Forum Moderators: buckworks
I have found a few manufacturers in Asia (China mostly) with a product I would be interested in selling. Should I take the plunge and try to source and import product myself?
What should I ask in my initial contact to the Asian companies, and what can I expect to have to do to get this off the ground. I have an book on starting and import/export business, which has gotten me going down this road, but I don't know how relevant to my situation it is.
Does anyone know of another forum or site with would be better suited for my questions?
The questions you should be asking include:
(1)What stock levels they have
(2)What method of shipment they use
(3)Who pays for the transportation? Most companies will provide FOB ( Where you have to arrange the transportation)
(4)Like the above who pays for the insurance
(5)What length of time does it take for the goods to arrive to you?
(6)What method of payments you are going to use. This is very critical as you are both going to have find a method of payment that you both feel comfortable with!
One piece of advice I will give you is to research the company that you are doing business with thoroughly ask for references of their other clients and then make contact with these referees to ensure that the companies that you are dealing with are legitimate. There are a lot of men in the middle (cowboys) out there especially working in import/export through the Internet. I.e. companies with no stock who will basically use your money to buy stock and then send it to you.
It has happened to me in the past it is not fun waiting 3 months for your stock to arrive!
At worst the company could be bogus. Remember the legal rights you might enjoy in one country might not exist in the other.
The other thing to bear in mind is will you be getting a good deal after you have paid for the products, the shipping, the import duty and other taxes. Would the return you are going to get make it worth wile?
I am not trying to put you off. Done properly the rewards can be good. Just do your homework on the companies you are going to deal with and make sure that the end price will give you an advantage over buying it from a warehouse.
My advice would be DON'T!
Although the points raised by pff_iy are very valid, they are not completely foolproof. We have heard of so many horror stories about goods not received. Defective goods or goods that do not comply with the original specifications.
If this happens, this is basically no redress in China unless you are a Multinational. Certainly, if you receive a whole batch of defective products. To send it back would cost you a lot of shipping charges in the first place.
I would leave the importing through a Middleman or use a company based in Hong Kong. Here is a good sourcing site.
[tdcenterprise.com...]
At least in Hong Kong, the rule of law is probably the strongest anywhere in Asia. All our suppliers operate a high standard of service here and we get little hassle when we want to exchange defective items. There is also a small claims tribunal or arbitration process which allows disputes to be settled at low cost.
but did not want to say DON'T outright. I did not want to sound as if I was shutting the door in someones face.
derekwong28 is also right it would be better to trade through Hong Kong. I have not had a problem with Singapore yet either. Having said that I think I have just given it the kiss of death :)
As I said, I found him on ebay. The kicker? He is located a short distance (across town) from me. What are the odds of that? (I don't live in a huge city.)
He's more than willing to act as a supplier and handle all the import dirty work for me. Plus I don't need to pay freight since I can just drive over and pick stuff up. He has a limited product line, but it's enough to get started.
