What’s new on ImportDojo?

Hey guys,

It’s been a few weeks since my last post and this is due to a holiday I took in Europe. Currently I am sitting in Budapest, Hungary writing this up. It’ll be another week until I am back in Hong Kong but I thought I’d give you a brief update on what I was up to.

Ecommercebutlers

I’ve launched a new page a few weeks ago called eCommercebutlers.com

The goal of this site is to help people build brands online. We’ll be regularly posting free content to help you build your eCommerce brand.

I’ve also moved the Sourcing Operation of ImportDojo to this site. So if you need help sourcing from professionals please check it out. As many of you know I’ve had a sourcing operation for quite a while now in Hong Kong which helps people find manufactures in China as well as handle the whole order follow up with factories for many eCommerce sellers.

Junglescout Million Dollar Case Study

Last week I was in a webinar with Greg Mercer & Kym from Junglescout to help with their Million Dollar Case Study. Currently they are in a supplier outreach phase and asked me for help and giving directions when sourcing in China. It was a little over an hour and we had a great chat.  If you are curios how I choose suppliers and what background checks I do before placing an order you can check out the whole webinar here:

The Million Dollar Case Study: Europe – Session #4: Find A Manufacturer In China

 

This also made me think of a few things in terms of supplier communications so I wanted to write up a few more notes and this brings me to today’s blog post:

Why Chinese suppliers never (or only partly) answer questions I asked? 

I’d like to give you a bit of an overview why Chinese suppliers don’t or might not reply to questions. 

1) Unprofessional inquiry

Since I am also a supplier based in Hong Kong I get inquiries from overseas clients on my products sometimes. You wouldn’t believe the level of un-professionalism I get sometimes.

Here’s an email from a inquriy I received a couple months back:

“Hi,

Please quote your products.

thank you”

And thats it. There is no name, no introduction, no details to which products are to be quoted, no quantity no final market etc. 

I usually delete these emails right away simply because I feel the buyer isn’t serious enough to buy from me. If he is, he would put in more time to send me a professional introduction what he does, what he intends to buy from me, what certification he might need, the market he is selling to and other details. Just as I, no supplier will take you serious with this kind of inquiry. 

Here’s how an email could look like:

Hi …,

My name is ….. and I am the ….(Manager/President/Buyer etc.) of …. Limited/Inc.

We are a (fill in your company’s business, e.g., Importer/Buying Office/Whole seller/Online shop) and are operating in (fill in your

country). You can also check out our website under: www. …..

I am writing to you today to inquire about the product I saw on your website/catalogue/exhibition.

The model number is….

Could you please give me the following information: (You can fill in the details in the attached quotation format or send me your quotation in the first step.)

Unit price based on …. Pieces

Minimum Order Quantity

Available certification (CE, RoHS, FCC, GS, etc.)

Production lead time

Available colors

Payment terms

I would then evaluate and get back to you as soon as possible.

If you have any questions please don’t hesitate to contact me.

Thanks and best regards,

 In 95% of all cases you should get a more serious reply from a supplier. 

2) Unstructured inquiry

Some buyers don’t structure their initial inquiry well. Or they put important questions at the end of an email which can be easily overseen.

As an example looking at above email inquiry:

….Payment terms

I would then evaluate and get back to you as soon as possible.

If you have any questions please don’t hesitate to contact me.

Thanks and best regards,

Oh, also we need to know what is the colors you can provide? 

The last sentence can be easily missed. So make sure that your inquiry has either bullet points, numbered paragraphs or other forms of structure. 

If you want you can also make important points BOLD. 

3) Too much work from other customers – ask again and again until you receive answers. 

Sometimes suppliers are simply overworked. I’m sure you’ve seen it, they even reply emails and work on Saturdays and Sundays. 

Usually 1 sales representative had 20 or more customers that he he/she needs to handle at the same time. And just like in any business they prioritize bigger customers first. 

Keep in mind that “we” Amazon/eCommerce sellers are mostly small fish if we order 500 or 1,000 units. Most retailers or wholesalers order 5,000 units upwards. 

You can imagine who gets priority. So suppliers tend to pay less attention to us smaller buyers and generally oversee some parts of your questions. 

4) Low potential client

supplier doesnt really care if you place an order and will treat your business with little seriousness. 

5) Supplier simply isn’t interested in your business – walk away

Chinese are very afraid of loosing face. So instead of telling you that they aren’t interested in your business they treat you with very little priority. 

Sometimes they don’t need any additional business at all. Maybe because they have too many clients or as previously mentioned don’t see your potential as compared to the workload.

Imagine you are a supplier and you have several clients who place orders every month more than 50,000USD. Easy work, setup processes with the existing clients and not much work. Then you have a client who has x amount of modifications, high standards and very little purchase order quantity. 

One could argue that you could become such a client if the supplier puts more effort in your first orders and your orders will grow in time. However these days factories have a lot of pressure filling production. Rising raw material prices, labour costs and expensive machinery to automate manufacturing. So obvioulsy you’ll go for clients who are easy, place larger orders, make you more profits and can fill your production capacity. 

Generally there’s to say that many new Amazon sellers have the impression that the factories are waiting for their orders and welcome every client with open arms. That is not the case. 

In our business to stay ahead of the competition you need to be unique, set yourself apart from the competition and most likely you don’t want to risk too much capital with new products. 

That also means that on top of our high requirements towards factories we don’t give them “big” business in the beginning. 

Key to a great supplier realtionship is to communicate your needs in the beginning and weed out those suppliers who aren’t really interested in your business or only reply half of your questions.

Imagine how difficult it will be down the road if you are having problems before even placing an order. Move on to the next supplier. 

Having said all that, there are great suppliers out there and even if I sometimes don’t get all my questions answered I can generally say most suppliers are willing to cooperate on many levels and ARE interested in my business. 

Don’t try to squeeze out every cent in your negotiation because what is it worth if you get a cheap price but poor quality and a supplier who’ll dissapear if you have problems. 

Treat your suppliers with respect – I’ve had great success with my strategy when building relationships with my suppliers. Live and let live. 

That’s it for today. Let me know if you have any questions. Simply comment below 

All the best and happy sourcing,

Manuel

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