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

Ryan Wolf

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Such great information here.

If a Chinese factory claims that they are both a manufacturer and trading company, are they worth talking to? Or should I try to find a place that is strictly a manufacturing facility?

I'll bet that you have already answered this at some point in the previous 44 pages, I just haven't found it...yet!

Thanks
 
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Walter Hay

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Such great information here.

If a Chinese factory claims that they are both a manufacturer and trading company, are they worth talking to? Or should I try to find a place that is strictly a manufacturing facility?

I'll bet that you have already answered this at some point in the previous 44 pages, I just haven't found it...yet!

Thanks
It is very common for genuine manufacturers to also operate a trading arm of their business, so dealing with them only presents minor complications.

The biggest problem is knowing which products they manufacture, and which they buy and sell. That is very difficult to assess, but it can often be determined if there is a report published by an independent inspection service such as SGS or TUV. Those reports will usually show illustrations of their production facilities, and in those pictures you can often see the products in various stages of manufacture.

Walter
 

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Hey Walter, I'm having difficulty convincing these two mfg's to agree to a payment through Escrow. They're asking for T/T, but the order is over $2,000, so I don't feel comfortable just sending all that money out with no guarantee. Do you have any tips?
 

Walter Hay

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Hey Walter, I'm having difficulty convincing these two mfg's to agree to a payment through Escrow. They're asking for T/T, but the order is over $2,000, so I don't feel comfortable just sending all that money out with no guarantee. Do you have any tips?
Persuading suppliers to accept escrow is a hard sell. You could offer to pay their bank fees, but unfortunately few Chinese business people understand real escrow. They can only think of the faux escrow services provided by Alibaba and others.

The best alternative would be L/C. They might resist that on the grounds of cost also, but I would gently insist. A big benefit of L/C payment is that you can specify all the conditions on the document even to the point of payment due only upon loading at the port (airport) of departure, or until you have confirmed the pickup by the courier, substantiate by your successful tracking of the shipment on the courier's system. In that case the tracking would only need to show that the shipment has actually been collected and is in the courier's system.

If you want to you can even specify that the goods pass inspection by your inspection service. The supplier has to meet precisely every condition you specify and as soon as they have done that they can negotiate the L/C at their bank. It is advisable to get them to agree to all your conditions before you obtain the L/C at you bank.

Walter
 
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Hi Walter!
I hope everything is fine.

Today I recieved a shipment by air from a supplier in China, our product is in a plastic bag with with our logo on.
I can say that somewhere around 99% of the bags were broken when I recieved the items because of the bags being too small to fit the product.
Is it something I can do in this situation except for spending hours with superglue?

By the way thanks alot for all the value provided it has been so much support for someone new in this area.:tiphat:

/Daniel
 

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Hi Walter!
I hope everything is fine.

Today I recieved a shipment by air from a supplier in China, our product is in a plastic bag with with our logo on.
I can say that somewhere around 99% of the bags were broken when I recieved the items because of the bags being too small to fit the product.
Is it something I can do in this situation except for spending hours with superglue?

By the way thanks alot for all the value provided it has been so much support for someone new in this area.:tiphat:

/Daniel
Unfortunately you are stuck :rolleyes: with the problem and the only way I see out of it for you is to buy new bags and repack the entire order. Superglue won't adhere to Polyethylene, which is almost universally used to make plastic bags. You can have them printed locally by a variety of methods, but the simplest will be to have some adhesive labels made. I recommend making it an impressive label, depending on the unit value of the product. Print on foil is not horribly expensive, but adds a touch of class to the packaging.

Alternatively, here's a link to a Polish company that can do what I think you need. http://www.gb.coffee-service.eu/ Don't be put off by the name. Coffee packaging is their specialty, but they can supply and print packages for any products.

The only plus I could help you retrieve is to mention the problem to the supplier, but do so in a friendly tone, and don't ask for any compensation. This will earn you Guanxi points with your supplier.

Walter
 
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Unfortunately you are stuck :rolleyes: with the problem and the only way I see out of it for you is to buy new bags and repack the entire order. Superglue won't adhere to Polyethylene, which is almost universally used to make plastic bags. You can have them printed locally by a variety of methods, but the simplest will be to have some adhesive labels made. I recommend making it an impressive label, depending on the unit value of the product. Print on foil is not horribly expensive, but adds a touch of class to the packaging.

Alternatively, here's a link to a Polish company that can do what I think you need. http://www.gb.coffee-service.eu/ Don't be put off by the name. Coffee packaging is their specialty, but they can supply and print packages for any products.

The only plus I could help you retrieve is to mention the problem to the supplier, but do so in a friendly tone, and don't ask for any compensation. This will earn you Guanxi points with your supplier.

Walter

Hi Walter!
Fortunately the damage was not as bad as I first predicted, some are very bad damaged but some just have a small crack and will hopefully not give any bigger concerns to our customers.
The advice regarding the manufacturer are also great, I wont burn any bridges due to this incident but rather make it my responsibility to make sure this wont happen again in the future.
Will make sure to check out the Polish company, im sure its a great contact to have in this business when you never can be sure of how your products will arrive. :)

Thanks and have a great day!:tiphat:
 

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Hi!
I hope its OK I post an update on whats been going on since it might be of value to someone else being in a similiar position sometime.

1. I told my supplier that I kindly had to notify them that there has been some damage done to the packages during transportation, I was very clear there was not any hard feelings or demands for compensation.
2. I contacted the Polish manufacturer with a picture of the packaging, they said they could not help me since they only produce "flexible bags" and mine is not. I thanked for their time and told them Ill be in touch if I need their service in the future.

My asian supplier wanted some pictures of the damages and I provided them with that, and then they offered me to send new bags with my logo for the entire order. Completely free of charge. I doubt that would have happened if I bursed out my dissapointment to them in the first place.

Thanks alot for the value provided @Walter Hay it really helped turn my situation around.
 

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Hi!
I hope its OK I post an update on whats been going on since it might be of value to someone else being in a similiar position sometime.

1. I told my supplier that I kindly had to notify them that there has been some damage done to the packages during transportation, I was very clear there was not any hard feelings or demands for compensation.
2. I contacted the Polish manufacturer with a picture of the packaging, they said they could not help me since they only produce "flexible bags" and mine is not. I thanked for their time and told them Ill be in touch if I need their service in the future.

My asian supplier wanted some pictures of the damages and I provided them with that, and then they offered me to send new bags with my logo for the entire order. Completely free of charge. I doubt that would have happened if I bursed out my dissapointment to them in the first place.

Thanks alot for the value provided @Walter Hay it really helped turn my situation around.
Thanks for letting our readers know that the softly softly approach works. It often results in getting a lot more than you expect.

Walter
 
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good incoterm to use is DDU;
 

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I'm in the process of my first import and I was wondering which payment form you recommend for samples. The samples I'm getting are $80 including shipping. I would like to pay with paypal as it is convenient but I'm not sure about how safe it is compared to other options. Thank you!
 

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bank cheque or moneygram? its a low amount; 80$ via moneygram will cost 90$ (fees). unless you use a paypal or a bank transfer
 
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I'm in the process of my first import and I was wondering which payment form you recommend for samples. The samples I'm getting are $80 including shipping. I would like to pay with paypal as it is convenient but I'm not sure about how safe it is compared to other options. Thank you!
PayPal is almost safe. Just be sure that you ask the courier to watch while you open the package in case it is full of sawdust or pebbles etc. If possible, most important of the courier won't stay , you should video the process.

If the package is empty or contains junk - ask me what next to do.

Walter
 

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PayPal is almost safe. Just be sure that you ask the courier to watch while you open the package in case it is full of sawdust or pebbles etc. If possible, most important of the courier won't stay , you should video the process.

If the package is empty or contains junk - ask me what next to do.

Walter
Thank you!

My supplier said the $80 included shipping with DHL Freight. Will I need to do anything with customs?
 

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Hey Walter, I'm a handful of pages into this thread & have already gleaned a TON of valuable info, I just wanted to pop over here & say Thanks for taking the time to put this all together & answer questions like you have over the past few years now.

I've got a patent pending product that I'm in the initial stages of having produced -copying & pasting cliff notes out of this thread into a Word doc for easy reference! LOL

After I get through the next 30+ pages, I may have a question or two for you, haha. Thanks again for your contribution here, it's greatly appreciated.
 
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Thank you!

My supplier said the $80 included shipping with DHL Freight. Will I need to do anything with customs?
DHL will handle that for you. There should be no extra charge unless it attracts duty or tax in which case they will pay it for you. It some cases they will deliver to you even before you pay that back to them, but usually they will expect payment before delivery. In some locations they will charge you extra for lodging the Customs clearance.

Regarding what to do if you paid by PayPal and the package is empty or contains trash, lodge a dispute with PayPal, but do not say that the goods are not as described, otherwise PayPal will reject your dispute. Tell them that this is a fraud and you signed for an empty package. Depending on which country you are in, contact any government fraud watch body and report this fraud, asking them to contact PayPal and Alibaba/ DHGate etc., on your behalf. This method has worked for others.

In future, ask the courier to wait while you open the package. If he/she is a reasonable person they will allow this and you can then refuse to sign for it if it contains paper or other filling instead of the product. I have known people to receive stones, and in one case a brick.

Walter
 

Walter Hay

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Hey Walter, I'm a handful of pages into this thread & have already gleaned a TON of valuable info, I just wanted to pop over here & say Thanks for taking the time to put this all together & answer questions like you have over the past few years now.

I've got a patent pending product that I'm in the initial stages of having produced -copying & pasting cliff notes out of this thread into a Word doc for easy reference! LOL

After I get through the next 30+ pages, I may have a question or two for you, haha. Thanks again for your contribution here, it's greatly appreciated.
I'm glad I'm able to help. Lately I've received a lot of rep transfers and I want to tell everyone that I do appreciate it. I have a lot of conversations going and this is a very busy time for me, so I hope this message is read by those who have showed their appreciation.

Walter
 

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Walter - new forum member and newbie to pretty much everything as far as fastlane ideas/business is concerned. For the over a year I've been educating myself on various ways to earn money online and settled on the FBA route. Once I dug into FBA I learned from a lot of the gurus (goo-roos?) but thankfully didn't buy into any of their expensive courses...mostly gleaned information from workshops etc. I have picked and launched a product prior to reading TFLM and lurking this forum. It sold out in a couple months and I am currently waiting on sea shipments to restock. I think I have been lucky to avoid pitfalls so far...

Just finished reading all 3 years or so of history in this thread and have to say THANK YOU for doing this! Oh man I've already bought and read your book too. I've learned (from you) that I've probably acted very rashly (little due diligence - bought on alibaba etc) and have certainly bought from a trading company but my first shipment went smoothly (though nowhere near the 250% margin you suggest).

I have to say to anyone on the fence about getting Walter's book...GET THE BOOK! I wish I would have found it a year ago when I started this search. It provides every step of the process in exactly enough detail that you need to know! No nonsense - no fluff. All the online gurus leave imperative steps out of the process...There were a lot of surprises and hidden costs that I was not expecting (inland freight, setup charges, duty charges, clearance charges, etc) with my first shipment simply because I was not informed. (apparently you cannot just "go and pick up your shipment from the airport" as I was led to believe...sounds comical to me now)

Currently searching for the actual manufacturer (unsuccessfully so far) of my product to get my margins to acceptable levels or I may need to find a new product altogether. Walter - could I PM you the details and get your suggestions? Not sure about the etiquette on this forum. I've searched through the sourcing sites you recommend but have only found more trading companies or unverified (no SGS report) suppliers that also have not responded to my initial inquiry.

As an aside I do have a couple generic questions:
1) Is it common to have long lead times from suppliers? My supplier has had about a 2 month delay before production even begins on my orders for this product on both my orders so far.
2) My supplier also said there is only one factory in all of china that makes this product. In your experience could this possibly be true? I assumed it was a lie to keep me from looking elsewhere...but China is a big place

edit: add second question
 
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Walter Hay

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Walter - new forum member and newbie to pretty much everything as far as fastlane ideas/business is concerned. For the over a year I've been educating myself on various ways to earn money online and settled on the FBA route. Once I dug into FBA I learned from a lot of the gurus (goo-roos?) but thankfully didn't buy into any of their expensive courses...mostly gleaned information from workshops etc. I have picked and launched a product prior to reading TFLM and lurking this forum. It sold out in a couple months and I am currently waiting on sea shipments to restock. I think I have been lucky to avoid pitfalls so far...

Just finished reading all 3 years or so of history in this thread and have to say THANK YOU for doing this! Oh man I've already bought and read your book too. I've learned (from you) that I've probably acted very rashly (little due diligence - bought on alibaba etc) and have certainly bought from a trading company but my first shipment went smoothly (though nowhere near the 250% margin you suggest).

I have to say to anyone on the fence about getting Walter's book...GET THE BOOK! I wish I would have found it a year ago when I started this search. It provides every step of the process in exactly enough detail that you need to know! No nonsense - no fluff. All the online gurus leave imperative steps out of the process...There were a lot of surprises and hidden costs that I was not expecting (inland freight, setup charges, duty charges, clearance charges, etc) with my first shipment simply because I was not informed. (apparently you cannot just "go and pick up your shipment from the airport" as I was led to believe...sounds comical to me now)

Currently searching for the actual manufacturer (unsuccessfully so far) of my product to get my margins to acceptable levels or I may need to find a new product altogether. Walter - could I PM you the details and get your suggestions? Not sure about the etiquette on this forum. I've searched through the sourcing sites you recommend but have only found more trading companies or unverified (no SGS report) suppliers that also have not responded to my initial inquiry.

As an aside I do have a couple generic questions:
1) Is it common to have long lead times from suppliers? My supplier has had about a 2 month delay before production even begins on my orders for this product on both my orders so far.
2) My supplier also said there is only one factory in all of china that makes this product. In your experience could this possibly be true? I assumed it was a lie to keep me from looking elsewhere...but China is a big place

edit: add second question
Thanks for your kind comments.

In answer to your questions:
1. 45 days is the most common lead time quoted, but as Chinese New Year approaches that blows out. 2 months is not bad at this time of year.
2. That could be true. I once found the only factory in China making a product I wanted. It was located way out in the countryside and they didn't advertise. I found them in Yellow Pages while in China on one occasion, so I got a chauffeur to drive me there.

By all means send me PM with the details of your product search. I'll be glad to help.

Walter
 

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Thanks for your kind comments.

In answer to your questions:
1. 45 days is the most common lead time quoted, but as Chinese New Year approaches that blows out. 2 months is not bad at this time of year.
2. That could be true. I once found the only factory in China making a product I wanted. It was located way out in the countryside and they didn't advertise. I found them in Yellow Pages while in China on one occasion, so I got a chauffeur to drive me there.

By all means send me PM with the details of your product search. I'll be glad to help.

Walter

Thanks Walter!

1) I mean to say its ~2 months before production even starts. So my first order I put the deposit down in the beginning of July and didn't get into stock until the middle of September with Air Freight (about 3 months total). My second order I put the deposit down in the early October and won't get into stock until late Jan 2017 with Sea Freight (about 4 months total).
Are you saying that these sorts of lead times are common? I feel like this is a long lead time and is a real obstacle to me right now.
I know you recommend the JIT method (small orders + air courier) in your book but my product weighs about 2lbs per unit so air courier would be expensive for me.
2) thanks

new question
3) Is there a safe way to know for sure when to pay the 70% deposit? Or in your recommendation the full amount before shipping? Do you wait for a AWB or B/L? I know pictures and documents can be forged and from your experience you say it is quite common. I guess this assumes you are not using a letter of credit which I have not tried yet. I've been using T/T.
 

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Walter,

I'm about 30 pages into your book. Love it. Thanks to you and @Ronak for giving me the gift of wealth in knowledge.

I have two questions I'd like to ask to you Walter. I think it will benefit everyone here, although the questions do border on the legal side of things.

I am moving towards my first bulk purchase in importing, although I have yet to incorporate. I've been using a made up company name and assigning myself the role of purchasing manager, sounding legitimate through conversation.

The package of samples I received featured my fake LLC name followed by my actual/personal/government name below it. I shipped DHL. I also have other samples coming, in which I gave the respective representative the fake LLC name. Don't know if they'll arrive marked in the same manner, as of right now.

(1) Do I now have an "importer number" that I should be referring to?!

Also, I can grow into the "fake" name as I plan on incorporating in the coming weeks, but I am unsure as to whether the LLC name will be used when I make a bulk purchase before that. (2) Can purchasing under a fake LLC name get me into any trouble, or better yet, what are the impacts of doing so?

Thanks again. I bet your book even discloses this information, but I can only read so fast!

Updates?
 

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Thanks Walter!

1) I mean to say its ~2 months before production even starts. So my first order I put the deposit down in the beginning of July and didn't get into stock until the middle of September with Air Freight (about 3 months total). My second order I put the deposit down in the early October and won't get into stock until late Jan 2017 with Sea Freight (about 4 months total).
Are you saying that these sorts of lead times are common? I feel like this is a long lead time and is a real obstacle to me right now.
I know you recommend the JIT method (small orders + air courier) in your book but my product weighs about 2lbs per unit so air courier would be expensive for me.
2) thanks

new question
3) Is there a safe way to know for sure when to pay the 70% deposit? Or in your recommendation the full amount before shipping? Do you wait for a AWB or B/L? I know pictures and documents can be forged and from your experience you say it is quite common. I guess this assumes you are not using a letter of credit which I have not tried yet. I've been using T/T.
Quick answers because I am traveling:

1. Most likely due to you trader suppliers being delayed by the manufacturer. I will work on solving that for you privately.

2. You're welcome.

3. I think you meant 70% balance. Almost invariably required before shipment. Using an L/C means you don't have to pay until proof of shipment is provided.

Walter
 

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Hey @Ronak ! Thanks for your interest. I've made some progress, although a bit less than I'd like to admit. I'm currently importing three more products, and plan to import a few others in the coming months.

I'm confident in dealing with manufacturers overseas because of @Walter Hay 's book. After my first import several months back, I spent maybe a month or two talking with several factories about future products. It was practice mainly, just didn't have the funds/risk tolerance to go through with the orders.

Thanks to my business in copywriting, I can fund these orders, and better market them (which is where I struggled). I plan to make a big push in 2017. We'll see how it goes. I'll be providing updates via my importing & ecommerce thread.

Again, thank you @Ronak . The book was huge.

If @Walter Hay is onboard, I'd like to reciprocate. I'd like to buy a copy of Walter's book for someone here on the forum. So, for those interested in receiving a free copy of Walter's book, shoot me a PM explaining what action(s) you will take once you receive the book.

Best response gets the book. Available until January 7th.
 
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Walter Hay

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Hey @Ronak ! Thanks for your interest. I've made some progress, although a bit less than I'd like to admit. I'm currently importing three more products, and plan to import a few others in the coming months.

I'm confident in dealing with manufacturers overseas because of @Walter Hay 's book. After my first import several months back, I spent maybe a month or two talking with several factories about future products. It was practice mainly, just didn't have the funds/risk tolerance to go through with the orders.

Thanks to my business in copywriting, I can fund these orders, and better market them (which is where I struggled). I plan to make a big push in 2017. We'll see how it goes. I'll be providing updates via my importing & ecommerce thread.

Again, thank you @Ronak . The book was huge.

If @Walter Hay is onboard, I'd like to reciprocate. I'd like to buy a copy of Walter's book for someone here on the forum. So, for those interested in receiving a free copy of Walter's book, shoot me a PM explaining what action(s) you will take once you receive the book.

Best response gets the book. Available until January 7th.
Great to see success breeding success. It's so good to see some who benefit from the forum sharing with others.

I'm happy to go along with your suggestion, and I will make sure the winner is also eligible for free downloads of all updates as they become available.

Walter
 

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@DBXI You get the book my man. Wasn't necessarily your response (which was good), but the fact you were the only PM I received since the offering two days back. I know I said until the 7th, but positive action deserves to rewarded, and it usually is.

Congrats man.

@Walter Hay Should I contact you over PM regarding payment/logistics for @DBXI 's copy of your book?
 
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Walter Hay

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@DBXI You get the book my man. Wasn't necessarily your response (which was good), but the fact you were the only PM I received since the offering two days back. I know I said until the 7th, but positive action deserves to rewarded, and it usually is.

Congrats man.

@Walter Hay Should I contact you over PM regarding payment/logistics for @DBXI 's copy of your book?
Congratulations to @DBXI I hope this leads to a success story from him.

Yes, Elon's Musk I will need the name and email address for @DBXI in order to send a download link.

Walter
 
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AWESOME super excited to read this. Thanks @Elon's Musk and @Walter Hay
The download link should be there today. If it doesn't arrive soon enough let me know and I will short circuit my support team's process and send a PDF direct.

Best wishes,
Walter
 

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