How to source products from Asia

Saturday, October 24, 2009 7:31
Posted in category E-Commerce

The Pro’s and Con’s of doing this I’ll save for another post. I’m in the process of launching an e-commerce site which I’ll use as a live case study.

Sometimes the idea of importing your own products can be daunting if you haven’t done it before, but it’s really not that difficult if you know what to do. I’ve done this many times so I’m going to lay it out for you in steps. I actually find it alot easier to source products in Asia than from a Western country. With suppliers from Asia, if you wave money in front of them, whatever you want done, can be arranged. I recently contacted an Australian manufacturer for a product I was after, they basically asked me for a business plan of how I plan to market their product. Who’s giving money to who now? So I sent my money to a bunch of Koreans instead and the shit was on the plane the next day.

Hopefully you already have a product in mind, because there’s research to be done before you start looking for products(import duties, competition, margins, local laws etc). Call customs if you need to.

Step 1: Find suppliers. The sites I use are Global Sources and Alibaba, shortlist as many suppliers as you can find. If you have the resources, going to a trade fair in Asia is well worth it.

Step 2: Draft an email introducing yourself, tell them you’re launching a new venture and are looking for a reliable supplier to work with. Request prices for the products you’re after, their MOQ(minimum order quantities) and also find out how long it will take for goods to arrive once you’ve ordered. Send this out to all the suppliers.

Step 3: Research. Collate all the information you’ve now received. You need to start narrowing down your suppliers. More than likely the person who responds to your email, will be the person you deal with at the company. Here are some things to pay attention to:

  • Response time
  • Quality of response – did they answer all your questions properly?
  • Quality of their English

Choose wisely and be attentive here, I’ve been burnt before by assuming people understood  me. These mistakes can be costly… Don’t worry if they quote really high MOQ’s, just bounce a few emails back and fourth asking if they’ll make your concessions since it’s a new venture, this will give you a chance to feel them out. Start asking about ordering some samples. You may even want to call them and have a chat.

It goes without saying that when dealing with people who speak English as a 2nd or 3rd language, be clear and concise, lots of dot points help. This process can be slow and frustrating depending on the products and the info you’re after, but that’s why you will bank so much harder in the end.

Also keep a copy of all the correspondence, you never know when you might need a backup supplier.

Step 4: Order samples. I’ll assume you’ve already checked the import laws of whatever country your in to see if the product is allowed and if any taxes are payable. Draft up a Purchase Order, try to make it look professional: have a logo, and not Purchase Order #0001, put a delivery address on there. List all the products and Qty you want. It’s basically an Invoice in reverse. Send this to them and request a ‘Proforma Invoice’ that includes freight costs. They will send you back a Proforma Invoice. Check over all the details, and if you’re happy, pay them. Now wait for your shit to arrive.

With sample orders, alot of the time PayPal is accepted, but depending on the amount, a wire might be more suitable. When talking about wires, don’t call them wires, they are ‘Telegraphic Transfers’. You might want to order samples from multiple suppliers if you think it’s needed.

Now wait for your shit to arrive.

Yep, it’s that simple! You repeat the process of sending a Purchase Order, and getting a Proforma Invoice in the future with bigger orders as well.

Hit me up if you have any questions.

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3 Responses to “How to source products from Asia”

  1. Chris says:

    November 7th, 2009 at 2:24 am

    Are you going to any trade fairs in the near future? Would be cool to hook up for a few beers at one. I’ve been wanting to go to one for ages.

  2. admin says:

    November 7th, 2009 at 2:34 am

    Hey Chris, had a quick look at your blog. Your goals are very similar to mine!

    Good to know others are doing the same! I was considering going to the Global Sources fair in HK in April, but my current business looks to be growing fast so I might not need any new products. I might still go for fun anyway :)

  3. PPC Icon says:

    March 18th, 2010 at 4:08 pm

    I hope to get into this one day. Saw a documentary recently on a guy from the UK who goes to inner china, buys the quarry, the factory etc all to make kitchen worktops which are shipped worldwide. Going to source is the way to go!

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