Home – New Forums Logistics Advise on first Import from China

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  • #974153
    supanatural
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    Hi all,

    I’m currently communicating with suppliers that I find from Alibaba and Dhgate in searching for new products to import and request samples from them. When it comes time to make payment they often say that ‘we only accept bank transfer’ and they won’t accept Paypal. Because there a manufacturing factory and not a trade company.
    To do a overseas transfer via bank it costs $30 with fees, shipping averaging $80. So $40 worth of samples ends up costing $150 and there’s no guarantee that those make it to me. I don’t mind paying for samples but it adds up.

    Any suggestions grateful?

    M

    #1066332
    HBTRADE
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    If you’re using Ali, make use of their escrow option. At least then you have a chance of getting your money back if things go sour – be aware, it is time limited.
    Antoher option would be to check out OzForEx (http://www.ozforex.com.au). I have used them for some OS transfers. Rates are better than the banks & fees are lower. They are worth talking to. If you call during business hours (Sydney) you have a good chance of getting an Aussie – otherwise you could wind up in South Africa or Canada. No problem with service from either, just that locals have a better idea of our circumstances.

    #1066333
    supanatural
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    Thanks for the advise. I’ll give OzForEx a call tomorrow. I also read that China EMS is much more economical for shipping a few samples valued under $300.

    M

    HBTRADE, post: 82376 wrote:
    If you’re using Ali, make use of their escrow option. At least then you have a chance of getting your money back if things go sour – be aware, it is time limited.
    Antoher option would be to check out OzForEx (http://www.ozforex.com.au). I have used them for some OS transfers. Rates are better than the banks & fees are lower. They are worth talking to. If you call during business hours (Sydney) you have a good chance of getting an Aussie – otherwise you could wind up in South Africa or Canada. No problem with service from either, just that locals have a better idea of our circumstances.
    #1066334
    supanatural
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    The manufacture said shipping via DHL was cheapest.

    M

    #1066335
    HBTRADE
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    China also has a system I’ve found good called e-quick. About as fast as DHL/UPS without the expense. Actually, about $10 more than EPS, which can take 2-3 weeks.

    http://www.equickchina.com/English/index.aspx

    I found regardless of order cost, DHL & UPS both want to charge customs & GST, along with their fees for doing so.

    #1066336
    supanatural
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    Highly recommend OzForEx great service quick replies to emails.

    HBTRADE, post: 82376 wrote:
    If you’re using Ali, make use of their escrow option. At least then you have a chance of getting your money back if things go sour – be aware, it is time limited.
    Antoher option would be to check out OzForEx (http://www.ozforex.com.au). I have used them for some OS transfers. Rates are better than the banks & fees are lower. They are worth talking to. If you call during business hours (Sydney) you have a good chance of getting an Aussie – otherwise you could wind up in South Africa or Canada. No problem with service from either, just that locals have a better idea of our circumstances.
    #1066337
    iamsparro
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    Be wary of anyone using a hotmail address, or any other free provider – and always be sure to continue checking the email.

    I’ve heard of two accounts (one a friend, another in the news) where free emails were hacked and the hacker sent “updated bank details”.

    Obviously if you’re using escrow this won’t be a problem.

    #1066338
    Casa
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    supanatural, post: 82374 wrote:
    Hi all,

    I’m currently communicating with suppliers that I find from Alibaba and Dhgate in searching for new products to import and request samples from them. When it comes time to make payment they often say that ‘we only accept bank transfer’ and they won’t accept Paypal. Because there a manufacturing factory and not a trade company.
    To do a overseas transfer via bank it costs $30 with fees, shipping averaging $80. So $40 worth of samples ends up costing $150 and there’s no guarantee that those make it to me. I don’t mind paying for samples but it adds up.

    Any suggestions grateful?

    M

    Do not use bank transfer to your supplier in China. It is danger to deal with China Factory directly especially on electronic products. Whenever we import from China , I have our own people to inspect the good ourselve to avoid any problems. We have an office sourcing company in China and our main business in Melbourne.

    Please contact us if you need any help.

    #1066339
    Kathy Creaner
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    I’m sorry. I disagree with the advice that you’ve been provided here.

    casa, post: 82962 wrote:
    …… Do not use bank transfer to your supplier in China.

    It makes sense to check out your suppliers carefully, and buying samples is one way to do that. You will learn a lot through bringing in samples from different suppliers and using different delivery methods. I know that they seem expensive, but the few hundred dollars that you spend now may save you thousands of dollars in the future.

    I understand that you’re nervous about bank transfers (cost as well as safety). For your information, we have used bank transfers directly to manufacturers without any problems.

    You will find that your manufacturer is just like you – while they may not know ‘the cheapest way’ to get your goods to Australia they will be able to tell you what has worked for them in the past.

    As for checking out your manufacturer, there are several options: you can pay companies to advise you on the reliability of the manufacturer, you can ask them for references, you can hire a sourcing agent to check them out, you can visit them yourself, etc. A simple question you could ask them is “do you exhibit at trade shows?” and then you could check the exhibitor list for the trade shows.

    Good luck with your new venture. I hope you enjoy the experience as much as we do.

    Kathy

    #1066340
    MyGreatIdea
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    I agree with Kathy, invest a little time and money now to find the right supplier.

    We pay our supplier direct by bank transfer. But we also employ a quality inspection company for a pre-shipment inspection of each order BEFORE we pay. At USD280 per day they are a cheap form of insurance. Not that I would suggest you do this for samples, just something to keep in mind.

    Wendy :)

    #1066341
    supanatural
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    • Total posts: 53
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    Thanks to you all for your great advise. We have just received the shipment of samples from China. The quality isn’t bad but the packaging each item comes in is just a cheap plain cardboard box not fit for retail. We were expecting a colourful retail box. What is the usual practise in this case. Would we have to re package each item here and go out and pay to have boxes designed adding to the price or should we advise them that we require a retail packaged items. As is we can’t sell there product as is even on ebay.

    Matt

    #1066342
    MyGreatIdea
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    Packaging is included in our manufacturing cost – but only because we sent the proofs and details and requested it with our initial quote.

    I would suggest that for your samples you source your own packaging for now. Talk with the supplier and see what alternatives (at what cost!) they can offer for any future orders.

    Wendy :)

    #1066343
    BJY35
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    • Total posts: 13
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    supanatural, post: 83301 wrote:
    Thanks to you all for your great advise. We have just received the shipment of samples from China. The quality isn’t bad but the packaging each item comes in is just a cheap plain cardboard box not fit for retail. We were expecting a colourful retail box. What is the usual practise in this case. Would we have to re package each item here and go out and pay to have boxes designed adding to the price or should we advise them that we require a retail packaged items. As is we can’t sell there product as is even on ebay.

    Matt

    Hi Matt
    Talk to the factory, if its a factory no doubt they will be able to provide relevant packing you are after. We are a freight forwarding co and I have travelled many times to china to visit out clients factories and when they are dealing with multiple customers there are always all sorts of packaging around relevant for the particular customers orders, even when shipping same/similar product. Just tell them what you want, being china you might need to send them photos/samples to give them an idea, but they will be able to do it and just incorporate it into your price. If you need any help in logistics/shipping when you orders go ahead, would love to help. I dont know the protocol here yet with putting my details up, I will have a look, but PM me if you need any info. Samples stick with EMS, DHL etc for anything under 30-40 kgs thought. Cheers Brad

    #1066344
    AlibabaAU
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    • Total posts: 3
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    supanatural, post: 82374 wrote:
    Hi all,

    I’m currently communicating with suppliers that I find from Alibaba and Dhgate in searching for new products to import and request samples from them. When it comes time to make payment they often say that ‘we only accept bank transfer’ and they won’t accept Paypal. Because there a manufacturing factory and not a trade company.
    To do a overseas transfer via bank it costs $30 with fees, shipping averaging $80. So $40 worth of samples ends up costing $150 and there’s no guarantee that those make it to me. I don’t mind paying for samples but it adds up.

    Any suggestions grateful?

    M

    Hi Supanatural,

    I think I can offer some advice for you here… my name is Alice and I work at Alibaba.com.

    This is a common question that comes up often when people are unsure of a supplier’s legitimacy yet the supplier is asking for a particular payment method, especially in instances like yours where 100% of the risk is being placed on you (the buyer).

    Bank transfer is sometimes used by suppliers when the amount of money changing hands is fairly small, however in my opinion there should be a trustworthy relationship between the buyer and seller for them to ask for bank transfer.

    Given this, I would ask you to do a little more research on the supplier you have chosen. Head to their website… do they have a contact form or a phone number? Feel free to drop them a line and ask some questions directly.

    Another suggestion is to do a quick search for them on Google and Twitter, you will soon find out if anyone else has had good or bad dealings with them.

    Once you have formed a better opinion of the supplier you will feel more confident about whether you should give them your money or not :)

    I hope this helps, please feel free to ask more questions if you have any.

    All the best,

    Alice

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