My Awesome Experience with IMEX Sourcing Services

[ljb7]

This post is about my experience with IMEX sourcing services. Some of you may have heard of IMEX, just like I did, through the forum. @Elizabeth Shi here on the fastlane forum works for IMEX, so if you have any questions just shoot her a message.

*Disclaimer: I haven’t been asked to write this post, and while I’ve experienced the first of many awesome experiences with IMEX and their service, I can’t GUARANTEE you the same success (although it’s likely, seeing how they work!)*

Background on me: Been working on Amazon FBA and Ebay for the past few months, sales have started picking up, and I’m starting to see some traction. My biggest product is sourced from China, hence where IMEX came in.

So why am I writing this post? Well, I used to source my product from a trader. The manufacturer for my product was nowhere to be found, and I’m usually pretty good at finding manufacturers. I reached out to IMEX after reading their sourcing blog and seeing their presence on the forum, and I can guarantee that without them I would have been much worse off than I am with them.

Some of the things that IMEX (and any other reputable sourcing service) will do for you:

1. Cut costs… My cost per unit was cut in half as soon as IMEX contacted the original factory, I’m not saying yours will be as drastic as mine, but I’m not saying it won’t
2. Quality control, they’ll create liability contracts with the manu and make sure that they perform as well as possible
3. QC checks - because I was concerned about the quality of my product over a bunch of them, IMEX were kind enough to check more than usual and made note of everything that was up. They went back to the manufacturer with the issues and now I’m owed XX products free on my next order.
4. They even do a freight forwarding service. I haven’t used this yet because my order was still relatively small (600 units, small product),
5. Once you start placing larger orders ($2500 and up) Quality control gets a lot stricter IIRC
6. I'm sure there's more..

Now I don’t normally make long posts raving about companies but I truly am impressed with IMEX and had to recommend them. My account rep Juliet was absolutely wonderful, and would reply to my questions promptly, help me out in every way shape and form and try to reach all my requests.

I personally cannot see the reason why you wouldn’t use a sourcing service, ESPECIALLY if you have a hunch you’re dealing with a trader. I’m actually surprised it’s not more talked about. You save money, time and headaches- three things nobody would miss!

So thanks IMEX, and if anybody has any questions just leave them here or shoot them over to @Elizabeth Shi

 

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

[Vigilante]

Did they charge a markup on the product, or how did you pay for their services, and what % of your initial order did their services cost you?

 

[ljb7]

Did they charge a markup on the product, or how did you pay for their services, and what % of your initial order did their services cost you?

IMEX's 360 Service is $400 per product, which includes sourcing a manufacturer (if you'd prefer them to find one), Inspection, negotiation, liability contracts, QC and communication. If you are looking to source 2 or more products, and you're sourcing over $2500 worth of each product, it's still only a $400 fee (not double).

The way they benefit in the transaction (to my knowledge), is that they agree on a set commission with the factory themselves (and I have no idea what that commission may be) for bringing orders to that factory.

In terms of % they cost me (including freight charges) roughly 20% of the whole amt. That may sound a little high when just reading the number but you have to consider two things-

1. Without them, my order would have totaled roughly $3300 instead of the $2100 with them.
2. That 20% amt of their services will only decrease with larger orders because while my order size and price will increase, their service price will stay the same, meaning % will decrease.

I actually really like the way this business model works, because it works for all parties and ensures that everyone performs their best...

I hire IMEX >> They find a supplier >> They arrange a commission with the factory for bringing them orders >> They work their best so that the factory produces top quality goods for me, in a timely manner >>> I have happy customers and increase sales, less problems with staying in stock and less headache in general >> I make more money and my orders for the factory get bigger each time >> IMEX get a larger commission each time, helping them profit >> factory gets more orders helping them profit

In fact for the first order (or smaller orders under $2500), I doubt that sourcing services make much of a profit themselves AT ALL... They, just like you are in it for the long term. They have incentive to over achieve, because if they do, they get paid (and we do too).

I hope that clears it up a little.

 

[MJ DeMarco]

Wow, so glad to hear a good story. I'd imagine that sourcing stuff in China can be a harrowing experience. Based on what you've reported, totally sounds like a value-chocked no-brainer.

PS: IP checked, doesn't come from China.

 

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

[biggeemac]

Indeed....sounded almost afiliate'ish. Thanks for the great info.

 

[ZeroExile]

That's interesting, I haven't ever heard of them before but I will do more digging around to find more testimonials..

 

[doncruz]

Can they help you with the customization of the product for your specific niche?

 

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

[Elizabeth Shi]

This post is about my experience with IMEX sourcing services. Some of you may have heard of IMEX, just like I did, through the forum. @Elizabeth Shi here on the fastlane forum works for IMEX, so if you have any questions just shoot her a message.

Hi Ljb7,

Thanks for taking the time to write such a detailed review about the service. It is not often that clients take the time to share a positive review after a good experience, so it feels great when we hear such a positive review. We especially like to hear from online sellers, as a large proportion of our clients are Amazon FBA/eBay powersellers. It was also a very smooth experience working with you.

Did they charge a markup on the product, or how did you pay for their services, and what % of your initial order did their services cost you?

We have a few different pricing structures, depending on the type of service required, type of the product etc. Feel free to drop me a PM with your email and I will be happy to send you more details.

IMEX's 360 Service is $400 per product, which includes sourcing a manufacturer (if you'd prefer them to find one), Inspection, negotiation, liability contracts, QC and communication. If you are looking to source 2 or more products, and you're sourcing over $2500 worth of each product, it's still only a $400 fee (not double).

The way they benefit in the transaction (to my knowledge), is that they agree on a set commission with the factory themselves (and I have no idea what that commission may be) for bringing orders to that factory.

In terms of % they cost me (including freight charges) roughly 20% of the whole amt. That may sound a little high when just reading the number but you have to consider two things-

1. Without them, my order would have totaled roughly $3300 instead of the $2100 with them.
2. That 20% amt of their services will only decrease with larger orders because while my order size and price will increase, their service price will stay the same, meaning % will decrease.

I actually really like the way this business model works, because it works for all parties and ensures that everyone performs their best...

I hire IMEX >> They find a supplier >> They arrange a commission with the factory for bringing them orders >> They work their best so that the factory produces top quality goods for me, in a timely manner >>> I have happy customers and increase sales, less problems with staying in stock and less headache in general >> I make more money and my orders for the factory get bigger each time >> IMEX get a larger commission each time, helping them profit >> factory gets more orders helping them profit

In fact for the first order (or smaller orders under $2500), I doubt that sourcing services make much of a profit themselves AT ALL... They, just like you are in it for the long term. They have incentive to over achieve, because if they do, they get paid (and we do too).

I hope that clears it up a little.

Hi,

Thanks for this. I just wanted to post a clarification there. The fee structure mentioned above, has been replaced with a new structure post the Chinese New Year. Also, with the above structure, we do not actually take anything from the factory as that would compromise on the quality control process. We only represent and act on behalf of the customer. Taking a commission from the factory would mean, that if QC issues do arise, which often happens when working with Chinese factories, we have little to no negotiation power with the factories. So in this model, whatever we charge is from the customer only.

In terms of the fee as a % of order value, this depends on the order value and normally averages out to 5% per order, as long as the order amount is more than $10,000. For orders below that, the fee % can be higher as a % of order total, as for orders below that, we do have a minimum fee, like in this case. In many of the orders, we are able to source the product a lot cheaper than 5%, thereby making it a win-win situation, effectively making the service free of cost with the additional quality control benefits.

However, pricing is usually the second most important criteria we use when shortlisting factories, the first being a minimum level of acceptable quality standard/professionalism based on our assessment. In cases, where clients feel they have a factory that they want to work with, which is cheaper, our service can only be used with the "nominated factory", to avail all the QC benefits. So the pricing system is quite flexible.

Wow, so glad to hear a good story. I'd imagine that sourcing stuff in China can be a harrowing experience. Based on what you've reported, totally sounds like a value-chocked no-brainer.

PS: IP checked, doesn't come from China.

Thanks Admin

Can they help you with the customization of the product for your specific niche?

Certainly, we have a New Product Development service that is focused on new product development. This is for getting the product right from an idea to prototype and then bulk production. Details are on the website. In normal sourcing projects also, we often customize the product for the client, in terms of features, packaging, branding, etc. It is important to note that NPD projects can take a long time, as there is a lot of back and forth with the factories and sometimes, multiple rounds of sampling.

Thanks

 

[1step]

I have also used them and they have done a good job for me too. I have imported a decent amount from China over the last year or so, while doing that I became busy with the other products and didnt have time for a new issue I was facing. The decision became +ev for me to outsource this aspect of sourcing and no longer deal with this individual product issue. Described below

Can they help you with the customization of the product for your specific niche?

This is what I have done. I had a difficult problem that I needed to solve. I worked with them to create the new design to my specs. The process of creating the new design was somewhat complex and I am thankful I didn't have to go at it alone. All of this is still in the works and I haven't received any product or the samples yet but so far things have gone according to the schedule, I think we are actually a little ahead of schedule at this point.

 

[ljb7]

Hi Ljb7,

Thanks for taking the time to write such a detailed review about the service. It is not often that clients take the time to share a positive review after a good experience, so it feels great when we hear such a positive review. We especially like to hear from online sellers, as a large proportion of our clients are Amazon FBA/eBay powersellers. It was also a very smooth experience working with you.

It's no problem at all! I was very impressed and wanted to help you guys out by sharing my experience.

Hi,

Thanks for this. I just wanted to post a clarification there. The fee structure mentioned above, has been replaced with a new structure post the Chinese New Year. Also, with the above structure, we do not actually take anything from the factory as that would compromise on the quality control process. We only represent and act on behalf of the customer. Taking a commission from the factory would mean, that if QC issues do arise, which often happens when working with Chinese factories, we have little to no negotiation power with the factories. So in this model, whatever we charge is from the customer only.

In terms of the fee as a % of order value, this depends on the order value and normally averages out to 5% per order, as long as the order amount is more than $10,000. For orders below that, the fee % can be higher as a % of order total, as for orders below that, we do have a minimum fee, like in this case. In many of the orders, we are able to source the product a lot cheaper than 5%, thereby making it a win-win situation, effectively making the service free of cost with the additional quality control benefits.

However, pricing is usually the second most important criteria we use when shortlisting factories, the first being a minimum level of acceptable quality standard/professionalism based on our assessment. In cases, where clients feel they have a factory that they want to work with, which is cheaper, our service can only be used with the "nominated factory", to avail all the QC benefits. So the pricing system is quite flexible.

My apologies for misunderstanding, this actually makes a lot more sense.

 

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

[Cembo]

Very interesting, thanks for your review!

 

[Walter Hay]

I would not say a word against IMEX because I know how they work, and to the best of my knowledge they have many satisfied customers.

But I would like to make some comments on what @ljb7 has said.

Cutting the unit cost in half is no surprise to me, or to many of my book readers. I have posted about it here and on other forums on many occasions, where I have stated that the difference between buying from a trader or wholesaler and a manufacturer can be 50%. One of my happy book users posted this on another forum: "I have contacted some manufacturers already (from links he supplies) and I am just shocked at the low prices they offer for products I am researching. Forget Alibaba, Global Resource, whatever. The Ebook shows you where to find manufacturers, how to verify their credibility etc."

Elizabeth Shi states that “In many of the orders, we are able to source the product a lot cheaper than 5%”. Obviously meaning 5% cheaper than the quoted price.

As for the important subject of sourcing agents not being discussed more frequently, I have made many posts in which I discuss this issue, including one of my Q&A answers headed Do You Really Need A Sourcing Agent Sharing my lifetime experience in export/import. Product sourcing specialist.

Under IMEX’s new fee structure, the minimum fee will now be $500 (on orders >$10,000). If people choose to pay per order more than 5 times the price of an instruction manual that can teach them how to safely source and get best prices, that is their prerogative, but as many as 100 people a month are choosing the lower cost DIY course with success. I have only ever received one complaint. See my post linked above.

The need for services such as IMEX is largely generated by the almost non-existent vetting of suppliers by Alibaba and regardless of how poor Alibaba’s system is, the marketing types claiming to be importing experts (Gurus-in-training) continually repeat the mantra: Alibaba, Alibaba, Alibaba, being ignorant of, or not caring about the facts.

One extra service that I do recommend where appropriate, and when the small importing entrepreneur can afford it, is quality inspection. I have also posted about that on my AMA thread.

Regarding freight forwarding, I suggest that a moment’s reflection will lead to the conclusion that using one local to you has potential benefits. Serious port delays out of China are not usual, but they are quite common in Western countries. A local forwarder knows the ropes and is better placed to deal with the problem.

Finally, Elizabeth, there is nothing personal in this. I know your business well and I know it is prospering as it deserves to. In fact I have recommended your services to a number of people. Ash knows me from my correspondence with him. There is definitely a place for services such as yours, especially for people in situations like the one described by @1step.

 

[Elizabeth Shi]

I would not say a word against IMEX because I know how they work, and to the best of my knowledge they have many satisfied customers.

Hi Walter,

Thanks for your kind words. I really appreciate it. I had a look at your website and I must say that the book you offer indeed looks to be of great value especially to new importers. I will be happy to recommend it to some of our clients who might benefit from it.

Under IMEX’s new fee structure, the minimum fee will now be $500 (on orders >$10,000). If people choose to pay per order more than 5 times the price of an instruction manual that can teach them how to safely source and get best prices, that is their prerogative, but as many as 100 people a month are choosing the lower cost DIY course with success. I have only ever received one complaint. See my post linked above.

I would just like to post a small clarification just to ensure that there is no misunderstanding. Our fee structure stated above, includes among several things an "in-factory" pre-shipment inspection, which alone is worth $200 - $400/Inspection Man-day from the various inspection services. It also includes, a lot of other key things to minimize risk such as follow-up with factories by an account manager/sourcing exec, translation materials for QC Purposes, consolidation etc. I mention these, as many of these services do require an "on the ground" presence.

While cost-cutting is an attractive part of our sourcing service, as we have grown over the years, our focus has shifted more and more on risk management and quality control and we regularly drop cheaper suppliers in favour of suppliers, who might be slightly expensive, but meet minimum supplier standard expectations that we have. We have found that this is the key to avoiding costly headaches later when dealing with Chinese factories.

Regarding freight forwarding, I suggest that a moment’s reflection will lead to the conclusion that using one local to you has potential benefits. Serious port delays out of China are not usual, but they are quite common in Western countries. A local forwarder knows the ropes and is better placed to deal with the problem.

Also about freight-forwarding, while having an agent close-by may have some comfort-value, costing is a major point here, both in terms of freight cost and more important time-cost. For e.g. in the UK, where we have a strong presence and a large client base, our FCL freight rates are often $100 - $400 cheaper than the rates offered by UK based agents. This is primarily because:
1. Our access to lower costs in China
2. We see logistics as an additional service and not our primary money making service and often do not make margins on this when this is part of the sourcing service.
3. We are able to offer this at very low margins, as being based out of China we have lower running costs then say a UK based logistics agent.

In some countries, like UK for e.g. we also offer a DDU service, where goods are delivered at the door, with a local point of contact in the country for tracking issues as well as dealing with Tariffs and duties. We designed the DDU service with the belief that the "Cost of Time" in Developed countries is higher than developing countries and when such processes are outsourced, the savings in time-costs, especially for businesses, is a major saving in itself, as they can use that time to focus on their core business activity, i.e. sales & marketing.

Finally, Elizabeth, there is nothing personal in this. I know your business well and I know it is prospering as it deserves to. In fact I have recommended your services to a number of people. Ash knows me from my correspondence with him. There is definitely a place for services such as yours, especially for people in situations like the one described by @1step.

Not taken personally at all Walter. In fact, you have added some great value to the thread and I should thank you for that . I believe this forum is such a great resource for everyone, as it allows an open exchange of ideas and your thread is a great example of that. I should also Thank you for recommending our services to others.

 

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