CAPITULO III LAS EMOCIONES
3.5 Control de impulsos
CHAPTER 21
Focus on One Product at a Time
One of the fastest ways to get started and be successful in your import/export business is to focus on one product or product line at a time.
You may be tempted to jump from product to product… but don’t give in to temptation.
The reason it’s important to focus on one product or line at a time is because it helps you to become more knowledgeable and proficient than your competitors. This proficiency should lead to greater profits because you will KNOW and UNDERSTAND your market better than anyone.
To repeat: Our recommendation is to keep it simple when you start out and focus on one product or product line at a time.
After you’re successful in one area, you can expand into additional products and lines.
This is the key strategy that most successful Internet import/export businesses and entrepreneurs follow.
For example, there is a company in Hong Kong called Jiaxing Maosen Flag Co., Ltd. The company imports and exports flags. That is the only product they carry. They have thousands of flags of every shape, color, design, language and purpose.
Another example is Rose Best LLC — they specialize in handmade soaps. The company carries hundreds of different sizes, shapes, colors and scents. They ship worldwide.
Thai Mountain Imports focuses on bamboo and wicker furniture. They export their products around the world.
It will be easy to avoid the temptation to “jump around” from product to product when your first few deals are successful. You’ll see the value and benefit of focusing on products you really enjoy, or products where there is a tremendous demand.
If a particular product or product line is not moving — you can easily shift into new products! That is one of the greatest advantages of an import/export business. You can move into a new product line at a moment’s notice, and that’s especially true if you’re not entangled in large inventories.
The following is a list of companies and the products they have focused on:
Yuyao Jinwei Sprayers Avasin Computers
Galleon Trade Pan Pacific Ventures Corp.
Scrap metal Shaul Barnea Ltd Computer memory
China Guangzhou eFiver Electronics Co., Ltd Batteries
Seasons & Fashions Garments
Cybercraze
Computer accessories
Fujian Xiamen Yongqing Trade Co., Ltd Poly resin
Kaki Zawa Enterprise Co., Ltd.
Brown sugar
Non woven products (like baby wipes) Sita Sourcing
CHAPTER 21:Focus on One Product at a Time
CHAPTER 21: Focus on One Product at a Time
Stileks Steel billets
Yu-va Gida Temizlik Turizm Insaat Cable
Zhejiang Shuangling Socks Co, Ltd.
Socks
CHAPTER 21:Focus on One Product at a Time
Sangho Ceramic Co.,Ltd.
Ceramic products
Zibo OceanFar General Merchandise Co., Ltd.
Glassware
Shikha International
Bottles of every color and type
Tianjin Tianrui Animal By-Products Co., Ltd.
Animal by-products, wool, cashmere Marble Unique Inc.
Marble statues
Shenzhen Shinefull Shell Industrial & Trading Co., Ltd.
Sea shells from around the world Herbgate Co., Ltd
Eels
Kabir Sports
Gloves for work, sports and welding GPS Trading
Jinoo Corp.
Fabrics
DCF Enterprises Clothes / jeans Viet Tra Co. Ltd Handbags/scarves Prowell Company Metals
These companies focus on one product or product line — and they are very successful.
If you adapted a similar strategy and focused on one product it would not only simplify your business… it would help establish you as an expert in that area.
In the next chapter we’ll include valuable trade resources to help you build your business, contacts and expertise.
CHAPTER 21: Focus on One Product at a Time
CHAPTER 22:Trade Resources
CHAPTER 22
Trade Resources
In this section we are providing more than 100 trade resources to help you establish contacts, further your education and build your import/export business.
These trade resources will also help you to find products, buyers, sellers, ecommerce, online stores, web hosting and trade organizations.
We’re confident you’ll come back to this section again and again to find the information you need to be successful.
Federation of International Trade Associations http://www.fita.org
Boletin.net (directory of importers/exporters/manufacturers) http://www.boletin.net
BuySellOffers (directories of importers/exporters) http://www.buyselloffers.com
ChinaBig Global (Directory of 1 million businesses worldwide) http://gtdchina.yp.com.hk
Export Focus (directory of resources) http://www.exportfocus.com
Global Importers Directory
http://www.export-import-companies.com Importer List
http://www.importerlist.com
Online International Business Information Directory http://www.b2b-bestof.com
TOBOC – International Trade Leads http://www.toboc.com
Foreign Trade Online (massive import/export resource) http://www.foreign-trade.com
TradeKey
http://www.tradekey.com
CHAPTER 22:Trade Resources
Asian Product Directory http://www.asianproducts.com Trade India (product directory) http://www.trade-india.com New York International Gift Fair http://www.nyigf.com
San Francisco International Gift Fair http://www.sfigf.com
Toronto International Gift Fair
http://www.torontointernationalgiftfair.com World Trade Show Directory
http://www.worldtradeshow.com Hong Kong Electronic Fair http://hkelectronicsfair.com
Jinhan Fair for Textiles, Garments and Fabrics http://www.jinhanfair.com
Canton Fair
http://www.cantonfair.org.cn Productronica
http://www.productronica.de
Shenzhen International Toys and Gifts Fair http://www.szsinoexpo.com
Export911 (Trade education and resources) http://www.export911.com
GoEastDirect
http://www.goeastdirect.com
International Universal Currency Converter http://www.xe.com
International Business and Personal Credit Checks Experian
http://www.experian.com Equifax
http://www.equifax.com TransUnion
http://www.transunion.com
BBBOnline
http://www.bbbonline.org
Top Auction Sites –
(For Selling Imported/Exported Goods Online)
eBay
http://www.ebay.com uBid
http://www.ubid.com Bidz.com
http://www.bidz.com Overstock.com
http://auctions.overstock.com Bidstar
http://www.bidstar.net Auction.com
http://www.auction.com Yahoo! Auctions
http://auctions.yahoo.com MSN Shopping
http://shopping.msn.com Froogle Shopping
http://www.froogle.com Amazon.com Auctions http://www.amazon.com Half.com
http://www.half.com Sotheby’s
http://search.sothebys.com Christie’s
http://www.christies.com Biddington’s
http://www.biddingtons.com CHAPTER 22:Trade Resources
Liquidation.com
http://www.liquidation.com
Taobao (China’s largest auction site) http://www.taabao.com
eBay China (American products are very hot) http://www.ebay.com.cn
Daily Bidz
http://www.dailybidz.co.uk
Free Web Hosting DotEasy
http://www.doteasy.com Be-Hosted
http://www.be-hosted.com Blogger.com
http://www.blogger.com Yahoo! Geo Cities
http://geocities.yahoo.com 50Megs
http://www.50megs.com Free Web Hosts
http://www.free-webhosts.com FreeWebs
http://members.freewebs.com The Free Site
http://www.thefreesite.com The Homestead
http://www.homestead.com Bravenet
http://www.bravenet.com Web Spawner
http://www.webspawner.com
eCommerce Web Hosting HostMySite
http://www.hostmysite.com
CHAPTER 22:Trade Resources
ValueWeb
http://www.valueweb.com SuperbHosting
http://www.superbhosting.com Apollo Hosting
http://www.apollohosting.com BlueHost
http://www.bluehost.com Globat.com
http://www.globat.com
Shared Web Hosting Velcom.com
http://www.velcom.com APlus.net
http://www.aplus.net Exists Hosting
http://www.existhosting.com Host Gator
http://www.hostgator.com Ready Hosting
http://www.readyhosting.com StartLogic
http://www.startlogic.com
eCommerce Shopping Carts (for online stores) Fortune 3
http://www.fortune3.com Mighty Merchant
http://www.mightymerchant.com Actinic eCommerce Software http://www.actinic.co.uk Bazaar Builder
http://www.bazaarbuilder.com CubeCart
http://www.cubecart.com CHAPTER 22:Trade Resources
WirePlanet
http://www.wireplanet.com Lite Commerce
http://www.litecommerce.com Smart Shop
http://www.smart-shop.com Charge.com
http://www.charge.com Just Add Commerce
http://www.richmediatech.com Product Cart by Early Impact http://www.earlyimpact.com eCom Pal
http://www.ecompal.com
Mal’s eCom (great for static websites) http://mals-e.com
Americart
http://www.cartserver.com/americart PrestoStore
http://www.prestostore.com Plexxa
http://www.plexxa.com ePay
http://www.epay.com
Important note: Not all shopping carts and online stores are created equal. One of the best forums on the Internet can be found on Webmaster World http://www.webmasterworld.com Contributors include the people that develop, program and use ecommerce applications and storefronts on a daily basis.
Alibaba.com Resources Channel
Alibaba.com Discussion Lists and Forums
http://resources.alibaba.com/discussion_board/11/General_Trade_Discussions.htm Alibaba.com Tutorials
http://resources.alibaba.com/discussion_board/22/Tutorials.htm
CHAPTER 22:Trade Resources
Alibaba.com Shipping Tutorials
http://resources.alibaba.com/trade_essential/a101/Shipment_Delivery.htm Alibaba.com Financing Tutorials
http://resources.alibaba.com/topic/forumList.htm?forum=4 Alibaba.com Online Security Tutorials
http://resources.alibaba.com/trade_essential/10/online_security.htm
U.S. Government Resources FirstGov
http://www.firstgov.gov FedStats
http://www.fedstats.gov/toolkit.html IRS
http://www.irs.gov
U.S. Department of Commerce http://www.commerce.gov
International Trade Administration http://www.ita.doc.gov
Federal Citizen Information Center http://www.pueblo.gsa.gov
United States Customs Service http://www.customs.gov/
CIA World Factbook http://www.cia.gov
In the next chapter we have assembled a comprehensive resource of standard forms, contracts and agreements.
In addition, you will find shipment inspection forms, letter of credit information and the basics of extending credit to buyers.
We have also provided information for obtaining financing from import/export banks to further your business expansion.
We’re confident you will find this section extremely beneficial to your import/export business.
CHAPTER 22:Trade Resources
CHAPTER 23:Standard Forms, Contracts and Agreements
CHAPTER 23
Standard Forms, Contracts and Agreements
This section can be a little overwhelming.
But keep in mind that not all of these forms, contracts and agreements are necessary in every situation. This information is simply provided as ancillary information in case you should need it at some point in your import/export business.
In most cases you can begin doing business on the Internet immediately. All of these forms, contracts and agreements will not be required. But if they are required or needed you will have the information here at your fingertips.
Shipment Inspections
Governments or buyers demand inspection reports for a number of reasons:
To ensure shipments do not contain illegal or low-quality merchandise
To make sure importers are properly declaring their goods
To ensure they have received what they have paid for or are about to pay for (usually by independent inspection)
The process typically starts with the buyer. Once a contract between a buyer and seller has been established, the importer or buyer will arrange with their favorite inspection company a pre-shipment inspection. Although some countries require a specific company to perform the inspection, others have opened it up to a variety of competitors.
Upon requesting an inspection, the following information needs to be given to the inspecting company:
Company name and contact name of the exporter and the type and location of the goods to be inspected.
Note: Regarding the time of the inspection, inspectors have busy schedules and need a five to seven day window to schedule a visit. Once you have a tentative date for inspection you need to have the goods ready for inspection. This may mean opening the shipping unit or having the container staged and ready to load.
Many “Less than Container Load (LCL)” shipments can be inspected at the port of export
It is recommended that the inspection take place where you can supervise and answer questions the inspector might have
You may also need to close up a crate or box following the inspection so it is best that you are or your forwarder is available to assist during the examination
CHAPTER 23:Standard Forms, Contracts and Agreements
Following the inspection, a “Clean Report of Findings” (or something similar) will be issued.
This is usually required at the time of import. Most reports are issued following proof of export and usually can be completed by fax
The importer usually pays the costs for such examinations; however, delays can be invoiced directly to the exporter.
The inspector will look at the following aspects of the products in the shipment:
Safety
Are the products compliant with applicable safety regulations?
Performance
Does the product function properly, and as intended?
Appearance
What is the condition of the finish, printing and marking?
Packaging
Is the condition of packing, marking and accessories appropriate?
Sample inspection form:
CHAPTER 23:Standard Forms, Contracts and Agreements
Quality control and compliance
When purchasing volume goods internationally, there are many areas in the process where you should conduct checks on your prospective suppliers.
The first one is during the discovery and negotiation process when you are deciding which supplier to go with. More often than not, the prospective supplier will indicate whether he or she has achieved ISO accreditation for their products. See below for details:
The other very important stage in quality checking is prior to shipment. You need to engage the services of an inspection officer to go through the shipment to check and see if what you are about to receive is what you paid for.
International Organization for Standardization (ISO)
ISO (International Organization for Standardization) is the world’s largest developer of standards.
ISO has built a strategic partnership with the WTO (World Trade Organization), with the common goal of promoting a free and fair global trading system. Between 1947 and the present day, ISO has published more than 15,000 International Standards.
Although ISO’s principal activity is the development of technical standards, ISO standards also have important economic and social repercussions. ISO standards make a positive difference, not just to engineers and manufacturers for whom they solve basic problems in production and distribution, but to society as a whole.
ISO:9000 is concerned with “quality management.” This means what an organization does to enhance customer satisfaction by meeting customer and applicable regulatory
requirements and continually to improve its performance in this regard.
ISO:14000 is primarily concerned with “environmental management.” This means what an organization does to minimize harmful effects on the environment caused by its activities, and to continually improve its environmental performance.
CHAPTER 23:Standard Forms, Contracts and Agreements
Documents against Payment (D/P) flow diagram
Documents against Payment/Bill of Exchange flow diagram
(Courtesy of Wiley Publishing)
CHAPTER 23:Standard Forms, Contracts and Agreements
Letter of Credit (L/C) transactional flow diagram Letter of Credit Flow diagram:
(Courtesy of Wiley Publishing)
When buyers don’t pay: reduce your non-collection risk
In international trade, there are differing reasons why you may experience a buyer defaulting on payment. A buyer may have a legitimate complaint regarding an incorrect shipment. There may be a problem with the banks facilitating payment. Or a buyer may simply have decided not to pay for their goods. Regardless of the reason(s), there are some things you, as a supplier, can do to reduce this risk:
It is a general rule that before international trade is conducted, both parties should always engage in some *formal and informal “checks” of the other party (see below).
It is always wise to have insurance against payment defaults, but be aware that you must exhaust all reasonable means of collecting payment before an insurance claim will be honored.
It also considered wise to select or suggest payment options, which reduce your exposure to financial loss, especially if you are dealing with a buyer for the first time. From the wide range of payment options available, the most popular among suppliers is Telegraphic Transfer (T/T) payment in advance, which means the payment is sent to you before you order shipment of products.
Another option is to select a payment process, which works both in favor of the buyer and seller.
Letters of credit distribute risk evenly.
Formal and Informal Checks
Common sense approaches to finding genuine buyers
A long-held concern for many suppliers both experienced and new is that inquiring buyers might be showing interest only for price comparison purposes.
Alibaba.com’s sellers’ advice for dealing with buyers is summarized below:
1. Pay more attention to those emails, which are highly specific, as this can be an indicator of authenticity.
2. Distinguish authentic buyers via communication (chat, phone, fax, email) by asking questions regarding:
Product specifications
Technical requirements
Acceptable pricing
Required quantity
Brand history
The number and type of companies with which they have cooperated with in the past
How long they have been in business
3. Business cards from buyers provide information, including:
a. Where their company is located in their city CHAPTER 23:Standard Forms, Contracts and Agreements
CHAPTER 23:Standard Forms, Contracts and Agreements
b. How many telephone lines they have
c. Whether they have their own website or whether they do e-commerce through free services
d. Whether they are retailers, wholesalers, importers or agents, or any combination 4. Give careful attention to product inquiries outside of your usual product categories. One
reason is that the buyer typically cannot find a supplier who can match his requirements.
This is a good opportunity for you. On the other hand, even if you do not get an order, you can gauge market demand and technical standards for new products. This information is normally very hard to get.
Popular payment methods in international trading
Popular payment methods
There are many ways to make and receive payment in international trade. Due to the physical distances between buyer and seller, and the fact that the transaction may have taken place without the two parties actually meeting, minimizing exposure to risk is on the minds of both parties. The buyer wants to make sure they receive their order in acceptable condition and on time, and the seller needs to know they will get paid for it.
Allocation
Payment Details of Risk
TT or Cash Advance
100%
buyer risk T/T is the easiest payment form and is typically used when
samples or small quantity shipments are transported by air.
T/T is also used between buyers and sellers who have already established a mutual trust, as this negates the risks associated with this, the fastest and cheapest form of payment.
Documents like air waybills, commercial invoices and
packing lists will be sent to you along with the shipment in the same aircraft.
As soon as the shipment arrives, you, with documentation, can clear the customs and pick up the goods. Shipping happens only after the money is safely in seller’s bank account. It usually takes 3-4 days for such a wire transfer anywhere in the world.
CHAPTER 23:Standard Forms, Contracts and Agreements The L/C is a guarantee, given by the buyer’s bank that they will
pay for the goods exported, provided that the exporter can provide a given set of documents in accordance with clauses specified in the L/C and in a timely manner.
The technical term for letter of credit is “Documentary Credit.”
Letters of credit deal in documents, not goods. Thus, the process works both in favor of both the buyer and the seller.
Simply put, a letter of credit is a letter written by the importer’s bank to the exporter. It verifies that the payment will be
guaranteed when the bank is presented with concrete documents (bills of lading and freight documents).
Most letters of credit are “irrevocable” once the importer has had them sent, which means it cannot be changed unless both
Most letters of credit are “irrevocable” once the importer has had them sent, which means it cannot be changed unless both