30k saved and 7 years of sales experience

[Wonder3581]

Hi all - Well, I have an 8 month old daughter, married, have mortgage, bills etc. although I have managed to save up $30k. Now, my focus to exit the slow lane has been to start an importing business. I have already identified the product and established that it will sell very well. My question is, do I place the responsibility on the manufacturer, who is also the direct seller, to ensure the product arrives safely here in Portland, OR where I reside. Or should I contact a freight forwarder to work with the manufacturer and finalize the details of getting the product to my home?

I have contacted a few freight forwarders and none of them seem to take me seriously. For one, my initial shipment is SMALL, 10-20 items max. Depending on how well that shipments sells will establish the frequency and volume of shipments. So, to recap - 2 questions

1 - When dealing with a direct seller (In Colombia) should the responsibility be on the seller to ensure the product arrives safely at my residence, so that I can resell it in the States?

2 - If the answer to the first question is NO. Then, does anyone have any suggestions on a reputable fright forwarder that works with entrepreneurs/small businesses?

Thanks!

Matt

 

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[LamboMP]

Make sure your trade terms are CIF. You should get a copy of the insurance policy and bill of lading in case something happens to your shipment so you can make a claim. Your shipment will go into customs, and you will normally get a call from the affiliated freight forwarding company when your shipment arrives with details on how to pick up your shipment.

 

[LamboMP]

if you have a forwarding/customs broker that you want to deal with, you can try and arrange something with the seller on their end. sometimes they are receptive and will use the forwarder on the other end that is affiliated to the one you want to use in the states.

 

[yahdmon]

You dont need them yet

You do not need a forwarder as yet. Well to be sure, is your product valued over 2000 bucks?
If not then you do not need a customs broker - yet. As to forwarder, try to have the manufacturer arrange it first. Generally they already know of a few whom they can use. If not then see about shipping via DHL or some other shipper.

Hi all - Well, I have an 8 month old daughter, married, have mortgage, bills etc. although I have managed to save up $30k. Now, my focus to exit the slow lane has been to start an importing business. I have already identified the product and established that it will sell very well. My question is, do I place the responsibility on the manufacturer, who is also the direct seller, to ensure the product arrives safely here in Portland, OR where I reside. Or should I contact a freight forwarder to work with the manufacturer and finalize the details of getting the product to my home?

I have contacted a few freight forwarders and none of them seem to take me seriously. For one, my initial shipment is SMALL, 10-20 items max. Depending on how well that shipments sells will establish the frequency and volume of shipments. So, to recap - 2 questions

1 - When dealing with a direct seller (In Colombia) should the responsibility be on the seller to ensure the product arrives safely at my residence, so that I can resell it in the States?

2 - If the answer to the first question is NO. Then, does anyone have any suggestions on a reputable fright forwarder that works with entrepreneurs/small businesses?

Thanks!

Matt

 

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[johnp]

I have contacted a few freight forwarders and none of them seem to take me seriously

Why aren't they taking you serious if you can sell well? Is it because the shipment is too small? If that's the case them can't you pitch them on the fact that they will be doing more business with you in the future? When it comes down to it they are a biz too...they need money and clients. They should be worried about whether or not you take them serious and you need to project that feeling onto them ....

There is a really good book out there if you are interested and have never read it. It's called How To PItch anything. It goes Into the neuroscience behind the pitch and basic communication.

 

[Wonder3581]

Thank you Lambo! Very helpful. the company I am dealing with is W.J. Byrnes & Co. - Customs Brokers

Yesterday, I mentioned the request for CIF terms and my contact replied with the below. It makes sense to me to ensure the terms are CIF, but I think the reason my contact said that it wouldn't make sense, is because I would no longer need his service on this deal. My only concern is figuring our what I will have to pay in duty fees if I go CIF.

"That wouldn’t make sense. CIF means that the shipper is responsible for paying the ocean freight and insurance all the way to Portland. You, and by extension, WJ Byrnes, wouldn’t be involved. If you are responsible for paying the ocean freight then terms are FOB.

If you are buying CIF but your shipper is looking for a forwarding agent out of CO then we can refer them to our guys but the rates, etc. would be negotiated between them.


Some background. CIF is “easier” in that you don’t have to get involved in the ocean freight, etc. Your supplier does it all for you and either includes the costs in the unit value or breaks it out separately on their invoice to you. Catch is, unless your supplier provides you with a copy of their bill for frt & ins you end up paying duty on those costs. Very often they don’t want to do it because they mark those costs up a little.

FOB is harder, in that you have to come to me, get a quote, arrange for your supplier to contact my agent, etc. but then you won’t be paying more duty than you should.

 

[Wonder3581]

Well to be sure, is your product valued over 2000 bucks?
If not then you do not need a customs broker - yet

Confirmed, the total value of first shipment is under $2k. Definitely going to urge the factory to suggest some options for getting the merchandise up here. I believe that have connections with freight lines to Spain and Germany, but not sure about U.S. On the to do list.

 

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[Amail]

I've received small shipments from China that are marked "Gift". They breeze right thru customs without a second glance.

 

[LamboMP]

Request the CIF price from your supplier. You would not need that company becuase you would be using the affiliated company. Don't over think it. It really isn't that complicated. He will send the docs (copy of bill of lading and insurance) via courier to your address, then will send the official BOL when the shipment leaves the port. As soon as the shipment hits the US, you should receive a phone call from the freight forwarder on the approximate time that the shipment will arrive to the sufferance warehouse. Once it arrives you prepare the customs package in which you submit to customs, pay the forwarder, and the forwarder will tell the sufferance warehouse that it is OK to release once customs and holding charges have been dismissed.