We are preparing to place our Amazon FBA business first order at the Yiwu market! Lorenzo has been doing on the ground hustling, and we met Insight Quality Ino and have the founder and my good friend on today’s show – Andy Church! We have an epic conversation about placing that order and making things happen, let’s tune in.
Topics Covered in this Episode
Intro Andy Church and Insight Quality
You were on the podcast back on episode 99 – thanks for coming back!
So we are making moves here at the Ecommerce Gladiator series with our new FBA business, Para Living Inc. Lorenzo was hustling and went to Yiwu last week and met your colleague Ino
So what are the steps, we have done our sourcing, have toured Yiwu market and have suppliers we are ready to order with.
Even if we are starting with smaller wholesale amount? Is the process the same?
Preparing shipment with multiple suppliers
Lorenzo is talking to quite a few different suppliers and we plan to order from a few, let’s put these all together for one shipment.
QC flow in Yiwu
This market seems different from the days I was buying from a factory. They work with factories, have it all shipped to the Yiwu market. Then we meet them at their booth and do a deal, check there, pay there?
Preparing for Amazon FBA
There are labeling and bar code requirements for Amazon FBA, can we do this in China first?
Lorenzo’s time on the ground and how to coordinate
So we have Roland overseeing the project and Lorenzo is going to Yiwu weekly. Now we have Insight Quality helping us, how will this all fit together.
Common pitfalls people make at this stage
What we should work out.
Place order after this Mid Autumn Festival holiday
Connecting with Insight Quality
Thanks so much for sharing on the show Andy – how can people reach out and use your services.
People / Companies / Resources Mentioned in this Episode
Today’s podcast is brought to you by the Cross Border Matchmaker event on Friday October 27, 2017 in Hua Qiang Bei Plaza hotel of Shenzhen, China. The Cross Border Matchmaker is joint conference with Global From Asia and a Chinese E-commerce Amazon FBA association to bring top Amazon sellers on both the Chinese and International community. Simultaneous translation and an action packed day of speakers, booths, networking, and meals. Friday Oct 27 Check it out at GlobalFromAsia.com/matchmaker
Episode Length 33:59
Notes from Intro
Regarding below notes stores in Yiwu market will probably not agree to a contract, one thing because they don’t have English speaking stuff, other is that they consider responsibility for goods is finished after they deliver the product, handling claims after product shipped might be challenging if not impossible.
Process of purchasing in market is basically the same for small to large quantities and pricing is not much different between few cartons order and container order if you buy from same supplier, only difference is that if you are regular customer and buy big quantities above mentioned issues will not be issues anymore, supplier will treat important customers better (accept claims, shorter delivery times, better internal quality control). For larger orders suppliers will agree to customizing product and packaging based on customer needs.
Payments and ordering in Yiwu works as 30% deposit and balance is paid on delivery. Yiwu market suppliers are 90+% local businesses without export license and USD bank account, so payments will need to be made in RMB without tax invoice (suppliers not able to provide tax invoice). So payments are usually done through Yiwu shipping companies (payment sent to shipping company in USD, they transfer USD to RMB and pay suppliers on receiving products to their warehouse or give cash to customer representative to pay suppliers by himself) or Yiwu market agents (USD payment sent to their account and they manage payments in RMB, agents are advertising that they take commission 1-3% for their service but they provide pricing to customers in USD, they usually calculate exchange rate much lower than official exchange rate due to unstable USD/RMB exchange rate, so they can get around 5% more on that if exchange rate is stable until final payment).
Labels and barcodes is possible to request suppliers to place on packages but it also depends on supplier, purchased quantity and relation with supplier if they will agree.
I personally think that as quantities grow it might be better to work directly with factory for some kinds of products, but market is great for start because lower MOQ and every kind of product is possible to find there.
Let’s keep on making action, taking business serious but also knowing it’s a gamble, it’s a game. Meir, thanks for being such an inspiration, and let’s all win! Abundance mindset.
- Direct Download: Right-click here and click “Save As” for a direct download
- iTunes: Listen and subscribe on iTunes for free!
- Android: Check out Android Options or Listen via Stitcher Internet Radio streaming
- If you enjoyed this episode, leave a positive review on iTunes, & more (directions here)!