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