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Can I still buy overseas if I’m not a huge company?

Can I still buy overseas if I’m not a huge company?  YES! but…

As an importer/sourcing agent/trading company, you can imagine we have many different types and sizes of companies that want to work with us and have their product/idea sourced from Asia. There are many different factors to consider that prevent a small(er) company from being able to do this and I want to bring these to the forefront.

First off, what is a small company?

small business owner

small business owner

For our use here, small would be under five retail location stores, inventors or manufacturers under $5 million in sales.

1. Size/Qty. The first challenge is size (qty) of the product you are sourcing. Most factories in Asia (that are worth using) won’t produce any orders less than a container to start. This isn’t saying they will never do this, but it depends on the season and how busy they are at the time.

2. Deposits Fees. Deposits are the second challenge to consider. If you are new to a factory they will always ask for some sort of deposit before they will start to produce your products. After the relationship has been built with them, sometimes they will waive that, but it’s not guaranteed. The actual deposit will depend on the product and factory.

3. Mold charges. This is another tricky challenge to overcome for some inventors or small manufacturers that are making a completely new or revised product. This mold charge will depend on the product that you are creating, complexity and materials needed. Mold charges can range from $500 to thousands of dollars. Depending on the factory, we are sometimes able to negotiate that the mold charge will be refunded back to you after you have placed your first order.

4.Lead Time. Lead time is crucial if you are offering the product to a certain buying season. A small order will always be produced after a large one. So if you have large orders in front of you at the factory and you are in peak season, lead times will always be longer than off-peak season purchasing. Lead times usually run around 30-35 days in off-peak season and 45-55 days during peak season.

5. Samples. Before anyone buys product for the first time they are going to want to see samples of their finished product. This is smart and one should always request a picture first. After reviewing the photo and the product looks correct, you should proceed to get a sample. The sample charge for most factories is the full price of the product and then the shipping from their factory to your store/office. Again, with some factories we can get the shipping charge reimbursed back to you after your first order has been placed. The sample charge of the product is not usually reimbursed. People are usually surprised how much it costs for a sample to be shipped via FedEx, UPS or DHL. For example, some furniture pieces that we have aired over from China can cost around $500. This cost is expensive, but worth the investment to see a finished sample, before you spend thousands of dollars on the actual order.

Do you have warehousing available? Do you have a solid sales plan? Do you know who will be buying your products? What is your target price? How many pieces can we sell this season?

The five points above don’t include everything and there may be other challenges that arise in your specific situation, but these will get the big hurdles out of the way first. If you consider the five points and the questions above you can realistically decide if buying from overseas will work for you.

Getting your product overseas can save thousands of dollars, can really boost your margin and turn a dream or idea into a reality.

To find out if you’re ready for importing call us at 765-497-3668 or email at bigfootimports@gmail.com for more information.
Shipping and Importing Terms
From the factory floor to your door, Bigfoot Imports also offers you full service for shipping of your products. These include services such as the ocean cargo, documentation, customs clearance, insurance, duties, taxes, transportation… Bigfoot Imports will deliver the products directly to your door or you can ship FOB direct from factory. Bigfoot Imports has developed great relationships with International freight forwarders who offer us the best price and the best service. Our staff is committed in offering real time information to keep you up-to-date on  delivery dates and times.

Below is a list of commonly used trade terms for your reference:

F.O.B (Free On Board) (port-same as FAS)! Risk pass to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. Used for sea or inland waterway transportation.
CFR (Cost and Freight) – (destination port-paid to arrival at destination port) Title, risk and insurance cost pass to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation.
CIF (Cost, Insurance and Freight) – (destination port-same as CFR, but includes insurance)Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.
CPT (Carriage Paid To) – (place at destination-includes all destination port charges)Title, risk and insurance cost pass to buyer when delivered to carrier or seller who pays transportation and insurance cost to destination. Used for any mode of transportation.
CIP (Carriage and Insurance Paid To) – (place at destination-same as CPT, but includes insurance) Title and risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation
DAF (Delivered to Frontier -(border of country-same as paid by seller to border-all other charges to buyer). Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation. (border of country-same as paid by seller to border-all other charges to buyer). Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation.
DES (Delivered Ex Ship) – (on board ship to destination port) Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation.
DEQ (Delivered Ex Quay i.e. Duty Paid) – (destination port-includes duties and taxes, but not destination charges or delivery) Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation.
DDU (Delivered Duty Unpaid) – (consignee door-excluding duties and taxes) Title, risk, and responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation.
DDP (Delivered Duty Paid-named destination) – (consignee door-includes all charges origin to destination) Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation.

 

LC – Letter of Credit

An LC is a document issued by the client’s bank agreeing to pay Bigfoot Imports on a certain date if we meet all project requirements. Using an LC helps assure timely delivery of goods and indemnifies the client against payment of goods not received.
Build-a-Project

  • You have a new idea or some new design of your existing products?
  • You are not sure how take your idea and turn it into a reality?

Bigfoot Imports is here to offer you the right manufacturer who will take care of your project. Bigfoot Imports will work with the factory directly with all of your specifications to bring your product from idea to reality

  • You are looking for a way to differentiate your offerings from those of the competition? Fill out our easy to use form and tell us what you are looking to produce. Bigfoot Imports will search for the right manufacturer who will fit to bring you the final product that you are envisioning.
  • You have found something in the retail market, let us know what you found, we will offer you the perfect product which you are looking for.

Bigfoot Imports will always strive to find the right manufacturer to produce your requested product which fits your time frame, your budget and your expectations.

Process:

  1. Tell us about your project! The more information you share with us, the more we can understand about your project.
  2. We will send you a pre-production picture of your sample for your review. If the initial sample picture meets your expectations then we will move to the next step of having the actual sample mailed to you for your final approval.
  3. After you are completely satisfied with your sample products, we sign the contract for production with signed agreements from the factory.
  4. The factory will produce your product; while our Quality Control experts watch over the whole production process; Bigfoot Imports gets all the shipping arrangements made for you; track the shipment for you while keeping you informed through the whole process.
  5. Start right now by filling out this form!

 

 
Direct to Asian Factories

Bigfoot Imports is co-operative with key manufacturers in China, Hong Kong, Taiwan, Malaysia and Vietnam. This way, we always provide our clients with the competitive pricing, guaranteed quality and delivery time. Our staff offers more than 15 years experience and have built long term relationships with many factories. Our staff lives full time in each of the countries we source from and are fluent in the local language.

What are most customers’ main questions when it comes to dealing with a factory directly?

1. How do I manage quality control?

2. How can I make sure the product with be delivered at the correct time?

3. How will I be able to communicate with the factory?

4. How can I deal with the business practices of another country?

Let us take care of all these concerns for you.

1. We have Quality Control people in place to make sure that your sample product is the same as your finished product.

2. We will be following your product through the whole process, from sample arrangement to the date of delivery to your door.  We offer updates as often as you would like via our email, live chat or phone.

3. Don’t speak Chinese? We take care of all the communication for you and then translate all this information directly to you.

4. When is Chinese New Year this year and how will it affect your production?  Don’t worry about any of the cultural or business issues related to another country, our staff will always keep us updated on any new developments that could be a problem in production times or delivery.