| An online sourcing directory is the 21st | | | | at least one container of product. Others are |
| century entrepreneurs best friend. It is a | | | | happy with smaller orders. Contact multiple |
| resource that eliminates the need for a | | | | factories simultaneously, so you can connect |
| middleman from your supply chain. Businesses | | | | with the right one faster. |
| can connect with manufacturers through | | | | |
| sourcing directories. My favorite directory | | | | FOB (Free On Board) - FOB price means, the |
| is Alibaba, an English language sourcing | | | | buyer pays for freight to the port of |
| directory. It specializes in | | | | shipment, plus loading costs. Expect to pay |
| business-to-business trades, especially for | | | | for freight, insurance, unloading costs and |
| international buyers trying to make contact | | | | transportation from the factory to the port |
| with Chinese sellers. | | | | of origin to port of destination to your |
| | | | location. If you are quoted FOB Ningbo |
| Alibaba offers a search able database of | | | | (Ningbo is a large port located in China.) |
| manufacturers of almost any product you can | | | | $5000 for 500 units of product, you have to |
| imagine. It is a free resource for buyers | | | | consider the additional ocean freight |
| from over 200 countries and territories. They | | | | charges. |
| claim to be the number one destination for | | | | |
| businesses to find volume buyers and | | | | CIF (Cost, Insurance, Freight) - CIF, unlike |
| suppliers from around the world. Think of | | | | FOB, includes freight and insurance charges. |
| Alibaba as the great connector of | | | | If you have no experience importing, CIF |
| manufacturers and corporate buyers. | | | | might be a better option than FOB. The price |
| | | | per unit will be higher with this option than |
| Steps To Use Alibaba | | | | with the FOB option, but it requires less |
| | | | work on your part. If you want to see the |
| 1. Create a free account for your business. | | | | difference between FOB and CIF price, be sure |
| | | | to ask for both in your inquiry. |
| 2. Search for your product of interest. | | | | |
| Expect to find many companies as Alibaba has | | | | Dim Weight (Dimensional Weight) - If you |
| a huge database. | | | | choose the FOB option, you will need hire a |
| | | | forwarder for your order. Note: A forwarder |
| 3. Contact the factory. Full contact | | | | is a fancy word for a shipping company. |
| information including phone number, address, | | | | Forwarders ask for port of origin, port of |
| website, and e-mail address is available. | | | | destination, and dimensional weight. |
| | | | |
| You should be familiar with some of the most | | | | BOL or B/L (Bill of Lading) A document |
| common sourcing terminology for contacting | | | | issued by the shipping company, acknowledging |
| factories. | | | | that the shipment has been received on board |
| | | | as cargo for transport to a named place, |
| MOQ (Minimum Order Quantity) - As you contact | | | | usually a port of destination, for delivery |
| a manufacturer, ask about their MOQ. Some | | | | to the consignee whom is the business buying |
| factories are only interested in selling you | | | | the product. |