Importers should consider countries other than China

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Rising living standards in China are making Chinese products less competitive.

I have a friend who imports vinyl products and has built a big business out of it, although he now finds local manufacturers are giving him some stiff competition.This is one reason I recommend that would-be importers consider countries other than China. Government labor regulations there are increasing costs and as a result many Chinese companies are moving offshore!

Does that sound familiar? It is part of the cycle of chasing low labor costs. Japan was once the cheap source, then Korea, then Taiwan, then mainland China, and now Chinese companies are setting up in lower cost Asian and African countries.

I am a retired importer but I still maintain my contacts. One of my long time contacts in China reports that his factories are now compelled to provide ever increasing perks to employees as well as higher wages and shorter hours. He says his labor costs have risen 40% in the past 3 years.

As evidence of this changing scene, a number of US companies are now returning their manufacturing to the US.

So where does this leave people looking for cheap products to resell? Well there are still plenty of them available in China.

Those looking to source products there should be aware that many factories turn out two quality standards of the same product. One is made to meet a price demand and the other is made to meet a quality demand. The interesting thing is that the price difference is often very small.

I have directed many people to other countries where they have been able to obtain better quality at the same price as in China, or sometimes they have bought similar quality but at a lower price.

Sourcing from China is easy, although many people get burnt for that very reason. They think it is so easy that they can be careless about sourcing. They treat it as casually as buying from their local store and they blindly accept everything they read on B2B sourcing sites.

Sourcing from other countries will require greater expertise, but many people have learned how to do it. Those who do begin sourcing in other countries may well be one step ahead of the competition in a few years time.
#china #countries #import/export #importers #importing
  • Profile picture of the author mbeyer72
    ImportExport - Is information on this in your ebook? I am on the fence about purchasing but if it only covers China and you say the market there is in influx, it may not be the best long term strategy. Do the principles you teach of a general nature that they can be used globally?

    Thanks
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    • Originally Posted by mbeyer72 View Post

      ImportExport - Is information on this in your ebook? I am on the fence about purchasing but if it only covers China and you say the market there is in influx, it may not be the best long term strategy. Do the principles you teach of a general nature that they can be used globally?

      Thanks
      Take it from me - ImportExport knows his stuff, and his eBook is a gold mine. And NO I do not have any affiliate relationship with it - I just have read it.

      I have imported tons of stuff in my day, and thought I was pretty good at it - but his book taught me a couple of areas where I could save a few bucks.

      I know eBay like I know my children, but he's got 22 years in the business. That's worth something.
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    • Profile picture of the author Importexport
      Originally Posted by mbeyer72 View Post

      ImportExport - Is information on this in your ebook? I am on the fence about purchasing but if it only covers China and you say the market there is in influx, it may not be the best long term strategy. Do the principles you teach of a general nature that they can be used globally?

      Thanks
      Hi mbeyer,

      Yes my book does cover buying from other countries, and it includes links to sites where you can find products in almost any country. One of those sites in particular is not user friendly and I include click by click instructions on how to navigate it.

      I don't see the total move of cheap manufacturing from China to other countries happening quickly. It didn't happen overnight in the moves Japan/Korea, Korea/Taiwan, Taiwan/China. The transition took some years in every case.

      The main point of my post is that some moves are already happening and it is possible to take advantage of those now.

      In answer to your other question: Yes the principles I teach have almost universal application. People in 36 countries so far are using it, but judging by the support questions I get, the great bulk of them are still importing from China, although I know of one in the USA who is importing from Italy, another in the EU is importing from the USA.
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      Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com Safe sourcing and easy importing from China & many other countries.https://ko296.isrefer.com/go/pcs001/whay/
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      • Profile picture of the author Alex Stone
        I am using knowledge from Importexport's book to import from Taiwan to Canada so yeah...I think it applies to importing from most countries.
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  • Profile picture of the author malia
    You should not be on the fence about his book. No matter where you decide to import from, you'll get value from the book that far exceeds the cost.
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    • Profile picture of the author mbeyer72
      I appreciate all of the feedback. I just purchased the book and am looking forward to digging in.

      Thank all.
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      • Profile picture of the author Importexport
        Thank you to all those who have read my book and have posted in reply to the question by mbeyer72.

        Few people are aware that international conventions on import/export rules mean that those rules apply in every country.

        Those rules are very complex and anyone wanting to become a Customs Broker has a huge amount of study over several years in order to get a license. I have the advantage of a lifetime of experience in shipping, exporting, and importing and that has made it possible for me to take those worries away.

        There are some things that importers must learn, but they are quite simple, such as what do the terms FOB, C&F, EXW mean. For those interested, here are the meanings:

        FOB means Free On Board. All costs and risks to the point of loading are the responsibility of the seller. Once the goods are loaded on the transport, all risks and costs become the responsibility of the buyer.

        C&F means Cost + Freight. This term is used when suppliers are pre-paying freight, so the buyer knows how much they will pay for delivery to their port of delivery. It does not apply to door to door charges. It also does not include insurance.

        EXW means Ex Works. This means all risks and costs are the responsibility of the buyer from the time the goods leave the supplier's loading dock.

        There are a lot more shipping terms, which I explain in my book, but these are the basic ones.
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  • Profile picture of the author wakeforce139
    Hey ImportExport - I've done ecommerce as a dropshipper for years but looking into selling my own inventory. That means I need to get my own affordable inventory first! I'm interested in grabbing your book.

    What would you say is the minimum needed to get properly started as an importer - doing it right? I know the answer to this next question is "it varies" but I'm still going to ask it: how long typically would you expect it to take between placing your order and ultimately making sales? I guess I'm after how long would you expect it to take until you see your money back.
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    • Profile picture of the author Importexport
      Originally Posted by wakeforce139 View Post

      Hey ImportExport - I've done ecommerce as a dropshipper for years but looking into selling my own inventory. That means I need to get my own affordable inventory first! I'm interested in grabbing your book.

      What would you say is the minimum needed to get properly started as an importer - doing it right? I know the answer to this next question is "it varies" but I'm still going to ask it: how long typically would you expect it to take between placing your order and ultimately making sales? I guess I'm after how long would you expect it to take until you see your money back.
      Hi wakeforce,

      I have known new importers start with as little as $250 or $300, but that is slow going. To do that they have had to import a quantity of their chosen product, sell most if not all, then put the money back into their next order. That way they gradually build up an inventory.

      That's not such a bad way to go, even if you have the money for larger orders. It allows you to do real market testing before committing to larger orders. Even then I would recommend following the method that auctiondebteliminator teaches which involves careful assessment of real profits that can be made.

      There is no doubt that buying very small quantities will mean you pay more, but I teach how to negotiate good prices for small orders despite big MOQs quoted by manufacturers. Profit margins will increase as your order sizes increase, but once you reach a certain volume you will find that quantity discounts then become tiny.

      That is because Chinese manufacturers largely work on small profit margins. The big margins are made by resellers who have bought at the best price possible.

      If you are in a position to start off with $1,000 or $5,000 orders, you should always place a small order first, even if it does cost you more per unit. That does 2 things. It gives you practical experience with the whole process, and it gives a real life test of the supplier.

      Regarding your second question, return of your investment will depend on both total sales and profit margin. Total sales might be huge, but if you work on the small margins that most people seem to accept, the return will be much slower. I am not greedy, but the objective is to make money, so why not make that money from less investment in money and effort?

      By the way, I am retired, so I am not active in marketing.
      Signature
      Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com Safe sourcing and easy importing from China & many other countries.https://ko296.isrefer.com/go/pcs001/whay/
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      • Profile picture of the author Giavonnie76
        Originally Posted by Importexport View Post

        Rising living standards in China are making Chinese products less competitive.

        I have a friend who imports vinyl products and has built a big business out of it, although he now finds local manufacturers are giving him some stiff competition.This is one reason I recommend that would-be importers consider countries other than China. Government labor regulations there are increasing costs and as a result many Chinese companies are moving offshore!

        Does that sound familiar? It is part of the cycle of chasing low labor costs. Japan was once the cheap source, then Korea, then Taiwan, then mainland China, and now Chinese companies are setting up in lower cost Asian and African countries.

        I am a retired importer but I still maintain my contacts. One of my long time contacts in China reports that his factories are now compelled to provide ever increasing perks to employees as well as higher wages and shorter hours. He says his labor costs have risen 40% in the past 3 years.

        As evidence of this changing scene, a number of US companies are now returning their manufacturing to the US.

        So where does this leave people looking for cheap products to resell? Well there are still plenty of them available in China.

        Those looking to source products there should be aware that many factories turn out two quality standards of the same product. One is made to meet a price demand and the other is made to meet a quality demand. The interesting thing is that the price difference is often very small.

        I have directed many people to other countries where they have been able to obtain better quality at the same price as in China, or sometimes they have bought similar quality but at a lower price.

        Sourcing from China is easy, although many people get burnt for that very reason. They think it is so easy that they can be careless about sourcing. They treat it as casually as buying from their local store and they blindly accept everything they read on B2B sourcing sites.

        Sourcing from other countries will require greater expertise, but many people have learned how to do it. Those who do begin sourcing in other countries may well be one step ahead of the competition in a few years time.
        Originally Posted by Auctiondebteliminator View Post

        Take it from me - ImportExport knows his stuff, and his eBook is a gold mine. And NO I do not have any affiliate relationship with it - I just have read it.

        I have imported tons of stuff in my day, and thought I was pretty good at it - but his book taught me a couple of areas where I could save a few bucks.

        I know eBay like I know my children, but he's got 22 years in the business. That's worth something.
        Hello...I am a complete newbie to the import/export business but am very interested in getting into this business. I was inspired by this thread: http://www.warriorforum.com/offline-...-goldmine.html

        What I need is more information about being a broker. I'd like to get involved from the aspect of linking the buyer with the seller and then obtaining a commission based on the transaction. I am open to Alibaba but have also heard that I can have just as much success or more even without using Alibaba.

        Can you give some direction on how I can get started? Resources? Does your book go into this @Importexport

        Is being a broker an easier aspect of this business? I don't have the financial means at the moment to try and run my own business and try to sell products myself. It seems the brokering aspect of linking up the buyer & seller leaves the responsibility and liability on the main parties involved, right?

        Any help would be greatly appreciated!!! Thanks so much.
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        • Profile picture of the author Importexport
          Originally Posted by Giavonnie76 View Post

          Hello...I am a complete newbie to the import/export business but am very interested in getting into this business. I was inspired by this thread: http://www.warriorforum.com/offline-...-goldmine.html

          What I need is more information about being a broker. I'd like to get involved from the aspect of linking the buyer with the seller and then obtaining a commission based on the transaction. I am open to Alibaba but have also heard that I can have just as much success or more even without using Alibaba.

          Can you give some direction on how I can get started? Resources? Does your book go into this @Importexport

          Is being a broker an easier aspect of this business? I don't have the financial means at the moment to try and run my own business and try to sell products myself. It seems the brokering aspect of linking up the buyer & seller leaves the responsibility and liability on the main parties involved, right?

          Any help would be greatly appreciated!!! Thanks so much.
          I have read all of that thread and I must say that I don't see brokering as such an easy process.

          Your biggest hurdle will be your first one, and that is to learn the basics of both importing and exporting. In that thread reference was made to the need to talk the language of the industry, and that is very important.

          If for example you want to be a broker handing wallpaper, it is essential that you know all there is to know about wallpaper. Both the sellers you want to broker for, and the buyers you want to sell to will expect that you know what you are talking about.

          Any very slight mistake in the description on a Bill of Lading could make it difficult or impossible for money to be collected on the Letter of Credit. There you are - I have used two import/export industry jargon terms that you need to understand, but there are heaps more.

          I know it looks tempting, but I advise against rushing in. Educate yourself first.

          My book is not suitable for you because although it deals with those terms you need to know, as well as things such as container shipping, freight forwarders etc, and the basics of importing, it is not an exporter's book. It deals primarily with safely sourcing products overseas and importing them the easy way.

          If you think you have found a suitable course to introduce you to the world of exporting, just PM me and I will let you know what I think of it.

          Best wishes,
          Walter
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          • Profile picture of the author Giavonnie76
            Originally Posted by Importexport View Post

            I have read all of that thread and I must say that I don't see brokering as such an easy process.

            Your biggest hurdle will be your first one, and that is to learn the basics of both importing and exporting. In that thread reference was made to the need to talk the language of the industry, and that is very important.

            If for example you want to be a broker handing wallpaper, it is essential that you know all there is to know about wallpaper. Both the sellers you want to broker for, and the buyers you want to sell to will expect that you know what you are talking about.

            Any very slight mistake in the description on a Bill of Lading could make it difficult or impossible for money to be collected on the Letter of Credit. There you are - I have used two import/export industry jargon terms that you need to understand, but there are heaps more.

            I know it looks tempting, but I advise against rushing in. Educate yourself first.

            My book is not suitable for you because although it deals with those terms you need to know, as well as things such as container shipping, freight forwarders etc, and the basics of importing, it is not an exporter's book. It deals primarily with safely sourcing products overseas and importing them the easy way.

            If you think you have found a suitable course to introduce you to the world of exporting, just PM me and I will let you know what I think of it.

            Best wishes

            Walter
            Thank you Walter for responding and being honest in your thoughts.

            So my next question would be then, what book(s)/course or training would you recommend for someone new getting into this industry? Anyone else can chime in....


            Thank you!
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            • Profile picture of the author chrisfreitas
              Originally Posted by Giavonnie76 View Post

              Thank you Walter for responding and being honest in your thoughts.

              So my next question would be then, what book(s)/course or training would you recommend for someone new getting into this industry? Anyone else can chime in....


              Thank you!
              Alsop interested in these questions me and you are in the same boat sir,
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  • Profile picture of the author GloriasRosse
    Good informative article with nice suggestions.

    What I believe is, In business or even in general life you need to be ready with backup, so you can counter attack the problem.

    Waiting for the next informative post from you.
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    • Profile picture of the author matty123
      I would have thought more people would source stuff from India, Indonesia and Brazil due to their large populations and them all being developing countries. Having said that i guess it depends on what your product is
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      • Profile picture of the author Importexport
        Thanks to all those who have shown an interest in this subject.

        First I should say that being a broker is a much more difficult thing to succeed in than the thread mentioned by Giavonnie76 suggests. I have some experience as an indent broker, which is the opposite of an export broker, and I know how hard it can be. Selling on indent means acting as an import broker, selling product on behalf of an overseas supplier and obtaining a commission on the sale. It can be a long time between meals.

        Regarding importing in general, I know that most of my students buy primarily from China because it is easier to locate manufacturers there. Those who follow my suggestions in my book about how to locate manufacturers in other countries have done extremely well.

        It is possible to not only buy better quality for prices no higher than ex China, and sometimes for less, but a big benefit of buying in other countries is that it is easier to find unique products that are not flooding the market.

        This requires harder work sourcing and it sometimes means using less user-friendly sourcing sites but the rewards can be high. In some cases there are no sourcing sites worth using for a particular country, but I do show ways to get around that.

        Walter
        Signature
        Don't just slap on a label. Build a GREAT BRAND http://powerlabelsforprivatelabelingprofits.com Safe sourcing and easy importing from China & many other countries.https://ko296.isrefer.com/go/pcs001/whay/
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        • Profile picture of the author Giavonnie76
          Originally Posted by Importexport View Post

          Thanks to all those who have shown an interest in this subject.

          First I should say that being a broker is a much more difficult thing to succeed in than the thread mentioned by Giavonnie76 suggests. I have some experience as an indent broker, which is the opposite of an export broker, and I know how hard it can be. Selling on indent means acting as an import broker, selling product on behalf of an overseas supplier and obtaining a commission on the sale. It can be a long time between meals.

          Regarding importing in general, I know that most of my students buy primarily from China because it is easier to locate manufacturers there. Those who follow my suggestions in my book about how to locate manufacturers in other countries have done extremely well.

          It is possible to not only buy better quality for prices no higher than ex China, and sometimes for less, but a big benefit of buying in other countries is that it is easier to find unique products that are not flooding the market.

          This requires harder work sourcing and it sometimes means using less user-friendly sourcing sites but the rewards can be high. In some cases there are no sourcing sites worth using for a particular country, but I do show ways to get around that.

          Walter

          Walter, thank you very much for all of the information you have shared so far. However, I still remain with alot of questions. I didn't know there was more than one kind of broker (now you're mentioning a difference between an Independent Broker vs. an Export Broker)

          Do you offer consulting of any kind? You can PM me if you'd like to discuss further in a more private fashion. Much Appreciated!
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          • Profile picture of the author chrisfreitas
            Also interested in maybe some paid consulting ...... and where can we purchase this book I see?
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            • Profile picture of the author Importexport
              Originally Posted by Giavonnie76 View Post

              Walter, thank you very much for all of the information you have shared so far. However, I still remain with alot of questions. I didn't know there was more than one kind of broker (now you're mentioning a difference between an Independent Broker vs. an Export Broker)

              Do you offer consulting of any kind? You can PM me if you'd like to discuss further in a more private fashion. Much Appreciated!
              Sorry but I am so busy that I can't do one on one consulting, but I am happy to answer more questions on the forum.

              I must clarify the differences between the two kinds of broker I mentioned. Both kinds are independent because they work for themselves and are not employees. The basic difference is that one is an export broker and the other is an import broker.
              • An export broker usually makes an agreement with suppliers in his own country to get export sales for them. He will usually be paid on a commission basis after his overseas customer has paid for the goods ordered by them. He may make sales in any country unless his supplier excludes certain countries.
              • An indent broker makes an agreement with overseas suppliers to get export sales for them. Those sales are usually made to customers in the broker's own country and rarely are they made in a different country. The correct term is that he is "selling on indent". Usually he will also be paid a commission.

              Originally Posted by chrisfreitas View Post

              Also interested in maybe some paid consulting ...... and where can we purchase this book I see?
              @chrisfreitas As you will have seen above I can't handle one on one consulting, but don't hesitate to ask questions on the forum. I have answered your PM and I understand why that should remain confidential.

              Because I am so busy with such a large number of people using my book, I partnered with Jim Cockrum, one of the top internet marketers, and I now have an excellent support team within his organization.

              You should find my book by clicking on the live link in my signature below.

              Walter
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  • Profile picture of the author teeowl
    ImportExport, please what is the link to buy you ebook on importing?
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  • Profile picture of the author teeowl
    I can't see the link in your signature... I tried sending a PM but my posts are not up to 15 so I could not send the message...
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    • Profile picture of the author chrisfreitas
      Originally Posted by teeowl View Post

      I can't see the link in your signature... I tried sending a PM but my posts are not up to 15 so I could not send the message...


      go to his profile then click the about me i found it in there.
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    • Profile picture of the author Importexport
      Originally Posted by teeowl View Post

      I can't see the link in your signature... I tried sending a PM but my posts are not up to 15 so I could not send the message...
      I hope I don't get into trouble but with a couple of people now asking here and in another thread and saying the link in my signature is not working, please try this.http://www.provenchinasourcing.com

      @Moderator: The link in my signature works for me but does not seem to work for readers so I will try to fix that.
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      • Profile picture of the author adammaton
        Firstly, I would like to thank everyone for their input on the above thread, is very useful as a newbie.

        I am in the same boat as the original poster, learning to be an independent broker, I have spent a few weeks, well over 50 hours learning as much as I can from various resources online. I have learned as much of the terminology as I can, about FOB, FAS, C&F CIF, drop-shipping, looked at existing & emerging markets etc.

        I still cant find much about commission payments to brokers, ie are they one off, on-going.

        My main confusion was that if it was a one off payment surely the two parties would just agree on a tiny first order in which case the commission payable would be minimal?

        Adam
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        • Profile picture of the author Importexport
          Originally Posted by adammaton View Post

          Firstly, I would like to thank everyone for their input on the above thread, is very useful as a newbie.

          I am in the same boat as the original poster, learning to be an independent broker, I have spent a few weeks, well over 50 hours learning as much as I can from various resources online. I have learned as much of the terminology as I can, about FOB, FAS, C&F CIF, drop-shipping, looked at existing & emerging markets etc.

          I still cant find much about commission payments to brokers, ie are they one off, on-going.

          My main confusion was that if it was a one off payment surely the two parties would just agree on a tiny first order in which case the commission payable would be minimal?

          Adam
          Your concern about being cheated when working as a broker is very reasonable. In my book I deal with that very subject because it is so common.

          Suppliers will often take advantage of an an agent or broker's work and then move in to sell direct to the customer. As a result, only one small commission payment is received.

          Payments should be ongoing, but keeping the supplier honest in that regard can be extremely difficult.

          Some suppliers will agree to a high commission rate on the first order, knowing that they will bypass the broker and that small commission payment was then seen as a cheap way to get a good customer.

          I don't recommend working as an import broker, but export brokers would have the advantage of being able to enforce any contract that has been signed by both parties.

          Walter
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  • Profile picture of the author big tymer
    Thailand is a good source for products for import to the USA and it helps justify a few days holiday on a beach in Koh Samui or Phuket.
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  • Profile picture of the author ujai
    Hi Walter,

    E-book still available for purchase? I failed to see the payment button at your website.

    Thanks in advance
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  • Profile picture of the author ujai
    Yes, I've gone through the whole page, still can't see the Add to Cart button. What I found was the subscription form, link to ProvenAmazonCourse and the Legal links at the most bottom..
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    • Profile picture of the author Importexport
      Originally Posted by ujai View Post

      Yes, I've gone through the whole page, still can't see the Add to Cart button. What I found was the subscription form, link to ProvenAmazonCourse and the Legal links at the most bottom..
      Hi Ujai,

      Sorry about that. I think my page design was a bit confusing and it has now been changed. You should not have any trouble finding it now.

      I have sent you a PM.

      Regards,
      Walter
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