TopTen Tips for Importing and Exporting This Holiday

It looks like foreign trade has experienced a very turbulent and predictably headache-inducing conclusion… after the global economic recession triggered a wave of changes and reassessments in everything; from foreign policy, to how goods are valued on the international market. In short, it’s all up in the air right now, and it would seem almost as if there is no order to any of it… but the good news is that amidst the chaos lies a great deal of opportunity! The other side of this is that the opportunities will only be discovered by the wholesalers and retailers who are willing to dig deeper than everyone else, and expose the best chances to build valuable relationships and find the sources that can be relied upon. A large part of your search for great partners in this field can be narrowed down by visiting the directories at toptenwholesale.com, manufacturer.com, wholesaleu.com, and offpricenetwork.com for a head start. This is one of the best ways to locate those great items like general merchandise, apparel, accessories, gifts, electronics, handbags, jewelry, toys, and more!

Another thing to do is start with some ground rules in export and import. While the topic can seem a little broad at first glance, importing and exporting can be explained best by starting with the basics. If you are trying to get your head around what to do with all of the information, advice, and statistical data available – but you’ve found no solid starting point – this guide may be for you! Read on to see what I have to say about the TopTen things to look out for when kicking off your own export and import business…

1.Always maintain your integrity, and try to get into a business that you know something about… and enjoy doing. I’m not going to kid you, this can be a very tough business. I’ve probably quit about a half-dozen times while out here in China. It helps a lot to have a personal interest in whatever you’re selling, since motivation can hit an all-time low when you’re back’s against the wall in a deal. The best part of this is the feeling you’ll have when you emerge triumphant!

2.Focus on the customer… under-promise and over deliver. Bad service – it’s everywhere. It can also become your best friend, since so many other companies are willing to go this route. If you’re the one that gains a reputation for being the customer service king or queen, you’ll be in a very good place indeed.

3.Never ever run out of cash. What? You haven’t been reading the headlines since late 2008? There’s a lot of trouble you can get into by using credit recklessly, and my advice is to avoid it altogether every chance you get. Sometimes it’s necessary for security reasons, or to make the conversion or repatriation of currency possible… but you should always back your moves up with cold, hard cash if you want to sleep soundly at night. Harder to do than using credit, but it may save your business in the event of another period of instability in the global market.

4.Hit the books. Whether you opt to take international trade classes at the college level, or just spend a lot of time researching the topic, you’re going to have to learn something in detail before you blast off on some adventure in the wild and often unruly world of foreign trade. Grab a cup of coffee, and find a comfy chair… because you’re going to be reading and researching for some time before you ever reach out to a foreign supplier or government entity. Want proof? Check this out. Instant headache!

5.Personally visit your offshore suppliers or customers, and while you’re at it… visit the trade shows too. I can’t stress this one enough. You must get ample face time in front of your new trade partners, if you even hope to get the best price, best service, and best chance of not getting ripped off! Scams are coming out of the woodwork these days, and it will only get worse before it gets better. If you fall into the trap of believing the stuff on somebody’s website without ever knowing anything about them or making them feel personally obligated to you, then you are asking for trouble.

6.Inspect and approve merchandise before it is shipped. This one kind of ties in with point number 5… but it’s worth giving its own number. If you’re shipping a high-volume load of goods, and you’ve put a lot of money behind it… do us all a favor and take a flight out to wherever you are sourcing from. I know a guy from Africa who supplies uniforms and industrial safety wear to companies in his home country, and he always makes sure he’s the last to personally touch the shipping container before it’s locked up and transferred to the ship. Guess what? He’s never been ripped off since he started doing it. He also reckons he’s made up for the travel expense with the money that wasn’t lost.

7.Take advantage of online resources. Become an online resource. Nothing beats the Internet for ease of information-gathering… but when you become the source of information, the world really opens up to you. This doesn’t mean you need to be an expert in the entire field, but if you begin posting your findings and stories on the Internet, you’ll be amazed at how many others are looking for the same info as you were, back when you were just a noob…

8.Consider hiring an international trade consultant… but don’t neglect to become personally familiar with all monetary transactions. In short, hire the right person for the critical stuff… but make sure you know enough to keep that bean-counter from taking a little skim off the top.

9.Use a trade lawyer for agent and distributor agreements and licensing requirements. Not much more I can say about this one, since the legal stuff is something few of us enjoy sinking our teeth into. Make sure you get the right person for the job, and get updates on what’s going on at all major turning points.

10.Start on a very small scale. My mum used to tell me if I played with fire, I will get burned. Start with a small fire, until your hide gets thick enough to handle the really hot stuff.

With these little nuggets of tried-and-true wisdom, you can feel good about making the move towards expanding your horizons to include the vast array of goods that are available from outside sources. Don’t fear the challenges that lie ahead, and be prepared to do the work required to get yourself up to speed on handling this new operation of yours. If you’re looking at checking out the China market for some wholesale goodies, remember that doing business with China can at times be on friendly terms… and often turn into aggressive ones in a big hurry. Recent financial leverage gained by the PRC has made them the new bully on the block in some regards, and you’ll find that this attitude can manifest itself quite openly at the bargaining table… but you may be surprised to find another bargaining session taking place right before your goods are released to be shipped! Remember the guidelines above, and take a deep breath as you Find it. Source it. Profit!

Dow Superstore Inc. aka www.dowsuperstore.com: Scam Artists, Frauds, and Thieves.

I Have worked for TopTenWholesale.com for about 5 years now and I have handled the online advertising for thousands of clients. Not once have I ever dealt with a situation or a customer like Chris from Dow Superstore Inc., aka www.dowsuperstore.com. This company illegally and fraudulently paid us for advertising using a pay pal account. I want to warn other media outlets and buyers about this company. Pay Pal told us that we should should press criminal charges, so we are. In the mean time, if you are allowing this company to advertise or if you are buying from them, beware because they are scam artists.

Dow Superstore paid JP Communications Inc for advertising through pay pal. Pay pall released the funds into our account and we processed the funds to Dow’s account. We gave Dow Superstore Inc. $1,000 in pay per click funds and we started designing an email for them which cost $800. Services were given to Dow.

A few days later, Pay Pal took money out of our account telling us that Dow was a fraud company and that they did not have any funds in their account.

On July 9, 2009, Dow emailed my company and told me that he sent us $1800 for advertising on Top Ten Wholesale and for our company to design and send an email. Pay Pal cleared the funds and we added $1,000 to his pay per click account and spent hours designing and testing out the email he paid $800 for. 2-3 days later, Pay Pal took the $1800 out of our account and said that the payment Dow sent us was a fraudulent payment. I contacted Dow, and Chris told me it was an error. He then told me that he would have the funds to us shortly and never paid. On August 21st, 2009, Chris told me that he would send us a check for the advertising seeing as that he already used the funds up. Dow never sent the check and he owes JP Communications $1800 for PPC funds spent and time spent on designing, coding, and testing email.

I have had multiple conversations with Chris Dow and one conversation with Jimmy. They both pretended that it was an error and that they would have the funds back to me. On August 21, 2009, I called Chris Dow from www.dowsuperstore.com and he finally picked up the phone. He told me that he would send me a check for $1,000 to start making good on his bill. I was at trade shows most of the month of August and returned on Sept. 2. Dow Superstore did not send the check. It does not take more than 5 business days for a check to get mailed.

If anyone is interested in learning more, I have saved all our email contact so I can prove to you that the owners and others staff members at Dow Superstore Inc. are liars and scam artisits. Here are just some of the email conversations between Chris Dow and myself:

I will call you monday afternoon.

On 8/14/09, Jonathan wrote:

Hello Chris. Please call me and let me know how you plan on settling

your balance. It has now been close to a month.

Thanks you.

—–Original Message—–

From: Chris Dow [mailto:dowsuperstore@gmail.com]

Sent: Thursday, August 06, 2009 10:01 AM

To: Jonathan

Subject: Re: Chris:

Yes. We are doing alright just these issues with paypal put a damper

on our success. We have things in place and we will be clearing the

invoice soon. I will keep you posted

On 8/4/09, Jonathan wrote:

Tell me about it. The funds are coming out of my commission for being

a nice guy and putting a push on the order so I’m hoping we can get

the funds in asap. This is why we don’t like dealing with pay pal and

prefer cc or check.

What else is going on? How’s business? How long has Dow been around for?

You mainly an internet business or is this new for you?

—– Original Message —–

From: Chris Dow

To: Jonathan

Sent: Tue Aug 04 18:52:27 2009

Subject: Re: Chris

No not yet we will know more this week. I will keep you updated. What

a mess paypal caused us.

On 8/4/09, Jonathan wrote:

HI Chris,

Any word from pay pal yet or have you received your amex payment yet?

—–Original Message—–

From: Chris Dow [mailto:dowsuperstore@gmail.com]

Sent: Thursday, July 30, 2009 8:04 AM

To: Jonathan

Subject: Re: Chris

I’m going to see when I get those funds from pp or ill pay it when I

get my merchant amex payment.

On 7/29/09, Jonathan wrote:

Thanks Chris. Let me know how we are going to work this out asap

so I can tell my COO.

In short, publisher, buyers and sellers beware. If he is willing to scam a service provider that helps bring his company business, I can only imagine what he is willing to do to people that buy from him. If anyone has any questions about this company, feel free to contact me.

Ripples in the Wholesale Pond: AliExpress

It’s always with quite a dose of skepticism that I see huge, publicly-listed companies like Alibaba taking a shot at appealing to the individuals that make up a market that was once too small and insignificant for them to address before.

Sign of the times? You bet. Sign of things to come? You’d better believe it. This is where the rubber meets the road, as those little individual consumers suddenly represent a very powerful piece of market share that was always considered too volatile and easily influenced by uncontrollable factors in the economy. Now that so many companies in the heavy-hitting export sector – not only in China, by the way – have started to gasp for air, the need for innovation is strong, and only the strongest innovators will come out on top.

Does the move to tap the B2C market signal weakness or strength for Alibaba? A lot of people will say that it’s just a logical move to extend coverage, and pick up some slack as their original sales engine slows down… but there’s a lot of other people who are getting nervous about the sheer size of a company like this one taking steps to try to become the one-size-fits-all solution for selling on the Internet. Granted, the Chinese government will undoubtedly continue to pump money into this darling of a company, especially since it consistently ranks high on the list of “China SuperBrands”, and let’s not forget that the company also supports a vast multitude of domestic employees. Also bear in mind that we haven’t hit the 2010 mark yet, and there’s still a lot that can go wrong before the CCP proudly announces its safety-net 8% GDP year-end goal being met. There isn’t a doubt in my mind that this number will be produced, but will it be a case of art imitating reality, or reality imitating art? Numbers are easy to manipulate, and it’s been done more than a few times already.

Should other players in the market, like ebay and PayPal be wringing their hands yet? With the launch of Alibaba’s proprietary AliPay online payment system, I guess it would make sense that the other titans of online sales would be wise to watch this event carefully, but it’s all up to the consumer on this one, and I have seen the truth with my own eyes. While deals can be made with huge distributors and retailers –- all too often to manipulate the market and keep people in the dark about their buying choices — the Internet truly is the great equalizer, and there’s a reason why countries like the PRC employ strategies to censor and control the stream of information that enlightens consumers… and makes corrupt dealers writhe in pain over the education that is freely accessible to all.

Look to sources of information like the ones here at toptenwholesale.com for a chance to see some of the less popular (and perhaps even less-tolerated?) forms of opinion that could be the difference between simply following along with the program you are handed… and making a new program of your own that results in building a business that gives you the control you need to not only profit from your hard work, but maybe even empower you with the ability to deliver the solution to your customers without being part of the problem.

Wholesale Dropshipping Better Than Ever

Have you ever taken a good hard look at a warehouse filled to capacity with… stuff? I have. I remember back in the Winter of 2006, I was working with PANASONIC’s North American Division on some Document Solutions sales projects, and it was never less than a shocking experience to see how the warehouse of one particular dealership was stacked –- nearly to the roof — with junk. We were selling and servicing clients who covered a full spectrum of operations, from SOHO (small/home-based) to enterprise-level… and it simply blew my mind to see what a state of disarray everything was in. Somehow, things got done… but things also got broken, lost, and confused as the orders would come in, and whenever you needed to get your hands on something, the cavernous warehouse defiantly dared you to make an expedition into its inner recesses. I was one of those guys that was gunning for a new warehouse manager ASAP, because I didn’t have the time or energy to figure out how to separate old from new, broken from functional, and treasures from trash.

What’s in your warehouse?

Now it’s the middle of 2009, and we are dealing with an economy that doesn’t know where it wants to be at any particular moment… and customers who are tired of the run-around. Dropshipping is the new industry standard, as wholesalers and even retailers are beginning to see that letting a seller manage the sales, while the manufacturers and distributors can simply route the goods directly to the customer… is a good idea that has finally come to light.

What’s the secret to dropshipping? Is there something you need to know, in order to get in on the action? Not so much, really. There are, however, some steps you might want to take that will give you the advantage when trying to get your operation going in a customer-centric direction, while utilizing dropshipping channels. Here then, is my quick TopTen list of things to know when looking into the dropshipping option:

• Many online wholesale sources are getting keen, and they are improving their interface for ease of use, even for the newbies out there.

• Several of them are also listening more closely, as users report flaws or offer insights… and changes are made accordingly.

• With competition so ferocious, there is an emerging breed of legitimate companies that are going through great lengths to preserve their credibility in their markets.

• A lot of these companies are erasing borders by offering improved services for shipping internationally. There’s about 6 billion people in the world. Some of them should be buying from you, shouldn’t they?

• Membership has its privileges, and many sites are offering some substantial data to their members. Demographic research could be a few clicks away for you.

• Some great customer service is emerging from all of this.

• Efficiency might never be so easy. As this becomes more common, the processes involved will evolve as well.

• Reputation is everything, and many of the sites are quick to showcase their best partners.

• Shipping charges are not your problem any more, in some cases. Competition will make this more common as well.

• You will become more competitive, and your sales will grow as you develop your business over time.

Sounds easy, and maybe even fun. Of course, there are a lot of potential pitfalls out there, and it’s a well-known fact that there are scams aplenty on our beloved Wild, Wild West a.k.a the Internet… but you wouldn’t be reading this if you didn’t appreciate the allure of being rewarded for taking a chance on a venture, would you? One thing’s certain: I wouldn’t be writing this from all the way out in China, if there weren’t some adventure-seekers out there!

Sourcing Your Wholesale Operation, with China? (part 02)

In yesterday’s blog post, I touched upon some of the important details about setting up your wholesale connections in China, by making use of the amazing Canton Trade Fair. Of course, there’s more than one way to get yourself up and running in the race to buy/sell goods, and I hope to shed some light upon the darker mysteries surrounding your interest in making a first-time connection with China.

Since we’ve already covered the first point on my list, now it’s time to do what some of us do best… and surf the net for a little while!

- the biggest Trade Fair in China
- the Internet and you
- Networks and Connections (aka guanxi)

Using B2B Websites and Search Engines

Everybody in the industry who knows anything about trade with China is using at least a few of the online resources available to people who want to buy from manufacturers and distributors all around the world. Trouble is, some of the big ones have become so bloated — or rife with scams — that a decline in quality has become apparent to many unhappy users. Take industry giant Alibaba.com for example; this is a company that was hailed as a leading mover and shaker during China’s ‘miraculous’ years, but now has become the target of some rather unscrupulous con artists looking to make a quick buck. Most sites offer a forum to discuss these issues (like this one) but the bottom line is: due diligence. In other words, don’t go grocery-shopping on an empty stomach, or you’ll just end up coming home with a bunch of junk food.

Had enough bad news for one day? Fortunately, there’s a lot of competition in the market, and with the ever-tightening noose around the necks of manufacturers during a global financial downturn, it’s actually getting easier to point out some of the bad guys, as competitors and partners alike are reaching a form of solidarity amidst the peril.

If you want to hit the ground running, try a search engine like our very own www.toptenwholesale.com for a start. Other resources include China’s BAIDU, and of course the venerable Google. Try a little variety in your search term, to get as many relevant leads as possible. Also keep in mind that pay-per-click advertising is still pretty new tech in China (not for long) so looking for those little ads on the sidebar won’t help you as much when sniffing around the Chinese sites. Since Google is the current champ in the search game, try plugging these in to find some additional leads…
- made-in-China
- globalsources
- tradekey
…and see what happens. Grab another cup of coffee, and prepare to spend a little time investigating the possibilities. After you’ve looked at everything the Internet has to offer about search, get ready for tomorrow’s blog… where I will cover some basic things that everyone in the wholesale and retail business should know about making connections and establishing relationships with China.

Online Auctions and Product Sourcing for Right-Sized, Right-Priced Inventory: eBay Sellers, Craft Fair Vendors, Niche Market Discounters, Flea Marketers

eBay PowerSellers, Craft Fair Vendors, Niche Market Discounters and Flea Market Entrepreneurs can now source products at the right price points, and in the right minimum order quantities, from online auction and sale sites. Read more

Sellers Turnover Returned Inventory: Tips to Resell, Re-Label – Right Way, Wrong Way

The Returns, Salvage and Liquidation marketplace can be a win-win, profitable way for merchandise wholesalers and resellers to turnover excess inventory. Overstocks of brand name apparel, department and chain stores carrying excess holiday inventory, off-price buyer deals and discount-seeking retail customers all come out ahead. For buyers and sellers new to the Returns marketplace: Note re-labeling, de-labeling and selling restrictions on returned merchandise. (Tips below.) First, here is a cautionary case study of how wrongly re-labeling return inventory can ruin a carefully marketed reputation and company image.

How Not to Resell Return Merchandise

While it’s not clear who is the true “perp” in this resale story from only weeks ago, the situation hit regional television news and consumer protection groups. Everyone up and down the product supply chain took a hit to brand and reputation. The end retailer, discount clothing chain Burlington Coat Factory, is trying to make it right. Read more

Changing Times in Merchandise Liquidation: Internet Auctions, Visible Content Loads, Freight Costs and Shifting Margins

From the GENCO Marketplace point of view – as early providers of “reverse logistics” services (liquidation, recovery value) on returned or distressed goods – a lot has changed since 1992.

Here’s a perspective on how far the liquidation business has come and how current changes improve and impact salvage buyers today.

–Top Ten Wholesale Blog Editor

~~~~~~~~~~~~~~~~~~~~~~~~~~
Read more

How To Sell – and Sell Well – in a Down Retail Economy

Retailers of Women’s Apparel: The last thing you do in a down economy is to hunker down and wait it out. Sellers need to go into action mode, like re-think price as the only customer motive (it’s not). Time your wholesale buying and inventory. Sell Customer Experience along with The Goods.

Jonathan Gordon, president of Julie Ann Apparel, is our guest author. He knows how to sell women’s clothing in a down economy. It’s a matter of changing your seller mentality … tweaking sales strategies … and personalizing customer service. Take some tips gained from successful wholesaler experience.

–Top Ten Wholesale Blog, Editor

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

How To Sell – and Sell Well — in a Down Retail Economy
By Jonathan Gordon, President
Julie Ann Apparel

The million-dollar question – How Do I Sell in a Down Economy? – does have an optimistic answer. It’s simple, does not cost a lot of money; in fact, it may even save money as well as your business during tough times.

1. Tap Into Consumer Mentality. Match It.

First, we need to evaluate why sales are slow. Saying “It’s the Economy, Stupid” is simply not enough.

Consumers have money …they are just afraid to let go of it in uncertain economic times. I’m not saying that lowered employment prospects, credit and economic indicators have no impact, or that they’ll always be down. Rather, the mentality of the consumer has changed. And sellers of ladies wholesale apparel, as well as retailers of women’s clothing, have to change their mentality as well.

Let’s look at how the consumer’s mentality has changed.
· They are holding onto their money, concerned about the future, and less likely to spend it frivolously.
· This doesn’t mean that they will never buy clothing again.
· It doesn’t even mean that they are going to look only for cheap clothing.

Look at consumer purchases as more than price.

Price is not the main concern of the consumer. You can’t just lower your prices and think that customers will come flying in. At Julie Ann Apparel, we’ve already seen that this past holiday season. Everyone offered discounts of 50-70% off; and this just bounced off the consumer and had very little effect. There has to be more to the purchase than price.

2. Change Buying Patterns to Match Customer Need.

Retailers need to change their buying patterns to match their customers’ mood. This will be a little different for each store. For example, some retailers will gain sales by being ahead of the market, in terms of season and styles. This combination will work for some clothing retailers, but not for all.

Other timing options:
· I know stores that bring Spring goods into their inventory in early December; and that timing works great for some.

· Other apparel retailers are better off bringing Spring merchandise in closer to actual Spring weather.

3. Improve Your Inventory Picks.

Inventory is your largest and most important purchase. We need to take a hard look at this, and find ways to improve it.

· The best way to insure that we have what the consumer wants is not to predict, but to know what they want, what our unique customers’ preferences and styles are. If you have what the consumer wants at the right time, you will make sales.

· Most retailers find that not playing a guessing game with inventory will help. Let other stores play the guessing game. You need to use real information and data to improve your inventory, including tracking trends from your customer profiles and at industry sites (women’s fashion, wholesale apparel trends, retailing demands).

4. Work With a Trusted Clothing Wholesaler.
Working with a good wholesale clothing company, such as Julie Ann Apparel , is the first step. A good wholesaler will have the right inventory, at the right price; so that you don’t have to predict trends or speculate on business conditions three-to-six months out. A trusted wholesale clothing supplier makes it much easier to evaluate buyer/ inventory information and act on it, in a way that meets your own business needs. (Toss the tea leaves!)

· The apparel wholesaler should have a constant stream of new inventory. Lean on them, place smaller orders, and bring in more items more often.

· This small order and streaming strategy will make you control your inventory, and also ensures that you carry the items that are selling today.

· A good wholesaler does not buy “leftover goods.” They have a large supplier list and connections to get the right items. They use their buying power to their advantage, and it is up to you to take advantage of this for your business.

· If you can control your inventory, your largest purchase area, using the above strategy, then you control your cash flow. And, that is half the game.

5. Customer Service Beyond the Clothing Purchase.

The other half of a successful retail strategy during down economic times is understanding that the consumer wants more for her purchase than simply clothing. A customer with disposable cash can go to any store and spend money. The question is: Why should they spend at your store?

· A first-step answer: Because you know what they want. You know they want to be wowed; not only do they want to feel good about their purchase, but they want it to be an experience. You know they want their $50.00 purchase to give them $1000.00 worth of entertainment. Plus, they want to feel “like a million” and be treated like a star.

· The second-step answer to delivering beyond the clothing is to make sure that your staff understands those customer needs and tall orders noted above.

When a customer comes in your store, does your staff say: “May I help you?” or “Looking for anything in particular?”

That’s not how to treat a star! Selling is entertaining and it starts with personal touches. Selling As Entertainment says: I care about you, and I want you to come in my store and have a good time. Customers want to know that they will be treated well.

· Tips to Staff to Personalize Selling: They should send out personal cards and letters, call customers on the phone and build personal relationships that will stand the test of a tough economy.

Certain items are always tough to come by, such as Plus Size clothing, that is always in short supply. Call a plus size customer and tell them that you have the perfect item, just for them. Not only will that personal touch make them feel good, but holding the item until they can get to your store (you know the item will go fast) will make them feel like a star!

The best part of the above strategies is that they focus on two areas that we can control: Inventory and Customer Service. We can succeed, even in a down economy, by changing the retailing areas we can control, without spending a lot of money.

Happy retailing!

Share:

• 
• 
• 
• 
•