Things to know before you start an import business -2
1. What should you ask yourself before you select a product/products to import?
It is really important to create a set of guidelines for yourself before you start sourcing. Once you start shopping and negotiating, you can get carried away and lose sight of what products would be best for your business. Some important things to ask yourself are:
- How many items can I afford to buy?
- How many different items do I need for my range?
- What colours/sizes would be best for my customers?
2. What features or characteristics should you consider in selecting suppliers?
First impressions are everything. I check suppliers’ listings and pay attention to the information included, such as how well written it is and what their policies are. I also look at the feedback on their sites, their Alibaba.com standing and if their photos are consistent or all over the place. Don’t forget to Google the supplier!
3. Once you have shortlisted a supplier, what are the next steps?
Once you are satisfied with a handful of potential suppliers, contact them and ask for further information such as their minimum order quantities (MOQs) and transaction details (for example, customs regulations, international certifications, hazardous substances and standardisation compliances, and so on). Assess how long they take to reply. If the responses are unprofessional, late or they avoid answering questions, these are signals that this supplier might not be the right one for your business.
Once you have shortlisted at least three potential suppliers, request a sample from each one. It is vital to have a product in hand to review, rather than order in bulk based on website images, to ensure the quality is consistent with your business.
4. Is there a cost for samples?
Some samples are provided for free while others are paid – you need to determine what works best for you. In every situation, no matter what, always ask for a sample even if you have to pay for it (within a reasonable price bracket). It is far better to pay a little more and be comfortable with the quality of the item than to invest a lot of capital in a supplier whose quality may not meet your standards.
It will also give you an idea of how quickly this supplier’s shipping process takes and how they package their items, which is something that all business owners should know before their customers do.
5. How do you check that a supplier is reliable and has a good trading record?
During your research, buyers should look at the potential supplier’s published information, including company profiles, business licence number, user reviews and verified contact information. If these can’t be found, alarm bells should ring. If the supplier only has options to use telegraphic transfer or Western Union payment options, this should also be a reason to cull them from the potential supplier list. And, if suppliers do not want to send samples, walk away.
6. How important is it to visit a supplier in person?
Although it can be fun and often insightful, it is not very important to visit a supplier in person. Online sourcing gives you that flexibility. I ran my main business successfully for five years before I ever visited any of the suppliers I was using. However, when I did visit them, I gained valuable insight into the craftsmanship of the products we were sourcing from them and better understood how their small business operated. It also gave me cultural insight into how I could work better with my suppliers in the future.
7. At what point should you put a contract in place and what do you need to agree on?
I have never had a contract with a supplier; I order as I need. I receive (and request if we are not automatically given) an invoice that lays out the items requested (including photos), quantity ordered price per item, total price and shipping charges. My warehouse then uses this to confirm that the items received were the items we ordered.
Did you know?
8. Are there any common mistakes people make when
it comes to finding and choosing suppliers?
I have been surprised at the number of businesses that do not order samples. I have also found a lot of business owners just dive right in with a supplier, spending thousands of dollars without any due diligence to confirm the supplier is legitimate and can provide quality goods.
I also feel business owners can forget that there are cultural differences between countries and we have to allow for this when communicating. Buyers and suppliers can often read things out of context due to lack of understanding. It is important to always communicate as simply and clearly as possible and double-check
any information if you are uncertain.
9. Do you have any additional tips or advice for people sourcing suppliers?
Remember that suppliers can list themselves for free on a third-party platform like Alibaba.com [and similar online sourcing marketplaces]. It is up to individual business owners to contact and assess suppliers themselves. Use Alibaba.com’s paid services if you are not going to do the due diligence yourself.
Generally, businesses should not be reliant on one supplier. Having a few different suppliers means if one supplier “disappears”, your business will not come to a grinding halt while you try to find a replacement. This is a little harder for those who custom-source their products, of course.
10. What are the advantages of choosing a supplier through a service such as Alibaba?
I recommend sourcing through Alibaba.com and AliExpress.com over other sourcing options because they are among the largest e-commerce sites. They offer a huge range of suppliers that you can use to your business’s advantage, such as comparing and negotiating with multiple suppliers for smaller MOQs and discounts.
Alibaba.com also offers services such as custom sourcing, finding trusted suppliers on your behalf, free information guides and social media support.
It can also audit suppliers’ factory and shipping services, which helps reduce some of the risk or guesswork in choosing a supplier. Other tests include safety and performance inspections, appearance and packaging inspections, and less than container load (LCL) inspections.
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