Hello everyone.
Its came to my attention over the last few months or so that there should be a guide to cover very most basics if thinking of trading on the marketplace or wholesale in general especially if you are potential buyers.
Below is quick guide to the basics which will hopefully help the newbies out there. There is many more meanings and abbreviations to look out for but if in doubt feel free to post here and ill update the list.
MOQ - This is the abbreviation given to Minimum Order Quantity. When a supplier/advertiser states their MOQ it generally means the minimum amount of units you must order from them to qualify for the goods/services advertised.
Brokered Stock - If a supplier/advertiser states their stock is brokered it means they do not have the stock with them. It usually means the stock will be sent direct from their supplier or sent to them then onto you. The benefits of brokered stock to an advertiser is obviously the fact that they do not have to buy the goods before selling. While many many brokered deals go through smoothly every day be sure to check you feel confident in the advertiser your dealing.
Physical Stock - The opposite of brokered stock. If a supplier states their stock is physical it means they actually have the stock with them and its ready to be sent out once purchased.
Dropshipping - This method of trading is becoming more and more popular by the day. If you choose to use a dropshipper it basically means you can advertise their products then once a product is sold you pay the dropshipper and they send direct to your customer. This has some excellent benefits in the way that it means you do not need to hold any stock so there is no need for allot of capital if just starting out. However if you do choose this route you must be sure you trust in their service and quality as that dropshipper will be representing you and your company so it may be a good idea to order a sample to a friend or even to yourself to see the goods first hand and get an idea of the dropshippers services. Another tip to look out for is check the dropshipper provides Blind Dropshipping. The chances are most will but always best to check as it means the customer will receive the product with no reference to the dropshipper at all giving the feeling the product is straight from yourself.
Buyer Liabilities - Sometimes when you purchase of a seller there may be certain liabilities you will need to account for. This is defiantly something you should keep an eye out for or ask if your not sure as this is the area where extra costs may occur. Extra costs may include VAT and Custom charges so always ask if not sure especially if its a brokered deal.
VAT - Its pretty obvious but a liability you need to check. When ordering from overseas it is possible VAT (Value Added Tax) may be added to your order. The current rate for the UK is 15%. I have seen many buyers complain typically on Ebay when they received their order and had to pay an extra lump on top where they simply didn't read the advert properly. Hence why i stress to look out for Buyer Liabilities.
T/T - Telegraphic transfer - This is a payment method that can be used when paying a supplier. It usually refers to the exchange of money from your own bank into the suppliers bank. Generally speaking this isn't ideal if your first starting out as their is a million scammers out there and once a T/T is sent it cannot be reversed. Your protection is very low , next to nothing however this is the usually the obvious choice for the exchange of large amounts of money between traders who have established a good working relationship.
L/C - Letter of Credit - This is a document that is written up between both parties , the seller and the buyer. It basically tells the seller the amount of money needed for the purchase of goods etc is available and will be transfered once certain requirements are met from the buyer i.e Goods are shipped and checked and the buyer is happy then the money will be released the to the seller. This is a great choice if we are talking allot of money being involved and your importing.
EXW - Ex Works - This is a term used mainly when goods are being imported. It means the seller will basically make the goods available at his place of work and the buyer will have to pay for the goods to be shipped to their address.
FCA - Free Carrier - If you see a seller selling goods using this term it means that they will basically get the goods exported. Once imported you will need to continue their mode of transportation to your desired place.
This is just the start in Lehman terms. To allot of us here its first nature but everyone has to start somewhere.
Regards Sam
Its came to my attention over the last few months or so that there should be a guide to cover very most basics if thinking of trading on the marketplace or wholesale in general especially if you are potential buyers.
Below is quick guide to the basics which will hopefully help the newbies out there. There is many more meanings and abbreviations to look out for but if in doubt feel free to post here and ill update the list.
MOQ - This is the abbreviation given to Minimum Order Quantity. When a supplier/advertiser states their MOQ it generally means the minimum amount of units you must order from them to qualify for the goods/services advertised.
Brokered Stock - If a supplier/advertiser states their stock is brokered it means they do not have the stock with them. It usually means the stock will be sent direct from their supplier or sent to them then onto you. The benefits of brokered stock to an advertiser is obviously the fact that they do not have to buy the goods before selling. While many many brokered deals go through smoothly every day be sure to check you feel confident in the advertiser your dealing.
Physical Stock - The opposite of brokered stock. If a supplier states their stock is physical it means they actually have the stock with them and its ready to be sent out once purchased.
Dropshipping - This method of trading is becoming more and more popular by the day. If you choose to use a dropshipper it basically means you can advertise their products then once a product is sold you pay the dropshipper and they send direct to your customer. This has some excellent benefits in the way that it means you do not need to hold any stock so there is no need for allot of capital if just starting out. However if you do choose this route you must be sure you trust in their service and quality as that dropshipper will be representing you and your company so it may be a good idea to order a sample to a friend or even to yourself to see the goods first hand and get an idea of the dropshippers services. Another tip to look out for is check the dropshipper provides Blind Dropshipping. The chances are most will but always best to check as it means the customer will receive the product with no reference to the dropshipper at all giving the feeling the product is straight from yourself.
Buyer Liabilities - Sometimes when you purchase of a seller there may be certain liabilities you will need to account for. This is defiantly something you should keep an eye out for or ask if your not sure as this is the area where extra costs may occur. Extra costs may include VAT and Custom charges so always ask if not sure especially if its a brokered deal.
VAT - Its pretty obvious but a liability you need to check. When ordering from overseas it is possible VAT (Value Added Tax) may be added to your order. The current rate for the UK is 15%. I have seen many buyers complain typically on Ebay when they received their order and had to pay an extra lump on top where they simply didn't read the advert properly. Hence why i stress to look out for Buyer Liabilities.
T/T - Telegraphic transfer - This is a payment method that can be used when paying a supplier. It usually refers to the exchange of money from your own bank into the suppliers bank. Generally speaking this isn't ideal if your first starting out as their is a million scammers out there and once a T/T is sent it cannot be reversed. Your protection is very low , next to nothing however this is the usually the obvious choice for the exchange of large amounts of money between traders who have established a good working relationship.
L/C - Letter of Credit - This is a document that is written up between both parties , the seller and the buyer. It basically tells the seller the amount of money needed for the purchase of goods etc is available and will be transfered once certain requirements are met from the buyer i.e Goods are shipped and checked and the buyer is happy then the money will be released the to the seller. This is a great choice if we are talking allot of money being involved and your importing.
EXW - Ex Works - This is a term used mainly when goods are being imported. It means the seller will basically make the goods available at his place of work and the buyer will have to pay for the goods to be shipped to their address.
FCA - Free Carrier - If you see a seller selling goods using this term it means that they will basically get the goods exported. Once imported you will need to continue their mode of transportation to your desired place.
This is just the start in Lehman terms. To allot of us here its first nature but everyone has to start somewhere.
Regards Sam
