Importing with a Sourcing Company

What are your options if you want to sell inventory online? You could try to use a wholesaler, but if you do, expect to pay thousands upfront since the items must be purchased in bulk. Another option involves drop shipping. This is when a company only charges for a product when there is a need for it. They take care of shipping and handling. Dropshippers are extremely convenient, yet they don't allow for much of a profit margin. That only leaves one other alternative... importing.

That's right... even individuals can use importing to help fuel inventory for their business. Thanks to online sourcing companies, you don't have to be an established business to sell imported products. You also do not need to worry about business connections in other countries, since the sourcing company will take care of all those things for you.

Your best chance of finding a sourcing company is to simply go online and search ‘sourcing companies" You will get a lot of responses. What you want to look for are companies that have representation in the country that you are looking to do business with. Now these companies are not sitting on inventory or products that you can buy. They work with companies that can go and make these items for you. What they will ask for is a working diagram, some specifics and as much information as you can supply for a part or product. They will then and go ask companies that they do business and get you a price for that product. If you agree, they connect you with the supplier after they get their fee. (Of course) This works very well if you do not want to buy a premade product or if you want to design a product from scratch.

Sourcing companies generally employ nationals from that country who can go in and represent the sourcing companies. This is really the way that you want to go since in some countries this can be a tremendous advantage for you. There are many levels of pricing for overseas customers and you are not going to get the best rate right from the beginning of your new relationship.

Sourcing companies are all different, so check the options that each provide. Some offer extra shipping services and some even offer financing. I prefer to let shipping companies do the shipping and my bank do the financing. It just seems to make sense to let companies that specialize in a service to do those services.

So, what countries do sourcing companies use for the importing process? Well, really any country on the globe can be used for importing products. However, the most popular tends to be China. The reason this is the case is because China can import products at very low prices, since much of the country is still undergoing a developing economy. For them making importing cheap doesn't cause them to lose money, since the U.S. dollar would be worth more than their native currency.

Another reason China is preferred by sourcing companies for importing is because the products they export are very innovative. Companies can have access to more expensive merchandise at phenomenal prices. Examples of such products include electronics, jewelry and automotive tools.

This technique is a good one but I would not recommend it for someone who is importing for the first time. If you can find a national to represent your company, you can save significant amounts of money on your shipment. The key is finding that person and that person will represent your interests and no one else. So how do you find this person? Word of mouth is generally best, if you have any networking skills, asking around is a great way to find this person. Taking out an ad is another good way to find someone. I would stick with ads in the major port cities where you shipment comes in. I would also develop a relationship with this person as much as possible before sending them overseas to represent your company. Get to know them and make them learn your product line as well. A lot of times nationals have family in those countries, so if you fly them there to represent you, it would be good for you to make it worth their while by giving them so perks while they are there. This technique has worked well in the past.

The only downside to importing products with a sourcing company is the capital. If you don't have the capital upfront and your credit is too bad to qualify for financing, you're going to have to find alternative ways to pay or consider other options, such as going on E-Bay. On that site many foreign suppliers sell their wares at prices even cheaper than what is available through a sourcing company. Of course, many wouldn't consider buying a wholesale lot ‘importing'. But semantics doesn't really matter. What matters is if you can get your hands on inventory at a price you can afford. Just keep in mind if you utilize this option, you do not have the type of ‘guarantees' that you have with a sourcing company that the product is going to be legitimate. You also may be limited in how much inventory you can buy.