Category: Shopify Tutorial

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Elksourcing：Importance of Third-Party Inspection for Suppliers

Apr 7, 2021 , , by 露露

Third-party inspection is important for success of importing business. However, some factories may resist third-party inspection. You might hear a supplier say something like “we don’t need them” or “we have our own quality control staff”.

And it’s hard to blame them. They’re being asked to allow a stranger to come into their facility and check their work. Understandably, some suppliers feel they’re being subjected to unfair scrutiny from an outsider.

So how can you put your supplier at ease with the inspection process?

You can take specific steps to address the problem based on the symptoms presented. But there are also some measures you can take to prevent resistance from the factory in advance.

1). Clarifying the need for inspection when placing an order

Although third-party inspection is fairly commonplace, it can catch your supplier by surprise if you advise them of your requirement only shortly before shipping.

Letting your supplier know early that you’re expecting independent oversight prevents surprises and reduces the chance of resistance later on. The best way to do this is often by stipulating it as a term on the purchase order. This way, your supplier knows at the time of placing an order that this is a requirement.

2). Walking the supplier through the process

I once worked with an importer whose factory salesperson called me directly, and we went through the inspection criteria point-by-point so that they understood the requirements they had to meet.

It turned out that the factory had concerns with some of the points, so they talked with the importer, who agreed on a lower tolerance for some points, and an agreement was made to adjust the criteria. The factory then passed the inspection without any problems and third-party inspection later became a routine and important part of the purchasing process.

By taking the time to describe the inspection process to the supplier, you can prime them for what’s to come and mitigate any reservations they might have.

3). Explaining why inspection is beneficial

One of the best ways is to explain to them how inspection can actually be helpful for them and improve the relationship they have with you. With that in mind, here are key benefits of third-party inspection for suppliers:

i. Improved product quality

One of the most important benefits of third-party inspection for suppliers is the quality improvement that often results. Sometimes inspection reveals a product defect that’s easily preventable. Regardless of whether the defect is major, minor or critical, knowing about it before shipping helps the supplier address the root cause to correct the underlying problem.

Consider an order of headphones handed out on airline flights. The headphones might look acceptable on the outside, but closer examination reveals many with shoddy wiring and press marks on the ear pads. These problems have the potential to make the goods unsellable. And rather than shipping the headphones with defects, the supplier might allow outside product inspection of the order.

ii. Improved relationships with customers

When considering the benefits of third-party inspection for suppliers, improving the relationship you have with your supplier should be near the top of the list.

An importer that doesn’t have any external oversight into the status and condition of their order can’t be sure what they’ve paid for until they actually receive the finished goods. Similarly, the supplier isn’t able to get feedback from their customer on the goods until the customer sees them. And a difference between what the supplier and the importer believe is acceptable is one of the main reasons why the relationship between the two parties can turn sour.

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Elksourcing：4 Tips to Keep Product Costs Down

Apr 7, 2021 by 露露

As a Startup, with limited resources, time and money are working against you. In order to succeed, you must go the most out of the small funds you have. Below 4 tips will help you to keep your product costs down when importing from Asia.

1. Focus on one or two products.

Don’t try to start off by launching an entire collection of products – especially if these are so different that they require separate manufacturers.

Every product is an investment, in terms of time and money. Finding the right manufacturers, drafting specifications sheet and buying samples, take a ton of time and quite a bit of money.

If you spread too thin before you even have something to put on the market, chances are that you’ll never get there in the end.

As a Startup or small business in general, your only strength is your expertise. You must be focused on one product if possible.

2. Keep your design simple

It’s typical that Startups, be in software or e-commerce, run out of money as they try to perfect their product into infinity. As you launch a product, you cannot afford to get hung up on features that don’t really matter.

I’ve seen time and time again, how importers set design and functional requirements, that are either very expensive to reach – or even impossible.

In most cases, this is due to a lack of experience. There are physical limits to what can be done in manufacturing.

Also, too many design details or functions increase the risk of severe delays, or even failure to produce a single product sample.

Indeed, you should not compromise on design requirements and functions that are core to your business model. That said, keep things as lean as possible – and further develop your product once it’s proven on the market.

3. Don’t spend too much on new tooling

Every custom designed piece of metal or plastic requires an injection mold. The more custom designed pieces of metal and plastic needed to assemble your product, the more money you’ll end up spending on tooling.

If you want to keep costs low, you should try to use existing tooling to the extent possible. For example, you could put off a new product packaging design until the next order.

4. Start out with just one target market

The United States and the European Union have different sets of regulations. So does Korea, Japan, Russia, Singapore, Nigeria and India.

For every market you attempt to enter, you need to provide a new set of compliance documents and test reports.

This takes time and costs money. Third-party laboratory testing is not cheap. In fact, it’s a major expense on many importers’ balance sheet.

Testing costs are charged based on the number of products, or materials, and the number of different regulations (to which a product shall be checked).

In short, you’ll save yourself a lot of time and money if you decide to focus on one market to begin with.

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Elksourcing：How to Be a Successful Promotional Product Importer?

Apr 7, 2021 , by 露露

Unlike a regular importer who only deal in a few products, a promotional product importer has to deal with various products. Because of the wide product range, promotional product importers usually aren’t experts on production processes, but they have to frequently work on a wide range of products at aggressive time frames.

Those importers who successfully import promotional products, have habits that set them apart from the regular importers.

1.)  They prepare

The successful promotional product distributor who treads offshore, doesn’t treat the process the same as if they’re buying domestically.

Successful importers spend time in preparing their inquiries. Whether it’s clearly laid out specs or detailed mockups, they’re ready to use visuals and measurements to show the supplier exactly what they need.

Successful importing, regardless of the industry, avoids as much guess work as possible from the supplier.

2.)  They communicate

A successful importer, especially in the fast-paced world of promotional merchandise, knows to be quick on the follow-up. There shouldn’t be a ton of downtime between emails.

When a supplier has a question, the successful importer is quick to provide insight.

When samples arrive, they keep your vendor updated on the sign-off process.

The successful importer quickly lines up their freight forwarder and there are not lags which ruin an otherwise successful order.

3.)  They keep perspective

Promotional product importers who keep perspective on the bigger picture by growing long-term relationships with their suppliers have more success. They aren’t always out shopping the next vendor hoping to save $300.

They realize that a 1-time order with a first time supplier is not going to be as smooth as when they deal with the same supplier over and over.

4.)  They know their products

They know more about their production line than the average promotional importer. Yes, they may not be experts, but they practically apply fundamental knowledge that a factory expects when dealing with an importer.

This importer works arm-in-arm with the factory on design, on calling out material specs and in reminding the factory what problems to keep an eye out for.

5.)  They’re experienced

A distributor who goes offshore for the first time will run in to obstacles.

Success in importing promotional items really comes over time.

This success comes with experience, the successful importer of branded merchandise rolls up their sleeves and doesn’t stop after the first try.

The experienced importer’s success isn’t tied to what the supplier did or didn’t do.

They’re solution-oriented even when the supplier didn’t take the best path.

In working with China, any importer deals with times when suppliers take an ill-advised step or makes an error.

Promotional product importers don’t fall to pieces but figure out a plans of action.

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Elksourcing：How to Get Lower MOQ from Chinese Suppliers?

Apr 6, 2021 , , by 露露

To test the market and limit the risks, for new projects, usually buyers will try to purchase a small QTY. However, Chinese suppliers will always require MOQ – usually it’s a QTY larger than importers are comfortable to start with.

So, how to get lower MOQ from Chinese suppliers?

The easiest way to get low MOQ is to buy the supplier’s existing design.

However, buyers taking this strategy will then face packaging as the key issue. There are three main choices:

1. Plain box: MOQ is low (around 100 pcs). The buyer uses a plain brown box at supplier’s same die cut, and put stickers with brand name, model, product description and barcodes on the box. Should be fine if products are sold online (Amazon, eBay, etc.), but unacceptable for retail.

2. Supplier’s non-branded packaging: MOQ usually is medium (around 500 pcs). Should be fine if products are sold online (Amazon, eBay, etc.) Sometimes it’s acceptable in retail, but many times it’s not acceptable as retail channel emphasizes more in brand recognitions and promotions.

3. Custom color box: MOQ is high (around 1,000 pcs). Consequently, the factory will set MOQ at 1,000 pcs.

Some factories, on the other hand, work with box suppliers that may do smaller runs but at a higher price. One company, for example, quoted $300 extra to accommodate the setup, ink injection, test run and other steps. Other suppliers will quote a higher per-box fee.

If the factory’s box supplier won’t do smaller runs, the buyer can find its own box factory, and have it print and deliver the boxes to the factory. If the buyer has lots of repeated business at the box factory, it is possible to get factory’s support to do small runs.

Then, factory will typically accept the smaller MOQ if boxes are provided by the buyer.

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Elksourcing：How to Use Customer Testimonials?

Apr 6, 2021 , by 露露

Using customer testimonials in your marketing efforts can be very effective. They help to build your reputation, credibility and sales. Don’t be afraid to ask your satisfied customers to give you a testimonial. Most will be happy to offer their opinions. Be sure to ask their permission to use the testimonials in your marketing campaign.

Be sure to use the more detailed testimonials. Generic lines such as “Your product is great” are not as effective as one such as:

“I’ve only been using your product for one week and already I have more energy than ever before!”

You want the testimonial to highlight the benefits of your products or services – the more detail the better!

You can also use small snippets from a long testimonial when appropriate. For example: When advertising a diet supplement, you could use a snippet such as “I lost over 50 pounds!”

Below are ten easy and effective ways to use your testimonials:

1) Use small snippets on your business cards. This is a great way to draw more attention to your card.

2) Use portions of the testimonials in your email signature. Everyone you send an email to will see these testimonials.

3) If you write and submit articles, use snippets in your resource box. This can increase the amount of clicks you get from your resource box.

4) If you publish a newsletter, have a section for feedback/testimonials. Add new testimonials each time you send one out.

5) Use them on your website. Have a Testimonials/Review page for complete testimonials and then sprinkle them throughout your website as well.

6) If you print out flyers or brochures be sure to add some of your most detailed and convincing testimonials.

7) Post them on your social media profiles such as Facebook, Twitter, LinkedIn, etc. Video testimonials are quite effective as well.

8) Use the most detailed benefit oriented lines in your sales copy. For example: when writing an ad use small snippets such as “I made over $100 my first week!”

9) When you sign up for message boards and forums, use them in your signatures. Most forums will allow you so many words for your signature.

10) Always use them in your email marketing campaigns. Testimonials can get more results than just about any kind of sales copy! If you have people selling for you, give them to your sales team to use as marketing tools as well.

Gathering and using testimonials is one of the easier yet more powerful ways to build your business and gain customers so be sure to ask for, gather and save all the testimonials you can. Comments made by actual customers will go much farther with your potential customers than any ad copy you can write!

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Elksourcing：Important Matters to Achieve Success in Selling

Apr 6, 2021 , by 露露

Those who cherish all-round success believe that success is a journey and not a destination. That is, if you are a very strongly-ambitious person, you must continue to set fresh goals for yourself to achieve success in other areas as soon as you have achieved success in one or some areas. Just like any journalist reporting can be called a “reporter” in some instances, irrespective of his or her official designation as an editor or otherwise, so can anybody that does one form of business or another be referred to as a “seller”.

So even if your job description is not officially that of a salesperson in your organization, you are indirectly a salesperson and need to learn the fundamentals of selling. That is why we are examining another critical area that you need to target success in this article.

1). Interpretation       

Selling is basically about persuasion. That is, the art of getting people to go along with your points of view, to see everything your own way. Persuasion is the ability to induce beliefs and values in other people by influencing their thoughts and actions through specific strategies. The ability to influence the behavior of another person or group has been a necessary element in human culture since the beginning of time. In short, the greatest changes in the course of humanity have all been guided by individuals with mastery in the persuasion process.

2). Power of persuasion      

The fact remains that whether or not you have had training in persuasive speaking, you are familiar with it and your happiness in your business engagements and success may largely depend on your persuasive skills. Paul Nelson and Judy Pearson, co-authors of “Confidence in Public Speaking” say whether you are selling a product, soliciting votes, marketing services, canvassing for donations, seeking a job or simply attempting to convince someone to believe as you do, you are engaging in persuasive speaking. The difference between an impotent conversationalist and the motivating communicator is the ability to persuade people to participate in win-win relationships. According to Dr. Kevin Hogan, author of “The Psychology of Persuasion”, the ability to communicate persuasively is a skill that can be used in all aspects of our personal or business life. As a salesperson, your sales will dramatically increase if you can master this art.

3). One important factor

One of the very important factors in persuasion is outcome-based thinking. Your state of mind is a very important thing to consider in the persuasion process. It is also very important to know the other person’s desired state of mind. When you determine this, you can persuade the person by showing him or her how to get there.

Whether you want to become a master persuader or simply a better communicator, it is important to take on the thinking process of a master persuader. Outcome-based thinking is simply about the ability to visualize the exact outcome of a process before beginning that process. It is like vision in goal-setting. It is the ability to set goals and keep them in mind all through the persuasion process. Obviously, outcome-based thinking can apply to much more than the persuasion process. It is very important because it is said that you must first succeed inside to be able to succeed outside or in real life.

4). Enthusiasm and motivation

To succeed as a salesperson, one important attribute you need to have is enthusiasm about your product. Every serious salesperson stresses enthusiasm as the most important asset in sales persuasion. You cannot be a top salesperson unless you genuinely believe in the value of your product or service and can enthusiastically convey that to your buyers. Beyond this, you need motivation.

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Elksourcing：Cheap Prices Mean Low Quality Products

Apr 6, 2021 , by 露露

Sourcing in China is the focus when western businessmen look for importing. The quest for ‘Cheap’ products seems to be a common one judging from the enquiries I receive, but I need to re-iterate:

CHEAP PRICES MEAN LOW QUALITY PRODUCTS.

A few days ago I received an email from an American importer asking if I knew of a manufacturer in China that could supply him with cheap USB sticks. I asked them for more information on specifications they required and they replied simply, “It doesn’t matter, as long as they are cheap”.

NO!

This is quite simply a recipe for disaster, and it is interesting that most people with this approach are new to importing. Most will not venture into importing again once if they receive their goods, which without doubt will be a pile of crap.

China is a manufacturing haven. You can pretty much order anything you want and you can be sure that there will be many suppliers providing exactly the same products, so you can go to an extent haggle over prices, but you must do it the right way.

The first question you should be asking a potential supplier is ‘can you provide this product to this specification?’ It even helps to add that you are looking for good quality. At this stage, price should be way down on your priority list.  

Margins in the main are tight in China. It is not unheard of for a manufacturer to be working on a 1-2% margin. However, as soon as you say you want a cheap product, one of two things will happen:  They will either dismiss you, advising you that they are not interested as in their eyes you are an obvious timewaster; or their eyes will light up. They will look at the product that you want for cheap, and strip whatever quality it may have had out of it, using the cheapest components, quickest manufacturing processes and absolutely zero quality control. They may however well end up making much more of a profit margin than they would have normally. Can you blame them?

Manufacturers need to make a decent profit to survive, and to invest in the next generation of product. Trends run like wildfire – As soon as a product looks to be ending its feasible life span, they will move on to the next product. The factory’s next door will probably be doing exactly the same thing, with the exact same product.

So, once your supplier advises they can supply the widget you are after, at your specification, that’s when you can start talking about price. Just be reasonable when coming to an agreement and bear in mind the margin the manufacturer is probably working to. At end of day, you get what you pay for.

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Elksourcing：Tips about Company Registration in China

Apr 5, 2021 , by 露露

To avoid being a victim of scams when sourcing from China, it is necessary to learn and verify the real identity of a Chinese company or an alleged Chinese company before entering into any transactions with such a company.

1. In Mainland China, all companies must register with the government and obtain relevant certificates and documents such as the business license before being permitted to do any legal business operations. Before entering into any contractor Purchase Order with a Chinese company, you should first request the Chinese company provide a copy of its business license, which should be written in Chinese and bear the Chinese name of the company and the name of its legal representative. In China, a company is only required to register a Chinese name as its legal company name and is not required to register any English name. Therefore, once any litigation happens, it is not possible to directly identify any company by its English name only. It is therefore very essential to have the Chinese name of the company by obtaining the business license of this Chinese company, and, if conditions permit, the foreign trader may entrust a Chinese lawyer to investigate the validity and credibility of a Chinese company based on the content on its business license (at the cost of approximately US$500-$1,000).

2. In Mainland China, the importance of the company seal is so high that many other countries cannot compare. The company seals must be filed with the public security organ. A document on which a company seal is affixed is deemed as a legal document approved by that company and generally will bind the company to undertake legal responsibilities for the content of such a document without the proof of any other evidence. In China, a person’s signature does not have a strong effect, and sometimes the signature of a director or even the legal representative of a company does not necessarily have a binding effect on the company without the company seal affixed. Therefore, you should first ensure that the contract or PO has both the Chinese name and English name of the Chinese company, and at the same time, the contract or PO bears the affixture of the company seal, together with the signature of the authorized representative. There are two types of company seals in China: the company seal of a domestic Chinese company is a circle, in which the Chinese name of the company and a five-pointed star co-exist, while the company seal of a foreign-invested Chinese company is an ellipse, in which the Chinese name of the company exists (in some cases, together with its English name), without any five-pointed star.

3. In Hong Kong, a company from the mainland of China is not permitted to open a general bank account with any Hong Kong bank. Therefore, if you discover on the contract or PO that a Chinese company provides a bank account at the HSBC in Hong Kong for the purpose of receiving payment, while its address is in the mainland of China, in most cases such a company is a Hong Kong company instead of a Chinese company (please note that some investors may set up a Hong Kong company and a Chinese company separately using the same English name, but these are still two different companies). In such a case, you must insist on obtaining the Chinese name and business license of the Chinese company, and make sure the company seal of the Chinese company is affixed to the contract/PO and that the Chinese name on the company seal is consistent with the name of the party concerned in the contract. If the above is provided, then the Hong Kong company will be considered as a party who receives payment on behalf of the Chinese company only, and all contractual obligations still rests with the Chinese company, therefore when any disputes arise, you may now sue the Chinese company in China.