Author: 露露

shipping FAQ

Elksourcing：Reasons Products Not Reach Customers in Right Condition

Apr 11, 2021 , by 露露

In this article, let’s explore the potential reasons why your product might not reach your customers in the right condition and how packaging inspection can help you avoid them.

1. Packaging materials are crushed during shipping and handling

Like most importers of consumer products, you may choose to pack your products in cardboard shipping cartons before they leave the factory. Cardboard shipping cartons are light, inexpensive and can provide great protection from a number of outside elements. They’re also highly stackable for transport. But they’re not invincible. If your customers report that your inventory arrived in crushed shipping cartons, you might want to look into the following causes.

1). Stacking too many heavy cartons leads to crushing.

2). Improper packing assortment leaves your products vulnerable.

3). Inadequate packaging materials don’t protect your product.

What packaging quality control measures help prevent crushing during shipping and handling?

1). Clarify packaging materials and assortment in a QC checklist.

2). Combine a carton drop test and other packaging checks with product inspection.

3). Consider more rigorous packaging testing at an accredited laboratory.

2. Poor packaging sealing or storage method leads to water damage or warping

1). Packaging materials can leave products vulnerable to water damage. If shipping cartons are improperly sealed, your products might suffer warping or water damage when exposed to temperature and humidity changes during transit. And cardboard can easily absorb too much moisture during shipment and shrink in size once the moisture evaporates.

2). The storage environment can damage products. You also need to consider how your factory’s environmental conditions might affect the storage of packaging materials.

Which QC steps help prevent product damage from humidity and temperature changes?

1). Audit your supplier’s facility to verify proper storage methods.

2). Clarify proper packaging and sealing methods in your QC checklist.

3). Check sealing and storage method during inspection.

4). Perform lab testing for climate conditioning.

3. Your product is seized or delayed at customs or your distributor’s warehouse

Most importers don’t willfully circumvent customs laws in this manner. But even if you unintentionally provide unclear information on labels affixed to your shipping carton, you could still face processing delays at customs. There’s also a chance your goods pass through customs, only to have your distributor refuse them or charge you fees for mislabeling them.

What packaging quality control checks help prevent processing delays?

1). Mark and number each package so customs staff can identify it with the corresponding marks and numbers appearing on your invoice.

2). Show a detailed description on your invoice of each item of merchandise contained in each individual package.

3). Mark your goods legibly and conspicuously with the country of origin unless they are specifically exempted from country-of-origin marking requirements.

4). Package goods in a uniform manner so that each carton includes the same contents and values, and when possible, with only one kind of good in each carton.

Conclusion

Broken products, warping, water damage and delays can all affect your relationship with your customer and your distributor. So, when it comes to ensuring products reach their destination undamaged and on time, it’s always better to prevent and address these issues by clarifying requirements, auditing suppliers and inspecting and testing packaging prior to shipment.

Packaging may not be the first thing that comes to mind when you think of product quality. But it’s one of the most important factors determining whether your product reaches your customers in the right condition.

China Sourcing Agent

Elksourcing：What Kind of China Sourcing Agent is Good for You?

Apr 11, 2021 , by 露露

The first issue you want to look at is the China sourcing agent’s location.

The closer the people who manage your project to you, the easier the communication will be. When both of you work in the same time zone it is easier to find a time during the day to speak and a face to face meetings are easier to arrange.

On the other hand, an agent that is close to you is far from the factories, and all the advantages I just spoke about become the disadvantages of the communication between the agent and the Chinese suppliers.

In addition, if the people that run the sourcing agency are close to you, but in terms of experience and culture background are far from the Chinese suppliers, then that together with the physical distance will create a communication barrier.

Some of the important advantages of a China-based agency management is that they have the ability to arrive at the location where your project is being processed fairly quickly and to communicate effectively with your Chinese suppliers in their own language and throughout their entire business day.

This means a lot for two reasons:

Can your agent communicate with your supplier?

Effective communication with your agent doesn’t mean much if you cannot take the results of that communication and put them into action.

Sometimes, executing decisions is a much more complicated task than making the decisions themselves.

That’s because you may need to communicate it to multiple people in the vendor’s organization, realign the supply chain, discuss with different departments how they are going to coordinate their actions so that the decision will be executed in the best way, and all these require a very high level of communication efficiency, and … time.

So, when the agent’s management has more time during the business day to talk to multiple people in your vendor’s organization and when they are able to arrive in the office of the vendor to have meetings with all the departments involved, that alone can save weeks in project processing time.

Can your agent execute your decisions?

Many times, the implementation of a decision depends a lot on the constraints and situation in the site.

And I don’t mean only the physical constraints. I am also talking about the people who work for your vendor and are processing your project. Understanding their personalities, their relationships and the inner politics inside the vendor’s organization can make a huge difference.

You cannot learn these by visiting your vendor 2 or 3 times a year for task focused meetings. These are things you learn only after you earned people’s trust.

An agent’s management that has the ability to learn these things can bring enormous value to its customers, because if you understand who are the “doers” and who really has the power to move things within your vendor’s organization, you will certainly do things differently and you will certainly get much better results.

So, if your project is such that your vendor’s involvement in processing your project is high, and most of the details of the project have been communicated to your agent already, then you are probably better off with a China-based agent.

How To Import From China

Elksourcing：How to Start Importing from China?

Apr 11, 2021 , by 露露

Importing from China can be an affordable way to purchase products for sale. However, importing items on your own requires establishing relationships, setting up shipping, and navigating the regulatory of customs. Get started on your way to importing from China by taking steps to set up your import process and planning ahead.

Part 1 Finding a Supplier

1). Make sure you can legally import your chosen item. Most items will be allowed, but there are certain guidelines that must be followed for some types of items. The United States imposes stricter guidelines on agricultural products, for example. Additionally, Chinese laws may prohibit the export of certain items, like animal by-products or fake designer clothes and accessories. Check with the laws and regulations of both countries before making an order.

2). Make a list of Chinese exporters, or suppliers, who can provide you with your product. The easiest way is to search on B2B websites such as Alibaba, Global Sources, etc.

3). Contact each supplier on your list. Once you have a list of exporters, you can begin asking questions in order to narrow it down to the supplier who is right for you. Some things you will want to ask each exporter to provide you with include: client reference/ business licensing information/ manufacturing and staffing information/ the name and location of the factory producing the product.

4). Investigate the product. Request information regarding the experience of each factory in producing your particular product. You should also ask for samples of the product. Unless you will be manufacturing your own new product, the supplier should be able to provide you with samples of the product so that you can get a better idea of the quality and know ahead of time exactly what you are paying for.

Part 2 Making an Order

1). Make a trip to meet with your supplier. If at all possible, it’s best to schedule a visit to your supplier in China. This will help you establish a relationship with the supplier and get a sense of how well their business is operated. This provides a better opportunity for negotiation than working on a deal via email.

2). Obtain a business visa. In order to enter China, you will need to apply for and receive a Chinese visa for business activities.

3). Negotiate a deal with the supplier. Remember that business interactions with Chinese exporters are governed by Chinese culture and customs, and different negotiation skills and tactics may be required. Some things to keep in mind when negotiating with Chinese suppliers include: The focus is on relationships; Reliance is on moral influence, not legal practice; Hierarchy is important.

4). Begin placing your orders. Each company will have a minimum order amount and a basic shipping agreement. Most exporters expect orders of at least 1,000 units, depending on the item in question. The most common types of shipping arrangement include air courier and sea freight.

5). Pay for your products. To place your order, you will have to pay a deposit on the value of your order. Usually an initial deposit of 30% will be requested by a Chinese manufacturer to get your order into production. The remainder is paid prior to shipment or upon copy of bill of lading. Never pay the entire amount of the purchase order upfront. If there is a problem with the order, you may not be able to get your money back.

6). Avoid payment fraud. Some importers may experience this type of fraud when placing their orders. It typically involves their payment for orders being sent to the wrong bank account, which can leave both the supplier and the importer out of a large amount of money.

Part 3 Getting Your Items Through Customs

1). Hire a customs broker. Locating and hiring a licensed customs broker can make your importation process much easier. This professional facilitates communication between you and the government, fills out and files necessary paperwork, and can help you navigate import regulations. They can also help estimate import costs and how long the import process will take. Just make sure that you can cover their fee with the sale of your imported products.

2). Acquire necessary permits and licenses. Work with your customs broker to identify which licenses and permit you need, if any. Apply for them through the appropriate government channels and wait for your application to be accepted before placing an import order.

3). Submit initial import documents. Once the goods are received by the port of entry, you (or your customs broker) have five days to submit the first round of required import documents.

Part 4 Taking Possession of Your Items

1). Pay your import duties. Your import duties will be calculated using the value of your shipment as estimated by customs officers and the shipment’s grouping on the harmonized tariff schedule.

2). Arrange for pick-up and transport. Contact a commercial cargo company to arrange to have your shipment picked up at the port of entry and shipped to your warehouse or local resellers. Cargo companies can be located by consulting your local yellow pages or favorite online phone book.

3). Check your shipment for accuracy and damage. Once the items have made it to you, look at the packaging and items themselves for any damage sustained over the course of the trip. If there is significant damage, you may want to rethink your choice of shipping method or urge your supplier to better prepare your items for shipment.

Shopify Tutorial

Elksourcing：Importance of Packaging Inspection

Apr 11, 2021 , by 露露

Imagine if your factory made a serious error in the retail packaging and misspelled the name of your product. Not a good first impression, right? Worse still, imagine if your product was damaged during transit and didn’t even make it to the retail shelf because your supplier’s factory didn’t ship it with the proper protective packaging.

Damaged or defective products can be a major drain on your company’s profits when they’re unsellable. Packaging inspection before shipping is vital to catching defects related to packaging and ensuring your products reach their destination on time and in the best condition.

So, what issues should you or your inspector look for during packaging inspection? Let’s take a look at the three most common defects found during inspection, their consequences and what you can do to fix them.

1. Incorrect or missing shipping markings and barcodes

You probably have specific requirements for labeling your packaging with appropriate markings and barcodes. Logistics companies, customs officials and warehouse staff all use this information to efficiently ship your products from their country of origin to the hands of your end consumers. And you could face customs delays or outright refusal from distributors to stock your goods if your packaging is mislabeled.

How can you prevent and address incorrect or missing shipping markings?

Professional, third-party inspectors will typically check shipping marks against your provided requirements using a QC checklist. They’ll also carry a handheld barcode scanner to scan barcodes and check them against your specified barcode numbers. If you’re using AQL for inspection, your QC checklist might include the defect classifications related to shipping marks and barcodes.

2. Incorrect packing method

Imagine you’re importing delicate ceramic bowls from your factory in China and shipping them directly to an Amazon warehouse for distribution. One day you get a call from your distribution contact who tells you most of the bowls were cracked and chipped on delivery. You later discovered the bowls were damaged during shipping because factory workers packed them incorrectly in their cartons.

How can you address incorrect packaging assortment?

If you’re facing problems related to poor quality packaging materials, this might be your supplier’s attempt to cut costs. And your supplier might opt for a lower quality material if you haven’t clearly specified the packaging materials you’d like the factory to use for your product. Provide your suppliers with a detailed QC checklist before production that includes your requirements for packaging assortment and materials. You can also ask your supplier to provide a sample of packaging and photos of the packing method for your review.

As with verifying other requirements, insist on inspecting the product and packaging before shipping. If the factory didn’t have the correct packaging materials in the first place, it could take additional days to order these materials from their sub-suppliers. But this delay is often worthwhile if it means your products will be shipped in the correct packaging.

3. Incorrect spelling, wording or graphics on retail packaging

Many importers invest significant time and money to design retail packaging that customers will find appealing. Some would even argue that the quality of retail packaging is almost as important in making a sale as the quality of the product itself. High quality and customized packaging can make your product appeal to premium buyers. Customers today even share videos on social media of them unpacking, or “unboxing”, new products, especially high-tech consumer products or premium fashion products.

How can you avoid packaging defects related to wording or graphics?

Most retail packaging issues can be avoided by providing suppliers with clear requirements upfront. Any serious issues found during inspection of retail packaging might require reprinting of all or most of the affected retail packaging materials. The following steps can help you avoid a mistake in retail packaging from appearing in mass in your finished products:

Ask your supplier to send you the printing file for review before mass printing.

Ask your supplier to send you packaging samples for approval before mass printing (these will also be helpful later during inspection).

Check packaging against a golden sample during pre-shipment inspection.

Conclusion

These are the three most common defects you might find during packaging inspection, but there are others. And the defects you find will likely vary based on your product type. Small consumer products for retail are often packaged in blister packs, while bags are usually packaged in polybags. Some small industrial components may not be individually packaged at all, but rather packed together in boxes by the tens or hundreds.

Regardless of your product type, an inspection should be comprehensive enough to include checks of all applicable retail packaging, polybags, inner cartons and master cartons. Otherwise, you might find yourself in danger of product damage, shipment delays or even unsellable goods – an importer’s worst nightmare.

shipping FAQ

Elksourcing：Why Packaging Integrity is Important?

Apr 11, 2021 , by 露露

Packaging is considered to be both the presentation of products to consumers, and the configuration in which products will be expedited through various channels.

The master carton design includes the configuration in which product will be shipped through channels for end-user consumption, making it especially important where packaging integrity is concerned.

Why Packaging Integrity is Important?

1) Carefully planned packaging includes both cost savings obtained through the minimal use of materials, weight and labor, as well as reductions in potential rework costs.

2) Packaging has a direct impact on the perception of quality by the consumer. 

3) Orientation is an important consideration because the carton itself only has stacking strength in one direction, which is why it is imperative that the pack be designed the way it will be stacked in transit. Labeling is important in communicating packaging requirements.

4) Packaging experiences a number of potentially damaging forces, which might include shock from handling, drops, vibration from transportation or compression from stacking in warehouses and vehicles.

5) Above all else, the objective of packaging is to insure products arrive safely in the hands of consumers without sustaining damage or other potential cosmetic or aesthetic issues.

How to verify if a packaging integrity is good?

Professional QC companies use the International Safe Transit Association (ISTA) standards for special testing during on-site inspections. This evaluation focuses on the drop-test of individual cartons at a corner, 3 edges and 6 sides from a certain height to concrete floor. The ISTA-1 is considered non-simulation integrity performance testing and is designed to challenge the strength and robustness of the product and package combination, not to simulate environmental occurrences. Defects resulting from this test are considered as critical, so any issues noted with the product result in a reject status.

How To Import From China

Elksourcing：Tips about Communication with Chinese Suppliers

Apr 10, 2021 , by 露露

In our many years of experience of dealing with China sourcing, we’ve seen a range of outcomes where communication is concerned. The impact is quite often more substantial than you may think, I would say that good communication is the primary reason for a partnership’s success.

In this article, I’d like to share 3 tips about better communication with Chinese suppliers.

1. Recognize that communication is about understanding.

In order for us to understand a perspective outside of our own, we need to actively listen. We are all guilty of wanting to believe we’re right, but the mindful moment is when we realize that others think they are right as well.

Recognizing that communication is about understanding means that we allow all parties to express their position without judgement, interruption or disrespect. Communication ceases to exist without this.

Ask yourself, what is their purpose as compared to yours at this particular moment? Our clients and their suppliers often find their objectives are more similar than they thought. With common ground, understanding is less stressful and more focused on problem solving.

Taking time to listen and evaluate in any given situation actually saves time because it’s likely to avoid conflicts, miscommunication, etc.

2. Nonverbal communication counts.

In addition to managing our own nonverbal communication, it is helpful to assess the other party’s as well.

The tone of someone’s voice is considered nonverbal communication. Be mindful of the tone in any communications, from email to face-to-face. Clarify before assuming.

With operations in over thirty countries, we recognize there’s a heavy reliance on email. But, when emails and regular phone calls fail to get the desired results, try Skype (or whatever similar) or an actual face-to-face talk before giving up. The best communicators know exactly when to make that call.

3. Stay positive.

Staying positive definitely sounds easier than it may be at times, especially when you’re facing production issues, shipment deadlines, etc. Higher stress situations often send all of the regular rules of communications packing. You want your purchase order to be fulfilled and you want it to match the specifications. The supplier wants their payment and says your requirements are not specific enough. What to do? 

Well, take a moment and consider the effect of not smiling in this situation. Not staying positive has a much higher incidence of the situation not getting resolved in an ideal manner. Even if you feel like you’ve gotten what you wanted in any given situation, the future of the relationship may have suffered because you didn’t think about the long-term investment. There’s often significant value there. And, consider that even if you don’t value this particular relationship, it is entirely possible to believe that your negative reaction will result in a poor perception of your organization to your stakeholders. That’s not good.

So, be positive. Take that extra moment to process the effect that being negative will have on the situation and rest assured you do catch more flies with honey.

Shopify Tutorial

Elksourcing：Basic Tips About How to Avoid Product Recalls

Apr 10, 2021 by 露露

Over many years’ experience in China sourcing business, we’ve heard of stories about organizations seeking to resolve a recall situation. While many of these calls are reactive, a proactive approach is recommended to avoid the cost and overall impact to stakeholders.

How can you avoid product recalls?

1. Know Product Safety Requirements –  Avoiding recalls generally starts with product design and specification development. Due diligence is required to determine if any applicable testing is required depending on the market in which it will be sold. Contacting a testing lab for a general inquiry is worth the time and effort. Researching ANSI, ASTM, FDA, CE standards is also advised. A third party’s expertise can also be leveraged here and specifications development/testing can be outsourced.

2. Know Your Suppliers – Supplier selection is a critical component in the quality process. Verifying suppliers and performing an on-site evaluation adds an additional level of assurance. Considerations include:

A. Management—Is there a quality manual, and how are people trained?

B. Engineering—Are there control systems and a formal system of using updated drawings/specs?

C. Manufacturing—Is there documentation, a maintenance program, etc.?

D. Quality Control System—Is there a quality department, and how much ultimate responsibility do they have?

E. Incoming QC—Are raw materials inspected, and is inspection equipment calibrated?

E. In-process Control—Are all work stations and processes carefully monitored?

F. Final QC—Are all products well inspected before shipment?

G. Packaging—Are the products well packaged to prevent damaged and properly labeled?

H. Non-Conforming Materials—Is there a specific area for non-conforming materials and applicable training for handling/reporting?

I. Corrective Action—Is corrective action properly communicated, documented and follow-up on?

3. Enforce Quality Inspections – Even the most highly rated suppliers have been known to release a shipment or two with quality issues that somehow went unseen. Some of these quality concerns can end up being safety issues that can easily result in recalls or other rework/warranty situations. For an added level of assurance, incorporate pre-shipment inspections. These happen when the shipment is 100% produced and about 80% packaged. So, you’re able to confirm visual/workmanship issues, functionality and packaging integrity issues.

Use a verified 3rd party inspection company to visit the factory, and do a thorough quality inspection for every production lot, and not release final payment until you are satisfied with inspection results.

How To Import From China

Elksourcing：How to Start Buying Products from China?

Apr 10, 2021 , by 露露

Many buyers are still guarded about buying from China – which is understandable, since many of the country’s business practices lag behind those in more developed nations. However, your risks can be minimized by working only with qualified, above board suppliers and by understanding all aspects of your import arrangement beforehand.

If you can, visiting China is a good starting point for doing business there. If you can’t visit first, there are many online sources to help you find quality products and suppliers and minimize the risk of doing business there.

Understanding the market

Before deciding what to import, get as much information as possible about the demand for that product in your local market. Then learn as much as you can about the manufacturers of that product in China. Be vigilant and ask every detail you need to know.

Finding a trustworthy supplier

This is perhaps the most important step in your import business. Dealing with a serious and dependable supplier allays concerns about quality and can help fend off disputes down the road.

There are a number of websites where you can find suppliers. Narrowing down the choices can be a hard task, but your work will be easier if you use a good sourcing partner.

Once you’re in contact with prospective suppliers, address all your quality concerns with the right questions. Clearly state your requirements – like product warranties, key specifications and order terms. Alternatively, some companies will provide product samples if you ask, so you can test them yourself. If you’re happy with the initial quality, you can order in bulk.

Factory visits and inspections

Visiting a China factory can be an important part of making your buying decision. There are a few reasons why you’d want a factory visit:

1. To meet management and see if the company is competent

2. To gauge the factory’s level of technical sophistication

3. To check if the factory complies with regulations and labor laws

4. To see who else has placed orders with that factory

5. To determine if the factory’s production capacity is as claimed

6. To see if the factory is subcontracting production to other factories

If visiting in person is too difficult, consider appointing a local agent or sourcing company to inspect the factory on your behalf. Get someone who speaks the language and knows local business conditions well enough to make an accurate judgment. Most agents charge by commission and will also inspect the output before shipment.

The shipping processes

Product quality can be found satisfactory during your factory visit, but issues can arise once products are shipped. Some problems include incorrect count, wrong mix of product types, improper handling, inadequate dunnage and container damage. You may be faced with unusable products on arrival and a long delay to replace them.

Compliance issues

You need to understand the relevant import compliance regulations before even placing your order. Different regulating bodies in your country may be involved, depending on what you import. Go to their websites for compliance details or to download required forms. Compliance issues can be very complicated for some products, so you might also want to contract a good customs house broker.

Even with the help of a broker, you should track the process step by step. You may need to issue a power of attorney to your broker and purchase customs bonds – guarantees that you will abide by all laws and pay any additional fees incurred.

Neglecting compliance can be costly, in the form of unexpected customs duties or clearance delays. But with adequate planning ahead of time, you can make sure the process goes smoothly.

Landing costs

Get a good estimate of the landing cost before you make your order. Landing cost is the sum of: cost of the goods up to loading on the transport, transport costs by forwarder, import duties, local transport costs, and cost of service providers (inspections, agents, etc.).

Note that import fees vary depending on what you import, the country of origin and destination. Experienced exporters should know how much it really costs to ship to you, but do your homework nonetheless.

There may be many hidden costs in getting your product from the China factory to your warehouse. To minimize those, you may want to consult an import management company for help. Or make a small order first to collect all costs involved and predict these costs for your intended order quantity.

Delivery from the port of entry to your final destination is often an overlooked cost. To resolve this, contact the many “last mile” service providers in your home country. They’ll deliver from your local port of entry to your company grounds.

With some good advance planning, you can import products from China profitably – and with very little risk to your bottom line.