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

[eticket]

Walter:

I read your first book last summer. I got it from the PAC. It's GREAT, and your updated book is just as GREAT, too!

Incidentally, I got involved in exporting to the UK last summer but, after duties & taxes + VAT, it was just not profitable, so I terminated that venture. (The UK's VAT is so confiscatory, I don't know how U.S. businesses can sell there.) Maybe it would be a different story had I sold zero-rated products, but I found few goods in the U.S. that are sold there and I didn't want to experiment.

Now, I'm studying your newest book and am exploring the viability of importing once again. Per your book, one major vendor I contacted via one of your recommended sites sent me an SGS product audit report. When I requested an SGS company audit report, they admitted they had an outdated 2014 report, but it was from Alibaba.

I know your thoughts about buying from vendors with "credentials" from Alibaba; however, given that this company is (supposedly?) a major manufacturer for Toyo, would you still take a pass? Does an SGS product report meet your criteria, or do I need an SGS audit report of the company?

Thank you!

eticket

 

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[Walter Hay]

Walter:

I read your first book last summer. I got it from the PAC. It's GREAT, and your updated book is just as GREAT, too!

Incidentally, I got involved in exporting to the UK last summer but, after duties & taxes + VAT, it was just not profitable, so I terminated that venture. (The UK's VAT is so confiscatory, I don't know how U.S. businesses can sell there.) Maybe it would be a different story had I sold zero-rated products, but I found few goods in the U.S. that are sold there and I didn't want to experiment.

Now, I'm studying your newest book and am exploring the viability of importing once again. Per your book, one major vendor I contacted via one of your recommended B2B sites sent me an SGS product audit report. When I requested an SGS company audit report, they admitted they had an outdated 2014 report, but it was from Alibaba.

I know your thoughts about buying from vendors with "credentials" from Alibaba; however, given that this company is (supposedly?) a major manufacturer for Toyo, would you still take a pass? Does an SGS product report meet your criteria, or do I need an SGS audit report of the company?

Thank you!

eticket

I quite agree that UK VAT charges can be a problem, but minimizing costs should help. First, it might be possible to buy at better prices. See what I write in Chapter 12.10 Does their price allow you a good profit margin after allowing for all expenses? It might be worth re-reading all 9 pages of Chapter 12 Assessing Suppliers.

Also, are you buying the products in the US, or are you buying in China, shipping to the US and then sending them to the UK? If it is the latter, freight could be a big contributor to the problem. It might be worth considering sending goods direct from your manufacturer to a fulfillment service in the UK.

Outdated reports are not a good sign, regardless of which B2B site provides them. If the supplier can’t provide an up to date report that leaves you in the dark, but there are other ways of checking them out, as Chapter 12 explains.

A product report is good, but can’t replace a company report. It is worth noting that sometimes a company has only a short version of an SGS report, so you need to read through the entire report.

If you would like me to help by checking out the company you are referring to, PM the details to me. I have a paid subscription to one of the sources that I suggest for checking and that gives me more information than free membership. It would rarely be worth the high cost for individual importers, and that is why I subscribe, so that I can give extra help when necessary.

Walter

 

[eticket]

I quite agree that UK VAT charges can be a problem, but minimizing costs should help. First, it might be possible to buy at better prices. See what I write in Chapter 12.10 Does their price allow you a good profit margin after allowing for all expenses? It might be worth re-reading all 9 pages of Chapter 12 Assessing Suppliers.

Also, are you buying the products in the US, or are you buying in China, shipping to the US and then sending them to the UK? If it is the latter, freight could be a big contributor to the problem. It might be worth considering sending goods direct from your manufacturer to a fulfillment service in the UK.

Outdated reports are not a good sign, regardless of which B2B site provides them. If the supplier can’t provide an up to date report that leaves you in the dark, but there are other ways of checking them out, as Chapter 12 explains.

A product report is good, but can’t replace a company report. It is worth noting that sometimes a company has only a short version of an SGS report, so you need to read through the entire report.

If you would like me to help by checking out the company you are referring to, PM the details to me. I have a paid subscription to one of the sources that I suggest for checking and that gives me more information than free membership. It would rarely be worth the high cost for individual importers, and that is why I subscribe, so that I can give extra help when necessary.

Walter

Thank you for being so kind, Walter. I will PM you. BTW - I am no longer exporting from the U.S. My focus is now on importing instead.

 

[eticket]

Walter:

After a close reading of your book, it looks like the primary purpose of a trustworthy company audit report is to identify real manufacturers. To what extent should I concern myself with an audit report again once I've identified a genuine manufacturer?

As to product quality, am I to understand that it's unnecessary to have a third-party inspection service perform a quality inspection if our manufacturer is ISO-compliant, or if our samples meet our quality expectations? Do these factors negate the need to have regular inspections done?

On the one hand, I know it's important to make sure I'm getting leather when I ask for leather, for example, and manufacturers can certainly start cutting corners at any time. But, having a $350+ inspection performed for every production run and shipment, especially on lower cost/lower margin goods, seems too steep to be worthwhile.

How often should I have a quality inspections performed or, if I'm dealing with a reputable manufacturer, should I have a quality inspection performed at all?

Thanks!

eticket

 

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[Walter Hay]

Walter:

After a close reading of your book, it looks like the primary purpose of a trustworthy company audit report is to identify real manufacturers. To what extent should I concern myself with an audit report again once I've identified a genuine manufacturer?

As to product quality, am I to understand that it's unnecessary to have a third-party inspection service perform a quality inspection if our manufacturer is ISO-compliant, or if our samples meet our quality expectations? Do these factors negate the need to have regular inspections done?

On the one hand, I know it's important to make sure I'm getting leather when I ask for leather, for example, and manufacturers can certainly start cutting corners at any time. But, having a $350+ inspection performed for every production run and shipment, especially on lower cost/lower margin goods, seems too steep to be worthwhile.

How often should I have a quality inspections performed or, if I'm dealing with a reputable manufacturer, should I have a quality inspection performed at all?

Thanks!

eticket

You are right, but the audit reports will usually also verify certificates. ISO certificates are among those that are often forged, so their authenticity should be checked.

If certificates are found to be genuine that would satisfy me provided I had obtained samples that met my expectations. For small orders it is possibly worth the risk with your first order, and if there is no problem and the manufacturer shapes up well in all other respects too, you could choose to avoid the cost of inspection reports from then on.

Walter

 

[eticket]

Walter:

I've made two requests for a printed catalog and price list from a manufacturer I've been communicating with in China. In their most recent reply, they told me they don't have a price list bec all of their products are custom made, but I don't believe them bec their emailed catalog includes products with specifications. They said they would send me a printed catalog along with my samples, if/when I request any. They seem to want me to get samples before disclosing price.

Is their refusal to quote a price a red flag for a manufacturer who, otherwise, seems legitimate?

Thank you

eticket

 

[eticket]

Walter:

I'm afraid I have another question. I've been trying to ferret out in your book (Ch. 4) the difference between using a general freight forwarder and DHL to import from China, but I'm confused.

I know a freight forwarder or DHL can be used to import, as long as they have an in-house customs broker. I also understand the difference between airport-to-airport, door-to-door, and air vs. sea. But I seem to have a mental block when it comes to deciding between DHL and other freight forwarders. Why wouldn't I simply use DHL instead of another freight forwarding company? What factors should I consider?

Thank you again.

eticket

 

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[Walter Hay]

Walter:

I've made two requests for a printed catalog and price list from a manufacturer I've been communicating with in China. In their most recent reply, they told me they don't have a price list bec all of their products are custom made, but I don't believe them bec their emailed catalog includes products with specifications. They said they would send me a printed catalog along with my samples, if/when I request any. They seem to want me to get samples before disclosing price.

Is their refusal to quote a price a red flag for a manufacturer who, otherwise, seems legitimate?

Thank you

eticket

Many manufacturers don't have prices lists. That is not good policy, because viewing a price list could encourage buyers to choose products they had not otherwise intended to buy, but it is not a red flag.

Catalogs will often be quite general in their nature, sometimes showing products that have only been made as prototypes. For that reason they consider those products to be custom made. The products illustrated might not even have reached the prototype stage yet. To illustrate, let me tell you about restaurants in Japan.

On entering restaurants in Tokyo I have seen plates of food displayed so that customers will know exactly what the meals will look like when they are served up to you. BUT..... Those plates of food are not food, they are wax. Without cutting into those displayed meals it would be impossible to tell that they are made of wax.

Full size design models of cars are still produced in clay, and they look precisely like the real vehicle that will subsequently be made of steel and plastic.

If you choose one product and request a quote, they will tell you the price, even if they have never before done a production run of that product.

Walter

 

[Walter Hay]

Walter:

I'm afraid I have another question. I've been trying to ferret out in your book (Ch. 4) the difference between using a general freight forwarder and DHL to import from China, but I'm confused.

I know a freight forwarder or DHL can be used to import, as long as they have an in-house customs broker. I also understand the difference between airport-to-airport, door-to-door, and air vs. sea. But I seem to have a mental block when it comes to deciding between DHL and other freight forwarders. Why wouldn't I simply use DHL instead of another freight forwarding company? What factors should I consider?

Thank you again.

eticket

DHL are not freight forwarders, they are carriers. In fact sometimes freight forwarders will use companies like DHL to ship goods.

If quantities are small, it is usually best to go direct to the Air Couriers like DHL, but if the quantities are big, then a freight forwarder will usually be able to give the same service cheaper.

Just as a side note, DHL are often the most expensive courier, particularly in the EU.

Walter

 

[eticket]

Walter:

I need more information on audits and inspection services.

As it relates to company audits, at least one reputable U.S. company provides audits of foreign manufacturers. If a manufacturer I'm interested in doesn't have a current or valid audit report of the company, wouldn't it suffice to have such a U.S. firm audit the manufacturer for me?

Aside from company audits, I've noticed there are several stages that present an opportunity for an unscrupulous manufacturer to cut corners, as you've discussed in your book. These stages range from production to getting good into the hands of our shipper. But, having an audit performed at every stage would be cost prohibitive and, I imagine, it's not necessary to be that thorough.

Generally speaking, what stage(s) - from production to getting finished goods into our shipper's hands in the country of origin - do you consider most critical? Would you be able to rate these stages from most to least important?

Thank you for whatever guidance you can provide.

eticket

 

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[Walter Hay]

Walter:

I need more information on audits and inspection services.

As it relates to company audits, at least one reputable U.S. company provides audits of foreign manufacturers. If a manufacturer I'm interested in doesn't have a current or valid audit report of the company, wouldn't it suffice to have such a U.S. firm audit the manufacturer for me?

Aside from company audits, I've noticed there are several stages that present an opportunity for an unscrupulous manufacturer to cut corners, as you've discussed in your book. These stages range from production to getting good into the hands of our shipper. But, having an audit performed at every stage would be cost prohibitive and, I imagine, it's not necessary to be that thorough.

Generally speaking, what stage(s) - from production to getting finished goods into our shipper's hands in the country of origin - do you consider most critical? Would you be able to rate these stages from most to least important?

Thank you for whatever guidance you can provide.

eticket

Yes, KRT are a US based inspection service and they can do audits for you. An audit can take many forms, including a company report that confirms registration with the Chinese authorities, paid up capital, production capacity, years established, confirmation of all contact details including directors, and verification of authenticity of certificates. Cost will be around the same as you would pay for a QC check.

Verifying the supplier's status as a genuine manufacturer can usually be done without paying for an audit.

Other audits could cover quality inspections during production, after production, or before shipping. I would consider the last one to be the most important, because it can and should include not only quality but also checking that packaging is adequate to avoid damage in shipping.

For large orders, inspections at an early stage during production can avoid possible delays if the quality is unsatisfactory. Faults and deficiencies can be detected and remedied before the entire production run is manufactured.

I should inform you and other readers that in the many years that I was importing I never had a quality inspection done. Before choosing a supplier I always visited their factory. I developed a rapport with the supplier and examined the various qualities they made, making it clear which quality I wanted.

Occasionally there were faulty products supplied, but having negotiated a monthly account arrangement (see Ch 15.1) on the basis of several repeat orders each month, I always received the goods before having to pay. This gave me a big advantage in quality control, but I used that advantage judiciously, proving that I was fair and reasonable, with the result that I never even had to return any faulty goods.

Not all importers will be in a position to operate that way, in which case the best procedure is to develop a good relationship with your supplier. Nothing, including quality inspection services, can beat that. Until that relationship is established you might have to choose between gambling on whether or not you have made the right assessment of the supplier, or paying for an inspection service to do QC for you.

Walter

 

[eticket]

Walter:

First, thank you for your EXCELLENT discussion on inspections!

Next, in my initial contact with a company, I'm discovering I need to make it clear I want a company audit report bec companies insist on sending me product test reports of the product in which I initially expressed interest (sigh).

In Ch. 28, I don't suppose you forgot to list the China Quality Certification Centre? Of course, I know you did not forget.

Unfortunately, the "Food Safety Management System" certificate I received looks like it was just printed, following my third request for a company audit report.

Before I take this company off my list, do you have any information on the authenticity of this Centre?

Thank you.

eticket

 

[Walter Hay]

Walter:

First, thank you for your EXCELLENT discussion on inspections!

Next, in my initial contact with a company, I'm discovering I need to make it clear I want a company audit report bec companies insist on sending me product test reports of the product in which I initially expressed interest (sigh).

In Ch. 28, I don't suppose you forgot to list the China Quality Certification Centre? Of course, I know you did not forget.

Unfortunately, the "Food Safety Management System" certificate I received looks like it was just printed, following my third request for a company audit report.

Before I take this company off my list, do you have any information on the authenticity of this Centre?

Thank you.

eticket

I did not include them because at the time I wrote there were concerns about the safety of the site (possibly been hacked). Those concerns have been resolved by the online security service I use, so I can now recommend that site.

If a certificate is issued by the China Quality Certification Centre, you can now easily check its authenticity here: the China Quality Certification Centre

You can search by Certificate number or even factory name.

Walter

 

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[eticket]

I did not include them because at the time I wrote there were concerns about the safety of the site (possibly been hacked). Those concerns have been resolved by the online security service I use, so I can now recommend that site.

If a certificate is issued by the China Quality Certification Centre, you can now easily check its authenticity here: the China Quality Certification Centre

You can search by Certificate number or even factory name.

Walter

I'm actually pleasantly surprised to discover that the Center is legitimate.

Unfortunately, I entered the # listed on the ctf into that site, but the results are in Chinese! How else can I verify that this ctf is valid? I don't see anything relating to food safety management. (Of course, the fact that everything is in Chinese doesn't help either.)

Do certifications provided by the China Quality Certification Centre attest that a company is a manufacturer? That's what I want to find out at this point.

Thank you for helping.

 

[Walter Hay]

I'm actually pleasantly surprised to discover that the Center is legitimate.

Unfortunately, I entered the # listed on the ctf into that site, but the results are in Chinese! How else can I verify that this ctf is valid? I don't see anything relating to food safety management. (Of course, the fact that everything is in Chinese doesn't help either.)

Do certifications provided by the China Quality Certification Centre attest that a company is a manufacturer? That's what I want to find out at this point.

Thank you for helping.

Are you sure it is issued by the China Quality Certification Centre? Food safety is also administered by other authorities such as China National Accreditation Service. They also give answers in Chinese when you are checking authenticity.

If you like to PM me with the certificate number and the company name I will see if I can get an answer for you, but it might not be until tomorrow.

If the China Quality Certification Centre recognizes the company as a manufacturer, that will be correct.

Walter

 

[Walter Hay]

Soon All Suppliers on Alibaba Will be Gold Suppliers

In December, as a registered vendor, (I've never listed anything for sale, but registration does get me all the inside info) I received an email from Alibaba. If I understand it correctly, the email amounts to a declaration that unless vendors sign up as a Gold Supplier, the only way they can respond to buyer inquiries is if the buyer goes to the vendor's website and emails to their contact address found there.

Here's part of the email I received:
"Important Update to Inquiry Policy
Only Gold Suppliers* can reply to inquires beginning in 2016 January!

Dear Respectable Walter,

In order to improve buyers' experience and provide better services to our customers, Alibaba decides to reserve the inquiry reply function to Gold Supplier Members* starting from 2016 January. "

As I read this it means that no verified or unverified advertisers will be permitted to reply to your inquiries. In reality that doesn't make much difference, because the only checking that is done in order to be verified is to confirm that the business actually exists.

So you must deal only with Gold Suppliers, but the only checking that is done in order to be a Gold Supplier is to confirm that the business actually exists. Nothing more.

Why would Alibaba make it virtually impossible for non-gold members to sell? The answer is simple: $$$$$$$$$. The annual fee to become a basic Gold Supplier has now increased from $699 to $1,899. For greater privileges that put a supplier's advertising higher in the listings the fee gets as high as $6,499 per year. The scheme is certainly working. I did a search for a popular product and found 2346 Suppliers listed. Every single one of them was a Gold Supplier. Previous searches found many that weren't.

In the same email, they offered this encouragement:
"Let’s Expand Your Business.
Start by upgrading to a Gold Supplier Membership
Authentication and Verification helps you gain immediate trust from buyers." My bolding.

I have written before about the inherent risks in dealing with suppliers on Alibaba, but many still believe that if they only deal with Gold Suppliers all will be well. Is a Gold Supplier really any better than any others? Clearly that is not the case. Here is a cut and paste from their website's resources section:

"Are all Gold Suppliers trustworthy?
Through the completion of the verification process, Alibaba.com can only check whether the business is registered in its local business administration region. This verification does not verify the integrity of the business" As the words I have bolded show, that verification process only confirms that the business exists.

Just in passing, a note about length of time as a Gold Supplier. On numerous occasions, when checking out a supplier on behalf of my book users, I have found businesses whose year of establishment was much later than the year they supposedly became Gold Suppliers. Here is a recent example: Business established 2015, Gold Supplier since 2012. In some cases the discrepancy is much greater.

Walter

 

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[marklov]

@Walter Hay

Outside of China , where would you recommend to have an electronic or small appliance device
designed/improved and manufactured?

I am planning to go to Turkey/japan this year but I am open to other destinations.

 

[juan917]

The first supplier I talked to quoted me $78 for shipping.

Are these the normal shipping fees one can expect to pay?

 

[Walter Hay]

@Walter Hay

Outside of China , where would you recommend to have an electronic or small appliance device
designed/improved and manufactured?

I am planning to go to Turkey/japan this year but I am open to other destinations.

Japan is a good source, but you will need to locate small manufacturers. The big ones won't even answer you. Other countries with small scale innovative electronic capacity are Israel and Australia. Both have been the origin of some ground-breaking innovations.

Walter

 

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[Walter Hay]

The first supplier I talked to quoted me $78 for shipping.

Are these the normal shipping fees one can expect to pay?

It depends on the size and weight, but $78 would not be unusual. You could ask them to send via China Post. That is a lot slower, but also a lot cheaper.

You would have to tell them that you have been satisfied with the service provided by China Post and prefer to have samples sent by that method.

Walter

 

[Speedgor]

Hi guys can anyone please give some advice on the offer I have just been offered to become an exclusive dealer of a product in my country. I have been selling on eBay for about a year now with all the information I have absorbed form this AWESOME thread but nothing to quit my day job yet!

I ordered some samples of a new product last week and the seller has sent the below email about 3 times now trying to get me on board which could potentially earn me a nice chunk of change if I succeed in going Business 2 Business and snagging a major retailer to order stock off me for all their stores in the country!

From Chinese Manufacturer:
(1). Our way is to find ''exclusive agent'' in each country, so you are the ''ONLY 1'' to sell this product in such huge market, no competitor and no worry to compete over price !
(2). We are building the official website for this product which you can use for marketing, we will list your company contact information on the website, so the people from your country will contact you directly.
(3). we have promotional products which we can print your logo or contact information on it. You can give-away or either you can sell as a set so make people think it's very cost-effective.
(4). We will give you the price for different q'ty , Say each year you sell certain q'ty , We will return you with different percentage.
(5). We will give an idea for yearly total q'ty , How much we can return to you ! The more you sell , The more we will refund to you!

Has anyone had any experience with such a deal from China and what pitfalls should I watch out for? Should I act big and Bluff my way into this or be honest and let them know that I am only a small time player at the moment? Kinda scary jumping in considering Im only small time on eBay still but I feel like I have to risk it to get the biscuit! Or maybe I should just grow steadily like I am at the moment?? :/

 

[Walter Hay]

Hi guys can anyone please give some advice on the offer I have just been offered to become an exclusive dealer of a product in my country. I have been selling on eBay for about a year now with all the information I have absorbed form this AWESOME thread but nothing to quit my day job yet!

I ordered some samples of a new product last week and the seller has sent the below email about 3 times now trying to get me on board which could potentially earn me a nice chunk of change if I succeed in going Business 2 Business and snagging a major retailer to order stock off me for all their stores in the country!

From Chinese Manufacturer:
(1). Our way is to find ''exclusive agent'' in each country, so you are the ''ONLY 1'' to sell this product in such huge market, no competitor and no worry to compete over price !
(2). We are building the official website for this product which you can use for marketing, we will list your company contact information on the website, so the people from your country will contact you directly.
(3). we have promotional products which we can print your logo or contact information on it. You can give-away or either you can sell as a set so make people think it's very cost-effective.
(4). We will give you the price for different q'ty , Say each year you sell certain q'ty , We will return you with different percentage.
(5). We will give an idea for yearly total q'ty , How much we can return to you ! The more you sell , The more we will refund to you!

Has anyone had any experience with such a deal from China and what pitfalls should I watch out for? Should I act big and Bluff my way into this or be honest and let them know that I am only a small time player at the moment? Kinda scary jumping in considering Im only small time on eBay still but I feel like I have to risk it to get the biscuit! Or maybe I should just grow steadily like I am at the moment?? :/

Probably the greatest pitfall is that suppliers sometimes offer exclusive rights for the wrong reason:

• To test the market prior to setting up their own company owned operation. This can leave you out in the cold, sometimes with a lot of unsold stock. If you sell B2B and sell under their brand name that makes it easier for them to locate your customers and push you out. Your best protection is to register that brand for yourself. Make sure you check to see if their brand is registered in Australia before you make any agreement.
• To sell a large quantity of product in one go, make a killing and move on to the next "exclusive" agent. You can't be sure they will do what they promise. Your best protection is to limit the initial stock purchase to a comfortable value regardless of how much they might protest.

Are the promotional products free to you? If not, you might be able to buy them direct from the manufacturer of those products.

You do need to convince them that you are capable of doing what they want you to do. The deal looks good on the surface, but you need to consider the full picture.

• Selling B2B looks attractive, but capital requirements can be substantial. Retailers have a tendency to expect their wholesale suppliers to act as their bankers, providing credit, sometimes for extended periods. You may have to outlay a lot of money for your next shipment before you are paid for the first.
• The lower margins increase your risk. Retailers usually expect to mark up the products by 100%, so work out what your selling price has to be to give returns that covers all costs and leave you with a decent margin.
• Business failures in retail are very common, in which case you might never be paid. A big prospect might be sailing close to the wind when they place the first order and go into liquidation soon after receiving your goods. Worse still, it might be a repeat order and they haven't yet paid for the first one!
• If all goes well and sales continue to grow, so does your capital requirement. Can you finance that out of profits, or will you need to borrow and incur extra costs doing that? Growth without capital backing is one of the major causes of new business failure.

Sorry to seem negative, but you asked about possible pitfalls.

Walter

 

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[TKDTyler]

Hey Walter,

I was curious on your thoughts about Cargo Insurance for shipping via boat.

Correct me if I am wrong, but is it true that all liability for cargo and the boat is split between all customers using the service? For instance, if cargo is needed to be thrown overboard to save a ship, the cost of lost cargo, or ship for that matter, will be split among the customers? This means that even a small $500 shipment could become a million dollar incident if something does happen.

Do you recommend cargo insurance 100% of the time regardless of the cost of goods being imported?

Thanks!

 

[Walter Hay]

Hey Walter,

I was curious on your thoughts about Cargo Insurance for shipping via boat.

Correct me if I am wrong, but is it true that all liability for cargo and the boat is split between all customers using the service? For instance, if cargo is needed to be thrown overboard to save a ship, the cost of lost cargo, or ship for that matter, will be split among the customers? This means that even a small $500 shipment could become a million dollar incident if something does happen.

Do you recommend cargo insurance 100% of the time regardless of the cost of goods being imported?

Thanks!

ABSOLUTELY! Never ship cargo by sea without insurance. I always insured for 110% of the invoice value in case the amount was disputed. I am not alone in this. It is common practice.

Walter

 

[timmy]

Hi Walter
Lots of really value added here for anyone exploring that sector. The best advertising for your book is on all 33 pages of this thread. However I did try to get your book yesterday, but it did not get through the final stage or so it seems......Now...Now....I do have a weak connection here most of the time ( so it might not be your site) Anyway, I will persist and try again later. I am a product Developer ( Physical). I have never imported before Walter. In the meantime

Please can you Advise me here.

• I have the classic problem which has been covered here, and on other threads that you have generated. I am trying to figure out if my manufacturer is indeed a trading company..........

Sample plus shipping @ $100

200 unit EXW @ $13.65

500 FOB @ $7.06

1000 FOB @ $ 5.58

We have more or less agreed with the final unit draft, as I sent lots of detail in regard to this. It would have to be made up as it would never be a stock item at any factory so I can appreciate this. The wholesale price for 1000 units would suggest that the factory price hits about 20% of the cost to the end user which is about right.

We have the paypal request for $100 to cover the cost of sample unit for approval + courier to Ireland.

Can I send you the other details via PM

Perhaps you would be so so good as to steer me in the right direction???

 

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[Walter Hay]

Hi Walter
Lots of really value added here for anyone exploring that sector. The best advertising for your book is on all 33 pages of this thread. However I did try to get your book yesterday, but it did not get through the final stage or so it seems......Now...Now....I do have a weak connection here most of the time ( so it might not be your site) Anyway, I will persist and try again later. I am a product Developer ( Physical). I have never imported before Walter. In the meantime

Please can you Advise me here.

• I have the classic problem which has been covered here, and on other threads that you have generated. I am trying to figure out if my manufacturer is indeed a trading company..........

Sample plus shipping @ $100

200 unit EXW @ $13.65

500 FOB @ $7.06

1000 FOB @ $ 5.58

We have more or less agreed with the final unit draft, as I sent lots of detail in regard to this. It would have to be made up as it would never be a stock item at any factory so I can appreciate this. The wholesale price for 1000 units would suggest that the factory price hits about 20% of the cost to the end user which is about right.

We have the paypal request for $100 to cover the cost of sample unit for approval + courier to Ireland.

Can I send you the other details via PM

Perhaps you would be so so good as to steer me in the right direction???

I have had no other recent reports of access problems on my site, so I think it must be your connection.

Regarding the prices quoted, it appears that they have loaded a handling or set up charge into the price for 200. You should consider whether the outlay of an extra $800 to buy 500 pcs at$7.06 each is worthwhile compared to paying $13.65 each for 200 pcs.

PM me with the supplier's name and I will get back to you as soon as possible regarding manufacturer or trader.

Walter

 

[timmy]

I have had no other recent reports of access problems on my site, so I think it must be your connection.

Regarding the prices quoted, it appears that they have loaded a handling or set up charge into the price for 200. You should consider whether the outlay of an extra $800 to buy 500 pcs at$7.06 each is worthwhile compared to paying $13.65 each for 200 pcs.

PM me with the supplier's name and I will get back to you as soon as possible regarding manufacturer or trader.

Walter

I have had no other recent reports of access problems on my site, so I think it must be your connection.

Regarding the prices quoted, it appears that they have loaded a handling or set up charge into the price for 200. You should consider whether the outlay of an extra $800 to buy 500 pcs at$7.06 each is worthwhile compared to paying $13.65 each for 200 pcs.

PM me with the supplier's name and I will get back to you as soon as possible regarding manufacturer or trader.

Walter

Will do...............

Cheers for the super fast reply

 

[timmy]

Will do...............

Cheers for the super fast reply

Walter .....you're the real deal...Thanks ecer so much for your help in this delicate matter.I have much to digest.

Timmy

 

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[Wisith]

Hey Walter,

I hope you are well. This is more of a general question, but I would love to hear your input since you have been in this field for decades.

I listened to an interview with Jack Ma, and he said something like Alibaba is still in its infantile stage. In 15 years from now when ecommerce is no longer a new concept, the company will grow to be much bigger. With the ever growing popularity of smartphones, I read somewhere that there are 5 smartphones per 1 toilet in the world now, I only see ecommerce getting bigger too.

My question is: how drastically has the Internet affected the industry? If this was the 1980s, or even 1990s, and someone wanted to get into importing/exporting..how would you even start? Attend a conference nearby to get a list of Chinese manufacturers and contact them?

Where do you think the field will go in the future? I know the countries are always shifting in term of being the cheapest labor. At one point I believe Japan was a labor of cheap country, then it went to S. Korea, and now China. I see that Mexico and certain parts of Middle East are rising as the cheapest now.

 

[Walter Hay]

Hey Walter,

I hope you are well. This is more of a general question, but I would love to hear your input since you have been in this field for decades.

I listened to an interview with Jack Ma, and he said something like Alibaba is still in its infantile stage. In 15 years from now when ecommerce is no longer a new concept, the company will grow to be much bigger. With the ever growing popularity of smartphones, I read somewhere that there are 5 smartphones per 1 toilet in the world now, I only see ecommerce getting bigger too.

My question is: how drastically has the Internet affected the industry? If this was the 1980s, or even 1990s, and someone wanted to get into importing/exporting..how would you even start? Attend a conference nearby to get a list of Chinese manufacturers and contact them?

Where do you think the field will go in the future? I know the countries are always shifting in term of being the cheapest labor. At one point I believe Japan was a labor of cheap country, then it went to S. Korea, and now China. I see that Mexico and certain parts of Middle East are rising as the cheapest now.

I have no doubt that eCommerce will continue to grow for a long time yet.

The internet has produced some amazing changes in the world of exporting and importing. Most of those changes are good, but not all. Telex was used for many years before faxes became available, and when exporting I had my own international cable address. Communication was fast, but drawings and forms could not be transmitted.

Later, when I first started importing in 1987 almost all communication including artwork, was via fax. Now, most people find it so easy to communicate by email, but the big drawback to that is that it is not as secure as using a fax. If I had not been a frequent visitor to China as an exporter, I would have had difficulty locating good suppliers before the advent of the internet. While in China, I made good use of the local Yellow Pages.

This led me to finding one of the only two manufacturers of a product I was reluctantly buying from a wholesaler. His little factory was located on a hillside outside a small village. He met me in dirty overalls, because he operated some of the machinery himself, but over several cups of Jasmine tea, we negotiated a good deal and he became one of my regular suppliers. He still does not advertise online!

The anonymity of the internet has spawned a large number of scammers, who can hide their true identity and location. In some countries that can still be done using mobile phones, but when only landlines were available, tracking down criminals was a bit easier.

The big benefits of the internet are: 1. For manufacturers and wholesalers: Access to international advertising for nothing, or for relatively small fees.
2. For resellers: Easy access to sources. Easy access to consumers to sell to.

The transition of low cost labor from country to country did begin as you say with Japan. Post WW2 Japan was helped in building up an industrial economy, and labor costs were very low. The result was low cost and mainly low quality products. Japan quickly went on to improve living standards and product quality, with the result that buyers looking for cheap and nasty products turned to South Korea.

The process was repeated with Taiwan next in line, then British controlled Hong Kong took on the role of the world's supplier of cheap goods, until mainland China joined them.

Now it is more of a free-for-all, with low labor cost countries in Asia, Africa, and Latin America all wanting a share of the pie. I see this trend continuing with Eastern European countries joining in. India still has a lot to learn before they will get their share as exporters.

These latest developments are mainly what have prompted me to expand my book's treatment of sourcing from countries other than China. China will still play a big role for some years yet, but importers wanting to be a jump ahead of their competitors will need to include other countries in their sourcing programs.

Walter