Home – New Forums Logistics Total cost of importing a product

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  • #982791
    hyp121
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    I am planning on my first product import deal, I want to buy a large number of USB memory sticks from China. For example, if they are $3 each FOB, how do I accurately calculate the total cost of getting a USB drive? by knowing that I can add my margin onto it for profit.

    I am a newbie for this kind of stuff…Here is my thought of the cost will be involved until they arrive my house.
    Product FOB cost + shipping cost + import tax + Australia local delivery cost. Are there any fees will be involved? ie. Custom clearance cost?

    Thanks!

    #1138884
    MyGreatIdea
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    Those costs are all to be factored in, but you’ve forgotten the most important ones…the operating costs.

    Registration fees, telephone, hosting, advertising, the list is endless. Your time as well. Calculate the hours you spend from placing an order to delivering to your customers.

    Great to make a large profit on each shipment, but not if it only equates to $2 an hour !!

    Wendy :)

    #1138885
    Johny
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    I cannot offer too much in the way of pricing, but can tell you this:-

    1. Make sure to confirm the pricing is FOB as a lot of USB manufacturers will provide ex/w prices, which does not include the handling costs for getting the products to port

    2. You need to consider insurance. Some take it out, others don’t to try and save a few $. Up to you, but consider the consequences of not doing it.

    But, as you mentioned that you are doing this for the first time, I would also like to add some additional comment that may be useful.

    Buying USB flash disks can be very difficult. It is a very popular product and therefore attracts a lot of attention from people looking to scam you. There are untold numbers of stories of people being shortchanged with being given refurbished memory or asking for 4GB of memory and getting 512mb, for example.

    Please take a look here at some stuff I wrote about this:-

    http://www.asiasupplierreview.com/forum/viewtopic.php?f=11&t=382

    Many buyers go direct to China for USB flash disks because of the supposed opportunities for cheap prices. Be very careful with pricing as usually getting the product at the cheapest price will mean you have been ripped off. Flash memory prices are quite standard and although they can change quickly, you really need to be conscious that if someone is offering teir product below the standard, then it is veyr likely there is a problem.

    There are plenty of good opportunities out there and some real saving potential, but I just want to let you known there are also a lot of sharks circling.

    I know I didn’t answer your question, but I have seen a lot of people ripped off with these products, and its never a good thing.

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