Small quantity importing

[tch1]

Hi,

I'm looking to import some equestrian items from Asia. Initially we are looking to make a small quantity order to check the quality of the product and the viability of the business (around £300). Can anyone recommend the best way to proceed with this? We have approached some manufacturers and sourcing companies but the majority seem to only deal with very large orders. Does anyone know any manufacturers, agents or sourcing companies which would deal with a small order? Subsequent orders will be larger but we need to get an idea of how it works first.

Thanks in advance,

 

[Pish_Pash]

Can't you just put this in your supplier's space? (i.e. get them to quote you & arrange it their end). After all, it oughtn't to be the first time they've exported (& if they want your business, they should be keen yo jump through hoops for you)

 

[Earplugsprotection]

How about aliexpress ? - you can buy in smaller quantities there...

 

[MOIC]

Hi,

I'm looking to import some equestrian items from Asia. Initially we are looking to make a small quantity order to check the quality of the product and the viability of the business (around £300). Can anyone recommend the best way to proceed with this? We have approached some manufacturers and sourcing companies but the majority seem to only deal with very large orders. Does anyone know any manufacturers, agents or sourcing companies which would deal with a small order? Subsequent orders will be larger but we need to get an idea of how it works first.

Thanks in advance,

If you need any help, feel free to email me directly.

[email protected]

I wouldn't advise Aliexpress, they are far too expensive.

 

[Directimport]

I agree that Aliexpress is too expensive. They are a retail site, not B2B.

@ tch1, the problem you have found is very common, but I have taught hundreds of people how to buy smaller quantities when the suppliers quote large MOQs.

Avoid dealing with traders because they will charge a lot more than you will pay if buying direct from manufacturers, and they tend to be much less flexible about MOQs than manufacturers are. The major B2B websites list countless suppliers incorrectly claiming to be manufacturer, so don't believe everything you read on those sites.

Almost every supplier will handle the shipping for you on your small orders, and although shipping cost on sample quantities is high, that may be a cost you will have to bear for the purposes of your test.

 

[ShippoUK]

Hi,

You should negotiate with your supplier that larger orders will follow this if the products are ok, they should want to negotiate as they want your business.

As for shipping small quantities, if the products are under 100kg in total, you are probably best off using an express air option such as FedEx (your supplier should be able to arrange at cost), if they are above that weight, we specialise in Less than Container Load shipping from China so would certainly be able to help.

Feel free to PM me if you need any free advice, always happy to help.

Dan.

 

[Katherine Liu]

Hi,
Would you inform us what products you are dealing?

 

[Red Wood]

Fact of the matter is, importing from China or any other manufacturing nation is only worthwhile with decent QTYS.. Cost of shipping will eat up and potential profits on smaller purchases - Trust me.

 

[paulears]

Alibaba, instead of aliexpress. The advice to ask the supplier is the best one. You ask them too organise the small order and include delivery to you in the UK. They will, once you accept the price, provide you with the banking details you need (swift/IBAN usually), and then you do the transaction at your bank. They will ask you to confirm you will pay any charges, and then you'll get a confirmation they got the funds, and then eventually it will arrive. It's quite a simple system, and for first orders up to £1000, it seems to work ok for us. I guess you need to work on the possibility that it could go wrong. You can google the name and address and see if anything negative comes up - I did find one company I considered, had a stream of complains on various forums, but generally, we find the risk acceptable.

For what it is worth - aliexpress is ALWAYS worth checking as they can actually be ok on price on some products, but generally you are buying from a middle man - but the system works fine and you DO get credit card protection if you buy as an individual, which I do on the odd one-off.

 

[Directimport]

Fact of the matter is, importing from China or any other manufacturing nation is only worthwhile with decent QTYS.. Cost of shipping will eat up and potential profits on smaller purchases - Trust me.

"decent QTYS" and "smaller purchases" are relative terms. If by "decent QTYS" you mean the huge MOQs so often quoted, but I teach people to ignore those and negotiate smaller orders.It can be done if you use the right approach. Cost of shipping is only a deal breaker if you don't buy from the actual manufacturer.

I consider US$300 to be a small order, and here is an email I received recently from one of my book users:
"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." (Email on file for FTC or Fair Trading inspection if required.)

Alibaba, instead of aliexpress. The advice to ask the supplier is the best one. You ask them too organise the small order and include delivery to you in the UK. They will, once you accept the price, provide you with the banking details you need (swift/IBAN usually), and then you do the transaction at your bank. They will ask you to confirm you will pay any charges, and then you'll get a confirmation they got the funds, and then eventually it will arrive. It's quite a simple system, and for first orders up to £1000, it seems to work ok for us. I guess you need to work on the possibility that it could go wrong. You can google the name and address and see if anything negative comes up - I did find one company I considered, had a stream of complains on various forums, but generally, we find the risk acceptable.

For what it is worth - aliexpress is ALWAYS worth checking as they can actually be ok on price on some products, but generally you are buying from a middle man - but the system works fine and you DO get credit card protection if you buy as an individual, which I do on the odd one-off.

You missed a very important point. When you wrote "They will ask you to confirm you will pay any charges" you should limit that to the total price quoted including door to door delivery, otherwise you would be giving them carte blanche.

I would urge readers not to use either Alibaba or Aliexpress. Not only are the risks too high,
("you need to work on the possibility that it could go wrong") the chances of finding genuine manufacturers there are very slim.

I can tell you that it has gone wrong for thousands of buyers on Alibaba and Aliexpress.

 

[paulears]

I must admit that for the past six years the only problem I had was simply being greedy and ordering an item clearly too cheap but worth a go. Of course this one failed as the supplier clearly could not supply. That said alibaba, dealing direct, works fine on bigger orders and Ali express is NOT expensive for my smaller orders. Maybe it is the kind of products I order, but I quite like dealing with these small businesses. Many then let you know about new products as soon as they get them which might give me a few months headway on others. I think my aliexpress orders since Christmas total about four grand, all with new suppliers, all have been quick and secure. I don't object to getting a screwdriver out to tighten a few terminals and this morning I had an email from the supplier apologising for me needing to do it and I've got a discount on the next. Maybe it's just luck but I shall continue buying from aliexpress. If I needed help finding a specific product them I'd try one of the China based sourcing firms but so far I've been able to find what I need

 

[Directimport]

Yes I know that there are thousands of people who have bought successfully through Alibaba and Aliexpress but why take the risk when there are safe ways to source?

Many of those "successful" deals will have been with traders, (middlemen) and without knowing it, the buyers have lost a huge amount of potential profit.

 

[paulears]

Of course, I quite agree - these middlemen often have no stock, and do often stop trading, but I started buying from aliexpress when I wanted 20 of a product that had a published moq of 500, which after much negotiation I got reduced to 100. As a specialist niche product, I still have over 50 in stock. A similar item via aliexpress may be more expensive, but the margin is still pretty good, and I don't have money tied up in stock for so long.

I can see the usefulness of people out there doing the sourcing for you - and I wouldn't rule it out for me, but so far, the convenience of repeat direct ordering small quantities works for me.

 

[Directimport]

Of course, I quite agree - these middlemen often have no stock, and do often stop trading, but I started buying from aliexpress when I wanted 20 of a product that had a published moq of 500, which after much negotiation I got reduced to 100. As a specialist niche product, I still have over 50 in stock. A similar item via aliexpress may be more expensive, but the margin is still pretty good, and I don't have money tied up in stock for so long.

I can see the usefulness of people out there doing the sourcing for you - and I wouldn't rule it out for me, but so far, the convenience of repeat direct ordering small quantities works for me.

Yes, clearly you have been able to work your way through the system and I am pleased for you. Where people like me prove of value is for newbies who don't understand the system and don't even know the basics.

Buying a proven system is for them just like buying an insurance policy.

 

[MOIC]

Yes, clearly you have been able to work your way through the system and I am pleased for you. Where people like me prove of value is for newbies who don't understand the system and don't even know the basics.

Buying a proven system is for them just like buying an insurance policy.

The problem is that they have to pay for your book, rather than offering free advice, which what the forum is for.

To "tease" readers into believing you know the trade secrets and the only way they can find out is to buy your report, is plain nonsense.

What is written in a report, can be found elsewhere, free of charge, from people who genuinely want to help people.

Feel free to offer good and relevant pointers, rather than just criticise what is bad from this or that B2B platform.

Sourcing a product is one thing, ensuring it is correct, fit for purpose, has been inspected and has all the correct documentation, as well as being packed correctly, is quite another.

For small orders and buying from China for the first time, you take a risk after carrying out due diligence.

For larger orders, irrespective of your experience, you must have each order checked.

Human error occurs, even in the most experienced factories.

Most people who are new to buying from China believe that the sourcing procedure is the only important aspect.

It's one of many and the hard part is after you have sourced the correct supplier.

 

[kulture]

I have removed a number of posts that were all off topic. Please stick to answering the OP and not go off on a tangent arguing with each other.

 

[Red Wood]

"decent QTYS" and "smaller purchases" are relative terms. If by "decent QTYS" you mean the huge MOQs so often quoted, but I teach people to ignore those and negotiate smaller orders.It can be done if you use the right approach. Cost of shipping is only a deal breaker if you don't buy from the actual manufacturer.

Why would you buy from any one other than the actual manufacturer? We import commodity based products and to be honest less than a 20ft container isn’t worthwhile, if we could regulalry import a 40ft’er it would increase our p/margin to normal industry standards (we currently operate just under that)

 

[Import Expert]

I'd tend to disagree with this comment:

"Avoid dealing with traders because they will charge a lot more than you will pay if buying direct from manufacturers, and they tend to be much less flexible about MOQs than manufacturers are"

There is nothing wrong with dealing with traders/middlemen - whatever you want to call them. They will allow you to buy lower MOQ's than many manufacturers will so are usually more flexible. Also it is not unknown for them to be cheaper than the manufacturer.

As per Red Wood - The larger quantities you can afford to import in one go, the cheaper in general you will have it landed cost per item. You will make more savings on both the product cost and shipping costs.

 

[Directimport]

Why would you buy from any one other than the actual manufacturer? We import commodity based products and to be honest less than a 20ft container isn’t worthwhile, if we could regulalry import a 40ft’er it would increase our p/margin to normal industry standards (we currently operate just under that)

The great majority of people source their products through Alibaba, DHGate, Tradekey, or one of the other big B2B sites. In doing so,, more often than not they are buying from traders masquerading as manufacturers. It is a fact of life that traders buy from the manufacturers and add their margin before selling to those buyers.

This is why those who buy direct from manufacturers make a much bigger margin, and can afford the freight costs on smaller orders. Maybe you only think you are dealing with the manufacturer? Lots of people have made that mistake. Most of my book users import LCL quantities and are reaping big profits. The myth of huge discounts for big quantities still prevails, but that is not how most Chinese businesses work.

I'd tend to disagree with this comment:

"Avoid dealing with traders because they will charge a lot more than you will pay if buying direct from manufacturers, and they tend to be much less flexible about MOQs than manufacturers are"

There is nothing wrong with dealing with traders/middlemen - whatever you want to call them. They will allow you to buy lower MOQ's than many manufacturers will so are usually more flexible. Also it is not unknown for them to be cheaper than the manufacturer.

As per Red Wood - The larger quantities you can afford to import in one go, the cheaper in general you will have it landed cost per item. You will make more savings on both the product cost and shipping costs.

In reality, many traders will not allow smaller MOQs because of the way they operate. It is common practice for traders to offer products for sale, often using images from a manufacturer's catalogue or website, but they do not have nay formal arrangement with the manufacturer. When they receive a deposit for an order, they then go to the manufacturer, hoping they will supply them at a price that allows a good profit. This is the reason why buyers are often left in the lurch, having to retrieve their deposit because the trader is "out of stock."

The inflexibility of traders in relation to MOQs is due to the fact that if they offer to place a larger order with a manufacturer they have no arrangement with, the size of the order is likely to influence the decision whether or not to supply the trader.

I have taught hundreds of newbie importers how to get real manufacturers to supply much less than the MOQ originally quoted. Manufacturers are usually far more flexible on MOQs than traders are.

Traders who offer very low prices (and actually supply when ordered!) are usually selling end of run, liquidation, or slow moving stock that is occupying valuable storage space.

 

[GraemeL]

There is nothing wrong with dealing with traders/middlemen - whatever you want to call them. They will allow you to buy lower MOQ's than many manufacturers will so are usually more flexible. Also it is not unknown for them to be cheaper than the manufacturer.
.

You are right Darren. There is a misconception held by many, including those with years of experience, that 'Traders' are no good profiteering untrustworthy fly by nights. In some cases that's true. In most its not. Buying direct is always a risk, unless your orders are so small that you can afford to either lose the money or you are not a serious importer. Agents and Traders can add a lot of knowledge, experience and security.

However, the OP has disappeared, so this thread has become a general discussion on importing.

 

[Red Wood]

I think anyone that doesn’t make a visit to a factory prior to importing 20 or 40ft containers is misguided at best... I agree middle men can add additional value to certain services and products, I know some large distributors in our industry who sell below the price of the actual manufacturer due to their buying power and large customer base.

 

[Directimport]

The subject of this thread was not importing in general, but Small Quantity Importing.

 

[Red Wood]

@Directimport , but off topic is what we do best at UKBF