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Archive for the ‘Sourcing Tip of the Day’ Category

Tip of the Day: Verifying a Supplier

Thursday, February 11th, 2010

At Alibaba.com, we understand that online global trading comes with risks and that authenticity of suppliers should be one of your concerns. Knowledge is power, and we strongly encourage you to know a supplier before trading with them. On Alibaba.com, there are many ways to become a well-informed buyer. Below we have outlined some of the tools that you can use to make informed buying decisions.

1. Once you’ve searched for a product and arrived at the results page, check the company profile provided for each supplier. That is where you can find in-depth information about the company as well as a link to the its corporate website.

2. On the search results page, look for an icon underneath the company profile link that says “Gold Supplier“.

Gold Suppliers are premium paid members of Alibaba.com that have gone through an extensive due diligence process to be verified as legitimate companies.  A reputable third-party credit reporting agency thoroughly investigates information in Company Profiles and registration forms to ensure accuracy and authenticity.

3. You may contact a supplier directly to request additional information, such as a business license and customer referrals.

4. Post questions and receive candid feedback about a supplier from other Alibaba.com members through the forums in the ‘Community’ section, particularly the ‘Safe Trading’ forum.

5. Ask if you or a representative can visit the supplier’s to inspect on-site facilities in person.

6. We also recommend investigating a company through a search engine such as Yahoo! or Google to uncover any issues that have been voiced.

 

Tip of the Day: What you Don’t Know About SEO

Tuesday, February 9th, 2010

Today’s AliBlog tip comes directly from Erin Weinger’s Entrepreneur magazine article “What You Don’t Know About SEO”. If you are just starting to create an ecommerce business, Search Engine Optimization is one of the more important ways to get noticed on the web. Here are a few tricks that you should employ to jumpstart your SEO. If you want to read Erin’s full article click here.

“The trick is to be hyper-conscious of your keywords. For example, if you want web surfers on the prowl for “eyebrow waxing” to find your site in search engine results, organically work the exact phrase “eyebrow waxing” into each blog post (maybe multiple times), and use it on all static pages related to eyebrow waxing. Lather, rinse and repeat with every term and phrase you want to rank for.”

“Before you start writing content, though, research and plan your keyword attack. Is geography important to finding your customers? Then maybe “California eyebrow waxing” is the phrase you want to home in on.”

A few tips to start your new year…

Tuesday, January 26th, 2010

As you already know, Alibaba.com is a great resource for small business owners who want to find or create specific products for their businesses at a great price. What you may not know is how to take full advantage of all the features that the website has to offer. Below we have assembled some tips that should help you maximize results and minimize your effort. Happy sourcing!

  1. When searching Alibaba.com, try filtering by country, business type, and export experience to reduce the number of suppliers in your results.
  2. To maximize search results, use fewer keywords and avoid using specific country names and the words buyer or seller in your searches.
  3. Still can’t find what you are looking for? Post Buying Leads to tell suppliers what you want, allowing them to come to you!
  4. When you find a supplier and want to qualify them, click on their page to learn the following information: factory size, manufacturing capacity, years in business, employee count.
  5. A Gold Supplier has been screened by a third party company to verify at least a current phone number, address, main point of contact and business registration.
  6. If you see a video on a Gold Suppliers page, it was likely produced by Alibaba.com staff, not the supplier themselves.
  7. If you are still not sure if you want to use a certain supplier, request customer referrals, preferably ones who are located in the same country as you, to draw from other’s experiences.
  8. You can post a message in the Verify a Company section of the Community Forums asking for supplier information and weigh the feedback.
  9. To write one email to several suppliers, click the check box next to each suppliers name in your search results and click Contact Now.
  10. It may take up to a few days to receive responses to your requests.  Look in your Message Center in My Alibaba.
  11. My Recent History helps you keep track of products, companies and/or keywords you’ve recently viewed. 

 With these important tips under your belt you should be well on your way to a successful New Year! 

Sourcing Tip of the Day: Can you keep it simple?

Wednesday, December 16th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip of the Day comes from The Official Alibaba.com Success Guide and touches on keeping it simple.

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Several of the SMEs quoted and profiled in the book had created very simple methods for getting their goods from foreign destinations to their own front doors. Valarie Moody imports items that are so small that they easily come to her directly through DHL. All of the major carriers, from FedEx to UPS to TNT, offer services that cover everything you need, from picking your shipment up at the supplier’s location to clearing U.S. customs to delivering your products right to your door. You will pay more for shipping your goods through these methods, and the cost may well be prohibitive if you import large quantities or items that are too big to reasonably ship with these carriers, but if you can use them, you will make life easier for yourself. Allison Taylor remembered the first time she ordered samples from her supplier in China. “The first time I shipped from China,” she said, “they asked for a FedEx number. The first thing I got cost $85. Then I switched to UPS and it cost $45. TNT charged me $13 for exactly the same thing. In China they know TNT.”

Full profiles of many of our customer success stories can be found on our microsite at success.alibaba.com and a complete list of terms, definitions and best practices for sourcing products can be found in The Official Alibaba.com Success Guide at Amazon.com, Borders, Barnes & Noble or at your local bookstore. This would make a great gift for the entrepreneur or small business owner on your list!

Sourcing Tip of the Day: Do You Need Insurance?

Tuesday, December 15th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip of the Day comes from The Official Alibaba.com Success Guide and covers insurance.

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If you are handling all the aspects of your transaction for yourself, don’t neglect insurance to cover your shipment as it makes its way from your supplier to your location. Usually coverage will be sold on a warehouse-to-warehouse basis. You can buy insurance on a per shipment basis or you can buy blanket insurance. Whether you ship by sea or air, there is an insurance policy that will protect your goods as they travel. If you work with a freight forwarder, you will be covered by that company’s insurance policy and the cost of insurance will be rolled into your overall fee.

A complete list of terms, definitions and best practices for sourcing products can be found in the brand new book by Brad and Debra Schepp available now at Amazon.com, Borders, Barnes & Noble or at your local bookstore. This would make a great gift for the entrepreneur or small business owner on your list!

 

Sourcing Tip of the Day: Who are the major players?

Thursday, December 10th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip of the Day comes from The Official Alibaba.com Success Guide and covers import agents, inspection companies, freight forwarders and customs brokers.

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As you go about building your global business, you are likely to come across a variety of job titles that, while important to understand, can also be confusing. Do you want to work with an import agent, an inspection company, a freight forwarder, or a customs broker? Or is the answer to that question a simple “yes,” meaning that you need to work with all of them? To help you decide where you fit into this confusing mix, let’s get a quick definition for each of these potential partners.

Import Agents

These professionals can help you from the very start of your endeavor. You can identify import agents all over the world who make it their business to help connect SMEs with reliable sources of products. Not only can an import agent help you identify and qualify a good trading partner, but she can also help you to negotiate pricing, arrange transportation, and complete inspections. Of course, you will pay for all of the services you require from the agent, but if you contract with someone who lives in the same geographic area as your supplier you may find that you can better work toward a more advantageous relationship, because you will be represented by someone who understands both the cultural and economic realities of the part of the world you are interested in working with. You can even contract with an import agent to attend trade shows on your behalf to identify and locate new suppliers.

Inspection Companies

You can contract with a licensed inspection company to arrive at your supplier’s location to oversee the production cycle and inspect the packaging of your order as it is packed and prepared for shipment. Chapter 6 of the book explores this option more fully.

Freight Forwarders

These professionals handle all aspects of moving your goods from their point of origin to your location, or any part of that process. Many freight forwarders have offices throughout the world that can operate on your behalf as local entities. Essentially, freight forwarders are logistical experts. They know how to negotiate the entire process from inspection of your goods at their point of origin to delivery of your materials to your location. This process includes preparation of all documentation necessary to get your orders loaded and on their way as well as those necessary to make certain your shipment is ready for U.S. customs. These documents can include but are not limited to a bill of lading, specifying exactly what is in your shipment, who owns the goods, and who is responsible for clearing the goods through your port of entry.

Freight forwarders are also well versed in all regulatory issues to ensure that the items you want to purchase can be imported to the United States. The right freight forwarder will have customs brokers on staff to clear your items through your port of entry and handle all aspects of duties, tariffs, and taxes. They may even be willing to pay these items on your behalf and bill you for them upon delivery of your goods. At the least, they may give you an educated estimate of these costs and adjust the final payments with you after the fact. Finally, a good freight forwarder can represent your interests with your supplier should your goods arrive damaged or incomplete.

Custom Brokers

Customs brokers are licensed through the U.S. Customs and Border Protection to operate on your behalf in all aspects of clearing your goods through customs, paying all fees, and getting the goods released for your delivery. It is very easy to locate a customs broker. Simply go to the CBP web site at http://www.cbp.gov/, and click on the link at the bottom of the page for Ports. You’ll see “Locate a Port of Entry—Air, Land, or Sea.” Scroll down the page until you find the state where you want your goods to arrive.

We’ll use the state of New Jersey as our example. Now we have the choice of selecting one of three ports: Morristown Airport, New York/Newark (Service Port), or Perth Amboy. The next screen gives us plenty of details about the port itself, including contact information for reaching CBP personnel. More importantly, you will find a link entitled “View List” next to the entry “Brokers.” Click that link and you will find qualified customs brokers who can help you clear your goods should you decide to bring them in through this port. The list is regularly updated so companies appearing on this list should still be in business. If you have any concerns, you can call the CBP to verify a broker at 202-927-0380. Of course, once you identify a possible customs broker, you are still required to do your own due diligence to ensure that you are satisfied with the services offered and the fees charged.

Sourcing Tip of the Day: Standards, Certifications and Regulations

Monday, December 7th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip of the Day comes from The Official Alibaba.com Success Guide and covers Standards, Certifications and Regulations.

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The rules about what can and cannot be imported into the United States are powerful and immutable. Before you proceed to set your mind on a particular product category, be sure that you are considering products eligible to be brought into the country. Even for items that can be brought into the United States you are likely to find compliance requirements that cannot be ignored. Several different agencies control the importation of goods. While the following list identifies some of the federal agencies that oversee product categories, it is by no means complete and guaranteed.

  • Food and Drug Administration (FDA).
  • Consumer Products Safety Commission.
  • Department of Agriculture.
  • Department of Transportation.
  • Department of Health and Human Services (DHHS).
  • Environmental Protection Agency (EPA).

For more information, contact the U.S. Department of Commerce and the U.S. Customs and Border Protection. You will find that the U.S. Department of Commerce has offices in nearly every city in the United States. The Commerce department exists for the sake of promoting business in the United States, and you will find that not only will Commerce department personnel help you through offices across the country, but you will also find a wealth of useful information on its web site.

A complete list of terms, definitions and best practices for sourcing products can be found in the brand new book by Brad and Debra Schepp available now at Amazon.com, Borders, Barnes & Noble or at your local bookstore.

Sourcing Tip of the Day: Harmonized Tariff Schedule

Monday, November 30th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip of the Day comes from The Official Alibaba.com Success Guide and covers the Harmonized Tariff Schedule.

The U.S. International Trade Commission maintains the Harmonized Tariff Schedule which applies specific codes to every type of product you can think to import. This schedule allows you to see, before you purchase, what the rate of tariff will be for you to bring the item into the United States. These Harmonized Codes are incredibly specific. For example, the code for shoes will vary depending upon the materials used to create the shoes, the type of shoes you are importing, and even where on the leg the shoe ends. All these things determine the code, and therefore what rate of tariff will be applied to those shoes. Further, if you import a product in its entirety there will be one Harmonized Code, but if you import the components of a product to be assembled here, you will have to determine the Harmonized Codes for each of the components you are importing. The Harmonized Code system is a global classification to standardize most of the world’s commodities, but in the United States it is administered by the U.S. Customs and Border Protection (CBP).

A complete list of terms, definitions and best practices for sourcing products can be found in the brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide. The book is available now at Amazon.com, Borders, Barnes & Noble or at your local bookstore.

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Sourcing Tip of the Day: Duty Fees

Friday, November 27th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Duty Fees

The importer of record is responsible for paying the duty fees to clear your products through U.S. Customs. The supplier cannot pay this fee for you in advance. If you receive an offer from a supplier to do so, don’t believe it, because it simply is not possible.

A complete list of terms, definitions and best practices for sourcing products can be found in the brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide. The book is available now at Amazon.com, Borders, Barnes & Noble or at your local bookstore.

 

Sourcing Term of the Day: Delivered duty paid

Tuesday, November 17th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Delivered duty paid (DDP)

Delivered duty paid (DDP) means that the seller pays for everything, including all the import fees.

A full list of terms has been complied by The International Chamber of Commerce and is available in a brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide available now on Amazon.com.

 

Sourcing Term of the Day: Delivered duty unpaid

Monday, November 16th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Delivered duty unpaid (DDU)

Delivered duty unpaid (DDU) means that the buyer accepts delivery of the goods, not cleared for import, not unloaded from the means of transport, but at the named destination. The buyer is responsible for all importing expenses.

A full list of terms has been complied by The International Chamber of Commerce and is available in a brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide available now on Amazon.com.

Sourcing Term of the Day: Delivered ex quay

Friday, November 13th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Delivered ex quay (DEQ)

Delivered ex quay (DEQ) designates that the seller has delivered the goods when they are placed at the buyer’s disposal, on the quay (wharf or bank) at the port of destination, but not cleared for import. The buyer must clear the goods for import and incur all expenses.

A full list of terms has been complied by The International Chamber of Commerce and is available in a brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide available for pre-order now on Amazon.com.

 

Sourcing Term of the Day: Delivered ex ship

Thursday, November 12th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Delivered ex ship (DES)

Delivered ex ship (DES) means the seller has delivered the goods when placed at the buyer’s disposal onboard the ship, but not cleared for import at the designated port of destination. The seller is responsible for the goods until they reach the destination port.

A full list of terms has been complied by The International Chamber of Commerce and is available in a brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide available for pre-order now on Amazon.com.

Sourcing Term of the Day: Delivered at frontier

Wednesday, November 11th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Delivered at frontier (DAF)

Delivered at frontier (DAF) means the seller is considered to have delivered the goods when they are made available at the agreed-upon destination, but are not unloaded from the means of transport. The term frontier can be any spot, including the country of export, so this must be clearly defined between the trading partners. The seller is not responsible for unloading the goods, unless that has been previously agreed to.

A full list of terms has been complied by The International Chamber of Commerce and is available in a brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide available for pre-order now on Amazon.com.

Sourcing Term of the Day: Carriage and insurance paid to

Tuesday, November 10th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Carriage and insurance paid to (CIP)

Carriage and insurance paid to (CIP) indicates the seller delivers the goods, cleared for export to the carrier of his choice, and pays the costs of insurance and delivery, protecting the buyer to the agreed-upon destination.

A full list of terms has been complied by The International Chamber of Commerce and is available in a brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide available for pre-order now on Amazon.com.

Sourcing Term of the Day: Carriage paid to

Monday, November 9th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Carriage paid to (CPT)

Carriage paid to (CPT) means the seller has delivered the goods, cleared for export, to the carrier of his choice and paid the cost of carriage necessary to bring them to the named destination. The buyer will incur all risks and obligations at delivery. If subsequent carriers are necessary for the goods to reach the buyer’s destination, possession transfers when the goods go from the first carrier to the next carrier.

A full list of terms has been complied by The International Chamber of Commerce and is available in a brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide available for pre-order now on Amazon.com.

Navigating the Global Sourcing Marketplace

Saturday, November 7th, 2009

Picture yourself walking among the stalls in an ancient open-air bazaar, where traders and merchants from across the known-world hawk their wares. Many of them have similar products that they thrust in front of your face as you walk past their stall. This can be a very confusing and bewildering environment to a newcomer who is not familiar with local customs and practices. At the same time, this can also be a place of great reward if the buyer is educated to take advantage of the situation.

This scenario is much like the current environment of online global sourcing, where anyone can have access to manufacturers worldwide if they do their homework but getting started may be a bit taxing. Below are some key points designed to help newcomer get started with Alibaba.com and open up their business to a world of suppliers:

  • Check the company profile on Alibaba.com and link to the supplier’s corporate website.
  • Look for the Gold Supplier icon. These suppliers have been verified by a third party.
  • Contact a supplier directly to request additional information, such as licenses, pricing, payment terms, lead-time, MOQ, and referrals.
  • Use Alibaba.com’s Safe Trading Forum to receive feedback from other members.
  • Investigate the company through search engines.
  • Call the company directly to verify the contact person and if it’s an actual business line.
  • Inspect the supplier’s on-site facilities in person or by video tour if available.

 Alibaba.com offers live webinars twice a month that cater to global sourcing newcomers. Two upcoming webinars, Buyer’s Basics Part 1: Sourcing Products and Buyers Basics part 2: Dealing With Suppliers, can be found here at the bottom of the page. The deadline to register is 24 hours before each session and new dates are updated monthly.

Sourcing Term of the Day: Cost, insurance and freight

Friday, November 6th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Cost, insurance and freight (CIF)

Cost, insurance and freight (CIF) means the seller has delivered the goods, cleared for export, when they cross the ship’s rail, but the seller is responsible for buying marine insurance at the minimum coverage. If the buyer wants more insurance coverage, it will be up to him to provide it.

A full list of terms has been complied by The International Chamber of Commerce and is available in a brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide available for pre-order now on Amazon.com.

Sourcing Term of the Day: Cost and freight

Thursday, November 5th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Cost and freight (CFR)

Cost and freight (CFR) is also only for sea or inland waterways. The goods transfer from seller to buyer when they cross the ship’s rail. The seller pays export costs, but all liability passes to the buyer once the goods cross the ship’s rail.

A full list of terms has been complied by The International Chamber of Commerce and is available in a brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide available for pre-order now on Amazon.com.

Sourcing Term of the Day: Free on board

Wednesday, November 4th, 2009

Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip/Term of the Day is: Free on board (FOB)

Free on board (FOB) is only for sea or inland waterways. The seller clears the goods for export and has delivered them when they pass the ship’s rail.

A full list of terms has been complied by The International Chamber of Commerce and is available in a brand new book by Brad and Debra Schepp called The Official Alibaba.com Success Guide available for pre-order now on Amazon.com.

 

 

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