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What we hear a lot about companies in the US buying goods from China.
But we've got someone who is trying to make it easier for American -- actually export their products to China frank Levin is the CEO of export now -- is also.
Former undersecretary for international trade of US Department of Commerce which of course prepare them for all this.
How difficult first of all frank is it to do it to two.
Do business -- -- -- without somebody they're holding your hand.
Well first thanks for having me on look China can be a challenging market you're exactly right but the magic.
Is e-commerce because e-commerce is extremely well developed in China the largest platforms in the world or China.
So what we do is just take these great US products and helped put them on the Chinese e-commerce platform.
So exactly how do you do it how do you work with a company's what do you charge etc.
Sure sure well we have a and I T channel in the US and -- logistics channel I T channel -- a US company can sign up for.
Chinese commerce platform the same way you would sign up for domestic platform like eBay or Amazon shops so they deal with US dollars they deal with US account representatives you have time zones.
And sign -- the platform.
But they do have to ship us a -- just one cubic meter on consignment we Ronald logistics train -- -- a bonded warehouses in.
Shanghai we translator we posted we deal with customs.
We do all of the collections tariffs -- so forth.
Kermit the province were basically the back office fulfillment IT support channel for any US company that wants to sell to China and the cost what do you charge.
Well it's a there's a sign up fee of 3000 dollars that's -- your posting.
And then there's a transaction fee would depends on the product there's tariffs can very -- typically run between fifteen and 20% total.
For profit so our point is a US company can sell into China more blasts at the same price point as it -- in the US.
And more -- -- at the same margin as the US frankly even with handlers we hear horror stories of of corruption that's just endemic to the culture of China.
Do you actually have to bribe people is that one of the ways you know -- dollar over.
No absolutely not actually not look they're they're certainly can be your regular practices in China -- no doubt about that.
But there are two elements of our approach and we think really steer a 100% clear of this.
One is we are direct to consumer indicate in the in the in the consumer space so we sell right to the man on the street who might want to buy an electric toothbrush.
Or tennis racket -- part -- -- car so that's that's one point into again it's this e-commerce platform which means.
There's no -- faced with -- anybody except the consumer and the US seller.
We don't ship until -- -- so there's no credit issue or or potential for fraud in that respect and finally are you going to expand because we -- also -- tremendous problem to deal with India.
Another country and booming middle class but at the same time mired in bureaucracy.
Well we'd we'd love to expand we'd love take this to other our markets but please -- -- -- -- Prove the concept to try to remember China has the largest e-commerce platform in the world much larger than eBay or Amazon -- so that's and it's.
A hard market for American so that's really where we want to start to bring that huge market to the American manufacturers.
-- -- it well if you want to export to China you go to export now and to be talking to frank Clavet thank you frank -- --
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