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.

D

Deleted2BB3x9

Guest
Hey Walther,

I got my landed cost! It's still from the same manufacturer as the others I emailed did not respond. For me to get wholesale pricing, I would have to order 200. So the price for 200 and 50 replacement parts is 3283$. If I wanted to sell one product and one set of replacement parts at 47$, my total profit would be 3357$. Does this seem worth it to you?

Edit: I could also only sell the product for 35$ and make 3457$ profit and just sell the replacement parts separately.
 
Last edited by a moderator:

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,305
World citizen
Hey Walther,

I got my landed cost! It's still from the same manufacturer as the others I emailed did not respond. For me to get wholesale pricing, I would have to order 200. So the price for 200 and 50 replacement parts is 3283$. If I wanted to sell one product and one set of replacement parts at 47$, my total profit would be 3357$. Does this seem worth it to you?

Edit: I could also only sell the product for 35$ and make 3457$ profit and just sell the replacement parts separately.
There seems to be a discrepancy in your figures. Your edit states a higher total profit when selling for less.

Regardless of that, my concern is whether the profit is net after selling costs such as eBay, Amazon, PayPal, and postage. If it is a net figure, then doubling your money is probably OK, although I would not settle for that personally.

If you want to proceed, I would now try to negotiate a sample order of maybe 100 in order to reduce your risk. The smaller order may increase your per unit freight cost slightly, so you would need to decide if the small reduction in profit is worth it for your first order.

It seems to me that selling replacement parts separately makes more sense.

Walter
 
Last edited:

Bigguns50

Platinum Contributor
FASTLANE INSIDER
Read Fastlane!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
200%
Feb 12, 2013
1,846
3,691
Sedona, AZ
Thank you for this thread @Walter Hay .... really great !

In brief, the technique they use is to ask for payment to an individual.
I have very limited experience but I have had some product samples sent to me. One guy said "You can send me the shipping cost of $50). I ran .... FAST !

I also got stung when I set up the shipping instead of the 'manufacturer'. AFTER that I discovered the government subsidies their shipping costs. Good schooling.
 
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
13,305
World citizen
Thank you for this thread @Walter Hay .... really great !


I have very limited experience but I have had some product samples sent to me. One guy said "You can send me the shipping cost of $50). I ran .... FAST !

I also got stung when I set up the shipping instead of the 'manufacturer'. AFTER that I discovered the government subsidies their shipping costs. Good schooling.
It is common practice to have to pay for shipping on free samples, but I recommend telling the supplier that you have had good service with airmail from China Post, so please send the sample by airmail.

In fact it could take up to a few weeks to get the sample that way, but the supplier will rarely want you to pay even for the postage. It's worth a try.

Walter
EDIT. Quoting your Air Courier account number can be risky unless you have prearranged a good deal from your courier and got it in writing.
 
Last edited:

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,305
World citizen
I promised a post about visiting factories in China, and here it is:

TRAVELING TO CHINA TO VISIT FACTORIES

For those who have both the time and money available, face to face visits are impossible to beat when it comes to building relationships, conducting due diligence and checking manufacturing facilities and procedures.

Never go to China without thorough preparation. If you intend visiting factories, there is no point in the exercise unless you are very confident that the supplier is one you want to do business with.

It is important to remember that China is a huge country and travel within Chinese cities can be appallingly slow. It is acceptable to let the potential suppliers know when you will be in the country and that you will contact them on arrival in the city where you will be staying. Having arranged to visit them, check all travel arrangements necessary to be there on time. The hotel staff will usually help you with this.

I will introduce this subject with a story about finding a supplier’s factory in Taipei. When I first started visiting China as an importer, I already knew my way around Taipei in Taiwan because I had for some years been exporting to Taiwan as well as mainland China where my biggest customer was.

As an exporter I had been introduced to many businessmen, mostly “cousins” and from those introductions I eventually set up as an importer in 1987. The problem was that most of the cousins could not satisfy my product requirements so I had to look elsewhere.

I knew how to make contact with potential suppliers, and I made a point of visiting them as part of my due diligence. One of the reasons was that I wanted to deal only with manufacturers, so I needed to visit their premises. This is where the fun began.

Unlike India or Pakistan, the addresses of people and businesses in China (and Taiwan) are set out in a very orderly fashion. On one visit I had to find two potential suppliers whose addresses did not sound auspicious. They went something like this: No. 75, Alley 16, Lane 23, Nanking East Road. An alley off a lane!

The two could not have been more different. Chalk and Cheese! The first I found after a hair-raising taxi ride which stopped in the lane, unable to reach the alley, because of heaps of cartons, bicycles, motor scooters etc., clogging access. Eventually on foot I found the alley, then the premises.

In the usual fashion I was treated to tiny cups of Jasmine scented green tea, but there was so little room that even the sofa where guests should be received had to be cleared for sufficient space to sit down. The staff of 3 were continually interrupted by the telephone, and it did not take me long to decide that this was simply a wholesaler, or reseller, or agent, who knew little about the product type I sought although they had advertised it.

The second one was not very far away so I walked and was amazed to find in their alley a gleaming showroom, with well set up offices, and the light manufacturing process being carried out in immaculate premises upstairs. I dealt with that manufacturer for about 4 years until my business began to leave that product line.

Once you arrive at the business premises, you will usually be greeted on arrival by someone who may appear to be a junior staff member, but it is customary for a female staff member to be appointed as your hostess. She will speak good English and her mission is to make you feel like an honored guest while observing strict propriety.

She will often have some authority to negotiate, but price negotiations on the first contact are not desirable. Do that later in your visit, or even later on your return home. Visits are usually restricted to the reception area, where you usually drink Jasmine flavored green tea. If you empty your cup, it will be refilled.

Before leaving home you should have asked to visit the factory. If the factory is on the same premises as the office you are in, you may be sure you are dealing with a manufacturer. If taken to another location, do the following to determine whether or not the people you are dealing with own the factory: Assuming you cannot read Chinese, just compare Chinese characters on signs outside the premises with those on the business card supplied by your hosts.

Bear in mind that factories are often multi-story, with a multitude of businesses in the same building, so there may not be a noticeable sign. In that case ask the factory manager for his card. If this causes embarrassment or he cannot supply one, it strongly suggests that you are dealing with an agent, not directly with the manufacturer. If you request a card, you should also offer yours. Ask your hostess, “Do you own this factory?” You will only know the answer is truthful if she says no. If she says yes, you cannot be sure. This is not necessarily due to dishonesty, as she may misunderstand your question, or she may interpret it to mean, “Is this the factory that produces all of your products?” The investigations done prior to your trip will also help in your assessment.

One thing that you will find is that determining whether or not the supplier is a genuine manufacturer is not easy. I now find it easier to determine that by using the reports published by independent European inspection services and found on a few B2B sourcing sites, and I would limit my visits to those suppliers that have been verified in that manner.

Don't forget, if you want to find your way back to your hotel, make sure you have the hotel’s card to show to the taxi driver.

Walter
 

Simon Ashari

Bronze Contributor
Read Fastlane!
Read Unscripted!
User Power
Value/Post Ratio
75%
Feb 29, 2012
168
126
Sydney, Australia
Fantastic info in this thread.

I have a question about your product selection process.

Do you look for products and then investigate potential demand?

Or do you find a need in the market and then see if a product can be sourced?

Or is there another way?

Cheers
 
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
13,305
World citizen
Fantastic info in this thread.

I have a question about your product selection process.

Do you look for products and then investigate potential demand?

Or do you find a need in the market and then see if a product can be sourced?

Or is there another way?

Cheers
I am no longer selling any physical products. I retired a few years ago, and I have never done any serious online marketing.

With that disclaimer behind me, let me just say that the two highly successful businesses I started from zero both involved products that were in high demand. I knew about the first one because I had been a successful salesman in that industry.

My first real business: I knew there were major product improvements possible, but my boss would never allow me to make any changes. A year after I left that job and could not find any suitable sales position I said "Heck, I know where there is a market for a product that has not yet been developed!" It was an industrial chemical product and I played around with formulas until I found the right one, and I launched it on the market. Within 3 years I had a national monopoly in that specialized area, and within 11 years I was exporting the product to Asia Pacific countries. Price was not an issue. I could ask whatever I wanted because the product eclipsed the competition from some of the biggest chemical companies in the world. They were stuck in a rut. I thought outside the square.

My second real business: A passing complaint by a family member about the atrocious service his business was getting from every supplier they had tried for a particular product, triggered an idea. During my many visits to China as an exporter I had been urged by numerous contacts to consider importing what they manufactured. One such product was the exact type that my family member had mentioned. I started by buying locally to test the market, but quickly tired of the poor service and indifferent quality, so I began buying from China. Wow! Better service, faster delivery, and substantially superior quality all at incredibly low cost. That low cost did not stop me from selling at prices way higher than my local competition, because I was also selling something they could not get: service.

So to answer your question more directly, I found a need in the market and then in Business #1 developed the product and made it myself and in Business #2 I accidentally found a need in the market and I sourced the product overseas. By the way I did not buy from the business that offered me their product while I was in China.

Walter
 

Simon Ashari

Bronze Contributor
Read Fastlane!
Read Unscripted!
User Power
Value/Post Ratio
75%
Feb 29, 2012
168
126
Sydney, Australia
My first real business: I knew there were major product improvements possible, but my boss would never allow me to make any changes. A year after I left that job and could not find any suitable sales position I said "Heck, I know where there is a market for a product that has not yet been developed!" It was an industrial chemical product and I played around with formulas until I found the right one, and I launched it on the market. Within 3 years I had a national monopoly in that specialized area, and within 11 years I was exporting the product to Asia Pacific countries. Price was not an issue. I could ask whatever I wanted because the product eclipsed the competition from some of the biggest chemical companies in the world. They were stuck in a rut. I thought outside the square.

Walter

Gold right there.

When I think of people importing from China, I always default to thinking about cheap toys etc.

I don't think of chemicals or other such products.

Your answer inspires a new question:


Was the process of 'playing around with formulas' easy or a hassle?

How did you go about doing it and organizing it with the manufacturer?
 

GregH

Bronze Contributor
Speedway Pass
User Power
Value/Post Ratio
198%
Oct 16, 2012
61
121
37
New Jersey
P.S. I often advise my students to consider the USA as a manufacturing source. It is largely overlooked, but many US manufacturers are quite competitive. The same applies to a number of developed countries, including Italy and Germany, but in your case, proximity to the US is advantageous.

Is this just for certain types of products or all products?
 
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
13,305
World citizen
Gold right there.

When I think of people importing from China, I always default to thinking about cheap toys etc.

I don't think of chemicals or other such products.

Your answer inspires a new question:


Was the process of 'playing around with formulas' easy or a hassle?

How did you go about doing it and organizing it with the manufacturer?
The chemicals I refer to were industrial products used in a few industries. I am not a qualified chemist, and that is why I said 'playing around with formulas'. I had a good idea from practical experience that certain chemicals would enhance the performance of the products that almost every factory in those industries used, and so I experimented with many, many variations until I found one that worked very well. I had to test it in production and the production manager at one of the factories where I used to sell the inferior product was happy to try it. After a short production run he placed a big order on the spot. The experimenting took me a long time and required a huge amount of patience and persistence. I manufactured the product myself to maintain secrecy.

If you can find a market for industrial chemicals, you can do very well importing from China, but most chemical companies there will expect commodity size orders. You would need to look for "Specialty Chemicals" in order to find smaller companies that will be happy to deal with you.

You can source almost any product imaginable from China. but I would avoid Electronics, Food, and Food Supplements.
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,305
World citizen
Is this just for certain types of products or all products?
It is not all products, but there can be many surprises. If labor is not a huge factor, the product may be competitive with China in many other countries.

Just look at retail stores and see what types of manufactured products made in Germany, Italy, USA, Australia etc, are retailing at prices equal to or even lower than similar products from China.

I recently purchased batteries for small electrical devices and they were made in Germany. Quality is great and the prices matched those from China.

The lowest prices I ever saw for souvenir decals were from a manufacturer in Italy.

I have seen stunning original design jewelry in the Czech Republic that you would never see in most western countries and the prices were amazingly low.

Low wages are not the only factor. I know of one labor intensive factory in Boston MA, where the business is booming and believe it or not, the average age of the workers is over 70! They are paid regular wages, but the company says they provide better productivity than younger workers, and as a result this long established business remains competitive and sales continue to grow.

The moral of the story is - think outside the square.

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.
Traveling to source supplies. Do you need to visit China? Trade Fairs.
The difference between Alibaba and Aliexpress.
Traveling to China to visit factories.
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,305
World citizen
DO YOUR SUPPLIERS USE CHILD LABOR OR SLAVE LABOR?

There is something quite simple that all importers from China can do to avoid buying from sources that take unfair advantage of employees or even worse, employ under age, indentured, or slave labor.

I teach safe sourcing and among the things I do is advise people to avoid the big popular websites. One of those big sites, Alibaba does have an audit system that sometimes includes social responsibility compliance verification, but it only applies to suppliers displaying a red tick in a blue circle and it is essential to read the whole audit report. Two of the sites that I recommend instead of the big sites routinely have supplier assessment processes that include not only verification of their manufacturing capability, but also verification of social compliance.

This means that they satisfy the strictest rules regarding employees' ages and working conditions, as well as social responsibilities.

During my many visits to China since I started exporting there in 1978, I have seen great improvements in working conditions. I have visited numerous factories and examined their manufacturing processes.

When I began importing in 1987, conditions in the factories operated by most of my suppliers were on a par with conditions I had observed in other countries such as USA, Australia, and the UK. A few had some way to go to catch up.

Now, when I visit those socially responsible manufacturers they have premises that look more like pharmaceutical factories than industrial premises. The industrial processes that generate dust no longer show signs of that dust on the floors. Cleanliness is almost clinical. Workers have plenty of room. Floors have line markings to separate production areas from forklift and trolley traffic areas so risk of injury is very small.

Some of these improvements are a direct result of Government regulations, but others are a result of a pragmatic decision to satisfy western buyers. In either case the outcome is good for the workers.

While it is a sad fact that China ranks as the 84th worst country for slavery I know that my importing students can be confident that they are dealing with manufacturers whose practices are as fair as those in any western countries. I can sleep with a clear conscience and I am sure so can my students who follow my methods.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

SeanyHang

Bronze Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
287%
May 24, 2013
167
479
34
New Jersey
I'm pretty new to importing (started about two months ago) and I've already learned so much as well as made a decent little chunk of cash. When emailing suppliers who I find on Alibaba, I've found that a bunch of suppliers will email me with a quote for the product I want, along with ipads for $56 or whatever their price may be. Although these suppliers are giving me a quote for my desired product, I usually skip over their emails because their little email-catalog of knockoff apple and samsung products seems too sketchy to me. Am I wrong for doing this? Do a lot of manufacturer's/suppliers sell this apple stuff (obviously knockoff or stolen)? I should note that these guys are usually the ones giving me the best quotes as well which in my opinion is just them saying "Hey dude... I'm going to scam the shit out of you :D ".

Great thread btw!
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,305
World citizen
I'm pretty new to importing (started about two months ago) and I've already learned so much as well as made a decent little chunk of cash. When emailing suppliers who I find on Alibaba, I've found that a bunch of suppliers will email me with a quote for the product I want, along with ipads for $56 or whatever their price may be. Although these suppliers are giving me a quote for my desired product, I usually skip over their emails because their little email-catalog of knockoff apple and samsung products seems too sketchy to me. Am I wrong for doing this? Do a lot of manufacturer's/suppliers sell this apple stuff (obviously knockoff or stolen)? I should note that these guys are usually the ones giving me the best quotes as well which in my opinion is just them saying "Hey dude... I'm going to scam the shit out of you :D ".

Great thread btw!
You are absolutely right. These are scammers.

None of them are manufacturers because it is only traders and wholesalers who offer a lot of unrelated products, whether fakes or not. You need to find real manufacturers if you want to make real money. The only ones you can be sure of on Alibaba are those with a red tick in a blue circle, (provided the audit report identifies their manufacturing capacity) but they tend to be the bigger ones.

Look for some of the less popular sourcing sites and see if they have a proper verification system that includes identifying genuine manufacturers.

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.
Traveling to source supplies. Do you need to visit China? Trade Fairs.
The difference between Alibaba and Aliexpress.
Traveling to China to visit factories.
Do your suppliers use child labor or slave labor?
 

MoneyDoc

Platinum Contributor
Speedway Pass
User Power
Value/Post Ratio
273%
Jun 24, 2014
1,578
4,313
One thing I noticed on this forum and with people in general is that they know what importing is but they don't know how to reach the manufacturers, how to professionally contact the manufacturers, which payment method to use, etc. Make's me think of a fastlane opportunity here... I have a perfect domain name too..
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

MoneyDoc

Platinum Contributor
Speedway Pass
User Power
Value/Post Ratio
273%
Jun 24, 2014
1,578
4,313
I'm pretty new to importing (started about two months ago) and I've already learned so much as well as made a decent little chunk of cash. When emailing suppliers who I find on Alibaba, I've found that a bunch of suppliers will email me with a quote for the product I want, along with ipads for $56 or whatever their price may be. Although these suppliers are giving me a quote for my desired product, I usually skip over their emails because their little email-catalog of knockoff apple and samsung products seems too sketchy to me. Am I wrong for doing this? Do a lot of manufacturer's/suppliers sell this apple stuff (obviously knockoff or stolen)? I should note that these guys are usually the ones giving me the best quotes as well which in my opinion is just them saying "Hey dude... I'm going to scam the shit out of you :D ".

Great thread btw!
Anyone in China that offers you and iPad for $56 is not a legitimate person. Just forget those suppliers entirely.
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,305
World citizen
One thing I noticed on this forum and with people in general is that they know what importing is but they don't know how to reach the manufacturers, how to professionally contact the manufacturers, which payment method to use, etc. Make's me think of a fastlane opportunity here... I have a perfect domain name too..
You are tempting me to engage in some self promotion by telling readers that I have already done what you are thinking of doing. Oh well.....

No matter what you publish, the majority of people seem to prefer to listen to suggestions by amateurs. I find that even some Fastlane members seem to think that they can learn all they need to know about a subject by asking a few questions.

A post by jpmartin in the thread: 'Mindset, Motivation, Choices' started by xabi, Oct 3, 2014, that I thought summed it up well said: "If you think education is expensive, try ignorance."

I have seen so many people get burnt in importing when they could avoid that with some real education on the subject.

Good luck with your new opportunity.
 
Last edited by a moderator:

MoneyDoc

Platinum Contributor
Speedway Pass
User Power
Value/Post Ratio
273%
Jun 24, 2014
1,578
4,313
You are tempting me to engage in some self promotion by telling readers that I have already done what you are thinking of doing. Oh well.....

No matter what you publish, the majority of people seem to prefer to listen to suggestions by amateurs. I find that even some Fastlane members seem to think that they can learn all they need to know about a subject by asking a few questions.

A post by jpmartin in the thread: 'Mindset, Motivation, Choices' started by xabi, Oct 3, 2014, that I thought summed it up well said: "If you think education is expensive, try ignorance."

I have seen so many people get burnt in importing when they could avoid that with some real education on the subject.

Good luck with your new opportunity.
Sorry, I should've been more clear.

I didn't mean I was going to write an ebook or something. Rather a service.


Sent from my iPhone using Tapatalk
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.
Last edited by a moderator:

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,305
World citizen
Sorry, I should've been more clear.

I didn't mean I was going to write an ebook or something. Rather a service.


Sent from my iPhone using Tapatalk
Thanks for clarifying the point.

There could well be a place for someone with appropriate knowledge to do what you are thinking of. I am constantly receiving requests to mentor newbie importers. I can't handle that because of the time I devote to support my book buyers, but someone who wants to go down the mentoring route could do well in this field.
 

PeeVee

Bronze Contributor
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
217%
Dec 17, 2013
227
493
Minneapolis, MN

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,305
World citizen
Agree. I'm not saying someone shouldn't do it.
Yes there are many people offering their services as mentors for new importers, but there is clearly demand for the service, because as I mentioned, I am constantly receiving requests for such a service.

There are two main keys to success if someone wants to offer such a service:
1. Know the subject thoroughly.
2. Establish a reputation as an expert.

I have seen people offer their services as experts or mentors but they obviously only know what they have picked up from research rather than experience. I often see people posting misinformation on forums but they sound as though they are speaking with authority.
 

ddall

continuous self-improvement
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
402%
Dec 5, 2013
224
901
Toronto, ON
Walter,

The value you have provided in this thread is excellent. Thank you.

I have a question. I've imported 500 units of an item, and had them shipped from China to an intermediate inspection warehouse in the US before forwarding them on to Amazon FBA. 48 of those units (approx $600 worth of product) is damaged. Not the item itself but the packaging, which is high end, essentially has rendered the items non-salable. I think the manu did a poor job and protecting the product within the boxes. 10% damage rate seems high.

1) What is a common course of action in this situation? Should I go hard on the manu and request refund? Ship it back at their expense for repackaging?Am I screwed? What advice would you suggest in these scenarios.

Thank you.
 
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
13,305
World citizen
Walter,

The value you have provided in this thread is excellent. Thank you.

I have a question. I've imported 500 units of an item, and had them shipped from China to an intermediate inspection warehouse in the US before forwarding them on to Amazon FBA. 48 of those units (approx $600 worth of product) is damaged. Not the item itself but the packaging, which is high end, essentially has rendered the items non-salable. I think the manu did a poor job and protecting the product within the boxes. 10% damage rate seems high.

1) What is a common course of action in this situation? Should I go hard on the manu and request refund? Ship it back at their expense for repackaging?Am I screwed? What advice would you suggest in these scenarios.

Thank you.
I am guessing that you did not have the shipment insured. In that case your only recourse is with the manufacturer.

First, I suggest you take photos that clearly show the damage, and if possible showing all 48 units with damage in one of the photos.

If this is your first shipment they will be wary of you, just as you might be of them. Approach them gently, not hard at first. Be very polite, and if possible give them a way to save face. Maybe you could say something like: "Perhaps the outer packaging needs to be stronger in future." I would not ask immediately for a refund, but would report the problem and ask them to suggest what should be done.

Depending on their reply you will know what your chances are. I would be prepared to accept a discount on the 48 if there is any possibility of selling them minus the packaging, but don't suggest that until it becomes obvious that a full refund is not going to be given.

Walter
 

ddall

continuous self-improvement
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
402%
Dec 5, 2013
224
901
Toronto, ON
I am guessing that you did not have the shipment insured. In that case your only recourse is with the manufacturer.

First, I suggest you take photos that clearly show the damage, and if possible showing all 48 units with damage in one of the photos.

If this is your first shipment they will be wary of you, just as you might be of them. Approach them gently, not hard at first. Be very polite, and if possible give them a way to save face. Maybe you could say something like: "Perhaps the outer packaging needs to be stronger in future." I would not ask immediately for a refund, but would report the problem and ask them to suggest what should be done.

Depending on their reply you will know what your chances are. I would be prepared to accept a discount on the 48 if there is any possibility of selling them minus the packaging, but don't suggest that until it becomes obvious that a full refund is not going to be given.

Walter


Thank you Walter. It was an air shipment and it was not insured. The manu and I have thus far had a good relationship, we have worked closely on designing this product. I think they likely packaged these poorly for the boxes to be so damaged. One solution I am hoping to implement is have the warehouse hold onto the damaged goods (at a small fee) and have the manu ship replacement packaging as soon as possible. Perhaps the manu and I can split the costs. Thank you greatly for your wisdom on this matter. Selling them individually will likely not work, they are highly branded and customized for sale on Amazon. I guess I could create a new 'refurb' listing and sell at a lower price just to offload and recoup costs but for my strategy I think it would be better to have the inventory repackaged and sent to Amazon under normal listing. I will take your advice and maintain a very polite interaction, with a mindset to ensure they can preserve 'face' in our dialog. Thank you
 

Walter Hay

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
User Power
Value/Post Ratio
401%
Sep 13, 2014
3,318
13,305
World citizen
Thank you Walter. It was an air shipment and it was not insured. The manu and I have thus far had a good relationship, we have worked closely on designing this product. I think they likely packaged these poorly for the boxes to be so damaged. One solution I am hoping to implement is have the warehouse hold onto the damaged goods (at a small fee) and have the manu ship replacement packaging as soon as possible. Perhaps the manu and I can split the costs. Thank you greatly for your wisdom on this matter. Selling them individually will likely not work, they are highly branded and customized for sale on Amazon. I guess I could create a new 'refurb' listing and sell at a lower price just to offload and recoup costs but for my strategy I think it would be better to have the inventory repackaged and sent to Amazon under normal listing. I will take your advice and maintain a very polite interaction, with a mindset to ensure they can preserve 'face' in our dialog. Thank you
Your existing good relationship is a good starting point. This situation highlights the value of building those relationships and that can involve simple things such as friendly exchange of greetings at appropriate times without any reference to business matters.

In addition to holiday greetings, an example could be to thank your contact for the prompt and helpful manner in which they have been dealing with your emails. Give them a warm and fuzzy feeling every now and then and it can work wonders. It can pay to treat your suppliers the same way you would treat your customers in order to maintain their custom.

I agree with your approach regarding possibly splitting cost of freight on the replacement packaging. If you go the extra mile in this first problem situation, it will likely establish a good foundation for smooth handling of any future problems.

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
13,305
World citizen
Q&A 1

I get a huge number of questions from individuals and have decided to share those that do not contain confidential information, such as specific products or suppliers. Those who rely on me for guidance would not appreciate it if I broadcast their niche or their perfect supplier's name.

I will post a new question and answer periodically.

Q: I have seen some great products that look almost identical to one of the well known brands, but they are unbranded. Can I buy these and put my own label on?

A:
Never ever try to import branded goods either for personal use or especially for resale.

One thing often overlooked is that unbranded copies of big brand goods can also land you in big trouble. Designs are copyrighted, so if it looks even almost identical to the real thing it is illegal to buy or sell it. The differences in appearance might make you think that it does not infringe copyright, but is it worth the risk of losing all your money, a lawsuit, and possible fines?

A second point overlooked is that rebuilt, renovated, repaired, or refurbished genuine branded goods can also land you in deep water. One of the reasons is that in virtually every case, the parts used for the refurbishment will be non-genuine, but the main reason is that Customs in every country have automatic alerts that flag anything with those brands, so even a single refurbished item is likely to come to their attention.

You will never win an argument with them about the goods being second hand, and do you want the hassle and likely loss of your money anyway? Once you have come to the attention of Customs, even if you were not committing an offense, chances are all of your imports will be delayed from then on.
 
Last edited:

1step

Gold Contributor
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
231%
Dec 4, 2012
1,038
2,396
Kentucky
I was working on shipping terms with a manufacturer and he said that if I wanted to do a bank transfer that the shipment could only leave the country on a boat (no air freight). Is this some kind of limitation placed on some manufacturers? Can you clarify if this is legit?
 

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