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Amazon FBA Sourcing China Expert Interview with Jared Haw

by Tomer

January 29, 2021

FBA sourcing China expert will help you find a reliable connection with manufacturers for your products and they will help you to communicate and negotiate with manufacturers.

Tomer [00:00:00] What’s up, guys, in this interview that I have with Jared, sourcing expert that spends most of his time in China where they have a factory and sourcing services that they offer.

We’re going to cover many sourcing from China, topics like manufacturing inspections, payment terms and much more. So make sure that you watch the entire video so you can get the most value out of it.

Now, before we’re moving into the video, make sure that you subscribe to the channel and click the bell. So for every new video that I release, you can get notified and keep yourself up to date with the latest news related to Amazon FBA and leave a comment.

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Let’s start with a video now.

Tomer [00:01:02] Hello guys, we have Jared here is a sourcing expert that spend most of his time in China. He just launched his factory there and he’s an expert in sourcing from China.

Jared, I really appreciate you being here on this interview. And why wouldn’t you tell us about yourself, who you are?

Jared Haw [00:01:27] Hey Tomer, first off, thanks for having me. I do appreciate it. So, yeah, my name is Jared Haw.

Jared Haw [00:01:32] We’ve started our factory about five years ago, and the goal of starting this was to help entrepreneurs, start-ups, and small businesses to be able to go to China with a valuable supplier and to be able to make the products there.

So we decided to start our own factory just because we saw a lot of trading companies and we wanted to provide as much value as we can. So we decided to set up our first assembly line because we weren’t really sure where we wanted to go, whether it be with apparel, hardgoods, soft goods.

Jared Haw [00:02:09] So we just had an assembly line and we kind of let our clients dictate where we would go and if we got some good clients and we would just be investing into production lines with them.

So now we’re 15 CMC machines, eight ways machines, sorry, three ways machines, and eight stamping machines. So that’s that’s where we have are today.

Jared Haw [00:02:28] We we’ve been growing pretty quickly. We are thirty-five thousand square foot factory now.

We are one hundred fifty thousand square foot factory in Dongguan.

Tomer [00:02:38] That sounds really like complicated ideas, like warehouses and everything in China. I used to work with the government there, like approval’s license’s. It’s not like complicated or it’s like something that you can figure out.

Jared Haw [00:02:52] It’s something we can figure out. We are Hong Kong owners. So we do. We have that for us. We do have partners as well, especially with HR, that are able to help us maneuver some of the guidelines and things like that.

So it’s not overly complicated. My partner kind of he deals more with that because it’s that’s it’s more.

Tomer [00:03:15] Got you guys. Okay, great. So I hear, how I heard about you is by an interview that you gave to Gary about like sourcing in the US. But I know things changed a lot this year.

And from your perspective, like how you look at sourcing in China versus like sourcing in the US these days.

Jared Haw [00:03:40] So these days it’s definitely I mean, China definitely has the infrastructure. They have everything that is there. They’re set up in the US. It’s still you know, it’s there’s still a lot of problems with sourcing products in the US.

It depends on the product. So let’s say if you have a plastic parts, making in the US might be okay because plastic resin is more of a smaller commoditized items.

So what you get it for in China is going to be similar to what you get different in the US. But let’s say if you have more complex products, the US really lacks the infrastructure in order to just organize the supply chain and everything with production quality.

Engineering support is lacking here. It’s that that’s these are great things about sourcing in China just because they have the infrastructure, the amount of manufacturing engineers they have in just one city, one small city, one small district, and China’s more than the entire USA.

So you do have that huge support supply chain.

Jared Haw [00:04:46] That is very fast. It’s huge. A lot of people are saying that they’re moving out, maybe going to Vietnam, Malaysia, the US, Mexico. But once they make that transition, they might start to regret it just because of the infrastructure and everything that is already set up in China.

And that’s that’s kind of why we went there as well, just because we are kind of taking advantage of the infrastructure that was there. We didn’t have to lay the path or anything.

We just set we just set up a factory and we were just able to use our partners because my partner, he was sourcing for 20 years. So here he had a supply chain in the US. It’s it’s very lacking. It’s great for maybe aerospace, automotive.

Jared Haw [00:05:29] But once you get into consumer electronics, consumer goods, it’s it lacks here in the US.

Tomer [00:05:37] Yeah, I tried at some point when the pandemic started to source from India and I think it was so hard. And like you said, they don’t have the infrastructure that China can have.

They don’t also have that the right communication or way for you to handle like things at scale. And even if you pay a little more money in China, it’s still worth it because at the end of the day, the production time will be faster and the quality will be better.

So, yeah, for me it like makes sense to do it in China, like most of the people. But some categories, like you said, maybe like I saw results I made like hand cream and to bring it from China didn’t make a big difference in pricing.

I don’t know why, but it didn’t make a big difference. Plus, you can use that made in the US and market, especially when it’s something that you put in your hands.

People are still scared to use products from China for that I feel as so I think that’s because, like you said, specific categories or certain products. It makes sense to do it here other than plastic and like hand creams do you have any other product that you know that.

OK, this for sure is better just with here cost-wise or some other limitations.

Jared Haw [00:06:56] Anything that’s not labor-intensive.

Jared Haw [00:07:00] So I say if it could be automated, then it could be made here. But to automate a process, you need volume and you do need some sort of scale to it.

So that’s why plastics is Okay. Just because you put it in the machine, naturally, it’s usually you probably should get the tool from China because tooling making tooling in the states is quite expensive.

But if you get the tool from China and you ship it to the US to your to your supply in the US, they could probably compete with could compete with China.

But if there’s going to be any sort of assembly, then the US loses all all of their.

Jared Haw [00:07:37] All their competitive manage, anything with assembly, probably should be done in China just because, you know, it just it’s not cheap they just China.

They also have that mindset’s you know, they work tirelessly for for their clients. That’s not just we but all of our suppliers and all of our competitors. They all work tirelessly for their clients in the US and India.

It’s a little bit of a different story. It’s more nine to five in China. It’s nine to sometimes midnight or eight to nine nights whenever you like is if you have a problem, they will solve it.

But if you have a problem here or if you have a problem in India, you might have to have a maybe a Chinese engineer get on the flight, go to India, come here to solve the problem, especially if it’s a technical problem.

So it is what I have seen. The only thing that can really be made here in the US competitively will be plastics, metals you’re paying premium for. But it also depends on the industry.

If it’s just consumer goods, then might not be so competitive here. Maybe not so many certificates. But let’s say if you’re it’s a highly regulated industry, then maybe having a plan here to make it for you is going to be better.

And maybe that’s going to be pharmaceuticals, automotive, more things like this.

Tomer [00:09:02] Yeah, I find it also, like you said, like they will answer like I would send their message, like in their time like two o’clock in the night, two a.m. and they will reply, I’m like, well, you don’t sleep. So Yeah.

Tomer [00:09:14] That their service is really good as far as like dealing with with, you know, suppliers, factories. Do you see that you’re having a sourcing agent or someone like works for you in China or just communicate directly with factories and manufacturers from here remotely?

For me, the beginning I saw like good value with the sourcing agent, but then tweak my process and now I don’t see a big difference between me talking directly to factories and supplies.

Tomer [00:09:46] But what do you base there?

FBA Sourcing China

More reason to work with a sourcing agent

Jared Haw [00:09:48] You have that experience of communicating with factories. You’ve probably been sourcing for years.

Jared Haw [00:09:54] You understand how to speak with them and you probably figured out that you speak differently with them than you would speak with me.

You kind of have to work things. You have to speak in a certain way that they will understand, especially if you’re developing new products. So let’s say if you do have this experience, I always recommend speaking directly with the factory.

Jared Haw [00:10:13] Of course, I am biased because of my situation, and that’s also why we started it.

We saw more value of having a factory set up rather than just a trading company, because at the end of the day, a trading company, they don’t have really insane in the production quality.

It’s going to be a factory and they can easily go behind the trading companies back.

Jared Haw [00:10:34] And of course, that will happen. But it all depends on in Chinese, they say, the Guangzhou, the relationship that you have with the with the clients, with the factory, if you have a great relationship with the supplier, they’re going to do anything for you.

I mean, such as even, you know, messaging you at two o’clock in the morning with a trading agent. They they might not have this because it’s a little bit more personal.

Jared Haw [00:11:01] If you’re if you’re dealing with the if you’re dealing with the factory directly, of course, there are cases on both sides where maybe the supplier totally screwed you over.

Jared Haw [00:11:13] And then there are other cases where the supplier really saved you. Yeah. So it depends on it really does depend on that relationship.

You know, suppliers are their people. They don’t want to be taken advantage of. We always hear the one side of the story, especially in the US. But I’ve heard a lot of stories as well with, you know, just speaking with the suppliers, our partners as well, about how clients have also screwed them over.

So it is kind of like a two-way street and there has to be mutual respect. And if we if we if we go at it together, there’s no reason why a client cannot be communicating directly with the supplier.

Let’s say if you’re starting out for the first time, you want a source of products, maybe a maybe an agent would be the best route to go because they could help you set up some sort of infrastructure.

There’s no reason to really have an office there. But maybe someone that you just contract out, you maybe find a product.

Jared Haw [00:12:07] There’s dozens of those companies that you just search on Google and they they could help you set up.

But then once you once you start to scale, it’s important that you do own your own supply chain, mean that you have or yourself or you hire someone to communicate with the with your suppliers directly just because then let’s say if if I have to talk to the supplier, sorry to the agent agent had to talk to the supplier, certainly playing the telephone game, you know, something might get dropped.

Jared Haw [00:12:37] And it’s also going to take a lot longer. So what’s your take maybe an hour to figure out? Might take a day and then things will be dropped.

Jared Haw [00:12:45] But then again, if you’re doing it for your first time, the agents going to understand what to say. They’re going to be able to walk you through the process while a supplier might be like, well, you have to do your due diligence. We don’t want to talk with you because you obviously have no idea what you’re talking about.

Jared Haw [00:12:59] The agent’s going to be more likely to be okay with holding your hand. So it kind of all depends on where you are.

Tomer [00:13:06] And I think that also some sourcing agents, for example, I want to source a new product that for me, I don’t really know a lot about, like electronics that you have, like sourcing agents or companies like yours that specify a specific category that that all of these knowledge that could really help you and save you time. So I think then it may may make sense, you know.

Jared Haw [00:13:30] Exactly. Yeah. Yeah. So as long as you know, let’s say if you want to do apparel, don’t find a sourcing agent or factory that specializes in consumer electronics. Find someone that specializes in apparel that could really help you out and then you can really leverage them for product development just to fix anything going forward.

Tomer [00:13:53] Since you mentioned this, you know, what are the steps to really developing a business relationship in China, you know, that will help you like get a better pricing and better production times and having the suppliers, you know, with you and having this great relationship. Any tips or hacks like to create these relationships?

Jared Haw [00:14:16] Transparency is always key. So the worst thing for us is when a client will say that their MLQ will be 10,000 units of a product that’s maybe 10, 20, 30 dollars or whatever.

And then once they go place, their first orders won’t be a thousand, because then you write when that happens, you really lose a lot of that trust. You really lose a lot of things with that, especially if you have developed the product for a long time with the clients.

Jared Haw [00:14:45] So that’s why I always say, transparency suppliers. A supplier would rather you say one thousand than ten thousand units for first-order just because you’re being honest.

Let’s say if you want to spend, you know, ten thousand and then the supplier also knows that you have no cash flow for maybe marketing sales.

And it’s great that you could ever have such a high order, but you’re not going to have any reorders just because you eat up your cash with, you know, with inventory when you should have been pressing sales and marketing.

So, you know. Factories, they have made investments into their production line, so they understand the process and the returns. They don’t want you to be eating up all of their all their cash, all the inventory, which is one thing.

But you have to spread it to the to the to the rest of the organization. So that’s why transparency is very, very key. Trust is very important.

Jared Haw [00:15:42] Asking for advice. Don’t tell them what to do. I mean, it’s their machines, their is their assembly line. So, of course they know how the type of materials they know how to be processing and they know how to fabricate.

So once you tell them how it should be made as well as kind of you don’t tell someone how to do their job.

Jared Haw [00:16:01] Of course, Apple and some of these other companies are exceptions, but one person can’t do everything all by themselves. So that’s why you have to leverage a contract manufacturer or supplier just because they understand the materials.

So always ask permission or ask their questions about what kind of materials and then speak with them as well about the times. You know, there there are people, you know, so it’s they’re not robots or just, you know, treating them with respect and try to just leverage and try to get as much out of them as possible.

Jared Haw [00:16:38] They don’t they don’t really care because, you know, for example, if a client never asked me a question, I think it’s kind of strange when a client will ask me a bunch of questions and I said, okay, they’re in this for the long run.

They want to sell a lot of this and they know that they could leverage our resources to be able to make their product better so they could sell more and more and more and make it more expensive, have more iterations, or things like this.

Tomer [00:17:01] Do you see value of like, you know, for Amazon sellers to have a trip to China to build this relationship. I know that my plan was to travel this year.

And one of the main reasons is to build this relationship, to know them, to go and visit their factories, see how our products are being made. What do you think about having trips and suppliers?

Jared Haw [00:17:25] They love it when when they going have clients come just because, you know, then it’s marketing for them. They can take pictures on their Alibaba wall or whatever.

Jared Haw [00:17:33] So, yeah, that’s that’s always the best thing. But you have to also understand when do you want to go. So let’s say if you’re if your first order is five thousand dollars, it doesn’t make much sense because it’s a thousand to get there, a thousand to come back and then all the expenses.

So why even go in? But let’s say if you’re starting to ramp up, you’re scaling up. You’re doing pretty well, such as yourself.

Jared Haw [00:17:53] It would be a good you know, it would be good for you to go meet them, you know, and then they could also take you to some of the other suppliers. You can learn about them. And that’s that is that is helpful. And it does help to build, you know, the relationship.

Jared Haw [00:18:10] But if you cannot, then even a video call right now will be okay and that would be okay.

Tomer [00:18:19] I know that many of my suppliers, they use like translating. They don’t really speak good English enough. So they don’t really feel comfortable like having even like a call. So I’m not sure how it’s going to work.

Like I’m going to be like a translator or someone. But yeah, one of another reason for me to go to China is to get the better of payment terms obviously it’s a big part when you scale when you get get bigger to get payment terms and things like that. Any tips on how to really score, when to ask for payment terms?

Jared Haw [00:18:55] Yeah. Let’s say I guess another thing to build a good, good relationship is don’t get greedy with the payment terms, especially at first, because then that makes the supplier might just not work with you. So let’s say if you ask for a net thirty next sixty without any sort of relationship, they’re always going to say no and they’re going to find it quite odd.

Jared Haw [00:19:14] But once you build that relationship, you start to negotiate some of your payment terms and just really just ask. There’s nothing wrong with just asking suppliers.

I mean, they ask all the time. It’s really sometimes it’s a big deal, sometimes it’s not a big deal and will more likely say yes, just depends on how you explain it. If you explain in a way that’s, you know, it’s you feel like you shift for no reason, then okay, then probably not.

That says no. If you if you’re working with other suppliers and they’re offering you better payment terms, maybe it’s the down payment of fifty percent and then the balance that thirty or something like this, then the other supplier will most likely say yes, why not.

Depends on your value, depends on the margins that the the supplier is making as well. If they’re very thin with the margins they might say, no, no, it’s not worth it for them. Let’s say if they’re making decent margins, they might they might be okay with it.

And you can figure that out, which is why know if you have more of a commoditize items just by phishing around and as asking some others, but I would say once you start to build relationships, you could start to negotiate some some payment terms with them.

Tomer [00:20:29] Yeah, I also heard from someone that, you know, like you said, depends how you ask. So one good approach is like asking them or explaining them that if they give you a payment terms, you will be able to just place bigger order, you give them more business?

So it’s like a Win-Win, but it didn’t really I like I only have one or two suppliers that they agree not really a payment terms. They just allow me to place an order for like ten thousand units and I will ship on demand so everything is ready.

And then whatever I need to talk about, I would just pay for whatever I’m actually shipping or taking. So it’s good on it saved me all the production time because the stock is ready. Another question for you. I know that you spoke about it, but, you know, trading company versus working directly with the factory, it’s like, you know, it’s not for sourcing agent, but it’s sometimes they get you better deals, these trading companies, than what you can find by yourself.

I didn’t have a good experience with that. And because, like you said, that you just it’s another person, another middle man here, and communication is longer. And if you need to fix something, it’s like it’s not that easy, but maybe you have advantages that you see in working with trading companies.

Jared Haw [00:21:55] Yeah, I mean, there’s there’s always advantages. The I want to see it’s a cost advantage. I would see it as more of a project management, logistics advantage and they could help you to ship out.

They could probably do DDP shipping, which means that they ship it directly from the supplier to your doorstep or the supplier wants to do FOB, they can help you with that process for a new, new seller, an Amazon or a new entrepreneur or whoever.

Jared Haw [00:22:21] Even a lot of the clients that we work with, they play some pretty good size order. But once it comes to logistics, they have no idea what they’re talking about so that we’re able to help them out and provide them with you know DDP pricing to ship directly to the door.

FOB which is to the ports or just export, which is just when we make it, keep it in our warehouse and then they come. I mean, they they have their freight for it to come and pick it up so we can work with them through this.

And that’s kind of why we are valued as well, because we we we kind of work as a trading company a bit as well, just because our mindset is it’s not like a traditional Chinese company. So I guess, you know, there there are a lot of advantages of working with a trading company, but it also depends on your size.

Once you once you do scale up, when you’re starting to make some money, there might be more beneficial just to have someone on your team that focuses on the supply chain operations side, that understands the Chinese customs, that understands logistics, maybe product development.

If you want to develop your own product and have your own niche and focus on brand identity, then you might want to.

Jared Haw [00:23:34] Have your own have your own guy communicate with it.

Tomer [00:23:40] Yeah, like quality. How do you like guarantee the quality from China for goods? I know doing like inspections. It’s it’s one way of taking the end. But obviously I don’t want to do inspection. Then figure out everything is wrong, how you guys approach this thing.

Jared Haw [00:24:00] So we have three different departments within quality, we have IQC, which is incoming, we have PQC, which is in process and FQC which is final quality control.

So the first one is incoming quality control, IQC, that’s just raw materials coming into our facility. Or let’s say if we we buy a bike wheel for a product or something like that, then we buy that wheel. And that still comes in through the IQC department and they they check the products or the parts that are coming in from other suppliers.

So for raw material, it might be the color to make sure that it’s the right grade, make sure there’s no scratches and things like this. And then PQC is going to be in process, which is it’s going to be fabricated. So let’s a if you’re making a part that is going to be seen and sealed.

So you have the block that was checked IQC then that block goes to the CMC machine and it is processed after is processed and puts a holes in it. Or you you remove the machine, the materials excuse me. Then you look at it again, you measure it, you make sure that it’s esthetically appealing.

It’s maybe if it has some sort of functional part to it’s you check it there that’s going to be in process. And then after that it’s moved to the assembly line and then you assemble and then after you assembly, that’s going to be FQC.

And that’s when you’re looking for how does the parts function, and that is when you get into the very nitty-gritty specifics of that parts. So it’s just not going to be color purple has to be a Pantone color.

Jared Haw [00:25:39] It’s not going in. And then it also has to have some sort of functional aspect, such as has to bear at least 50 pounds of weights. And there’s going you have to make it as objective as possible.

Once you start leading a subjective quality standard, you’re going to get into trouble. Subjective would be yellow. There are many different shades of yellow. An objective standard would be the Pantone for that.

Jared Haw [00:26:04] And then you’re the supplier should always be really, especially during this process, holding your hand because, you know, it’s. The supplier there also really they really do care about the quality.

Jared Haw [00:26:18] They don’t like it when someone says yellow, they give them a yellow product and they say, no, not this yellow, a different yellow. That’s what they really don’t like.

And that’s how things can start breaking. So it kind of even the communication going forward to try to make the quality standards as objective as possible. Anything that could break anything that has a pinpoint or pinpoint, there should be some sort of standard to make sure that it does not, you know, that that it is able to carry out that task.

Of course, companies like me, we we provide you with DFM, which is design for manufacturing. So before we go into production, we look into each individual part to make sure that the price is okay, the warranties won’t outlive the products, all of these things, just to make sure that when we do get into production, we know it’s going to be good.

But even when you get into production, you still have to follow the standards just because it’s it’s a manufacturing process. There’s tolerances. There’s there’s things built in and there’s you know, there’s things go wrong over time.

But once you have that quality standard, you know. Yes, we have. You know, and if it’s no, you have to send it back to the previous departments, whether that’s going to be at the fabrication line in our facility to the end of the powder coating or to the raw materials supply, whatever it is.

So quality control is very good for more of a commoditize item. Some people, they they like to hire quality control agents if the agents, the sourcing agent is not able to.

Jared Haw [00:27:52] That’s that’s definitely OK to do, especially to when you’re first launching these.

Jared Haw [00:27:57] Next thing you want to do with with launching a product for the first time is ship out a product with quality issues. No one’s don’t trust you, especially if you don’t deal with it.

Well, the supplier might not accept it, especially if you have a subjective quality standard, because my eyes are different. Your your eyes, your eyes are different than another person’s eyes.

Jared Haw [00:28:18] And, you know, yellow is yellow for someone else. But yellowish orange is borderline. It’s you know, you get into too many, you really get into too many questions. And the point of a quality standard is so there’s no question.

Jared Haw [00:28:31] So there’s nothing left to to interpret by yourself that, you know, it’s all it’s all there.

Jared Haw [00:28:37] Just if someone comes into my office with a quality problem, it’s the question is the answer is always what is the quality standards say? It’s you know, it’s not my opinion. It’s just what what does what does this piece of paper say?

That’s all that matters. And of course, we have gotten samples which are mass produced, items that are perfect that we have to follow as well. And if it’s able to follow all of those and we ship out and we really never do have a problem just because of our our quality control is quite objective.

And it’s you know, it’s it’s been agreed upon by both parties.

Jared Haw [00:29:11] Well, in advance of production.

Tomer [00:29:15] Yeah. I had like a bad experience with it. It was like a wood product. And I didn’t really set, like, the standards or expectations between me and the supplier and what I thought that it should be like.

It was kind of rough and and I thought, like, I’m going to get like a good finish, like smooth, polished, finished. And I didn’t get it. So I got them like and they got upset. But no one really like we’d never talked about it. They told me. And they like you said, it was kind of like a little find there.

But, you know, obviously, we got over this, but they learned a valuable lesson that you should set expectations before you start. We want X, Y, Z, everything should be written. And then, you know, you you showed them this. There is no opinion. Like you said, it’s just requirements.

Jared Haw [00:30:03] And try to get a sample of that part too so far that wooden part try to get a sample. What we call is a golden sample, like the perfect sample that you should expect to receive every single time for production. So then you’ll see if it should be matte, glossy, shiny things like this. It’ll all be right there for you.

Tomer [00:30:25] Yeah, it’s a good point, actually, to have like a like you said that the golden sample.

Tomer [00:30:30] And then if it’s not like that, you can just show them the difference like one.

Jared Haw [00:30:34] Oh yeah. And then and then if if there’s proof, I mean you have to you have to back up your arguments with data, with, with supporting facts. And if you do that, though, the supplier is not going to say no.

Jared Haw [00:30:48] You know, you just have to convince them. They will say no, of course, that there’s no supporting arguments. Hopefully, if you’re working with someone else, a little bit of morals and ethics, then they should replace it.

Because, you know, we all do business the same way we want returning customers. We don’t want to always be find new customers, because in every single business, that’s way too expensive. We have to retain our current customers and make our current customers happy.

Then we. No, that’s that’s the best way to grow and they do want to. They do want to keep their customers happy.

Jared Haw [00:31:19] But if they like if you say like this is not yellow, just against that example, again, they’re going to say, no, this is yellow. It’s you know, it is you said yellow. This is yellow. And they’re true. You’re also right. But it’s you know, that’s when you get into that friction.

Jared Haw [00:31:39] Because they feel they don’t need to do like they did jump again for something they did right here.

Tomer [00:31:45] So exactly how what is the best way to pay the Chinese suppliers? I know that four big orders you have to be wire transfer, but it’s kind of like, you know, scary, especially if you don’t have a relationship with them, like how you recommend to someone outside China, you know, to pay suppliers, Alibaba, PayPal.

Jared Haw [00:32:12] So PayPal would be nice with us clients, will do PayPal, but only for samples.

Jared Haw [00:32:19] All of our mass production is wire transfer. But then again, we also do have a an office in America. So they could pay the the the office in America.

It’s much easier for them then, you know, if let’s say if something does go wrong, it’s an easy target. It’s not like a Chinese supplier where it’s very difficult to track them down. So, yeah, it’s I guess that’s also going to be with the payment terms.

What are your payment terms if you’re not comfortable with paying 100 percent upfront, maybe they could do 50 percent down payments. I would always ask for 50 percent down payment first, especially, you know, for the first order.

It’s not very reasonable for you to have 100 percent down payment unless your order is very small and banking fees will be, you know, take up some of your margins. And that’s the only thing. So I would I think they are with all of our suppliers.

We pay them out of our Chinese office. But it’s. Usually usually wire transfer for us as well.

Tomer [00:33:27] I like to pay with credit cards and I like another layer of protection, but for big orders, it’s kind of like it’s annoying because you have to break it down to a couple of order they have some limitations and the fees and all of that.

Tomer [00:33:40] But, yeah, you know, Alibaba, also have trade insurance, you pay through Alibaba, you have kind of another layer.

Jared Haw [00:33:47] Okay, okay, we’ve we we don’t do business with Alibaba suppliers.

Jared Haw [00:33:51] So I’ve actually never sourced products through Alibaba. But that’s that is nice that they do have that just in case. If there is a dispute, it could be handled internally with Alibaba.

Jared Haw [00:34:04] And I’m sure they support their their clients, which are, you know, people like you, Amazon sellers and.

Tomer [00:34:12] Shows do you recommend, I know that many suppliers that are not on Alibaba, they show up on trade deals, trade shows that they’re in China like they can do infer in all of these places.

Tomer [00:34:24] That’s that’s do you have like any other ways to find suppliers that are not on Alibaba or the websites.

Tomer [00:34:32] For luckily for us, we we’ve had that infrastructure, but and plus we were there. So once you when you’re in China, it’s easier to just get in a car.

Jared Haw [00:34:42] You can drive there. They’re all within an hour radius of you. But yeah, that’s really Alibaba is the best one. I mean, there’s trade shows in America, but those are more niche, like the Consumer Electronics Show and other things like that. If you’re doing electronics, CBS might be pretty cool to go to. There’s tons of Chinese suppliers there that go there. It’s it’s really it’s crazy.

Jared Haw [00:35:11] But there are also other other trade shows as well in which Chinese suppliers will come to the US and you could meet them.

Jared Haw [00:35:18] It’s it’s much easier to do that than going over there and, you know, trying to get a taxi to go to their facility.

Jared Haw [00:35:27] You know, especially if you don’t have a SIM card over there, it’s quite difficult to get around. So it’s always it’s always easier if they come here than you can meet them and, you know, show them your office or show them your production or your products and things like that.

Jared Haw [00:35:41] It’s easy, as I’m sure there’s other trade shoows as well, not just CES where the suppliers come to the US and display their products and maybe not any time soon, but.

Tomer [00:35:56] I hope soon that it’s going to be over with the vaccine and all of that, but it’s a good couple of months. Anyway. Jared, I really appreciate all of these answers.

I learn ton of things. I’m sure all the people are going to watch this video, are going to learn new things for sure, and it will help them understand it better, how it works, like sourcing from China and the US and in general, what works.

And, yeah, I would like to thank you again. I hope we can talk more in the future. I wish you a great 2021 a new year. And if people want to learn more about your services, about what you offer, where they can find you.

Jared Haw [00:36:41] Yeah, please visit us at ePowerCorp.com. So that’s E-P-O-W-E-R-C-O-R-P.COM Could reach out to me at [email protected] as well. That’s J-A-R-E-D.

Tomer [00:36:56] Yeah. Guys, check their website.

Tomer [00:36:59] I think they’re professionals. And I like I told you before this call, I might contact you and work with you with some products in the future. So thank you again. Happy New Year and have a good one.

Jared Haw [00:37:13] Oh, thanks. You too. I appreciate you having me on. OK, all right. Take care.

About the author

This is Tomer, and I have created Sourcing Monster to share how I started my Amazon FBA business, and how I keep learning and growing. I will share tips proven methods that I USE currently in my Amazon FBA business so you can get value and growth hopefully for your business too! Feel free to comment or share any feedback down below!

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