On offer from a former government trade official is a means for small business to export to China. Essentially, pay $3000 plus 10% and they will set you up on Alibaba.com.
Wait, what?
Small business export? Alibaba?
In his about video, the CEO insists "all small businesses know they should export..."
Well, that makes no sense. If a small or even medium sized business wishes to expand it is far better off finding new market in the USA. By definition small and medium sized business has not penetrated the entire USA market, so the smart move is to look where next in USA for market, not overseas.
http://www.exportnow.com/ purports to make a China sale as easy as a domestic sale. That misses the point. Any time spent marketing overseas will yield less than marketing in USA. It is a matter of opportunity cost.
As to Alibaba, too much trouble for too little return. If someone overseas wants to buy your products, let them buy FOB USA port, prepaid. Sell to a distributor, not try to mess with international retail tiny transactions. And before you pay $3000 to http://www.exportnow.com/ for help, do it yourself and test out how much trouble it is to sell online in China. Is it worth $3000 and 10%?
ZDNet has an article on one customer of Export Now. For $3000 and 10%, the shoe distributor has ten sales in several months. (At say $50 retail per sale, so $500, less $50).
Better to build more market in USA, and sell to a Chinese importer if and when it is economically viable for the Chinese to buy
As to Export Now, my guess is the govt official has some Obama Admin Export Promotion dollars to start up, and it does not matter if this works out or not. That URLhttp://www.exportnow.com/ alone must have cost a fortune. The amount of promotion they are doing costs a lot. My guess is the govt trade official is going to find out how hard it is to build a business. I think in a free market, no one would offer this service.
Feel free to forward this by email to three of your friends.
Wait, what?
Small business export? Alibaba?
In his about video, the CEO insists "all small businesses know they should export..."
Well, that makes no sense. If a small or even medium sized business wishes to expand it is far better off finding new market in the USA. By definition small and medium sized business has not penetrated the entire USA market, so the smart move is to look where next in USA for market, not overseas.
http://www.exportnow.com/ purports to make a China sale as easy as a domestic sale. That misses the point. Any time spent marketing overseas will yield less than marketing in USA. It is a matter of opportunity cost.
As to Alibaba, too much trouble for too little return. If someone overseas wants to buy your products, let them buy FOB USA port, prepaid. Sell to a distributor, not try to mess with international retail tiny transactions. And before you pay $3000 to http://www.exportnow.com/ for help, do it yourself and test out how much trouble it is to sell online in China. Is it worth $3000 and 10%?
ZDNet has an article on one customer of Export Now. For $3000 and 10%, the shoe distributor has ten sales in several months. (At say $50 retail per sale, so $500, less $50).
Better to build more market in USA, and sell to a Chinese importer if and when it is economically viable for the Chinese to buy
As to Export Now, my guess is the govt official has some Obama Admin Export Promotion dollars to start up, and it does not matter if this works out or not. That URLhttp://www.exportnow.com/ alone must have cost a fortune. The amount of promotion they are doing costs a lot. My guess is the govt trade official is going to find out how hard it is to build a business. I think in a free market, no one would offer this service.
Feel free to forward this by email to three of your friends.
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