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Posted on 8th December 2007 at 11:33:00 |
Mr. O. P. Gupta
Proprietor
OPG-INDIA
Delhi, India
Free Member
Joined :09/24/2004
No of Topics Posted : 1
Reply/Comments : 3
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TOPIC : How to make exports to small business segment in USA?
I am an exporter of beads, jewelry & handicrafts. I am approached by several buyers from small business segment in USA through my Shopping Cart and also direct through e-mail. They wish to place small orders.
My problem is that my bank charges Rs. 650 for each incoming foreign remittance; FedEx charges Rs.1000 for each shipping bill; and bank charges Rs. 1000 when I submit post shipment documents like shipping bill and AWB as proof of having exported against advance received from the buyer. These expenses are beyond the Shipping cost.
Suppose I can offer a product for USD 3 to the intending buyer. Suppose the buyer wants to buy 15 pcs. So, cost would be USD 45.00 only. But I have to add the above expenses i.e. Rs. 1650.00 for Bank charges + Rs. 1000 towards Shipping Bill for raising commercial invoice besides courier charges of at least Rs. 750.
It comes to USD 70 for Bank Charges and Shipping Bill and USD 20 for courier charges.The buyer is always found ready to pay USD 45.00 towards cost and USD 20 towards courier charges. But he/she shrug off as soon as he/she is told about to pay USD 70 also for Bank and Shipping Bill charges, an amount which is more than cost + shipping.
I shall be grateful if any one can suggest me a way out for this problem or how to sell to small business segment through Shopping Cart.
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| Author |
Posted on 11th December 2007 at 07:04:00 [Message #955
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Mr. Dong Zhang
Sales Manager
Jing Country Asbestos Rubber Sheets Factory
Hengshui, China
Free Member
Joined :10/12/2006
No of Topics Posted : 0
Reply/Comments : 18
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Re: How to make exports to small business segment in USA?
from your information,i know your products are light products and the order is very small.So i think you'd better tell buyers your difficult situation,and you could increase your price or ask your buyer to pay freight and other charges.Hope your buyer give you a big order.good luck.
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Mr. Vijay Shanker
Proprietor
SHANKER INTERNATIONAL
Delhi, India
Paid Member
Joined :07/17/2004
No of Topics Posted : 0
Reply/Comments : 20
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Re: Re: How to make exports to small business segment in USA?
You will have to treat your expenses to the cost of your items. Since your items are low value items, better you calculate the minimum optimum qty order to minimize these miscellaneous costs like bank charges etc. as much as possible. For that you may have to go for minimum qty order of say 100 pieces per design or like that. You can also suggest your buyers to place order for minimum of say US $500 or above irrespective of designs or quantities. This might help you to meet the misc. costs mainly the bank charges. Keep freight costs separate.
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Mr. O. P. Gupta
Proprietor
OPG-INDIA
Delhi, India
Free Member
Joined :09/24/2004
No of Topics Posted : 1
Reply/Comments : 3
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Re: Re: Re: How to make exports to small business segment in USA?
Thank you very much Mr. Vijay Shanker for your suggestions. But most of the buyers do not want to go beyond usd 100. However, I will try method suggestion by you. O.P.Gupta from OPG-India
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Mr. Shalish C. Gajjar
CEO
Varsha Exports
Vadodara, India
Free Member
Joined :08/23/2006
No of Topics Posted : 1
Reply/Comments : 12
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Re: Re: Re: Re: How to make exports to small business segment in USA?
Your kind of business is very common in USA. Mail- Order or Drop- Ship. The bank charges quoted by you is significant high, please check with your bankers. Re-check your costing also for dispatch of goods. This is also too high quoted by you. I am aware of many companies in India doing such business on part-time basis offering unique handicraft products, chunky jwellry, leather goods accepting orders in small quantities with payment through Paypal, etc.,
Other way, appoint an agent in USA send the goods to him in bulk and once order received, provide him with Dispatch details to forward the ordered goods. This will save your good amount in logistics.
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Mr Alhou Kesiezie Angami
proprietor
Oriental Trade Agency
Kohima, India
Free Member
Joined :03/20/2007
No of Topics Posted : 0
Reply/Comments : 1
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Re: Re: Re: Re: How to make exports to small business segment in USA?
Check ebay auctions you can learn some relative ideas how they charged the price of the product and the courier. If you are interest in precious stones(from Burma) mail me at my email.
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Mr. O. P. Gupta
Proprietor
OPG-INDIA
Delhi, India
Free Member
Joined :09/24/2004
No of Topics Posted : 1
Reply/Comments : 3
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Re: Re: Re: Re: Re: How to make exports to small business segment in USA?
Thanks for your advice. Please send me an email for further discussion.
Regards
O.P.GUPTA
OPG-INDIA
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| Author |
Posted on 10th March 2008 at 13:18:00 [Message #1140
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Re: How to make exports to small business segment in USA?
Why are you not insisting buyer to give more order.
You clearly explain about bank charges that's why you give us a big order.
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| Author |
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Mr. O. P. Gupta
Proprietor
OPG-INDIA
Delhi, India
Free Member
Joined :09/24/2004
No of Topics Posted : 1
Reply/Comments : 3
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Re: Re: How to make exports to small business segment in USA?
Thanks for responding. But the buyers from this segment can not place big orders. That is why they are called belonging to small business segment.
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