Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 1 00:00:00,940 --> 00:00:02,459 Alright so so before we go into 2 2 00:00:02,460 --> 00:00:03,959 showing you guys how to find a good 3 3 00:00:03,960 --> 00:00:05,840 supplier on Alibaba 4 4 00:00:05,940 --> 00:00:07,559 I need everybody to understand the 5 5 00:00:07,560 --> 00:00:09,710 difference between a trading company 6 6 00:00:09,870 --> 00:00:11,990 and a manufacturer. 7 7 00:00:12,000 --> 00:00:13,619 So we're going to explain that in this 8 8 00:00:13,620 --> 00:00:15,380 video. So we're going to describe 9 9 00:00:15,610 --> 00:00:17,429 like a scenario where you might actually 10 10 00:00:17,430 --> 00:00:19,130 want to use a trading company. 11 11 00:00:19,200 --> 00:00:21,069 But most of the time you're going to want a manufacturer. 12 12 00:00:21,070 --> 00:00:22,829 So we'll tell the differences 13 13 00:00:22,830 --> 00:00:23,999 when you would want to use one 14 14 00:00:24,000 --> 00:00:24,719 or the other 15 15 00:00:24,720 --> 00:00:26,870 and how you identify 16 16 00:00:27,210 --> 00:00:28,019 a trading company 17 17 00:00:28,020 --> 00:00:29,660 and how you identify a 18 18 00:00:29,760 --> 00:00:30,509 manufacturer. 19 19 00:00:30,510 --> 00:00:32,279 So what is a trading 20 20 00:00:32,280 --> 00:00:33,569 company and what is a manufacturer. 21 21 00:00:33,570 --> 00:00:35,129 Well a manufacturer is 22 22 00:00:35,130 --> 00:00:36,689 somebody who's going to 23 23 00:00:36,690 --> 00:00:37,619 assemble 24 24 00:00:37,620 --> 00:00:39,149 and create this product 25 25 00:00:39,150 --> 00:00:41,640 for you. I mean pretty self-explanatory. 26 26 00:00:42,540 --> 00:00:44,030 Whereas a trading company 27 27 00:00:44,430 --> 00:00:45,989 if they're like a middleman. 28 28 00:00:45,990 --> 00:00:47,930 OK. So if you know a drop shipping is 29 29 00:00:48,120 --> 00:00:49,700 a drop shipper will just 30 30 00:00:49,900 --> 00:00:51,539 they'll find they'll do the marketing 31 31 00:00:51,540 --> 00:00:52,700 they'll make the listing 32 32 00:00:52,830 --> 00:00:54,359 and they'll handle the customer 33 33 00:00:54,360 --> 00:00:55,550 service and all of that 34 34 00:00:55,860 --> 00:00:57,389 and then they find somebody to ship it 35 35 00:00:57,390 --> 00:00:58,400 for them. OK. 36 36 00:00:58,840 --> 00:01:00,389 And so that is what 37 37 00:01:00,390 --> 00:01:01,319 a trading company is. 38 38 00:01:01,320 --> 00:01:02,939 So there are different types 39 39 00:01:02,940 --> 00:01:04,708 of trading companies where 40 40 00:01:04,709 --> 00:01:06,449 there's some where they'll literally 41 41 00:01:06,450 --> 00:01:08,219 just sell off the shelf products 42 42 00:01:08,220 --> 00:01:10,760 with from manufacturers. 43 43 00:01:11,040 --> 00:01:12,689 And then there are ones that 44 44 00:01:12,690 --> 00:01:14,720 will be kind of like your agent 45 45 00:01:14,790 --> 00:01:15,989 where they will work 46 46 00:01:15,990 --> 00:01:17,540 with that manufacturer. 47 47 00:01:17,610 --> 00:01:19,199 So let's say you want to customize like 48 48 00:01:19,200 --> 00:01:20,420 I talk about doing 49 49 00:01:20,700 --> 00:01:22,199 they will go 50 50 00:01:22,200 --> 00:01:23,549 and do that. 51 51 00:01:23,550 --> 00:01:25,019 They'll be your liaison 52 52 00:01:25,020 --> 00:01:25,670 or whatever 53 53 00:01:25,740 --> 00:01:27,479 but that's not always 54 54 00:01:27,480 --> 00:01:28,160 good. 55 55 00:01:28,380 --> 00:01:30,110 You ever played the game telephone. 56 56 00:01:31,050 --> 00:01:32,810 Things get lost in translation. 57 57 00:01:32,820 --> 00:01:34,400 So not only do we have 58 58 00:01:34,680 --> 00:01:36,659 you trying to communicate 59 59 00:01:36,660 --> 00:01:38,390 with this trading company 60 60 00:01:38,510 --> 00:01:40,409 who is then translating 61 61 00:01:40,410 --> 00:01:42,179 and you know they are probably 62 62 00:01:42,180 --> 00:01:43,910 native Chinese speakers. 63 63 00:01:44,040 --> 00:01:45,749 So are they're probably 64 64 00:01:45,750 --> 00:01:47,480 native Mandarin speakers so 65 65 00:01:47,510 --> 00:01:48,989 there are already losing in 66 66 00:01:48,990 --> 00:01:49,799 translation there 67 67 00:01:49,800 --> 00:01:51,299 and then back and forth you're going to 68 68 00:01:51,300 --> 00:01:52,340 have even 69 69 00:01:53,150 --> 00:01:54,310 more difficult. 70 70 00:01:54,920 --> 00:01:56,530 You're gonna have a really difficult 71 71 00:01:56,540 --> 00:01:58,279 communication lines if you especially 72 72 00:01:58,280 --> 00:02:00,130 if you want to get a lot of customization done. 73 73 00:02:00,200 --> 00:02:01,990 And then now you don't have 74 74 00:02:02,450 --> 00:02:04,129 that direct relationship 75 75 00:02:04,130 --> 00:02:05,140 with the supplier. 76 76 00:02:05,180 --> 00:02:06,619 So if something goes wrong 77 77 00:02:06,620 --> 00:02:07,960 or you need something rushed 78 78 00:02:08,210 --> 00:02:09,679 you don't have that equity 79 79 00:02:09,680 --> 00:02:11,440 with them in that relationship. 80 80 00:02:11,630 --> 00:02:13,279 And in doing business 81 81 00:02:13,280 --> 00:02:15,289 in China it's about building relationships 82 82 00:02:15,290 --> 00:02:17,500 because contracts are useless. 83 83 00:02:17,630 --> 00:02:18,589 They're not really enforced. 84 84 00:02:18,590 --> 00:02:19,309 If you're in the US 85 85 00:02:19,310 --> 00:02:20,809 and it's a 86 86 00:02:20,810 --> 00:02:21,880 Chinese company 87 87 00:02:22,430 --> 00:02:24,019 even Chinese company it's Chinese company 88 88 00:02:24,020 --> 00:02:26,290 they don't necessarily enforce contracts 89 89 00:02:26,510 --> 00:02:27,760 laws are different there. 90 90 00:02:27,830 --> 00:02:29,449 So it's all about building 91 91 00:02:29,450 --> 00:02:31,210 that trust. And then here's the other thing. 92 92 00:02:31,760 --> 00:02:33,970 The trading company is going to 93 93 00:02:34,970 --> 00:02:36,550 the trading companies can take a cut. 94 94 00:02:36,940 --> 00:02:38,380 You know they got to make money somehow. 95 95 00:02:38,840 --> 00:02:40,450 So that is 96 96 00:02:40,460 --> 00:02:41,449 what a trading company is 97 97 00:02:41,450 --> 00:02:43,069 and probably why you don't want to use 98 98 00:02:43,070 --> 00:02:44,629 it. But why would you 99 99 00:02:44,630 --> 00:02:45,799 want to use trading company. 100 100 00:02:45,800 --> 00:02:47,659 So let's say you're building a bundle 101 101 00:02:47,660 --> 00:02:49,000 OK and 102 102 00:02:49,430 --> 00:02:50,929 you find you just want some 103 103 00:02:50,930 --> 00:02:52,780 high quality products several of them 104 104 00:02:52,820 --> 00:02:54,700 and you put them together in a 105 105 00:02:54,770 --> 00:02:56,530 package form that 106 106 00:02:57,080 --> 00:02:58,189 nobody else is offering. 107 107 00:02:58,190 --> 00:02:59,880 OK understandable. 108 108 00:03:00,560 --> 00:03:02,149 Now that trading 109 109 00:03:02,150 --> 00:03:03,919 company is if 110 110 00:03:03,920 --> 00:03:05,590 it is a well selling product 111 111 00:03:06,250 --> 00:03:07,690 they have purchasing power 112 112 00:03:07,790 --> 00:03:09,049 and relationships 113 113 00:03:09,050 --> 00:03:10,159 with the manufacturers. 114 114 00:03:10,160 --> 00:03:11,719 So a manufacturer is going 115 115 00:03:11,720 --> 00:03:13,240 to charge a lower price 116 116 00:03:13,430 --> 00:03:15,349 if they're guaranteed 117 117 00:03:15,350 --> 00:03:16,159 a lot of volume. 118 118 00:03:16,160 --> 00:03:17,830 You know just basic economics. 119 119 00:03:17,960 --> 00:03:19,639 So you might be 120 120 00:03:19,640 --> 00:03:21,460 able to actually get a better price 121 121 00:03:21,470 --> 00:03:23,119 if you're buying something that's not really 122 122 00:03:23,120 --> 00:03:24,140 customized. 123 123 00:03:24,650 --> 00:03:25,729 If you're going to the trading partner. 124 124 00:03:25,730 --> 00:03:27,370 Now like I said though you don't 125 125 00:03:27,770 --> 00:03:29,329 don't buy and just put a label 126 126 00:03:29,330 --> 00:03:31,192 on something that is a bad plan. 127 127 00:03:31,430 --> 00:03:33,019 That is a plan for disaster 128 128 00:03:33,020 --> 00:03:34,579 in 2018 even 129 129 00:03:34,580 --> 00:03:35,650 2017 130 130 00:03:35,810 --> 00:03:37,780 and anytime after. 131 131 00:03:37,910 --> 00:03:39,019 So don't do that. 132 132 00:03:39,020 --> 00:03:40,609 But I actually 133 133 00:03:40,610 --> 00:03:42,169 for my goggles we 134 134 00:03:42,170 --> 00:03:43,360 need the frames 135 135 00:03:43,460 --> 00:03:44,959 and then I imported lenses 136 136 00:03:44,960 --> 00:03:46,720 from a different country in the world 137 137 00:03:46,970 --> 00:03:48,589 and then we assembled 138 138 00:03:48,590 --> 00:03:49,570 and then made our. 139 139 00:03:50,060 --> 00:03:52,050 We did additional stuff too. 140 140 00:03:52,100 --> 00:03:53,989 And then we made the packaging 141 141 00:03:53,990 --> 00:03:55,669 so I gathered a look 142 142 00:03:55,670 --> 00:03:57,070 bits and pieces 143 143 00:03:57,290 --> 00:03:58,630 from all around the world 144 144 00:03:58,940 --> 00:04:00,759 and to make in 145 145 00:04:00,760 --> 00:04:02,269 it because essentially I couldn't get 146 146 00:04:02,270 --> 00:04:03,679 everything all together in one place 147 147 00:04:03,680 --> 00:04:04,720 and made in time. 148 148 00:04:04,880 --> 00:04:07,249 So we actually 149 149 00:04:07,250 --> 00:04:09,070 just needed premade parts. 150 150 00:04:09,200 --> 00:04:10,759 And one thing that 151 151 00:04:10,760 --> 00:04:11,539 was cool was 152 152 00:04:11,540 --> 00:04:13,279 with the trading company they 153 153 00:04:13,280 --> 00:04:15,169 were actually had them on hand. 154 154 00:04:15,170 --> 00:04:16,900 So it's such a high moving item 155 155 00:04:16,970 --> 00:04:18,528 that they they were 156 156 00:04:18,529 --> 00:04:20,239 stocking it because they knew they would sell 157 157 00:04:20,240 --> 00:04:21,799 them. So I was able 158 158 00:04:21,800 --> 00:04:23,359 to get a literally 159 159 00:04:23,360 --> 00:04:24,979 in four days for a 160 160 00:04:24,980 --> 00:04:26,590 lead time on my product 161 161 00:04:26,650 --> 00:04:27,610 in an air. 162 162 00:04:27,710 --> 00:04:29,500 I would get it in my house in three days 163 163 00:04:29,540 --> 00:04:30,379 so I would order 164 164 00:04:30,380 --> 00:04:32,020 and then seven days later 165 165 00:04:32,030 --> 00:04:33,880 out of the product at my house 166 166 00:04:33,920 --> 00:04:34,900 ready to go. 167 167 00:04:35,150 --> 00:04:36,949 Now you're going to 168 168 00:04:36,950 --> 00:04:38,260 with a manufacturer. 169 169 00:04:38,300 --> 00:04:39,919 They are not going 170 170 00:04:39,920 --> 00:04:41,620 to have product right away 171 171 00:04:41,990 --> 00:04:43,549 and even some trading companies most 172 172 00:04:43,550 --> 00:04:44,469 of them aren't going to 173 173 00:04:44,470 --> 00:04:46,129 but their are in this 174 174 00:04:46,130 --> 00:04:47,719 is that fringe case that I'm talking about 175 175 00:04:47,720 --> 00:04:49,339 where it was actually in 176 176 00:04:49,340 --> 00:04:50,899 my benefit to be 177 177 00:04:50,900 --> 00:04:51,880 I couldn't have made 178 178 00:04:52,160 --> 00:04:53,989 and the success that I had without 179 179 00:04:53,990 --> 00:04:55,549 using a trading company that 180 180 00:04:55,550 --> 00:04:57,109 pre had this 181 181 00:04:57,110 --> 00:04:57,769 inventory 182 182 00:04:57,770 --> 00:04:59,329 and had this great relationship 183 183 00:04:59,330 --> 00:05:00,949 because let me tell 184 184 00:05:00,950 --> 00:05:02,599 you I couldn't I couldn't 185 185 00:05:02,600 --> 00:05:04,129 build out this relationship to 186 186 00:05:04,130 --> 00:05:05,959 get you know so sometimes 187 187 00:05:05,960 --> 00:05:08,140 they didn't have that on stock 188 188 00:05:08,180 --> 00:05:10,330 from the supplier because I bought up all their supply 189 189 00:05:10,400 --> 00:05:11,959 but they had that relationship built 190 190 00:05:11,960 --> 00:05:13,639 up and they were saying hey we need 191 191 00:05:13,640 --> 00:05:15,259 this I need this order 192 192 00:05:15,260 --> 00:05:15,970 now. 193 193 00:05:16,070 --> 00:05:18,109 And he used his relationship 194 194 00:05:18,110 --> 00:05:20,050 and all of its purchasing power leverage 195 195 00:05:20,060 --> 00:05:21,079 to get that to happen. 196 196 00:05:21,080 --> 00:05:22,060 I couldn't have done that. 197 197 00:05:22,190 --> 00:05:23,719 Now you could use the 198 198 00:05:23,720 --> 00:05:25,399 sourcing agent which we talk 199 199 00:05:25,400 --> 00:05:27,079 about later but that can be more 200 200 00:05:27,080 --> 00:05:28,579 advanced but you're trading 201 201 00:05:28,580 --> 00:05:30,700 company is going to be kind of like a 202 202 00:05:31,710 --> 00:05:33,309 they're they're 203 203 00:05:33,310 --> 00:05:34,959 essentially a sourcing agent. 204 204 00:05:34,960 --> 00:05:36,609 Yeah. Yeah yeah they're a sourcing 205 205 00:05:36,610 --> 00:05:37,500 agent but 206 206 00:05:38,980 --> 00:05:40,659 you just gotta understand what you're dealing 207 207 00:05:40,660 --> 00:05:41,220 with. 208 208 00:05:41,460 --> 00:05:43,059 And yeah as a 209 209 00:05:43,060 --> 00:05:44,799 trading companies probably just one guy 210 210 00:05:44,800 --> 00:05:45,990 in an office 211 211 00:05:46,360 --> 00:05:48,159 or several there 212 212 00:05:48,160 --> 00:05:49,959 sometimes they're the rather large 213 213 00:05:49,960 --> 00:05:51,729 though I've even seen them at the camps 214 214 00:05:51,730 --> 00:05:52,470 and fair. 215 215 00:05:52,540 --> 00:05:54,579 So I mean those are 10000 216 216 00:05:54,580 --> 00:05:56,139 boots and they had a they 217 217 00:05:56,140 --> 00:05:57,189 had relationships 218 218 00:05:57,190 --> 00:05:58,620 with several suppliers. 219 219 00:05:58,900 --> 00:06:00,459 If you think about it retailers 220 220 00:06:00,460 --> 00:06:02,079 are kind of trading companies they're not 221 221 00:06:02,080 --> 00:06:03,519 selling their own products. 222 222 00:06:03,520 --> 00:06:05,529 Typically they're just selling 223 223 00:06:05,530 --> 00:06:06,339 other brands 224 224 00:06:06,340 --> 00:06:08,100 and so now 225 225 00:06:08,200 --> 00:06:09,969 these trading companies are kind of selling unbranded 226 226 00:06:09,970 --> 00:06:10,920 products. But 227 227 00:06:11,320 --> 00:06:13,029 with the approach that I suggest 228 228 00:06:13,030 --> 00:06:14,640 that everybody takes you want to get 229 229 00:06:14,950 --> 00:06:16,410 and have that relationship 230 230 00:06:16,440 --> 00:06:18,219 and you want to have the leverage 231 231 00:06:18,220 --> 00:06:19,459 and you want to customize 232 232 00:06:19,460 --> 00:06:21,249 and then 233 233 00:06:21,250 --> 00:06:22,929 make more products within that 234 234 00:06:22,930 --> 00:06:23,739 and build out your brand. 235 235 00:06:23,740 --> 00:06:25,359 So a trading company is not 236 236 00:06:25,360 --> 00:06:27,150 going to be the way to go for most of you. 237 237 00:06:27,250 --> 00:06:28,779 But like I said that 238 238 00:06:28,780 --> 00:06:30,000 if you go with the bundle 239 239 00:06:30,070 --> 00:06:31,690 or you're somehow 240 240 00:06:32,290 --> 00:06:33,900 in my rare scenario where 241 241 00:06:34,390 --> 00:06:35,979 I somehow was able to find all 242 242 00:06:35,980 --> 00:06:37,509 the perfect parts from different places 243 243 00:06:37,510 --> 00:06:38,970 of the world and put it together 244 244 00:06:39,100 --> 00:06:40,530 and make my own product. 245 245 00:06:41,710 --> 00:06:42,549 But yeah. 246 246 00:06:42,550 --> 00:06:44,439 So I hope that this explains 247 247 00:06:44,440 --> 00:06:45,939 that and now 248 248 00:06:45,940 --> 00:06:47,700 I guess I will show you guys 249 249 00:06:47,800 --> 00:06:49,629 how you can see if the company 250 250 00:06:49,630 --> 00:06:51,210 is a trading company 251 251 00:06:51,310 --> 00:06:52,929 versus if it is a 252 252 00:06:52,930 --> 00:06:53,829 manufacturer 253 253 00:06:53,830 --> 00:06:55,509 and so I'll show you how to do that on Alibaba 254 254 00:06:55,510 --> 00:06:56,589 in the next video. 255 255 00:06:56,590 --> 00:06:58,149 So I just want to add onto this you 256 256 00:06:58,150 --> 00:06:59,679 don't need to use a trading company to 257 257 00:06:59,680 --> 00:07:00,720 make a bundle 258 258 00:07:00,760 --> 00:07:02,649 or assemble multiple parts because 259 259 00:07:02,650 --> 00:07:04,449 there's a great network of manufacturers 260 260 00:07:04,450 --> 00:07:06,219 in China and the manufacturer almost 261 261 00:07:06,220 --> 00:07:07,719 always knows somebody who can do 262 262 00:07:07,720 --> 00:07:08,499 what you're looking for 263 263 00:07:08,500 --> 00:07:10,029 but you've got to make sure that 264 264 00:07:10,030 --> 00:07:11,859 when they're adding on those extra pieces 265 265 00:07:11,860 --> 00:07:13,359 that you get actual 266 266 00:07:13,360 --> 00:07:14,499 fair price for that. 267 267 00:07:14,500 --> 00:07:16,059 OK. So I had times 268 268 00:07:16,060 --> 00:07:17,679 where I was sourcing my hippie glasses 269 269 00:07:17,680 --> 00:07:19,209 Originally I wanted to get a 270 270 00:07:19,210 --> 00:07:20,739 nice microfiber cloth 271 271 00:07:20,740 --> 00:07:21,939 and like a case for it 272 272 00:07:21,940 --> 00:07:23,230 and he's like Yeah we could do that. 273 273 00:07:23,320 --> 00:07:24,999 You want like 45 cents each for 274 274 00:07:25,000 --> 00:07:26,700 it. And I was like well I could get it on 275 275 00:07:26,950 --> 00:07:28,029 Alibaba for 13 cents 276 276 00:07:28,030 --> 00:07:29,919 and then he was like OK we'll do 13 277 277 00:07:29,920 --> 00:07:31,719 cents so you just gotta be careful 278 278 00:07:31,720 --> 00:07:33,279 and the only reason why I did 279 279 00:07:33,280 --> 00:07:34,869 that assembly in the United 280 280 00:07:34,870 --> 00:07:36,429 States was because the 281 281 00:07:36,430 --> 00:07:38,109 lenses were only available 282 282 00:07:38,110 --> 00:07:39,639 in Europe. There's only one factor 283 283 00:07:39,640 --> 00:07:40,860 in the world that made it. 284 284 00:07:40,930 --> 00:07:42,459 And I just couldn't do it from China 285 285 00:07:42,460 --> 00:07:43,830 otherwise I would have had it done 286 286 00:07:43,930 --> 00:07:45,309 and assembled in China. 287 287 00:07:45,310 --> 00:07:46,599 But that was a really rare case. 288 288 00:07:46,600 --> 00:07:48,129 So ninety nine percent of the 289 289 00:07:48,130 --> 00:07:50,319 time you're going to be using a manufacturer 290 290 00:07:50,320 --> 00:07:51,849 in China and a trading 291 291 00:07:51,850 --> 00:07:53,760 company is very rare to use 292 292 00:07:53,800 --> 00:07:55,329 but it just so happened that it worked out 293 293 00:07:55,330 --> 00:07:55,960 for my case. 21835