Sourcing
 

Sourcing

We talk about sourcing in other forum guides so we won't spend time on it here, except for some good Insider advice.

GOOD ADVICE: If you are going to go straight to China to source your products, don't decide "Hey, I’ll buy these because they're the cheapest"; they're generally cheapest for a reason. To get higher quality merchandise for a good price you will need to buy in bulk with a pretty high MOQ (minimum order quantity). Or, if you are looking for smaller quantities, it's far better to reduce the risk of either confiscation or chargebacks by getting your products from a source already proven to be profitable, reliable and will stand by their guarantee should anything go wrong.

Once you have identified supplier and product, “standard terms and conditions” should be established. These provisions outline the pricing and quantity arrangements for importing your merchandise. Once both parties agree on the terms and conditions the seller will draft a sales confirmation. Once the confirmation is signed by the importer, it becomes a legally binding contract. The length of these written arrangements can vary depending upon size of order and stipulations between buyers and sellers.

A Sales Confirmation or agreed upon proforma invoice must outline:

· The port of destination
· Who is the seller and buyer
· Mode of delivery
· Shipment preferences
· Date of order and invoice
· Country of shipment origin
· Quantity either in number, weight or volume and a description of imports including country of origin and quality of product
· Purchase price of the goods, these figures may vary depending upon type of Currency used during exchange

The issue of shipping is complicated enough to spend some time on separately in the next section.

Inspection Company

If you are placing a large order, you have a great deal at risk. Lower your risk by hiring an inspection company in the country of origin to inspect the goods before they leave the country.

Inspections can take place during manufacture to catch problems before they become too big, at the time of packing at the factory to be sure that the right materials are being shipped and /or at the dock to be sure that the right merchandise will be loaded up and shipped to you.

GOOD ADVICE: You may be hesitant to spend the extra money on all of the “helpers” such as inspection companies, shipping agents and customs brokers. But, until you know what you are doing, these professionals can save you a lot of money by avoiding problems that can result in spoiled or inferior product shipments, unexpected importing costs or goods held up in a warehouse while problems are sorted out.