Step by step product sourcing and importing guide.
I see too many people on forums like this who jump in at the deep end without doing adequate research.
I could just give out the names of a couple of safe B2B sourcing platforms, but I know that some warriors, maybe even a lot of them, would go there, like the trustworthy suppliers they find, and start placing orders. That could still cost them big bucks.
It is not uncommon for people to go off half cocked knowing almost nothing about what is involved in buying overseas. In effect they treat the overseas buying process as though they were buying from the corner store. Some even turn to me for help after they have ordered goods without knowing what to do about actually getting the goods delivered to them.
I have on my files tales of woe that include one who ordered a large shipment of bulky goods. Great price! The problem was, this person discovered that freight was going to cost several times the value of the goods and by the time she came to me for help she had already paid for the goods. I find it hard to believe how careless some people can be with their own money.
If someone intends going it alone without obtaining expert guidance, they should at least think carefully about the project from start to finish. Here is a very brief step by step guide. Intending importers should at least complete the first two of the following steps before starting to even source products. For those first two steps I have adapted ideas I have read in posts by Auctiondebteliminator. (I hope he doesn't mind.)
- Market research. What to sell, how to sell it, are you sure you will be able to sell it, and what prices can you confidently expect to sell it for at a profit. That confidence must be based on thorough research, not just checking sold prices on eBay.
- Determine what maximum landed cost is affordable in order to be profitable, making sure you take into account all selling costs. See first point.
- Search for suppliers using a safe sourcing site. Don't just go to any site casually suggested on forums, because on some of them everything is not what it appears. For example, “Verified” means the business actually exists. “Gold” or “Premium” Supplier means they paid out thousands of dollars to gain that status. One of the most popular sites is currently discounting that fee by 90%, so that means a whole lot more suppliers will be buying status without scrutiny.
- Remember that Chinese businesses almost invariably trade under multiple different names, so bad reviews don't bother them and bad feedback never appears. They simply leave their bad record behind and trade under the next name on their list.
- Avoid suppliers falsely claiming to be manufacturers. Some popular B2B portals have big lists of suppliers claiming to be manufacturers, but they are not. They add their profit to the prices they pay real manufacturers. You lose that part of your potential profit.
- Avoid middle men falsely claiming to be wholesalers. They do not even carry inventory, but are opportunists who will offer for sale anything from paper clips to million dollar machinery.
- Avoid dropshippers too because they take profit out of your pocket.
- Conduct due diligence on the chosen suppliers.
- Convince the supplier to allow you to order much less than their stated MOQ.
- Get quotes. Don’t forget freight.
- Beware of freight collect quotes. A common scam in this area could lead to your bankruptcy.
- Negotiate payment terms. Beware of W.U., and Telegraphic Transfers. Scammers love them.
- Ensure that all costs to your door are covered and that you have them in writing.
- Obtain sample/s. Beware of freight ripoffs in this part.
- If satisfied, place a small trial order crossing every “t” and dotting every “i”.
- Pay deposit.
- Pay balance as negotiated.
- Check the goods.
- If all is well to this point, you are in business. You can do your test marketing and be ready to place another order.
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Vanilla Gorilla -
Thanks - 1 reply
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Importexport -
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SignatureUse emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com{{ DiscussionBoard.errors[8403167].message }}-
Alex Stone -
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