How does soho do the hot water bottle business?

There are male and female in soho in the Hot water bottle industry, ranging from 25 to 60 years old

Their occupations before soho included the owner of a hot water bottle factory, a salesperson in a trading company, and a salesperson in a hot water bottle factory.

Soho contact window including factory, trading company (import and export agent), hot water bottle trading company (outside of Yangzhou), Hot water bottle cover factory, packaging supplier, freight forwarding, overseas customers

Soho’s office is in his/her  house, or rents an office in an office building, or works in a factory.

The difference between different sohos lies mainly in the limitations of the products they sell. Many sohos also sell other products besides selling hot water bottles.

The difference between soho and a regular hot water bottle trading company is that the hot water bottle factories that the regular trading company cooperates with are not fixed (one big order will be split among several factories according to the order quantity and delivery date), soho is generally fixed at 1-2 Factory (one for BS hot water bottle, the other for ordinary hot water bottle for India and Eastern Europe)

The formal process is like this

1. Sign the contract: Both parties sign an export agency agreement;

2. Foreign exchange collection: The agent provides company information such as foreign exchange accounts, and SOHO signs contracts with foreign customers.

3. Settlement of foreign exchange and payment for goods: After the agent receives the foreign exchange received in advance from the foreign customer, the settlement transfers the advance payment to the invoicing factory.

4. Customs declaration: Before shipment, SOHO provides customs declaration documents (invoice, packing list, foreigner contract, etc.), seals the agent and prepares the declaration letter, etc., and sends it to the freight forwarder designated by SOHO for customs declaration.

5. Balance payment: After checking the bill of lading, SOHO will send a copy of the bill of lading to foreign customers, and remit the balance to the agent account.

6. Issuing special value-added tax invoices: The agent provides the "Notice of Issuing Additional Invoices", and the factory issues value-added tax invoices to the agent.

7. Payment and expenses: The agent pays the balance of the invoicing factory, and pays the corresponding expenses such as freight forwarding.

8. Reconciliation: The agent will check the statement with SOHO. Put profits into SOHO private bank account.

9. Finish rest paper work

The actual process is like this

1. Sign the contract: Both parties sign an export agency agreement;

2. Foreign exchange collection: The agent provides company information such as foreign exchange accounts, and SOHO signs contracts with foreign customers.

3. Settlement of foreign exchange and payment for goods: After the agent receives the foreign exchange received in advance from the foreign customer, the settlement transfers the advance payment to the invoicing factory.

4. Customs declaration: Before shipment, SOHO provides customs declaration documents (invoice, packing list, foreigner contract, etc.), seals the agent and prepares the declaration letter, etc., and sends it to the freight forwarder designated by SOHO for customs declaration.

5. Balance payment: After SOHO checks the bill of lading, it will send a copy of the bill of lading to foreign customers, and remit the balance to the agent account.

6. Issuing special value-added tax invoices: The agent provides the "Notice of Issuing Additional Invoices", and the factory issues a value-added tax invoice and sends it to the agent.

7. Payment and expenses: The agent pays the balance of the invoicing factory, and pays the corresponding expenses such as freight forwarding.

8. Reconciliation: The agent will check the statement with SOHO. Put profit into SOHO private bank account.

9. Finish rest payment

No advance payment, no balance payment before shipping. This is very risky! The factory will only receive payment after the goods are sent out for a long time (a few months to half a year or one year) This is why many factories will not cooperate with SOHO.

The above process is the soho operation mode of directly connecting with overseas customers.

Soho, which connects with domestic trading companies, sends the order to the owner of the factory that it cooperates with. When the factory ships and receives the payment, it pays the commission to soho.