#8 Amazon Sourcing From China 3/4
This is Episode #8. It is also part 3/4 of the episodes focussing step by step on Amazon Sourcing From China. AND It is also part 6 of the “Amazing FBA Startup System”!
alibaba.com “assessed” not “verified” supplier (It’s correct in the show notes)
DDU Delivered Duty Unpaid doesn’t really exist.But some suppliers use the term. The correct term is DAP – Delivered At Place. This means you are paying the supplier to freight products from Factory gates to your chosen place (in our case probably a warehouse in the USA). It just doesn’t include Duty or other customs costs.
Supplier themselves – IFE – Initial Factory Evaluation
Product Quality Control
Pre-Production (processes, equipment, raw materials)
During Production Inspection (DPI) — Catch issues as early as possible and point them to the manufacturer. And take samples at random for laboratory tests, in case you need to comply with strict regulatory standards.
*Final Random Inspection (FRI)* — Confirm the average quality of a product batch, a few days before the goods are shipped out. The audit is based on a statistically valid sample. It is the most common type of inspection.
Pre-Shipment Inspection (PSI) = pretty much the same thing, but should include notes on and photographs of outer cases, which is useful to monitor as they protect the inner cases ie products in their individual packaging. THIS IS THE ONE I HIGHLY RECOMMEND GETTING
Packing & Loading Supervision (PLS) — Record the quantity and check the packing method. And supervise the loading method.
AQL – Acceptable Quality Limit – Renaud does an excellent job of explaining this in detail here at QualityInspection.org.
I strongly recommend you read that whole webpage and digest it. It’s very important to be clear in your own mind about this so you can be equally clear with your Chinese Supplier.
He also runs or is part of a business that does inspection and testing in China called Sofeast.com. I have not yet used his business but I am in talks with him about a new shipment so I’ll let you know if I use it, how it is.
defect rates <1%=AQL I
Amazon defect limits are also set <1% and their definition of defects includes Customer returns as well as any defective units they find in their warehouse. So Amazon is (as usual) very stringent in their quality requirements.
However, usual consumer goods level = AQL II, ie <2.5% major defect rate. This is not good enough for Amazon- don’t accept it!
Chinese supplier mentality re QC – higher level of quality =higher costs to them so higher to you.
If they refuse inspection/testing, walk away!
Make payment of final balance dependent on passing QC. And make this clear in all final communications (Skype chat, email etc.) and put it in the Purchase Order!
Fraud prevention – escrow
Ease/Speed & some protection – Paypal
Most liked by suppliers – T/T Bank or Exchange experts
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