What is this article about?
I’m James from Goldenshiny Trading, a professional Yiwu agent in Yiwu City, China. In this article, I want to discuss the payment term, one of the most frequently asked questions customers concern in our business.
Our payment term is prepaid 100%, and only Telegraph transfer, also known as TT. We only accept TT as our payment term. We don’t take other payment terms like Alipay, Paypal, Payoneer, etc. Those are mainly for the business-to-customer model; we are business to the business model and only do Wholesale, not retail. Our prepaid 100% payment term is mainly because we are an agent. So we must pay suppliers to get products in our warehouse before shipping.
Stock and Order
Stock: Once customers confirm, then customers need to transfer all the payments to us first. After we receive those payments, we will sign the contract with suppliers and pay them so they can prepare and deliver the stock available to our warehouse immediately.
Production order: Usually, the payment term is 30% deposit and 70% balance. When customers confirm the order that needs to produce those products, we will have to receive 30% deposit from customers so our suppliers can start production, after certain days, it varies depending on the products. Some need one week, some need two weeks, even one month, doesn’t matter, after they finish the production, they will inform us that they already completed it.
So we will go check the production, the quality, the package, and delivery time. We need to make sure everything is all set and ready, only after that, we will notify customers to pay the balance upon our payment term. After we receive the balance, we will pay for supplies to deliver the products to our warehouse, the next step is to book the vessel schedule and arrange the container, loading, China customs, and shipping.
Some customers will ask: Hey, I never met your company, and this is the first time I have approached you and discussed a business. So how can I get any guarantee? Well, if you think this way, you don’t get any guarantee because we’re doing offline, we don’t have a shop on Alibaba or Amazon. We totally understand the concern, if we were the customer, we would probably have the same concern about payment term by asking our suppliers the same question.
Two Solutions
First is to do a little more research about us Goldenshiny by visiting our website to check the essential information. Or go to our social media, especially YouTube. We keep publishing videos regularly to show customers what kind of business we do. You could also check our other social media like Facebook, Instagram, LinkedIn, Twitter, and TikTok. We all have those platforms to update our content regularly.
Second is, as we all know, China opened its borders in 2023. Hence many customers fly to Yiwu and visit our company to discuss everything with us. Face-to-face talking is one of the most effective ways in the background checking process. However, I’m not talking about a hundred percent. There’s always risk in business, even daily life; it happens. All you can do is minimize and reduce the risk.
According to our experiences, some customers will ask us many questions to ensure we’re on the same page with them. After we answer all the questions, they are probably satisfied with our answers. So they don’t even come, they don’t even fly to Yiwu. They just start the order, but still, some other customers feel there is necessary to fly to China, fly to Yiwu to visit our company to face to face meeting with us and discuss every detail before we start cooperation. Remember that we’re always looking for a long-term business with every customer.
After-Sales Service
The last question is, what if the products you receive are not the ones you want? Well, we have an after-sales service for this. When you receive those products, if there’s any problem, even a package, you take photos and videos and send those to us as proof and evidence. We will discuss this with suppliers, and even if supplies don’t refund, we will refund you.
Another scenario is some customers don’t need us to refund the money, we will replace the disqualified products with new products in their next shipment. If customers make orders every month, this works. On the contrary, even if some customers will order the next time. They still want to get a refund first because they don’t know when they can start taking orders for the next time. It depends on their selling in their country. We totally understand that.
Summary
Our payment term is 100% prepaid by TT.
We don’t accept payment terms like credit, L/C, COD, etc, none of those is accepted in our company so far.
We only accept the TT, also known as Telegraph transfer, which requires customers to go to the bank to submit the transfer. Or they can do it online, I think most customers can transfer online, open a computer, or even on the phone to do the transfer.
We do that because we’re just a middleman. We pay cash for supplies to get the goods, and then we arrange the vessel schedule and shipping. Some trading Companies can get credit from their suppliers. However, we don’t do that.
It will help if you use your business judgment to tell whether we can be trusted. We already provided two solutions to do a little more research by visiting our website and social media. Or contact us directly by WhatsApp, email, or even phone. We will try our best to clear your doubts for you and answer every question to clear doubts. The second solution is straightforward: customers fly to China and visit our company for a face-to-face meeting.
Alright, this is about our payment term. I want to do this video because many customers are concerned about this question. I hope this video explains clearly about this issue.
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