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

Denim Chicken

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This type of delay usually results from either a scam, (but I doubt it in this case) or hasty promises made in trying to please. They might have been let down by a subcontractor, but they wouldn't want you to know that they aren't doing all the work themselves.

Samples will usually taker a lot longer to produce than production line versions, and that is made worse when it is not a standard product. He might have sent the sample without taking time to photograph the final step. Maybe I'm just being optimistic, but I don't smell a scam here.

Your question about lead time for a production line quantity was a good idea. That might even result in them actually giving you a faster lead time than the usual 45 days, but I wouldn't bank on it.

Shipping via HK is commonplace, sometimes even under a different name than the one where you placed the order. The fact that the tracking # is showing that it is being shipped via HK almost certainly shows that it has shipped, otherwise it would show shipped ex supplier's city. Couriers are often slow in updating tracking, so check periodically and you might find it has moved before you get a reply from the supplier.

Walter
Thank you Walter, this puts my mind at rest. I believe his wording made me believe the printing was done by a subcontractor, which I am fine with. He said something about getting the samples back from the printer or printing. They don't specialize in printing so I imagine it took a few days to send it back and get it back, etc.

Good to know that production runs are much faster
 
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I found a product on Amazon that could be made better recently and also read a ton of reviews talking about how it was "a good idea with poor execution." I found the same product on Alibaba available with very good margins. So after seeing all of that, I found out the product itself is patented. I'm not sure how much you would know about this specifically, but if I improved this product and made it different than the one that is being sold online by requesting a few key changes through the manufacturer.. would there be a way to sell it without infringing on the patent? I'm assuming I need to find a new product but I just wanted to know what you think.
 

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I found a product on Amazon that could be made better recently and also read a ton of reviews talking about how it was "a good idea with poor execution." I found the same product on Alibaba available with very good margins. So after seeing all of that, I found out the product itself is patented. I'm not sure how much you would know about this specifically, but if I improved this product and made it different than the one that is being sold online by requesting a few key changes through the manufacturer.. would there be a way to sell it without infringing on the patent? I'm assuming I need to find a new product but I just wanted to know what you think.
Bypassing a patent with small modifications can be risky. You would need the advice of a patent attorney, or check out some of the threads where patents have been dealt with. There are some members with quite good knowledge on the subject.

Walter
 

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I received all my samples and am ready to place my order. I received a Pro forma invoice and now I can really crunch some numbers to make sure the numbers are ok.

He quoted me UPS which I am taking is air courier door-to-door service. It's $950 and package is almost 300 lbs. Based on a quick freight estimator, it seems $800-1400 is reasonable.

How much can I expect to save if I go LCL + freight forwarder fees/commissions/customs, etc.? The same freight estimator is quoting around $400-800 but I'm not sure if that includes any freight forwarder fees.

The shipping is a lot higher than I anticipated. I initially thought it would cost around $450 TOTAL for freight for the 500 units based on my quick estimates based on size, dimension and weight. $950 is double that raises my unit cost almost $1.40 EACH. Granted its air courier via UPS.

I am going to contact a freight forwarder to see what the costs are but I'm not sure I'll get an honest, complete quote given that customs hold ups and port fees might add up.
 
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Walter Hay

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I received all my samples and am ready to place my order. I received a Pro forma invoice and now I can really crunch some numbers to make sure the numbers are ok.

He quoted me UPS which I am taking is air courier door-to-door service. It's $950 and package is almost 300 lbs. Based on a quick freight estimator, it seems $800-1400 is reasonable.

How much can I expect to save if I go LCL + freight forwarder fees/commissions/customs, etc.? The same freight estimator is quoting around $400-800 but I'm not sure if that includes any freight forwarder fees.

The shipping is a lot higher than I anticipated. I initially thought it would cost around $450 TOTAL for freight for the 500 units based on my quick estimates based on size, dimension and weight. $950 is double that raises my unit cost almost $1.40 EACH. Granted its air courier via UPS.

I am going to contact a freight forwarder to see what the costs are but I'm not sure I'll get an honest, complete quote given that customs hold ups and port fees might add up.
If he has quoted UPS it is almost certainly door to door service, but I never take anything for granted. so I would ask him to confirm.

On a 300 lbs shipment there might not be much saving to use LCL. You should obtain several quotes from freight forwarders, emphasizing that you want the quote to include all costs to your door. They won't quote including duty and sales tax, but the quote should include Customs clearance.

You need to weigh up the value to you of receiving the goods several weeks faster against the possible saving in freight cost.

Walter
 

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If he has quoted UPS it is almost certainly door to door service, but I never take anything for granted. so I would ask him to confirm.

On a 300 lbs shipment there might not be much saving to use LCL. You should obtain several quotes from freight forwarders, emphasizing that you want the quote to include all costs to your door. They won't quote including duty and sales tax, but the quote should include Customs clearance.

You need to weigh up the value to you of receiving the goods several weeks faster against the possible saving in freight cost.

Walter
Thank you. I believe it is door to door but I will make sure. Ok understood. I am reaching out to freight forwarders once I get his quote via LCL FOB.


A few pages ago when you mentioned assembly centers with handicapped workers, do those type of facilities only take on large orders? The contract fulfillment and assembly companies I found via google seem to want monthly contracts and with volume. With an order of say, 1000-3000 units requiring basic assembly and packaging, I have yet to find a solution for this. It's not big and consistent enough for fulfillment companies to take on and it's too big for me to do myself.

My initial order is 500 units and I plan on assembly 100 units or so at a time to send into Amazon. But I am trying to figure out this obstacle of getting them assembled so I don't have to when I reach subsequent larger orders.

The only viable solution so far is to do it myself, or hire someone part time on a weekend to help UNTIL there is enough scale (with other products or volume) to hire my own worker with my warehouse or to use a contract assembly center that will take a chunk of profit out.
 

Walter Hay

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Thank you. I believe it is door to door but I will make sure. Ok understood. I am reaching out to freight forwarders once I get his quote via LCL FOB.


A few pages ago when you mentioned assembly centers with handicapped workers, do those type of facilities only take on large orders? The contract fulfillment and assembly companies I found via google seem to want monthly contracts and with volume. With an order of say, 1000-3000 units requiring basic assembly and packaging, I have yet to find a solution for this. It's not big and consistent enough for fulfillment companies to take on and it's too big for me to do myself.

My initial order is 500 units and I plan on assembly 100 units or so at a time to send into Amazon. But I am trying to figure out this obstacle of getting them assembled so I don't have to when I reach subsequent larger orders.

The only viable solution so far is to do it myself, or hire someone part time on a weekend to help UNTIL there is enough scale (with other products or volume) to hire my own worker with my warehouse or to use a contract assembly center that will take a chunk of profit out.
Commercial Assembly businesses generally require continuing business. Centers employing disabled or handicapped workers will usually accept one-off or small continuing business, but they are now more difficult to find in the US. To a lesser extent the same applies in the UK, but in Australia there are still many that operate as charities or non profit organizations.

You will find some in the US but it will take a lot of searching. Goodwill Enterprises might be suitable, but they have become more commercial in recent years.

Casual labor might be your best solution. You could even post a notice on community notice boards. Some stay at home moms might like such an opportunity.

Walter
 
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Mr Walter thank you for your post, your hep is highly appreciated. Could you be so kind to advice any source where to find a good reliable dealer in China please? Thank you very much.
 

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Mr Walter thank you for your post, your hep is highly appreciated. Could you be so kind to advice any source where to find a good reliable dealer in China please? Thank you very much.
I suggest you have a look through this thread, where you will find some help for someone such as yourself just starting out to look for suppliers in China.

If you can't take enough time to read right through, I suggest you search the thread for the word: Manufacturer. By that means you will find posts that explain why you should be looking for manufacturers, not dealers, traders, or wholesalers.

You are welcome to post more questions.

Walter
 
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I suggest you have a look through this thread, where you will find some help for someone such as yourself just starting out to look for suppliers in China.

If you can't take enough time to read right through, I suggest you search the thread for the word: Manufacturer. By that means you will find posts that explain why you should be looking for manufacturers, not dealers, traders, or wholesalers.

You are welcome to post more questions.

Walter

Mr Walter thank you for your kind answer. Unfortunately I cannot find any similar case in any discussion. Our product is database of contacts. We have collected contacts; users of engineering software's during the last 30 years. So loyal and honest local dealer in China/Asia is very important to us. Your advice is highly appreciated. Thank you.
 

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Mr Walter thank you for your kind answer. Unfortunately I cannot find any similar case in any discussion. Our product is database of contacts. We have collected contacts; users of engineering software's during the last 30 years. So loyal and honest local dealer in China/Asia is very important to us. Your advice is highly appreciated. Thank you.
Sorry Enrique, I thought you were looking for suppliers. I can't help you find dealers for your database.

Walter
 
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Sorry Enrique, I thought you were looking for suppliers. I can't help you find dealers for your database.

Walter

Mr Walter, thank you for your kind words. I will be very thankful to anyone who will be able to help me.
 
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Hey, @Walter Hay . Thank you for your thread and I love your book.

I am building a shoe brand. What is ok to expect from the manufacturer of shoes without finding a separate manufacturer specialized in packaging?:

-I believe the shoe supplier can also deliver hologram security stickers and carton price tags- am I wrong?

-Additional question please: Is it usually expected from the manufacturer to work closely with a manufacturer specialized in packaging that is in their approximate location or have a packaging company inside their own factory?
 

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Hey, @Walter Hay . Thank you for your thread and I love your book.

I am building a shoe brand. What is ok to expect from the manufacturer of shoes without finding a separate manufacturer specialized in packaging?:

-I believe the shoe supplier can also deliver hologram security stickers and carton price tags- am I wrong?

-Additional question please: Is it usually expected from the manufacturer to work closely with a manufacturer specialized in packaging that is in their approximate location or have a packaging company inside their own factory?
All suppliers will have some packaging ability, but not necessarily of the kind you want. They will certainly have access to packaging suppliers. You should remember that shoes in retail boxes will occupy a lot more space in shipping, and freight on empty space can be more expensive than freight on the weight of the product.

Packaging can be shipped economically in a flat package, assemble locally with casual labor, and the shoes placed in the boxes. Because of the range of styles and sizes, you need reasonably intelligent casuals to do that work. I helped a member find a packaging supplier who shipped very low cost flat packs of cartons for him. I will see if I can find the supplier's name for you.

Because you are establishing a brand, I can't let your post pass by without mentioning that I have just published a book which deals with how to create labels and packaging with selling power and how to use them to create a great brand. I will PM you with some information about it.

Not all suppliers will have the same ability. Some might be able to supply holograms, but if they can't they should be willing to subcontract that. It's possible they might not know enough about them to even know who to contact, so I wouldn't count on it.

As for price tags, do you really want your supplier to know the retail price? Having those printed locally should be a simple matter, but you might need to employ some casual labor to attach them.

Walter
 

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Hi @hatzil I found the supplier the member finished up using. For your benefit, and possibly for others looking for packaging suppliers in China, here they are: http://www.huahengpack.com

Walter
 
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Hi @Walter Hay,

I placed my last order and paid her and she said to send her the wash tag contents in PDF form. Do you know anything about this? Are any materials made of fabrics supposed to have wash tags on them? I saw that clothing is based on the FCC guidelines but my product isn't clothing or apparel, its more akin to say a soft, velvet iphone cover or like a fuzzy kids toy or something like that, where you could wash it but its not necessary.

Thoughts? I dont know the wash requirements if its supposed to be washed at all because I'm not the own manufacturering the product but if it's up to me, I'd just recommend hand wash or gentle cycle and call it a day.

Is this what she means when she wants the wash label contents? I'm not fully understanding what she wants exactly. She is a trader not an manufacturer that I'm fully aware of.
 

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Hi @Walter Hay,

I placed my last order and paid her and she said to send her the wash tag contents in PDF form. Do you know anything about this? Are any materials made of fabrics supposed to have wash tags on them? I saw that clothing is based on the FCC guidelines but my product isn't clothing or apparel, its more akin to say a soft, velvet iphone cover or like a fuzzy kids toy or something like that, where you could wash it but its not necessary.

Thoughts? I dont know the wash requirements if its supposed to be washed at all because I'm not the own manufacturering the product but if it's up to me, I'd just recommend hand wash or gentle cycle and call it a day.

Is this what she means when she wants the wash label contents? I'm not fully understanding what she wants exactly. She is a trader not an manufacturer that I'm fully aware of.
As far as I am aware care labels are only required on garments that are normally washed. Specifically this applies to clothing, but doesn't apply to tea towels, toys, babies' bibs, cushion covers, sheets, towels, etc., or other items that are not clothing.

Care labels are not required to be already attached at point of entry, so Customs would have no reason to hold them even if they were clothing.

I think the supplier doesn't know the rules, and thinks that all products made of textiles must have a care label.

Walter
 

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As far as I am aware care labels are only required on garments that are normally washed. Specifically this applies to clothing, but doesn't apply to tea towels, toys, babies' bibs, cushion covers, sheets, towels, etc., or other items that are not clothing.

Care labels are not required to be already attached at point of entry, so Customs would have no reason to hold them even if they were clothing.

I think the supplier doesn't know the rules, and thinks that all products made of textiles must have a care label.

Walter
I just sent my logo and basic instructions and she said it was fine. She also mentioned that a Made in China label is required for the U.S. which I believe is true so I asked her to print it on the wash label on the backside.

A problem occurred regarding payment. I sent her Paypal (which was an extra 6%) because this is my first order with this supplier. It went through fine on my end as I used a CC and it is showing complete. But she is telling me that it is frozen in her account until July 4th. I'm not sure of what the status is as I don't have access to her account. I am supposed to have the product here by July 5th, which was the estimated date of shipment.

How should I proceed here? She could be just as cautious as I am but I know my money is good. However, should I press regarding if she'll be able to ship before the funds are available? I have never run into an issue with Paypal where they freeze the funds for a month. It was less than $1000.

I dont think she's trying to delay in anyway to stop me from filing a dispute as the time frame for a dispute is 180days and I can do a CC chargeback as well.

Thoughts on this?
 
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@Walter Hay when paying via wire/telegraphic transfer to a supplier, who pays the fees?

In all business I have done in the past, I cover my bank's fees, any intermediary bank's fees, leaving the supplier to cover their bank's fees. This seems to be fair to me, as I can't control what their bank charges.

I am interested to hear your take/experiences on this.
 

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I just sent my logo and basic instructions and she said it was fine. She also mentioned that a Made in China label is required for the U.S. which I believe is true so I asked her to print it on the wash label on the backside.

A problem occurred regarding payment. I sent her Paypal (which was an extra 6%) because this is my first order with this supplier. It went through fine on my end as I used a CC and it is showing complete. But she is telling me that it is frozen in her account until July 4th. I'm not sure of what the status is as I don't have access to her account. I am supposed to have the product here by July 5th, which was the estimated date of shipment.

How should I proceed here? She could be just as cautious as I am but I know my money is good. However, should I press regarding if she'll be able to ship before the funds are available? I have never run into an issue with Paypal where they freeze the funds for a month. It was less than $1000.

I dont think she's trying to delay in anyway to stop me from filing a dispute as the time frame for a dispute is 180days and I can do a CC chargeback as well.

Thoughts on this?
PayPal's policies vary for different users, but holding the funds that long should not be a problem for her, it is part of PayPal's normal processes.

I would point that out to her, and let her know how important it is for you to get the shipment on time.

Walter
 

Walter Hay

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@Walter Hay when paying via wire/telegraphic transfer to a supplier, who pays the fees?

In all business I have done in the past, I cover my bank's fees, any intermediary bank's fees, leaving the supplier to cover their bank's fees. This seems to be fair to me, as I can't control what their bank charges.

I am interested to hear your take/experiences on this.
That's a reasonable arrangement, but many Chinese business people will try hard to get you to pay everything. In my experience most have been will to pay the fees that their own bank charges them.

Walter
 
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That's a reasonable arrangement, but many Chinese business people will try hard to get you to pay everything. In my experience most have been will to pay the fees that their own bank charges them.

Walter
Thank you Walter. I wanted to be sure I wasn't being unreasonable first.
 

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PayPal's policies vary for different users, but holding the funds that long should not be a problem for her, it is part of PayPal's normal processes.

I would point that out to her, and let her know how important it is for you to get the shipment on time.

Walter
Thank you. I heard back from her and she said not to bother calling paypal as their policies are different for all buyers. She said the products are sent out for order and to send her the final wash tags. So hopefully everything works out.
 

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@Walter Hay First of all thanks for all the knowledge, because of this thread I was able to try the ecommerce, now I am expanding the range of the products I would like to offer, but from a different country. South Korea, why South Korea, because the textil I am looking is originally from there, and I would like to offer something a little bit different than the competitors. Whats your point of view from manufacturers from there? Any special place to look for them? I have been doing my own research and sent some inquiries, just would like to hear your thoughts.
 
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@Walter Hay First of all thanks for all the knowledge, because of this thread I was able to try the ecommerce, now I am expanding the range of the products I would like to offer, but from a different country. South Korea, why South Korea, because the textil I am looking is originally from there, and I would like to offer something a little bit different than the competitors. Whats your point of view from manufacturers from there? Any special place to look for them? I have been doing my own research and sent some inquiries, just would like to hear your thoughts.
South Korean products are generally of better quality than you will find in China. Many of the cultural factors that my book deals with in relation to dealing with Chinese suppliers are also relevant when dealing with those in South Korea. The Koreans have longer experience in handling export business and tend to be more professional.

Years ago they made the transition from being suppliers of cheap and nasty products to being suppliers of mostly good quality. Prices can still be very competitive so you need to contact a number of manufacturers to compare.

There is only one B2B site I would recommend for sourcing in South Korea, but if you have read my thread from the beginning you will know that there are good reasons why I don't publish my preferred sites online. Those new to sourcing and importing need to know a lot more than what I post on my thread. Otherwise they are jumping in the deep end after only one swimming lesson.

Walter
 

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Hey @Walter Hay
I am importing from China directly to a warehouse in the USA. I don't live in the USA and therefore will never have a chance to see the shipment myself.
In your opinion, do I need to work with a local USA customs agent or a customs agent in my country who I can work with face to face? ( I live in Israel).
 

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Hey @Walter Hay
I am importing from China directly to a warehouse in the USA. I don't live in the USA and therefore will never have a chance to see the shipment myself.
In your opinion, do I need to work with a local USA customs agent or a customs agent in my country who I can work with face to face? ( I live in Israel).
Communication with someone local to you might be easier, but they will be working through an agent in the USA, so there will be potential delays in the communication process.

For this reason I would find a freight forwarder in the US to handle the shipment.

You need a freight forwarder rather than a customs agent. Freight forwarders almost universally employ customs agents. The forwarder can handle everything for you from the point of pick up of the goods in China, to the delivery to the warehouse in the US.

Walter
 
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South Korean products are generally of better quality than you will find in China. Many of the cultural factors that my book deals with in relation to dealing with Chinese suppliers are also relevant when dealing with those in South Korea. The Koreans have longer experience in handling export business and tend to be more professional.

Years ago they made the transition from being suppliers of cheap and nasty products to being suppliers of mostly good quality. Prices can still be very competitive so you need to contact a number of manufacturers to compare.

There is only one B2B site I would recommend for sourcing in South Korea, but if you have read my thread from the beginning you will know that there are good reasons why I don't publish my preferred sites online. Those new to sourcing and importing need to know a lot more than what I post on my thread. Otherwise they are jumping in the deep end after only one swimming lesson.

Walter
Thank you for the insight Walter. I completely understand your terms. I will give it a shot with the supplier I have communication, and hopefully would keep you posted. Will take a look in your book as well.
 

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Dear @Walter Hay
I am talking with a supplier, I sent them over mockups for my product, and they quoted me, but things concern me.
Since I am importing from China to the USA, I want to use door-to-door service as you suggested. Who needs to arrange the shipment? Is it me or the supplier? (using FedEx or UPS). because the supplier quoted me a price for manuefacturing+door-to-door shipping and I expected it to only be for manufacturing.

The supplier accepts these payments: "Payment way: T/T(add US$30 handle cost), Paypal(add 4.5% handle cost), Trade Assurance and Western Union- no additional costs."
Is it strange that the supplier request 4.5% PayPal costs?
I checked with PayPal and saw that the processing fee is 2.9% and 0.3$ per purchase. I am buying 650 pieces.

Also, they mentioned: "50% deposit+balance payment before shipment (we will take bulk photos for your approval before balance payment)"
Are photos really enough? Since it is my first shipment I expect them to provide some kind of certificate/papers that prove accurate quantity and quality, and not just photos.

Another thing:
I asked: "is the door-to-door service include customs clearance"
They responded:
"What do you mean of including customs clearance?
If need pay for tax for customs, you need pay for us
We don't afford it"

Thank you Walter!
I apologize if I am asking too many questions, my first time importing is a bit difficult :)
 

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