will continue to climb as christmas get closer. Thoughts?

What is the sea port issue you speak of?

 

[Walter Hay]

Walter,

I appreciate that a lot, thank you. Are there a series of steps you can list so I can carry out my own research into the validity of an inspection service for future reference?

The steps will vary considerably, but you start by checking out their website. See what affiliations they have and what registrations they claim.

entecerma was straight forward because they have an online facility to validate the authenticity of any certificates offered by suppliers. Currently you should avoid the Italian site because it has been hacked, but the UK site http://www.entecerma.org/ is OK to use. All you need to do is insert the Certificate number in the box under "Certificate Verification."

Anbotek required more work because their site http://www.anbotek.com/Certification.php is not easy to navigate, but I was able to confirm that they are accredited by the China National Accreditation Service for Conformity Assessment.

I would be happy to accept certificates issued by both of these companies. If I wanted someone to do inspections for me in China I would even consider Anbotek because of their low cost.

 

[Walter Hay]

Hey Walter, was hoping to get your insight into holiday shipping.

I have a shipment that is ready now but the current airfare price is quite high. I think it may just be a scenario of the perfect storm with prices destined to fall soon but I wanted to run it by you and see what you have experienced as far as air shipping increasing leading up to christmas.

A few months ago I got a shipment at considerably less than half the price per kg that they are currently quoting. Currently they have the APEC meeting in Beijing that has shut the airport down for a week or so, they also have high volume getting closer to holidays and then there is the sea port issue on the west coast that has a lot of suppliers looking to ship by air. I think all this has created the perfect storm for very high prices right now but my supplier is saying they will continue to climb as christmas get closer. Thoughts?

This seems unusual. Forwarders buy freight in bulk and the deals are usually done well in advance.

I think you have no option but to contact a number of freight forwarders and get a price from them. Rates can vary depending on what capacity they have bought and how much of it they have sold. Shopping around is likely the only way you will get a reasonable deal. If you contact enough forwarders you might hit on one who has surplus capacity.

One I know who will give you a quick response is http://www.universalcargo.com

 

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[Walter Hay]

What is the sea port issue you speak of?

There are union disputes delaying shipping at LA and Long Beach.

This is the time of year when disputes often happen, and they are usually resolved in time, with the dock workers getting plenty of overtime to get the cargo moving into the stores and warehouses.

This should not be an excuse for air freight charges to rise, because both the disputes and the resolutions are so predictable every year.

 

[biggeemac]

Hi Walter.....thanks for the awesome AMA !

You mentioned earlier that electronics is a no-no, however, the product that I want to develop would require an LCD computer monitor. I'm guessing that when you said "stay away from electronics", this would include an LCD monitor. I would want to guarantee that my product is very high quality and has a low failure rate. Would this be possible importing from China?

 

[Walter Hay]

Hi Walter.....thanks for the awesome AMA !

You mentioned earlier that electronics is a no-no, however, the product that I want to develop would require an LCD computer monitor. I'm guessing that when you said "stay away from electronics", this would include an LCD monitor. I would want to guarantee that my product is very high quality and has a low failure rate. Would this be possible importing from China?

It would not be impossible, but would require very thorough research.

Not only would you need to do usual due diligence, check certifications etc. but you would need to persist in asking for and checking references. Search every nook and cranny of the internet for any mention of the supplier.

Testing the product yourself would not help unless you have the technical skills and equipment, but you could pay to have it tested. There are testing labs in China that will work at lower cost than the European or US ones, and if the lab has appropriate certification, such as Anbotek, mentioned in an earlier post, a good report would certainly reduce your risk.

 

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[biggeemac]

Thank you.....would getting a monitor, or other electronic device through a testing lab, be able to reduce my failure rate to, say, 5% or less? And would I, as a guy who doesn't even know if there is a real market for this "idea" that I have floating around in my head, be able to realistically afford to be able to put my LCD device through this appropriate testing process?

I guess I should step back and explain where I am at. I have been an I.T. professional for 15 years. I have been in many situations where this product would have come in very handy. So I want to develop this product that simply DOES NOT exist....at least, not in the form that I have in mind. It stands to reason that there would be a significant demand for this product, but as of today, I can't prove that the demand is there and it would be hard to prove the demand without a functional prototype. Can you provide some direction that a "little guy" with some limited resources can take? I'm willing to accept that the barrier to entry is too high for someone with limited resources.

Thanks again for the AMA. Rep transferred.

 

[Walter Hay]

Thank you.....would getting a monitor, or other electronic device through a testing lab, be able to reduce my failure rate to, say, 5% or less? And would I, as a guy who doesn't even know if there is a real market for this "idea" that I have floating around in my head, be able to realistically afford to be able to put my LCD device through this appropriate testing process?

I guess I should step back and explain where I am at. I have been an I.T. professional for 15 years. I have been in many situations where this product would have come in very handy. So I want to develop this product that simply DOES NOT exist....at least, not in the form that I have in mind. It stands to reason that there would be a significant demand for this product, but as of today, I can't prove that the demand is there and it would be hard to prove the demand without a functional prototype. Can you provide some direction that a "little guy" with some limited resources can take? I'm willing to accept that the barrier to entry is too high for someone with limited resources.

Thanks again for the AMA. Rep transferred.

I have the experience of one of my book readers to go by, but not much more specifically. The lady was very technically capable in relation to electronic devices, and was determined to buy from China. She found a highly proficient company making OEM tablets, and she tested them herself before buying.

They private labeled them for her and the last time she communicated with me she was very pleased with the products. She said the failure rate was very low, but did not specify a percentage.

Anbotek's rates seem very low, and you may well pay less than $150 for testing, but whether that would include endurance testing is something you would need to ask them. Before spending any money for testing you should exhaust all search possibilities to satisfy yourself that you have found a good manufacturer.

You will no doubt have to buy one item to send for testing, and if it proves satisfactory, at least one more for building a prototype, although I would order a small quantity to reduce unit freight cost.

Can you build your prototype using a locally available monitor instead? That should enable you to prove the concept without the extra cost of buying samples and testing.

 

[Walter Hay]

Globalsources.com

Because Alibaba get such a huge amount of attention, I tend to publish comments about them and this leads some to think that I am biased.

For this reason I decided to write about Globalsources for a change. According to an article by Bloomberg, 35% of registered vendors on Globalsources don’t renew after their first year. It is worth noting that is almost exactly the same as the number who quit Alibaba.

This high attrition rate highlights the fact that it is critically important to be able to have confidence in the verification and rating system used.

I began using Global Sources for product sourcing long before the advent of the internet. They published numerous printed product sourcing magazines, and I was a registered subscriber. There was no verification system then. If an advertiser could afford to pay, their advertisement would appear in the magazines.

Has anything changed? NO….. I had allowed my vendor registration on Globalsources to lapse so I set out to register again recently in order to update my knowledge of their system. The process was too easy. Without any verification procedure I was immediately awarded a 3 STAR rating, about which they say “Start as a 3-star advertiser to win buyers' trust fast.”

Strictly speaking there might be a verification procedure. They say they will send a contracted person to my address to collect a check. At least that would prove that I exist. They say they will visit my premises 3 times to verify, but instead they sent me an email telling me that their representative (in another country) would phone me. I am certain that he is not going to take a flight 5 hours each way on one occasion let alone three.

Here are quotes from a couple of complaints lodged online referring to the “verification” and rating system that the two complainants relied on to find suppliers they could trust:

“I have direct experience with GlobalSources.com and have proof in writing from senior executives in a series of emails where GlobalSources.com admitted the ‘rating’ system they call ‘verified supplier’ is based entirely upon how much money they collect from the supplier and nothing more.”

“I have $6,000 worth of fake cards sitting at home. The reason I went with Global Sources is that they are supposed to be more reliable than Alibaba. Based on my experience, they are as bad. The ratings on there, from my experience, are a joke and people should be very, very wary.”

Recently one of my book readers asked if it was safe to use an unverified supplier. The real fact is that on almost every popular B2B site there is near enough to zero benefit in dealing only with a “verified” supplier, and no greater benefit in dealing with a Gold, Premium, 4 Star etc…… supplier, because the security offered by the rating systems they use is mainly an illusion.


TOPIC HEADINGS PREVIOUSLY POSTED IN THIS THREAD:
■ Introduction. Dealing with myths and misinformation.
■ Some things you should know or do before you start product sourcing.
■ Part 1. Traveling to source supplies. Do you need to visit China? Trade Fairs.
■ The difference between Alibaba and Aliexpress.
■ Alibaba and the 2236 Thieves.
■ Sourcing from countries other than China. Is it worth it?
■ Part 2. Traveling to source supplies. Visiting factories in China.
■ Parallel Imports USA.
■ Do your suppliers use child labor or slave labor?
■ Inspection Services.
■ Sourcing Agents and Quality Control.
■ Q & A 1,2,3,4,5,6,7

 

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[miked_d]

Walter, Thank you for your AMA. I have learned a lot from it.

I had a question about shipping on samples. The item I am looking into is about the size and weight of an empty soda can. What shipping method is most cost effective for me?

Based on previous experience, I expect the cheapest to be HK/China Post, then ePacket, EMS, DHL/FedEx/etc. Is that correct or is my memory failing me?

 

[Walter Hay]

Walter, Thank you for your AMA. I have learned a lot from it.

I had a question about shipping on samples. The item I am looking into is about the size and weight of an empty soda can. What shipping method is most cost effective for me?

Based on previous experience, I expect the cheapest to be HK/China Post, then ePacket, EMS, DHL/FedEx/etc. Is that correct or is my memory failing me?

Hi Mike,

Your memory has served you well.

China Post is subsidized even more than HK Post, so will be a little cheaper.

If you don't need them urgently, the cost saving on using postal delivery is substantial, but many suppliers don't like using it because it means going to the post office to send the parcel. They will make all kinds of excuses, but if you persist they will usually give in.

Walter