Does anybody know the payment of cash on delivery? Is it very risky for suppliers?
Please help me, thanks in advance!

Replying to [valerie]: The danger on Cash Delivery is that the customer can pay with Check or Credit Card. Sometimes even Cashier Checks, which are supposed to be certified by the bank. If the customer has knowledge, he could either pay with a fake check, and the delivery person want know it. He will then get the goods for free. You can file complaint but this will be civil complaint to file suit for the money if it is over 400$.


Next, on the Cashier's check sometimes they are fake. Therefore, before accepting the check, you should ask the issuing bank the number of the check and also the amount of the check. Have teh driver verifty this if possible. If not you will once again loose.


The best way of course to do Cash on Delivery, is for you to Fly and Buy. Ask the customer to fly and pick up the goods, otherwise, have the customer to pay the money via a certified means.


If you need any help in the U.S. with order verification, we can assist you in verifying the company, saving you money and time along with a possible savings of your hard earned work.


Let us know if you need help collecting on your goods when you deliver to the U.S. or even making a purchase overseas in China, or Japan.


Regards

Christopher Parish

Christopher Parish, ASc., BSc., MBA

V.P. of Business Development


Your Industry Leaders in Product and Services Marketing Management & Distribution

Member: IEEE (International Association of Electronics Engineers)

Member: AMA (American Marketing Association)

Quoting from [importghuru]:


Replying to [Ranger]:


I will put this nicely, but what you will find is that the guidelines state the boundaries of business.


You are new to importing and you are trying to learn from a regulatory book, but that will only give you the boundaries of business that are allowed within the country in question. It will not speak to how business is transacted in real life.


Most of the small orders that occur through Alibaba (to the best of my knowledge from the posts and people I have spoken to) are transacted as "sample orders" so they don't file customs entries. This is not the correct form of doing business on any level but it appears to be so widespread that customs would have a problem tracking & inspections all of the shipments that come into the US this way.


At some point, I'm sure there will be a move to crack down on this kind of abuse of the regulations but until that time, widespread confusion reigns. Hence, this conversation occurs.

I too will put this nicely.  Your saying that anyone can purchase any number of goods from any country at any listed price via COD and as long as they have 3 doucments the items will pass customs to be delivered without duty, taxes and or antidumping fees.  Is this your statement?  Yes, importers do have a contious bond in place.  I have a continous bond in place.  We are billed upon receipt of invoice from the bonding authority.  The question was, "Is COD safe for a supplier?".  IM sure we could go back and forth on this but IM not new to importing I've been doing it for 25 years.  

No manufacturer or business I have ever been involved in will do C.O.D. this includes but is not limited to China, Taiwan, HK, Germany, United States, France.   C.O.D has right of refusal by the buyer and any return shipping is at the expense of the seller.  This is the stance of the FTC and US law.   I could list 1000 large corporate manufacturers A-X that will not do overseas C.O.D. 

I can not speak to the laws of every country nor will I try.  If you do so you are taking a risk not associated with L/C and Escrow. 

Ranger

Replying to [valerie]: CASH ON DELIVERY IS RISKY FOR SUPPLIERS (YOUR) AND PAYMENT UPFRONT IS RISKY TO THE BUYER (CUSTOMER)

Replying to [valerie]:
Hi, Cash-on-delivery is usually appropriate only in domestic/local dealings, hardly or no one do COD on international trade (with exception to special arrangement). The examples should give you a good understanding althought not entirely comprehensive:

1. Supposed you're a manufacturer and have ready stocks, you sell within China, you or your staff deliver the goods to customer and collect cash on the spot. Only risk is your delivery expense if customer don't accept, no stock lost. However, if goods need to be customed-made, the risk is your setup/prep cost for making the goods and delivery expense (That's where factory collect upfront payment for setup/prep work to reduce their risk in case buyer cancel order)

2. If you take goods and pay upfront from your supplier and you sell it in your country, the risk is that you may be stucked with the goods if buyer default and lose your delivery $$$.

3. If you are selling overseas, yes there are risks, not an option you should consider.

Replying to [Ranger]:COD is risky for Seller , as the seller doesnt have Gaurantee about the buyer will clear the goods or not , if the buyer doesnt clear the good then the seller has to pay all shipping and related charges including detention and damurage.

COD is not suggested for new buyers or first time buyer

Replying to [importghuru]:

"Most of the small orders that occur through Alibaba (to the best of my knowledge from the posts and people I have spoken to) are transacted as "sample orders" so they don't file customs entries."


Importghuru,

If they declare their shipments as sample orders and, consequently, they do not file customs entries, they would not have to pay import and other duties either. Is that right?

Can anybody enlighten me on this?

Regards,

Replying to [rchas]:In your case: NO.

Each sample must be marked sample clearly on the item so that it is non-saleable. If you wish to produce your rings of lesser quality materials and distort them then you can do that, but I don't think it would accomplish the task you want.

Replying to [Ranger]:Your personal preference is not to use COD, but trade happens regardless of what we like or would prefer. There are 1,000 different variations of COD that can occur from country to country.

The question revolves around:
1. Is it possible?
answer - YES

2. What are the risks?
answer - The risks are born by both parties and are numerous, but this method is actually pretty fair because the buyer must finance the goods once they take possession and the seller must finance the goods when they have possession. In theory, this is a fair method of doing business.

Replying to [importghuru]:

Hi!

The reason I asked this question was because low valued jewelry shipments cannot be shipped internationally because the international freight costs become an unacceptable proportion of the total costs. Therefore, the import duty or the lack of it might mitigate these higher expenses.

For instance, if we consider the total costs (freight and export procedures) involved in shipping internationally from India, they come to at least about USD75 by EMS. For a ring that costs, say, USD50 -100, ex-factory, that is too high and we lose business.

Currently, there is no duty on jewelry being imported into the US. However, I suspect that Customs' departments of other developed countries may function in a similar way. Therefore, I felt that it might be worth a try to ship low valued shipments as samples. However, as you mentioned, the challenge is how does one go about doing this.

Regards,

Replying to [Ranger]:[e thank youm16]