Home – New Forums Logistics Shipping china to australia, Help Please:)

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  • #987302
    Havenau
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    Hi Ladies and Gents

    This is my first post here and looking for some feedback/help.
    I’ve just recently made a purchase on aliexpress to dip my toes in the water and test the market.

    but I also made a inquiry on alibaba about a particular product asking what the current FOB was on this, and his reply was

    100 pieces at 2.9usd each FOB is 121usd
    total weight is around 23kg

    my questions are

    1. once I’ve paid the 2.9×100 plus 121 will the supplier take my items to the port on load onto a ship for Australia, then its on me for the rest ??

    2. is there a cheaper shipping option being only a small 23kg package like EMS, DHL, AIRFREIGHT??

    and if so how do I go about shipping via courier, do I ask my supplier if he can help arrange ems for me or do I contact china post/ems directly and talk to them about picking up from supplier, that way I can get the EXW PRICE as well??

    Thank you for help that is provided. I just want my first order to go smoothly and hopefully have a somewhat decent profit margin after shipping.

    sorry if it doesn’t make much sense:)

    #1162017
    LucasArthur
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    Hi ( would insert name here if provided,

    Although i do not have an answer for freight due to size of your import etc and information provided, i am sure there will be someone more experienced along shortly. Wish i could get FOB prices for such small quantities, i need to learn how to bargain more :)

    In saying this, being your first post i thought i would welcome you and say HI… Maybe you might like to head across to the new member section and introduce yourself.. we are a friendly bunch, well most of the forumites (maybe i am on the outer sometimes) so go say G’day.. a little familiarity and banter goes a long way around here..

    Look forward to learning more about you and all the best with your first venture.

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1162018
    Johny
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    USD 121.00, to convert from ex factory to FOB seems a little on the cheap side, but I think not so much it is unrealistic.

    A couple of things you need to confirm:-

    1. You need to make sure that includes delivery from the factory to the port
    2. That includes all costs associated with your goods arriving to the port as well as getting them on the ship
    3. I would tend to agree with Jason here. More often than not you will only get ex factory pricing for this type of quantity, so that also raises a question in my mind.

    With FOB it should include all that, but to me, given the price, it seems worth asking a few questions. Actual forwarders can probably give you a better idea if that pricing is in line with what it should be, just seems a little low to me.

    1. once I’ve paid the 2.9×100 plus 121 will the supplier take my items to the port on load onto a ship for Australia, then its on me for the rest ??

    No, you need to advise them a shipper or forwarding company you are working through and a local contact point. They will then liaise with them, deliver the goods to that shipper/forwarder warehouse, and the forwarder will arrange for the goods to be placed on board the vessel.

    Then the rest is up to you, or the forwarder you have engaged to do it for you.

    2. is there a cheaper shipping option being only a small 23kg package like EMS, DHL, AIRFREIGHT??

    Generally, and this also depends on the volume of the package, for 23kg, it is probably a better option to have the goods couriered or sent via EMS.

    Get “ex factory” price from the factory and arrange a courier or EMS. EMS is not the most reliable in terms of delivery times, in my experience.

    You have to remember that courier costs are generally calculated door to door, whereas with either sea or air freight, is port to port, which involves additional costs. (Please note that air freight is different from courier. Air freight you will run into the same issues as sea freight and, it is generally quicker, but more expensive.)

    So you have to look at the total costing, not just the actual shipping component.

    and if so how do I go about shipping via courier, do I ask my supplier if he can help arrange ems for me or do I contact china post/ems directly and talk to them about picking up from supplier, that way I can get the EXW PRICE as well??

    If with EMS, yes you need to get the supplier to arrange it. You would need to include the cost for this in the price because EMS is required to be paid in advance.

    If with courier, your supplier could have access to better and cheaper rates than you can due to volume discounts. So that is an option. But sometimes they also generate profit from this part of the transaction.

    The best thing is for you to do some homework by contacting possible forwarders, couriers etc to get at least a general idea of what the costs are. That way you can make an informed decision based on the overall requirements you have.

    #1162019
    Havenau
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    Thank you Jason and johny for your welcomes and responses

    Thank you for the good info, I had contacted the supplier again last night in regards to ems and in the end he quoted me 411usd shipped through ems to my door. I had already made a order through aliexpress, but contacting this supplier on alibaba itself is me just trying to learn how to talk shipping organising things once I’m ready to make a bigger order.

    For instance if this supplier quoted exw 2.85usd per piece, by me asking him to arrange ems to collect, wouldn’t he also charge extra to make set up that delivery??

    I will also contact forwarders once I find some, and contact some couriers as well.

    Just wanted to hear from some local importers about information or guidence that you all might have for me:)

    #1162020
    LucasArthur
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    Havenau, post: 187293 wrote:
    For instance if this supplier quoted exw 2.85usd per piece, by me asking him to arrange ems to collect, wouldn’t he also charge extra to make set up that delivery??

    Hi Havenau (name?)

    Price can increase for smaller quantities, or sample size orders or sometimes EXW as its not always worth a manufacturer doing them.. although they dont just put the price up to cover ‘doing the freight arrangement’ as you are paying for the freight. They would have had to arrange freight be it EXW or FOB or whatever..

    Also, sometimes it can be in their favor as they can sometimes get rebates or a little kicker on the EMS/DHL etc.. but still better for you as their negotiated rates are SIGNIFICANTLY better than if you were to arrange it from here..

    Good luck..

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1162021
    Johny
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    For instance if this supplier quoted exw 2.85usd per piece, by me asking him to arrange ems to collect, wouldn’t he also charge extra to make set up that delivery??

    Nah, its probably better for him to do it that way, convenience and money wise.

    No real extra work involved at all. He has to pack it anyway and probably gets someone from the PO to come and collect it, or a worker to go and send it out. Much easier than sending via a port.

    My only additional comment is this. Once you have handed them the product price and the ems costs, they have all your money. I usually tread more cautiously when handing over 100% in advance, but in this instance paying for it to be checked isn’t worthwhile. So maybe sampling the product first isn’t a bad idea, but its one of those decisions where you need to decide if those costs don’t also hurt too much.

    #1162022
    Hatching_It
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    Hi there,

    I import goods ranging in size from (cms) 10x10x5 to 30x30x30 and depending on the size it’s obviously either better to go with Air or Sea freight.

    Sea freight and shipping less than a container load (LCL) you’ll get charged for a minimum of 1CBM (cubic metre) Judging by the cost of your product I’m going to assume they’re closer to the 10x10x5 size and that the overall size is somewhere around 0.1 – 0.2CBM, so sea freight is likely to be too expensive. From Shenzhen and Ningbo (the two ports that I use when shipping via sea) the cost is usually around $500 for a CBM plus any customs duty etc (your order will come under $1000 so you won’t be GST etc on import)

    As a comparison I just imported 100 products that measure 15x9x6 each and the shipping cost was ~US$280 via DHL Express. Sent Wednesday from Hong Kong, arrived Monday in Canberra.

    If you don’t care about how long they take to get to you via air ask them to arrange the CHEAPEST air freight. Shenzhen to Australia the cheapest is usually USPS but it will take 2 weeks instead of 1.

    So in summary:

    – It is cheaper to import via sea but only if you get to a minimum of 1CBM.
    – If by sea, order in FOB (Free on Board, they pay for it until it’s onboard the ship, you pay for sea freight, insurance, all customs etc) and get yourself a freight forwarder (Cat from GLC comes highly recommended – askgloballogistics.com.au)
    – If by air, just ask them to arrange door to door service and decide whether you need it fast or the cheapest (you will nearly always only need it the cheapest way) This way it arrives at your door just like ordering something within Australia. DHL are great because if you’re not home you can jump online and select a new delivery date, location or pickup (all free).
    – If the cost to get it to Australia (this includes the freight) is over AU$1000 you will have duty/GST to pay on it, be prepared. Usually/sometimes (I can’t decide) when you bring it in by air and it’s no bigger than a normal moving box size you’ll get away with no duty/GST even if it’s over $1000. Don’t bank on it, think of it as a little bonus.

    Let me know if you have any questions. I started my business in Q4 of last year with $0 and we’re now holding about $10,000 worth of stock, sold 9 products on eBay this week and the business is starting to really grow.

    Some inspiration for you.

    Have a look in my blog (link in signature) about how we’ve started out and what steps we’ve taken to get to where we are.

    We started in Q4 last year with $0.

    But you can see in our first month we sold about $500 which was auctioning off stuff that we had around the house and then buying stuff at garage sales and auctioning them too. Now, like I said we hold $10k in stock, which is about 100 units of 5 products (one on a sea freighter right now) and we’ve just about hit $1000/month in sales (we should easily do this next month).

    zmfatt.png

    Let me know if you have any questions.

    Maclean

    #1162023
    LucasArthur
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    Hatching_It, post: 187308 wrote:
    We started in Q4 last year with $0.

    But you can see in our first month we sold about $500 which was auctioning off stuff that we had around the house and then buying stuff at garage sales and auctioning them too. Now, like I said we hold $10k in stock, which is about 100 units of 5 products (one on a sea freighter right now) and we’ve just about hit $1000/month in sales (we should easily do this next month).

    zmfatt.png

    Awesome the right man has popped along that has the knowledge you need.. As a side note, as i have been ‘watching’ this is TERRIFIC Maclean.. is this in line with your targets and what you expected? and many hurdles with current ‘rest’ requirements?

    Must say, i really appreciate your posts and generosity and i tend to gain from each you do (other than the p$@@ing contests.. LOL).

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1162024
    Hatching_It
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    They’re hurdles, not walls so we’re getting over them! I did feel bad watching my girlfriend lifting a 28kg box that was almost bigger than her in to the boot on Thursday though..

    Too be honest, it’s exceeded my expectations. I obviously have goals, but I did have some scepticism at the very beginning as to whether we could actually sell anything. Now that we’ve proven it works and are jumping in with more capital my goal is to quadruple our sales by EoFY.

    (A little spoiler for the OP about what you should be doing in 6 months time or sooner)

    Our initial products that we imported were small and totalled about 0.3CBM each, so came in via air (more expensive) so we can’t compete on price with the bigger guys – we’re about 5% more expensive, which means we sell about 20-30% of the volumes they sell. Now that we’ve got some more money I’ve calculated to restock the original products at the same time and bring in a total of 1CBM of them via sea. The freight savings mean we’ll be able to offer the products at the same price as the competition and actually increase our profit margin by about 20%. Once we commit to this I’ll drop our pricing (making $0 on the original stock, but increasing sales and therefore eBay search ranking).

    That, along with the new products we’re bringing in will get us at least doubled to tripled, but I’m confident we’ll hit the big quadrupled!

    #1162025
    Havenau
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    Thank you to all, this is really some awesome info.
    hatching it, I too will be on ebay as well with this venture. I’m almost power seller status, so have been listing things from around the house to get me over that line.

    and congratulations on your blog as well, I will be following.
    plus the recommendation to talk to cat, im sure will be very knowledgeable for me:)

    it is really good to hear back from some people doing/trying the same thing:)

    #1162026
    Havenau
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    also, yes after I see how it goes with this few item order(on the way).
    I will be thoroughly checking about supplier and product(sampling) when its time to order from alibaba.

    #1162027
    Petemac
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    Hi, is the $411 USD the cost of the product including shipping via air or is that the cost of the air freight only?

    Cheers

    Pete

    Havenau, post: 187293 wrote:
    Thank you Jason and johny for your welcomes and responses

    Thank you for the good info, I had contacted the supplier again last night in regards to ems and in the end he quoted me 411usd shipped through ems to my door. I had already made a order through aliexpress, but contacting this supplier on alibaba itself is me just trying to learn how to talk shipping organising things once I’m ready to make a bigger order.

    For instance if this supplier quoted exw 2.85usd per piece, by me asking him to arrange ems to collect, wouldn’t he also charge extra to make set up that delivery??

    I will also contact forwarders once I find some, and contact some couriers as well.

    Just wanted to hear from some local importers about information or guidence that you all might have for me:)

    #1162028
    Havenau
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    Hey Peter:)

    The 411 usd was what he quoted me to have the products shipped to my door, so yes product and airfreight(ems) included in that price.

    I have seen your name pop up I’m quite a few post and I was also going to contacting you and cat once I’ve made the step to order from an actual manufacture. Please correct me if I’m wrong, but judging by what others have said you would the person I could to talk to about small quantity shipments as among other types??

    Thank you for reading

    James

    #1162029
    Petemac
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    Hi James, if it is import/export via air, small or large I can assit. Also, all types of freight movenments around the coutry.

    Cheers

    Pete

    Havenau, post: 187348 wrote:
    Hey Peter:)

    The 411 usd was what he quoted me to have the products shipped to my door, so yes product and airfreight(ems) included in that price.

    I have seen your name pop up I’m quite a few post and I was also going to contacting you and cat once I’ve made the step to order from an actual manufacture. Please correct me if I’m wrong, but judging by what others have said you would the person I could to talk to about small quantity shipments as among other types??

    Thank you for reading

    James

    #1162030
    Havenau
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    ok thank you peter:)

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