So if you guys didn’t know, I was most out recently out in Vietnam on a trip to speak at a couple conferences out in Vietnam, shout-out to FBA Avengers group for hosting me out there.
But basically it’s funny how things come full circle and now, like I’m doing business in Vietnam to country where my parents are from – and you know this is my third time there ever their tongue, seeing my family in there ever and you know that’s a real humbling Experience to just experience, different cultures – and this would I love ions on I can work. Furthermore, I can live from anywhere in but anyways enough about me.
Let’s talk about you and how you can safely send money to Asia so when dealing with any suppliers, what you got to understand first of all, is payment terms, so when it comes to payment terms paying a supplier, what that means is how you pay a supplier. So payment terms, standard payment terms are normal, private business practices. Is you pay a 33 minute deposit right for to start the production or if it’s and then you pay the 70 % of remaining balance right after the production is complete, but before you ship it to Amazon? Okay, before it gets shipped to you, let’s break down on best practices on how to pay your deposit right, so pain deposit is different from paying seventy percent remaining balance.
So, if you’re working for a factory for the first time or you’re working with a new supplier, what you want to do the best practices to protect yourself is paid a third percent deposit with PayPal. Sometimes a supplier might say no. But if you really insist they should say yes, most suppliers will accept it right. So the way it works is you’re going to pay with paypal, foreigners deposit with a credit card through PayPal.
Why do I say that so, first of all, if you get screwed, we contact PayPal and you’re like hey PayPal, this fire did not get my goods Allah just beat happens. They give your money back. Paypal doesn’t give you your money back. Then you file a dispute with Reddit card company. When you find us people from credit card company, they always give you your money back generally, unless you always do charge back Stan, I don’t know, but so basically those two ways right PayPal and then your credit card Carmen you can do dispute in both of them To get your money back, okay and that’s how you pay your thirty percent deposit, but one thing you want to keep in mind is: if you paid your deposit with a paint pen with PayPal, a lot of suppliers will generally put to put the paypal fee on You so for them to receive money from PayPal they can pay anywhere.
I think that’s 140, like six percent, so it’s generally common for them to pass that on that expense to you by charging you an extra four six percent for your goods. So it’s totally normal, but for peace of mind and safety for you as a new seller or starting with a new supplier, is okay to pay this for six percent, just to get a story and build relationship right moving forward in the future. You can pay it by wire transfer or you can.
You know, ask to split the fee or, however, you arrange it with the supplier right. So that’s another pro tip see if we can split the feet with their supplier, be like hey. Can we split three percent? Three percent two percent two percent, However works right. So just talk and negotiate Chinese like haggling, they’re doing this in China, they’ve been doing any business in Asia in general, you got a high, that’s just how it works mix alright, so we got the deposit cover.
Now we got to worry about the 70 % so to 70 %. It’s a remaining balance aggregate right so because you put the deposit down, the production has started, duck should have started, production has started and then now production is complete. So this is when you paid 70 %, but but first thing you got to do is get an intersection, not alright. This is probably going to be a whole article about this, but just to kind of recap: a real, quick and in general, if you guys ever need access to an expression company that I use go ahead and check in it in the links below everything is always Attached in the crafting guide, if you guys haven’t heard about the crafting guide before highly recommend you guys access it access it, because it has, you know, access to all my front porch.
I use auto graphic designers that I use of the yeah Fred Flores graphic designers. Listening optimization people, I use any tools I use that are in my tool, kit, all the coupons for those tools, like you have everything inside that document. So I highly highly recommend it. You check it out. It has all my little poems and everything anyway segue back especially coming so you know make sure they do like a drop test.
You know make sure your item doesn’t break from three feet. Make sure the packaging looks correct, make sure you know, like you know, it’s printed the way you want it. An inspection company would check for all this, but you have to tell them to what to look for to also write, don’t check for your standard things. You have to tell them what to look for make sure there’s a thousand units there. If you order a thousand units, okay and then you know, you want to make sure to park on to write.
Fba labels on the outside of boxes right, make sure they palletized or product correctly, make sure to wrap is correct not depending on the way they do. It just make sure the paper works, correct and a lot of the certifications or in order and then they’re specially come really help you with that and agha listed trusted inspection companies that I have in comments check them out and they’ll help you guys out, but other Than that, what you guys also want to checked out for is yes, especially companies and then a seventy percent.
Okay, so once an especially company checks and we’re happy to go with everything, what we’re going to do is send a wire transfer wire transfer super normal standard business practice when sending money to suppliers in Asia. Definitely, if aspired tells you send money by like money, gram or like the one of those weird services that are a grocery store. Do not do that, send it by wire transfer deaths, normal business practice right, but wire transfer is when you send money from your bank.
Account to your suppliers, bank account – and you know so you just go into your local bank account. The first time you do is you’re probably have to do it in person, but make sure you ask them in the future to set you up for online wire transfers, because I’ll tell you right now. I personally hate going to my local there’s, always a wait. Time kind of smells people there aren’t like really happy, and I just rather personally not have to drive right.
I mean that’s why we’re in this business because we can work from anywhere. So if you want to work from anywhere, I definitely could detach yourself from physically going to bake and setup wire online wire transfers. Right put it right, there you’re going to go into Bank and then you’re going to have to make sure you have to get audit information from your supplier right. So you’re going to need, like the Swift, co-captain number, their name, the address bank’s address and then description of the goods and then amount.
That’s he send right and then you got ta make sure if it’s you’re sending money and USD or some other currencies like Hong Kong dollars or in B, whatever it is okay and then so you go to bank fill out the paperwork, and please please PLEASE thought: Can work correctly because when I look up the paperwork so I’ll tell you a story about this past quarter, three right right! So right before quarter, four I sent money.
I went to the bank because I was sending 100 grand to one of my suppliers and and normally I don’t send that much all right. But I was q4 and I had a big shipment incentives, one supplier and decide that were like a lot of inventory. So normally I do it online, but you know for security reasons. They made me come in person to send an amount that high. So I went to the bank went into the bank and then gave him all my paperwork, and then you know how the names are in like Chinese or anything.
So nothing really looks familiar. I can’t just really read it and know if there’s a typo after that, so you got ta check each individual letter. So I didn’t double-check and triple-check the guy that in put in my information and that’s my phone right, not blaming anyone else. It’s your father! You double-check and triple-check it and he accidentally well. I then catch him mixing an I and a like that was so.
It was basically one type of difference: okay and then in the soap made me have a hundred grand that was missing in limbo. Okay, my honey Graham, was in limbo for like three four weeks and I was stressed out scared, but I’m optimistic person. I knew everything will work out and everything worked out like it always does. Thank God. So that worked, and but I had to do – is I had to get a man. Do a lot of paperwork, cochran care, they’re, being contact, my bank and then next thing.
You know the money came back into my account. Thank God had to pay another wire transfer. Your cent of money again and wire transfer for you get the money back, but it’s better than you losing on a grant right. So please please, if there’s anything you take away from this article is double triple quadruple: check the wire transfer, math Peggy sent to Asia to make sure you don’t add extra zero make sure you know the type there’s no typos, but in general, if you’re, sending from A US company wire transfer fees can be anywhere from like twenty five to forty five dollars, my fees or forty five dollars.
So we pay four to five dollars. Pretty normal Magette. You shouldn’t be higher than forty five dollars if it’s all or it’s like, usually because you have like a special checking in town or a business account or you know you just get hooked up somehow and I don’t get to hook up. So if you guys have no hook up for less water transfer fees amounts, then let me know, but yeah, that’s how you send their money right, so PayPal right for the thirty percent and then wire transfers for that seventy percent remaining alright and that’s how the safest Way to do it and, like I said, do not send that seventy percent rebalance into you 100 percent sure and get or like how you want it and they’re on a way to Amazon.
What are things that I want to? Let you know so there’s four out of ways that people will send money to that are like Carmen, but not as common to so let me explain those to you, so you guys are aware of them and you guys can move on TVs. There are like more advanced tricks for like organic seller, for what you’re sending like a little bit more money, the first one is it familiar, but so olive love would try to start the work first and then paying you alright.
So all the Obama trades are turned into. Basically I wouldn’t say this is advanced, but it’s more beginner. Actually most suppliers generally don’t like using this because then all the politics of P versus maybe Papa, but all you Baba trainers charge is pretty nice. It’s a good way to get started with working with any supplier. I would generally keep using it if the supplier like that offers it, but both suppliers, I found, go off earnest and I’ve only used it once personally.
The way it works is with all the bobbin traders. Friends, is you wired money to Alibaba and then Holly Bodwell is your environment to them once you’re happy with it once we’re happy to for good to know me. So, that’s all it’s all about try to turn to it. Obviously you protect from money and, of course all about trade shirts is like very reputable company like you can trust them like you should be fine with them.
Alibaba was like one of the biggest companies in China. Alibaba could be, could be this company like this. Anything like I don’t know if they’re crazy, but you probably use all your fault lines, a search engine so you’re familiar with all the bla bla, but there’s other ones. You may not have heard of our bean war first and then Payoneer so depending if your supplier has account setup with them, then you can send money into them through these services and it minimal fees right, especially if you’re sending the same currency right so USD to Usd so it generally works better for, like my viewers that are like you guys are American, because we usually send USD USD on a time and usually people and trying to always want to USD.
But if we’re using those other services and you’re sending money from like, say British pounds to USD or USD to R & B or USD to like Hong Kong dollars or something like that, then there’s going to be beats on top of the money in your setting And it may not be Orphic, so those three companies like word first Payoneer and B, make their money on conversion rates right whenever money is converted between different dollars.
So that’s where those company is making light, but for sending generally like the same amount, a same currency, then you’re going to be good to go and the peas are going to be on that be very, very minimal. So I’m talking about is I you want to check out theme like I know like Nick and Fernando are really big fans of using the they went from like Spain, like $ 5,000 in wire transfers, bees every single month to basically almost nothing because they’re using being Write to a couple hundred dollars, because the peas are so small because they’re not doing conversions right and using like theme and painting here or refers to pop by the way.
I know what paid in here, at least you can use it to pay like your VA is too you can send it to them that way, and it’s easier to send money through there and then PayPal, sometimes cousin of these, that they attacks on so keep that In mind to pulling over like little for Vaz or not, but just to recap everything that we just hope this explain to you all right: 30 % deposit, it’s going to be PayPal, 70 percent, there’s going to be wire, transfer all right cool.
So if you guys both said that before I said that, then you guys are going to go and that’s the best practices, but like always, if you guys have any questions, feel free to leave in the comments below you guys enjoyed this article. Please please please, please give me a thumbs up right and please subscribe to the YouTube blog lets me know that i’m doing things right and – and it makes me want to make more articles alright.
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