MMI-Words You Should Know in Importation Business
Every field has language assigned to it. There are languages or choice of word for every profession. An Electrical field it is called resistance/impedance, while in medical field it might be called blockage(not very sure). None is left out, there is also the right words to use in importation business
One advantage of knowing the right words for your profession is that it smoothens communication. There is a blockage of electrical current and there is a resistance/impedance, which sound correct Electrically? while the two actually means the same thing, the later is correct as long as Electrical Engineering is concerned.
In business world, there are also terminologies or choice of words which blends and simplify communication between producer/supplier and buyer. Such terminologies(i.e words in importation business) is the area of concentration in this publish
E-store or E-market
Just like you have physical stores, so also we have stores/shops based on the internet. Although online stores has physical warehouse for inventory. To buy from an online store, you would need smart phone or laptop/desktop computer and an internet access. The good thing about e-store is that you can visit it from the crony of your room and tour around an e-market with inventory in China. Thanks to the internet, which can make you be everywhere from anywhere you are.
Just like there are wholesalers and retailers in any marketplace, so also there are wholesale online stores and retail online stores. Example of wholesale online stores are Alibaba.com, 1688.com while examples of retail onlie stores are Amazon.com, Jumia.com.ng, Konga
Minimum Order Quantity(MOQ)
Can you go to Dangote cement factory and buy only one bag of cement? Same also with wholesale online stores. Aside requesting for sample product, there is a minimum quantity you can buy, especially on a wholesale online stores, this varies from one soppier to the other.
Most online stores are programmed in such a fucntion, that if your input quantity is not upto the MOQ, you would not be able to order.
Buying from a local online store like Jumia, you would definitely not need a procurement agent. However, buying from an foreign online store based in another country different from yours, you might require a procurement agent.
Let us assume that you want to buy from China, and your location is Nigeria. You might need someone who would help you order, buy and pay the supplier(s) for the goods. If there are different suppliers, your procurement agent might need to repack the different goods from the different suppliers into one. This does not only reduce the cost of shipping but also reduces the risk of loosing your goods. For some suppliers in some e-stores that offer free shipping internationally, you might not need a procurement agent.
The procurement agent would not get off without a credit bank alert sponsored by you, you would pay him/her for services just like the way you pay land/house agent.
Agent fee varies depending in the agent, some charge by percentage of total cost of goods while some charge a fixed amount per link
Have you ever being to an house agent and he tells you to bring an amount of money before he shows you the house? Similarly, some agent would charge you commitment fee before looking into your order. If after, you did not buy, your payment would not be refunded.
Payment agent is someone that can help you pay. Taking for instant, you created a 1688 account, then order by yourself, you would need someone to help you pay the supplier. Payment agent would not charge you for paying, they are more like RMB sellers, taking 1688 as a case study.
You are conversant with the world address. In importation business, you would need an address too. An e-store like Aliexpress and Alibaba offers shipping to your country, you would need to give them a Nigeria address(if you are in Nigeria). The address this time would be that of a post office in your town in Nigeria.
What if the supplier or e-store does not offer shipping to your country. An e-store like Yiwu does not offer shipping outside China, same with 1688. So this mean, you have to provide a Chinese address to your supplier
When you buy from Jumia, they would bring to your city right? The movement involved in bringing the goods you bought is called Shipping. A body that offers this is called Shipping company. Example of international shipping company are Echan mall, Choice Logistics, Tugrow
Shipping method can be Air freight or sea freight, the former takes aroung 18days to arrive from China to Nigeria while the later takes around 60days. Shipping rate can be base actual weight or volumetric weight.
weight can be volumetric or actual weight. This means it can be in Cubic meter(CBM) or Kilogram(Kg). Air freight shipping rate(cost) is based on kilogram, while sea freight might base on cubic-meter(CBM) and atimes Kg
It is not only your goods they would ship to your country. Those Logistics company are there to make profit just like you. Consolidation means merging different goods together in box(or so) before shipping them.
Is there any other words or terminology in importation business, please publish in comment box and let us learn
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