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Basic Due Diligence Steps for Sourcing Products from Abroad!

Discussion in 'Supplier Discussion' started by tantk, Jul 14, 2006.

  1. spartanninja

    spartanninja

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    Re: Basic Due Deligence Steps for Sourcing Products from Abroad!

    great advice, cheers :)
  2. John Sugden

    John Sugden

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    Apr 5, 2010
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    Re: Basic Due Deligence Steps for Sourcing Products from Abroad!

    very helpful thanks :)
  3. childrens beach

    childrens beach

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    Re: Basic Due Deligence Steps for Sourcing Products from Abroad!

    Many thanks for all the advice, keep it coming!
  4. J_Smith

    J_Smith

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    Aug 15, 2010
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    Re: Basic Due Deligence Steps for Sourcing Products from Abroad!

    I do not have much experience in trading with suppliers overseas but what I have taken from this post is that if you focus on one point (in this case being the use of a free email address instead of a domain based one) alone you may disregard a potential supplier or perhaps start dealing with a potential con man.

    It is therefore important (in my opinion) that you should consider all the facts as a whole and not make any rash decisions based on one of your criteria. It is like when you buy a car, you would not assume that because one part of the car is in good or bad nick that the rest of the car will be the same, you check all the parts and then make a decision based on all the facts.
  5. michaelg

    michaelg

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    Oct 4, 2010
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    Re: Basic Due Deligence Steps for Sourcing Products from Abroad!

    I know that in my own business that I can't afford to just a customer by their email address. You never know if the person on the other end might work out to be a good, long term customer.
    Same thing with a supplier. We are an American company that helps others buy direct from China, but my Chinese contacts don't have their own domains.
  6. shopgirl

    shopgirl

    Joined:
    Oct 1, 2010
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    Re: Basic Due Deligence Steps for Sourcing Products from Abroad!

    These posts are all helpful!

    May I also add that it might be a good idea to take advantage of the search engines. I do fraud prevention investigation for third party clients and there's a lot of search engines where you can verify the identity of the person you're transacting with. I've used this strategy before I source from a new seller. It helps all the time.

    You can search through what they call the "Deep Web." Pipl, Clusty, Hoovers, and Kompass are great examples of these.

    Hope this helps!
  7. bradofcnd

    bradofcnd

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    Jan 17, 2011
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    Hello, 2011 first new member?

    Hello All!!! Just found this lovely community and look forward to checking it out and contributing as well!!
  8. QualityControl

    QualityControl

    Joined:
    Jan 18, 2011
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    Re: Basic Due Deligence Steps for Sourcing Products from Abroad!

    Great advice! I agree that it's best to cautiously consider numerous factors when evalutating a supplier - that way you don't miss out on a good supplier because of a bad email address. At the same time, suppliers should take into consideration how their email address looks to potential clients.
  9. DOLCE VITA

    DOLCE VITA

    Joined:
    Jan 19, 2011
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    hi there,

    Could anyone enlighten me on the pros and cons of FOB? what do I need to watch out for? Many thanks.
  10. joep

    joep

    Joined:
    Mar 9, 2011
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    Always buy FOB. I am not sure wheter legislation is the same in the UK. But most of the time if you do not buy FOB they will deliver it up to the border where another company will take over. Then the trouble begins they will charge you all kind of weird fees like "china service fees" which ofcourse does not make any sense at all. So the best is to work with a ( expediteur ) not sure if thats the same in english.

    The only downside is that the responsibility passes over at you at FOB "location" so you will have a higher risk from this point.
  11. Mojoummm

    Mojoummm

    Joined:
    May 5, 2011
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    In the real world the majority of people on here dont have the contacts or ability to get a 'third' person to inspect manufacturers. Im just starting out and im trying to find legit people i can buy from, the problem is there are hundreds of threads about bad suppliers, but no one will share information...ive read a few that say 'why should we share information so you can be competition' Surerly if the legit companys were talked about more, it would weed out the bad???
  12. DivineEQ

    DivineEQ

    Joined:
    Jul 6, 2011
    Messages:
    1
    I am looking at becomimg a member with Easyimex.com and I would like to know if they are a professional company and good to deal with. Any feedback would be appreciated.
  13. test343

    test343 Banned Member

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    Nov 14, 2011
    Messages:
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    some manfacturers in China admeasure salesmans using e-mail address similar as sales01,sales02. quite a lot suppliers using free e-mail address.


  14. Maria Teixeira

    Maria Teixeira

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  15. Maria Teixeira

    Maria Teixeira

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    Jun 19, 2012
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    Thank you for your help; i'll do that!
  16. IMEX Sourcing Services

    IMEX Sourcing Services

    Joined:
    Sep 28, 2006
    Messages:
    386

    There's been a lot of discussion on this subject, so I just wanted to add my two cents. We meet lots of factory owners in China every month, some of them running factories worth millions of dollars in Value and when they hand out their business card, it has a "free" email address. The problem here is not that they are not willing to spend $5 on a domain, it is a "cultural difference". They do not feel, it is important. That does not make them less professional, it just shows they "Value" different things. In international trade it is important, to understand that if you completely judge a supplier, based on your cultural & value system, you will struggle to develop a long term relationship with a supplier & will have misunderstandings sooner or later.

    Most factories in China, especially before the 2000's worked through traders only and most still do. They want to focus on production only and let the traders deal with sales & marketing. This is still true of a huge proportion of factories & ground level workshops (which in most cases offer better prices) in China. This is the reason why traders exist & prosper. One of the reasons for this was about 10 years ago, it was a lot more difficult to get an export licence, therefore factories did not have a choice but to work through traders. Some of these traders became very big & today either have great purchaing power or stakes in factories and hence can be cheaper than going factory direct. We usually find it very difficult to explain this to clients.

    Currently, this applies less to technology intensive industries like computer products, heavy machinery etc, but in other industries like furniture, clothing, shoes, this is very much applicable. Many of these factories are now starting to branch and have their own export departments (and in many cases, actually have an "export licence"). However, they are still learning the ways of western world's professionalism and their core focus remains on production

    If you reject manufacturers based on an email, you most certianly risk losing competitive suppliers, who are the root source, and end up dealing more with traders who have highly professional websites and all the marketing related bells & whistles. Now, this could be a good thing or a bad thing depending on your sourcing objectives.

    For e.g.: If your objective is to get the best possible price & you have big volumes, but you are in a highly saturated & competitive market, then factory direct is your best option, in order to be able to source competitively. But in most cases, this may mean making some compromise on "service quality". Whereas, if you are working on a unique product or new product development then choosing a highly "service oriented" factory or a trading company with good resources & language skills is crucial, as you could find it very difficult to communicate with a factory with low service levels & language issues. We do new product development for quite a few clients and it can take 100's of emails back & forth to get things exactly as the client needs. Going factory direct (with a factory with low service quality) would lead to huge frustrations in such cases.


    There are lots of ways to verify if your sales contact belongs to the factory or not. You can get the factory verified by a QC Company, for e.g. in our company verfiication reports, we have a field, where we specifically provide info. about whether a sales contact works for the compay being verified, how long he has been employed with them, what's his designation, etc. You could also call the factory direct on a landline number & check if that person is employed there.
    Dean Bernard likes this.
  17. NG_UK

    NG_UK

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    Thanks for the post!
  18. Stuart green

    Stuart green

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    Has anyone ever used room 31 ?
  19. patbess

    patbess

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    Apr 20, 2010
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    What about just getting a credit report about the company, see if they actually exist, ifhey are in good shape financially, see if they have any legal troubles. See their contact details, inquire about the person you are currently dealing with, call them up to make sure that they are the same person
  20. Leo at Deliveringchina

    Leo at Deliveringchina

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    Great points, I can not agree with point 2 however. We have dealt with quite a few Chinese suppliers who turned out to be just fine when we meet them on the spot over here, but it is absolutely a red flag that you need to pay attention to.

    Another thing I would add is to make sure that their certifications are legit (such as CE certifications). This is one of the most common "scam" that we experience here, we get certificates that look fine, but after we check some more with the issuer we find out that it is not in their database, or that the issuer is not legit.
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