|
I can just source it over the Internet!
With the advent of global sourcing sites like Alibaba.com and Chinavasion.com it is now possible to sit in your office or home, type a few words into a search box on your computer and become an instant “expert” on global sourcing. In some cases, you can even order product using your credit card. You can choose from hundreds of variations of colors, sizes, etc. Some factories or suppliers are even “vetted” by the website host as “gold” or “preferred” vendors; vendors who the website assures you are “solid suppliers”. On some websites, you can even blog with the factory online or speak with them directly over Skype. With such great resources at your disposal, global sourcing certainly doesn’t seem that complicated.
In reality, there are some cases where internet sourcing may be the right choice for your needs. Here’s an example. You are an internet seller and you only want to order small amounts of product at a time. You can afford to potentially get a shipment with questionable quality or one that may be late from time to time. In a situation like that, internet sourcing could possibly be viable. Or if you are simply looking to see what is available, internet sourcing is a simple and usually mildly effective method. But for larger purchases, complicated products or entire product lines, these sites rarely provide more than just a source for some level of research.
Here are some things to keep in mind while you are surfing the global sourcing sites:
· WHERE IS ALL THE NEW STUFF?
o If it’s a new product or something different that you’re looking for, you won’t find it with these websites. Why? Because quite simply, the competitive factories all troll these sites too. They are looking for ideas for products that they can make, just the same as you are looking for products that you can buy. It’s a great resource for people looking to “knock off” their competition. The chances of finding a gem in the rough on an online sourcing site are pretty slim. If you find a “new” product out there, it won’t be “new” for long. If you happen to find a proprietary product out there, we can pretty much assure you that the factory isn’t legally authorized to show it there.
· WHO REALLY MAKES THIS THING?
o We dare you to tell by simply using a sourcing site if the factory that is represented really makes the product that you are searching for. Don’t believe us? Try going to one of these sites and typing in something simple, like MP3 player for example. You’ll see hundreds if not thousands of “factories” with items that look identical. Why? Because in China in particular there are (at least) three kinds of factories:
§ The REAL THING - These factories really “make” something from start to finish. If you are lucky enough to find this factory, congratulations! It is probably the one you are really looking for. They import or purchase raw materials and assemblies and in some major fashion actually “make” the product that you are looking at. Just a word of caution however. Be careful of the factory photos you see on sourcing and other websites – sometimes these are just nice photos of buildings that have nothing to do with the factory you are talking to. Something else to keep in mind too. The best factories often don’t even advertise or subscribe to the sourcing services, because they don’t need to. They have plenty of customers and business without them.
§ The REAL THING – SORT OF – These factories often do actually “make” things – but in a different sense. They often just purchase components and sub-assemblies from other suppliers and then assemble them in a very limited way in a very limited assembly environment. These factories may be nothing more than an assembly house, but they actually crank out a finished product. They then often sell it direct to the customer and usually through other factories and agents as well. There is a saying about Chinese factories that goes something like, “If you don’t make it, just fake it”. Be careful here, because it may be really difficult to tell where the product you are buying actually comes from.
§ IT MAY HAVE BEEN REAL AT ONE POINT – While the Chinese government has done some work at cracking down on the grey market, the black market and many other different color markets as well, there are still overstocks, back-alley transactions and all sorts of deals that quite frankly you don’t want to know about or be involved in. If you can’t conclusively prove through your research that the product you are looking for came from the original factory, which IS authorized to make it, then you should simply move on. Remember the old, wise saying, “If it seems too good to be true, then…”
· WHAT HAPPENS IF THERE IS A PROBLEM?
o Have you ever noticed how difficult it can be to try and get a customer service person on the phone when you are having a problem with a product or service? Do you get frustrated when you call a domestic company and someone with a foreign accent answers the phone, barely speaking passable English and is trying to help you? Then imagine how difficult it will be if you encounter a problem with a product or a shipment through an internet sourcing site. Most of them post a warning that states something like the following somewhere on their site.
XXX acts only as a service provider and is not part of any financial transactions between buyers and sellers. While we always try to do our best to resolve any dispute, XXX cannot guarantee that any dispute will be settled nor can we guarantee that the results of any settlement will be satisfactory.
Be certain you know what the dispute resolution policy is before you make any commitments. Remember, you rarely get the protection of the U.S. court system offshore, a.k.a. “buyer beware”.
· THE SUPPLIER WILL KNOW HOW TO GET THE GOODS TO ME, RIGHT?
o There’s really no good way to say this other than, think again. Remember that if the product you are sourcing comes from outside the U.S., then you are importing. There are a myriad of laws and regulations that need to be followed for the importation of goods into the country, not to mention trying to navigate the air or ocean freight labyrinth. Keep one thing in mind, make a mistake here, and you can potentially be paying huge fines, or worse.
© Keystone Sourcing 2009. All Rights Reserved.
Need professional help with your global sourcing? Call or email the pros at Keystone Sourcing or visit us on the web at www.keystonesourcing.com.
|
