few products/more stock OR more products/little stock

Hi Martin,

Thanks for the input. I'll be speaking to the DTI about any licenses required although I don't believe the products I'll be retailing require a CE mark, altleast not according to Business Link's site: http://www.businesslink.gov.uk/bdotg/action/detail?r.s=sl&type=RESOURCES&itemId=1074469539 I've also checked similar products manufactured and sold in the UK and none carry to CE mark.

Thanks again,

Jim.

Originally posted by: waparesult

Also beware of importing from the states as things you import will need to be CE tested, this can cost £200 per item and then not pass whcih makes them unsaleable!!

If I want to import an electric device from Hong Kong, but I happen to know that another company has already had it CE tested do I need to do the same or is this not required?

ie. is CE testing required once only, or for every importer?

jim,

Don’t also forget the painful import duties currently being levied on US imports. I remember not mentioning this to another importer and they had the shock of their life when their container arrived so forgive me if this is old news to you.

Last time I heard this trade spat still hadn’t been sorted out. HMCE website has details and the scary looking tariffs. (NB site down at the mo. so I cant pick the link up for you, its in the import/export section).

From a business point of view I personally would go with a higher number of lines, lower level of stock so long as you can re-stock fairly quickly. A “sold out” sticker on your site at least makes you look busy. You could always air-freight something over and make no margin on it if things start to really take off before you can get another container over. Quite frankly it a nice problem to have and you are more likely to have it the more lines you hold – ie the better shopping proposition your site is in the first place.

Regards,

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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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Hi James,

Thanks for the advice, much appreciated. I've already checked with with HMCE and the products incur neither Customs or Excise duty which makes things a little easier/quicker.

I'm a website developer by trade and have plans to link the shop-front to my backend stock control system, I just didn't want to be in the situation where people see loads of products "Out Of Stock" and get annoyed with this.

I plan to initially use air freight to ensure quick delivery from the US, but later use sea freight to cut costs as demand becomes a little more predictable. I'm not planning on making big bucks in the first 6-12 months, I'd rather get my logistics sorted 100% and develop a decent customer base.

Thanks,

Jim.

Hi Jim,

How about keeping larger stock volumes for your 15 core products and having 2-3 items for your non-core items of say 15 (instead of 30)?. A good old British compromise?

Also don't wait until your logistics are sorted 100%. From personal experience working for a large global company, I know it is difficult to achieve with international sourcing of goods. Therefore your business model got to assume a degree of logistics problems otherwise you will be spending far too much time on administration work than selling.

Good luck with your venture.

Regards,

Joel
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Hi Joel,

Thanks for the input. What you suggested in your first paragraph is exactly what I've been thinking about over the past 24 hours, I think it's got to be the way to go.

Will let you all know how I get on.

Thanks a mill,

Jim.