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