Finding The Right Product For Your Online Business

An online sourcing directory is​ the​ 21st century entrepreneur’s best friend. it​ is​ a​ resource that eliminates the​ need for a​ middleman from your supply chain. Businesses can connect with manufacturers through sourcing directories. My favorite directory is​ Alibaba,​ an​ English language sourcing directory. it​ specializes in​ business-to-business trades,​ especially for international buyers trying to​ make contact with Chinese sellers.

Alibaba offers a​ search able database of​ manufacturers of​ almost any product you​ can imagine. it​ is​ a​ free resource for buyers from over 200 countries and territories. They claim to​ be “the number one destination for businesses to​ find volume buyers and suppliers from around the​ world.” Think of​ Alibaba as​ the​ great connector of​ manufacturers and corporate buyers.

Steps to​ Use Alibaba

1. Create a​ free account for your business.

2. Search for your product of​ interest. Expect to​ find many companies as​ Alibaba has a​ huge database.

3. Contact the​ factory. Full contact information including phone number,​ address,​ website,​ and e-mail address is​ available.

You should be familiar with some of​ the​ most common sourcing terminology for contacting factories.

MOQ (Minimum Order Quantity) - as​ you​ contact a​ manufacturer,​ ask about their MOQ. Some factories are only interested in​ selling you​ at​ least one container of​ product. Others are happy with smaller orders. Contact multiple factories simultaneously,​ so you​ can connect with the​ right one faster.

FOB (Free on​ Board) - FOB price means,​ the​ buyer pays for freight to​ the​ port of​ shipment,​ plus loading costs. Expect to​ pay for freight,​ insurance,​ unloading costs and transportation from the​ factory to​ the​ port of​ origin to​ port of​ destination to​ your location. if​ you​ are quoted FOB Ningbo (Ningbo is​ a​ large port located in​ China.) $5000 for 500 units of​ product,​ you​ have to​ consider the​ additional ocean freight charges.

CIF (Cost,​ Insurance,​ Freight) - CIF,​ unlike FOB,​ includes freight and insurance charges. if​ you​ have no experience importing,​ CIF might be a​ better option than FOB. the​ price per unit will be higher with this option than with the​ FOB option,​ but it​ requires less work on​ your part. if​ you​ want to​ see the​ difference between FOB and CIF price,​ be sure to​ ask for both in​ your inquiry.

Dim Weight (Dimensional Weight) - if​ you​ choose the​ FOB option,​ you​ will need hire a​ forwarder for your order. Note: a​ forwarder is​ a​ fancy word for a​ shipping company. Forwarders ask for port of​ origin,​ port of​ destination,​ and dimensional weight.

BOL or​ B/L (Bill of​ Lading) – a​ document issued by the​ shipping company,​ acknowledging that the​ shipment has been received on​ board as​ cargo for transport to​ a​ named place,​ usually a​ port of​ destination,​ for delivery to​ the​ consignee whom is​ the​ business buying the​ product.
Finding The Right Product For Your Online Business Finding The Right Product For Your Online Business Reviewed by Henda Yesti on July 21, 2018 Rating: 5

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