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

[Walter Hay]

Walter,
I have been reading a lot of your posts and I got interest in buying your book and read it before my first importing experience. My only concern is that most of your content is China related. I am interested in importing from other countries, does your book still applies for other continents as well? Is there any FBA info found in your book?

Thanks,

Hi Andy,

My book deals with a lot more countries other than China. It includes links to sites for over 20 countries with instructions on how to source from those countries.

There is very little content specifically relating to FBA because it is not a book about marketing. I can refer you to experts in online marketing if you like. Some specialize in FBA.

Walter

 

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[Andygala]

Hi Andy,

My book deals with a lot more countries other than China. It includes links to sites for over 20 countries with instructions on how to source from those countries.

There is very little content specifically relating to FBA because it is not a book about marketing. I can refer you to experts in online marketing if you like. Some specialize in FBA.

Walter

Absolutely, I have been looking through this forum and have not found much about FBA or arbitrage. I just bought your e-book and went through 50 pages in a couple of hours. I am still waiting for the link of the $50 discount for the PAC course, any idea how I can get it? Also, is this the experts you were going to refer me?

Thanks again.

 

[Walter Hay]

Absolutely, I have been looking through this forum and have not found much about FBA or arbitrage. I just bought your e-book and went through 50 pages in a couple of hours. I am still waiting for the link of the $50 discount for the PAC course, any idea how I can get it? Also, is this the experts you were going to refer me?

Thanks again.

Yes Andy, I was going to recommend PAC, but don't buy it just because I recommend it. I have an interest in PAC because Jim Cockrum handles all the book sales and support for me with his paid support team. I only deal directly with questions that are too hard for them. I couldn't manage without that support and still have time to answer all the questions I get on Fastlane and another (far less quality) forum where I post.

I will be out for the rest of the day but will send you a discount link when I return.

Walter

 

[SJMM]

Hi Walter!! I bought your book a long time ago and it is an excellent book. I apologize if it has been mentioned or asked before. I am looking for a sourcing agent to help me source products in China. Do you have any suggestions as to how I can find agents I can interview and what are some questions I should ask.
Thank you so much!

 

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[Walter Hay]

Hi Walter!! I bought your book a long time ago and it is an excellent book. I apologize if it has been mentioned or asked before. I am looking for a sourcing agent to help me source products in China. Do you have any suggestions as to how I can find agents I can interview and what are some questions I should ask.
Thank you so much!

Hi Maria,

I have received so many requests to recommend a sourcing agent in China that I have been investigating this for quite a while. Even though I have good contacts in China I haven't yet been able to make that decision. The person I thought would be most suitable is too busy with his other interests.

I will let you know when I find an agent that I know I can trust well enough to recommend. There are risks involved in using a sourcing agent, and I have written about this issue here: Sharing my lifetime experience in export/import. Product sourcing specialist.

Meanwhile, I suggest you try sourcing on your own, by following the safe methods I describe in my book. If you don't have the latest edition (133 pages) let me know in a PM the email address you used when you ordered and I will pass that on to my support team. They will then send you a free download link.

If you have any worries with the sourcing process let me know by PM and I will help.

Walter

 

[Tim Mitchell]

Hi Walter, been while since i have posted here. I sent you an email today also. Walter mentioned the PAC for help with selling online via FBA etc. It is worth the look. I have been following the course and they have a facebook group too where you can ask questions and the experienced people always answer your questions. Just thought i would give my 2cents on it

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[Walter Hay]

Hi Walter, been while since i have posted here. I sent you an email today also. Walter mentioned the PAC for help with selling online via FBA etc. It is worth the look. I have been following the course and they have a facebook group too where you can ask questions and the experienced people allows answer your questions. Just thought i would give my 2cents on it

Sent from my SM-G900I using Tapatalk

Hi Tim, It's good to hear from you again. I note that you bought the 2015 edition of my book. If you haven't obtained your free download of the 2016 edition, contact my support team at msteamwebmaster@gmail.com with your purchase details and they will send you the link.

I think you did a spell check to arrive at the word "allows". You probably meant always.

Replying to your email shortly.

Walter

 

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[Tim Mitchell]

Good old spell check. Thanks for the pickup. I got your updated book too. Was a great read again.

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[PeterAL]

Walter,

I'm just letting you know that I received the samples from the company you verified for me. They were very professional and I've gotten a quote for a larger order. Although their quote is very reasonable, they have quoted me Ex Works. The package should not be that big so I don't believe it will qualify as freight.

1. I understand an Ex Works quote means the shipping responsibility falls solely on the buyer. Does this mean I cannot request a prepaid EMS shipment? For some reason I look at EMS shipments as different and requiring less work than transporting goods to a vessel.

2. I contacted Fed Ex for a door to door quote and they told me they do something called a remote pickup(RPI). Is this what you mean by door to door courier delivery?

Regards,
Peter

 

[Vigilante]

http://provenchinasourcing.com/

Walter's eBook

 

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[Wisith]

http://provenchinasourcing.com/

Walter's eBook

Worth every penny. I have two copies bounded. One at home and one at the office.


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[SeaForFreedom]

Hi! I see you're talking about importing, but do you do any exporting? Particularly to China or the US.

Would you think China is a good place to export to? I'm planning to do an export business.

 

[Walter Hay]

Walter,

I'm just letting you know that I received the samples from the company you verified for me. They were very professional and I've gotten a quote for a larger order. Although their quote is very reasonable, they have quoted me Ex Works. The package should not be that big so I don't believe it will qualify as freight.

1. I understand an Ex Works quote means the shipping responsibility falls solely on the buyer. Does this mean I cannot request a prepaid EMS shipment? For some reason I look at EMS shipments as different and requiring less work than transporting goods to a vessel.

2. I contacted Fed Ex for a door to door quote and they told me they do something called a remote pickup(RPI). Is this what you mean by door to door courier delivery?

Regards,
Peter

Hi Peter, Freight is a term that can apply to all shipments regardless of size and weight. If you look at Chapter 4 in my book you will see the difference between the various freight methods. Air courier is not the same as air freight, and sea freight is usually only suitable for large shipments, but there are a lot of variables.

This is where a freight forwarder can help you by arranging the most cost effective freight method. Depending on the weight and volume, it might pay you to get your local freight forwarder to handle the entire process. Be sure their quote is for delivery to your door including all charges. You will still have to pay duty and any taxes charged.

1.You are the customer, so you can request different shipping, but there is no guarantee they will agree. Some suppliers find it very inconvenient to use China Post and will only use couriers for small shipments because the courier picks up directly from their factory. There is no harm in asking for EMS, which is always prepaid.

2. FedEx in China don't cover the whole country and many smaller cities are not served by them. A Remote Pickup would relate to a pick up from one of those cities. It would be better to ask your supplier to quote you for delivery by courier door to door. They might have an account with FedEx, but it could be UPS or others. FedEx have an agency arrangement with a large Chinese Freight company who will pick up from any place in China, but if you arrange this direct with FedEx an RPI will cost you a lot extra. If your supplier deals direct with the FedEx agent, which most of them do, you will save about 50%. The same applies with UPS, DHL, etc.

Walter

 

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[Walter Hay]

Hi! I see you're talking about importing, but do you do any exporting? Particularly to China or the US.

Would you think China is a good place to export to? I'm planning to do an export business.

Before you start exporting, you need to understand importing. This will make it possible for you to know what your customers will require when you ship the goods to them.

I have received numerous requests for help since a well known internet marketer published a guide about 5 or 6 years ago on how to make big money by acting as an export agent. Although the concept is a good one, I didn't like that guide because it made it look too easy.

I previously owned a business that exported to countries in the Asia/Pacific region, and when I sold that business I started importing. I can tell you that although big deals are possible when you act as an export agent, it is not any easy road to the fastlane.

The difficulty is not in the process of exporting, but in finding businesses that will take any notice of you when you offer to sell for them. Finding overseas buyers is an easier process.

It is important to realize that you need to understand not only the various shipping terms, commonly known as Incoterms, but the actual logistical process of moving the goods once you have sold them. You must also know the jargon relevant to the particular industry or product category you are trying to sell. In some cases you will have to learn technical stuff about the product. International financial transactions is another area to learn.

China is a large importer of commodities, finished and semi-finished goods, specialized products and consumer products. Before trying to export to China you must know the tariff rules and rates.

You have started on a potentially highly profitable road, but you must learn the road rules before you start driving. I learned those rules many years ago and have had to update that knowledge quite often. I have been asked to write a book on the subject but I am not keen to do so because I know how high the failure rate is compared to importing.

Walter

 

[Walter Hay]

QUESTION ABOUT NON-VERIFIED SUPPLIERS

I was recently asked a question by a Fastlane member about the advisability of dealing with unverified suppliers and I thought posting on the subject could be of benefit to others.

First you should think about why a supplier is not verified. The most common reasons would be that:

• They are small, or.....
  
• A new business,
  
• New to exporting,
  
• Just testing the waters,
  
• Or even scammers who don't want to spend money on any part of the verification process.

The last possibility is the scariest, but the least likely by far. After all, if someone wants to cheat people of their hard earned money, the most important thing for them to do is to make themselves look reputable. The big B2B sites sell their listing services to all and sundry, and in the process they push the idea of looking trustworthy.

Listing fees and status badges are huge money earners for the B2B sites for the simple reason that they have convinced sellers that they need those status badges if they are to make sales, and they have convinced the buyers that suppliers displaying those badges are the best ones to deal with.

If you are considering buying from an unverified advertiser or one without any status badges, you must tread warily. Do a Google search, and don't stop at Page 1, or 2, or 3 etc..... If there are bad reviews they could well be found on later pages. Use variations on their business name. Use the full name, but also try leaving out the part of the name that relates to their location. If you do decide to buy from such businesses, be sure to place only a small order first time round.

Knowing that chances are small that they are scammers just because of their free listing, you might now decide to look at them because they are: small, new, new to exporting, or just testing the waters.

Who knows, you might be their first export customer. You might be the first buyer to import their product. I suggest this is worth considering.

Walter

 

[Walter Hay]

The benefits of thinking outside the box.

I will give two examples of how I made a killing by thinking outside the box. Both related to my importing business, but please note that these were B2B sales.

1. A government authority contacted me to see if I could make an unusual product. It was related to a very common type of product that I and many competitors were selling for less than $2.00 on orders of 1,000 pcs. They had contacted every business advertising in the Yellow Pages, and none were willing to do what they wanted. I knew that the manufacturers from whom I was buying would not make such a product because their equipment was unsuitable. so I searched and found a small engineering company in China. I provided drawings, accepted their quote and landed 1000 pcs at a total cost of $3,000, having already obtained an official order for 1,000 pcs for $21,000. A handy profit for very little work, just because I was willing to think outside the box.
2. An entrepreneur had an idea for making an every day product seem better quality. It was not a cosmetic change, just a way of adding a better feel to the product. He knew that many of the products I was selling were manufactured using a process that would suit his product, but he had no idea where to find manufacturers. I knew, and quoted him $2.20 each for the 100,000 pcs initial order. The product was nothing like anything in my product range, but with a landed cost of 19c each, I did very nicely. Again, this was a result of deciding to make a product in China, even though it was way outside my industry sector.

I should point out that the second customer had also thought outside the box. Frustrated at being unable to find manufacturers for that type of product he thought were there any products on the market that must be made the same way. That's how he found my business.

Just as an aside, these two stories highlight the fact that cost plus pricing would not have gained me the big profits I made by charging what I thought the market could bear.

Walter

 

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[TTG SS]

Hi Walter,

I have a question. I have a company i am dealing with on Alibaba that the only form of payment they will accept is T/T though the trade assurance program. I know the general consensus is to stay away from wire transfer, but everything so far has checked out and samples were great as well as their communications and follow up. Do you have any input on this? They do not seem to want to accept credit card through the escrow nor paypal.

I know in your book it says that the gold supplier and trade assurance badge mean little in the way of if they are a true manufacturer. In this case that is OK, the pricing I am receiving is acceptable and will net a respectable profit long term.

I am just looking for a little bit of guidance, this is not my first time importing but I have never done a T/T. Can you even do a T/T from a personal bank account? I do not have a corporate bank account, yet.

Any help or insight from anyone who has done this would be great!

 

[Walter Hay]

Hi Walter,

I have a question. I have a company i am dealing with on Alibaba that the only form of payment they will accept is T/T though the trade assurance program. I know the general consensus is to stay away from wire transfer, but everything so far has checked out and samples were great as well as their communications and follow up. Do you have any input on this? They do not seem to want to accept credit card through the escrow nor paypal.

I know in your book it says that the gold supplier and trade assurance badge mean little in the way of if they are a true manufacturer. In this case that is OK, the pricing I am receiving is acceptable and will net a respectable profit long term.

I am just looking for a little bit of guidance, this is not my first time importing but I have never done a T/T. Can you even do a T/T from a personal bank account? I do not have a corporate bank account, yet.

Any help or insight from anyone who has done this would be great!

I have used wire transfer extensively, but subject to two basic rules: 1. I know the company is genuine and trustworthy. 2. I only send to the company bank account. If the company is in Mainland China, and that account is in Hong Kong, that is no real cause for concern because a large number of genuine mainland companies do have accounts there.

Yes, you can pay by T/T from a personal bank account.

You might like to search this thread for my article on Trade Assurance.

Regards,
Walter

 

[SeaForFreedom]

Before you start exporting, you need to understand importing. This will make it possible for you to know what your customers will require when you ship the goods to them.

I have received numerous requests for help since a well known internet marketer published a guide about 5 or 6 years ago on how to make big money by acting as an export agent. Although the concept is a good one, I didn't like that guide because it made it look too easy.

I previously owned a business that exported to countries in the Asia/Pacific region, and when I sold that business I started importing. I can tell you that although big deals are possible when you act as an export agent, it is not any easy road to the fastlane.

The difficulty is not in the process of exporting, but in finding businesses that will take any notice of you when you offer to sell for them. Finding overseas buyers is an easier process.

It is important to realize that you need to understand not only the various shipping terms, commonly known as Incoterms, but the actual logistical process of moving the goods once you have sold them. You must also know the jargon relevant to the particular industry or product category you are trying to sell. In some cases you will have to learn technical stuff about the product. International financial transactions is another area to learn.

China is a large importer of commodities, finished and semi-finished goods, specialized products and consumer products. Before trying to export to China you must know the tariff rules and rates.

You have started on a potentially highly profitable road, but you must learn the road rules before you start driving. I learned those rules many years ago and have had to update that knowledge quite often. I have been asked to write a book on the subject but I am not keen to do so because I know how high the failure rate is compared to importing.

Walter

Sorry for the late reply and thanks for the answer! Do you publish, freely or commercially, anything that could offer more insight on both import and export business? I would love to learn those "rules" about exporting and importing.

 

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[Walter Hay]

Sorry for the late reply and thanks for the answer! Do you publish, freely or commercially, anything that could offer more insight on both import and export business? I would love to learn those "rules" about exporting and importing.

I haven't written anything specific to exporting, but as I wrote previously, if you want to export, you will need to understand importing.

The technical jargon is the same. The commercial information such as payment methods is the same. The shipping processes are the same. Compliance with regulations is also the same.

As a supplier (exporter) you need to know what Incoterms to use, what payment methods and terms to offer, and how to arrange shipping. You will also need to know what documentation to provide. All of this is covered in my book on importing, but from the opposite side. You can find my book here: Proven Global Sourcing - Proven Global Sourcing.

What I don't deal with because it is export specific is information on such things as packing containers, organizing freight from your supplier's premises to the shipping point, loading on board, and prepare shipping documents, but I would just make two comments in that regard:
1. The owner of the goods might have the capability to pack containers and freight to the shipping point, but that should be part of your service for which you will obtain a commission.
2. Freight forwarders, about whom I write quite a lot in my book, would be able to handle all those things.

Walter

 

[Walter Hay]

I continue to receive questions about importing big brand products. I have written specifically on ways it is possible to do this legally in the US, but that only applies to exceptions not to any brand any time. See my post on the subject of Parallel Importing here: Sharing my lifetime experience in export/import. Product sourcing specialist.

This question came to me a couple of days ago from a person who has been selling brand name toys. I am posting the full story because of the fact that this person has previously imported what were undoubtedly illegal goods, thinking it was legitimate, then moved on to buying from a licensed US distributor, but now wants to revert to buying from China. He/she clearly knows that it is risky, but wants me to give the OK.

"I sell toys on Amazon through FBA, and right now, I feel I am seriously over-paying my supplier which is based in USA.

Practically 100% of all the toys I sell are made in China. In particular, I buy a lot of the following brands: Mattel, Hasbro, Disney, Funko.

I know Chinese retailers who can give me a good price for the items. The problem is that their invoices are not accepted by Amazon as proof of authenticity. I should mention that I have worked with some of these China retailers for years on toy ventures on non-Amazon sites, so I know their goods are legit. Naturally, none of them will reveal their supply source.

I wonder if you know if there are companies or a company that I can work with in China to purchase licensed Hasbro, Mattel, Disney and Funko brand items? I'm located in Singapore. As long as we have the legal paperwork proving the authenticity of the items we are importing, there will be no issues."


Here is my reply: "I am sorry to tell you that there is no way you can safely buy brand name toys from China.

Many people like you get away with selling those toys for a while, but sooner or later they get caught. Even some of the suppliers in China are prosecuted because the Chinese government is trying to improve their protection of Intellectual Property rights.

For importers such as you, the risks are much greater. Chances are the goods will be seized by Customs, and your name and address flagged so that all your shipments will be delayed for thorough inspection.

The retailers you see in China have usually purchased the goods at very low prices in Hong Kong, where there is little control.

The difficulty arises from the fact that the manufacturers have a contract that only allows them to supply the brand owner or licensees of the brand owner and those licenses are usually restricted to one geographic location, so you can't possibly get genuine paperwork to prove the authenticity.

I know of many manufacturers who cheat the system, which is a foolish thing to do, because they have million dollar orders from the brand owner, and they risk losing that to make an illegal $20,000 sale.

You would find it impossible to obtain verifiable documents proving authenticity. Unfortunately such documents are often forged and if your Customs people check properly they will find that to be the case."

Walter

 

[Danny M]

I've been looking at getting into Amazon FBA, has anybody here had experience using 'Jungle Scout'?
It is a chrome plugin that gives you estimated sales, estimated revenue etc from amazon listings. I have used it to narrow down a few products to potentially private label and import from China.

Just a few questions though, how long on average would you say you spend from first contact to actually organizing a full shipment of (private labelled) products you are satisfied with? Being in the UK, the timezone difference is a bit of a slow down at the moment. I am currently still working full time and plan on doing this in my spare time until I can rely on the income enough to quit and put all my effort into this.

Is it better to save up a few thousand £ before starting, or to start with £500 and keep putting everything back into it?

 

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[Walter Hay]

I've been looking at getting into Amazon FBA, has anybody here had experience using 'Jungle Scout'?
It is a chrome plugin that gives you estimated sales, estimated revenue etc from amazon listings. I have used it to narrow down a few products to potentially private label and import from China.

Just a few questions though, how long on average would you say you spend from first contact to actually organizing a full shipment of (private labelled) products you are satisfied with? Being in the UK, the timezone difference is a bit of a slow down at the moment. I am currently still working full time and plan on doing this in my spare time until I can rely on the income enough to quit and put all my effort into this.

Is it better to save up a few thousand £ before starting, or to start with £500 and keep putting everything back into it?

Jungle Scout leads you to high competition products, and you would be better off finding products that aren't already imported to the UK.

Response to your emails will usually take at least 24 hours and often several days, so the time zone difference shouldn't be problem.

My franchisees (when I was running my importing business) in the UK and Eire had no problems unless something was desperately urgent. In that case they would tell their supplier the matter was urgent, and then burn the candle at both ends in order to check replies as soon as they came in.

Starting with £500 is going to mean slower progress, but I had one of my book users email me to say: "Ok. From extremely skeptical to successful completion. Credit given where credit is due. I followed the book instructions you laid out. Took my time to double check everything and was able to successfully import an order from China. Not only that but it was also a “sample order” for less than 300.00. A 300% mark up has allowed to get initial investment back and I have 70% of my inventory left. Stop promoting your book. Your encouraging competition for me Many thanks."

Now in order to achieve that result he had done his market research and found a product with negligible competition. There are ways to find products that are not being imported into the UK. My book gives some hints in that regard, but I know others who have made a serious study of it. I will PM some info.

Walter

 

[#nowhere]

Hi Walter,

since I'm an engineer and located in the refrigeration sector, I thought about importing refrigerant like R32 and others (compliant to the EPA Snap/F-gas-regulation derived from kyoto protocol) into the EU/USA. I know that you may can't say anything on legal issues of this but what's about freight (heavy weight good, by sea) and the quality. Is it wort it or similar to cosmetics and so on and so forth that you don't recommend for importing?

Thank you for enlighten me. Liked your book so much and the advice is worth 1000x the purchase price. Thank you very much!

All the best

#n

 

[IGP]

I don't do any importing at the moment, but I bought your book just to say thank you and to show support for the wealth of knowledge that you have provided in this thread!

Kudos!

 

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[InformationH]

Walter,
Your book was very helpful as well as the information you give away here. Thank you!

At the moment I'm looking into importing a small product that I wish to modify. The modifications have to do with changing the width of the product, reinforcing it with extra stitching, and removing a sewn on piece of the product that generally comes with it. I have used products very simalir if not the same as this.

Would you reccomend asking for a normal sample of the product first to evaluate quality? Or discuss these changes with them and get a sample of the modified product first?

 

[Walter Hay]

Hi Walter,

since I'm an engineer and located in the refrigeration sector, I thought about importing refrigerant like R32 and others (compliant to the EPA Snap/F-gas-regulation derived from kyoto protocol) into the EU/USA. I know that you may can't say anything on legal issues of this but what's about freight (heavy weight good, by sea) and the quality. Is it wort it or similar to cosmetics and so on and so forth that you don't recommend for importing?

Thank you for enlighten me. Liked your book so much and the advice is worth 1000x the purchase price. Thank you very much!

All the best

#n

I am pleased that you have found my book helpful. This thread is here because I can't anticipate every question that people need to ask.

Much of the refrigerant already being sold in the west comes from China, and is generally recognized as suitable quality. If you plan on importing it, test certificates will be important, but see earlier posts on the subject of making sure that certificates are genuine.

Freight will not be any special problem, except for the fact that the product will be in pressurized containers. I suggest you seek advice from Rob at A1logistics.com. His thread is here: From $60k to $440K sales, importing and logistics

Walter

 

[Walter Hay]

Walter,
Your book was very helpful as well as the information you give away here. Thank you!

At the moment I'm looking into importing a small product that I wish to modify. The modifications have to do with changing the width of the product, reinforcing it with extra stitching, and removing a sewn on piece of the product that generally comes with it. I have used products very simalir if not the same as this.

Would you reccomend asking for a normal sample of the product first to evaluate quality? Or discuss these changes with them and get a sample of the modified product first?

The choice is yours, but a sample off the production line might be superior to one made to your specs because they have good procedures in place. The other side of the coin is that if the sample is handmade it might be made by the most skilled worker in the factory and later production of your design might not be so good.

My preference would be to have a sample made to my specs, but make it clear that production runs must be of equal quality.

Walter

 

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[Paul David]

HI Walter, have you released the new updated version of the book yet? I bought it around 2 years ago but thought I read somewhere there was a new update in the pipeline?

Sent from my D5803 using Tapatalk

 

[Walter Hay]

HI Walter, have you released the new updated version of the book yet? I bought it around 2 years ago but thought I read somewhere there was a new update in the pipeline?

Sent from my D5803 using Tapatalk

Yes it is available for free download by all who have bought previous copies. Please contact my support team at msteamwebmaster@gmail.com and give them the email address you registered with or used for your purchase.

Walter