Pre Shipment Inspection Explained
“What happens if I get defective products?”
Guess how much money you earn when you have products with critical defects?
None.
Zilch.
Nada.
Not a bean.
Most businesses can handle some small quantity of defective products. They will often sell these as “Shop Spoiled” or “Display Items.” However, the vast amount of the rest of the order must be perfect so a business can compensate for the losses on this stock?
So what happens if you bring in a container of goods full of defective products, missing parts, wrong labels, or barcodes that won’s scan?
Would you be willing to absorb the financial loss of the defective goods? The loss of sales revenues and the increased negative feedback and poor ratings to your online store? Not to mention the damage to your company’s reputation?
A Pre Shipment Inspection can solve that problem by checking your products in the Factory or at the seller’s warehouse before they are shipped out.
Why do you need Pre Shipment Inspections?
Suppose you are fortunate to work for a large organization. In that case, you will probably be able to absorb the cost of defective products. Or have your own staff visit the factories which produce the products to check the goods.
However, most companies cannot afford this, so they must treat every purchase as if it contains defective products; it could ruin their company.
So for most firms, they are willing to pay to hire third-party inspection firms such as Goodada Inspections to inspect their products.
Yes, it does add a little to the cost of the products. However, having a Pre-shipment Inspection is well worth it.
For one, you don’t have to travel to the seller’s location and add many hours to your everyday work responsibilities.
Number two, it is cheaper to hire an inspector than have to employ a full-time inspector or for you to travel to check the products all the time.
And last but not least, you have the benefit of having an expert and professional inspector and inspection team who conduct inspections every day of the week, doing the assessment for you. So they can bring their experience and wisdom when they check your goods.
That said, the main thing is that a Pre-Shipment inspection is a service that checks your products and looks for faults at the seller’s location before the goods are shipped out. This dramatically reduces the chances of you receiving unusable or saleable products.
Is it worth getting a Pre Shipment Inspection?
Yes.
Seriously. That’s it. Yes.
However, that’s probably not nearly enough information to make you decide to spend your money on this service.
Think of all the hard work you have put in. Finding a product, developing a sales channel, building a rating, designing a package, creating a distribution system for all your orders.
What happens if you receive a defective product, incorrect barcode, or poorly printed packing and labeling?
Would your company be able to afford a hit with the delivery of unsalable goods? Of course, it might be possible, but it is not a pleasant experience trying to deal with the fallout from such a situation.
You might be thinking that there must be some kind of way that the supplier should compensate you? Yes, that is a possibility, but think of all the damage which will have already been done to your company’s reputation? I won’t mention the amount of time that has to be spent dealing with customer complaints and getting the supplier to agree to accept responsibility.
A big NB to all you who source from international suppliers, MOST SUPPLIERS WILL NEVER SEND YOU BACK CASH THEY WILL ONLY OFFER A DISCOUNT OF THE NEXT ORDER.
So that means that you still need to do business with them to get compensated.
All that said, you can see why having a Pre-Shipment Inspection could come in handy.
How does a Pre Shipment Inspection save me money?
It’s a simple question of maths.
Say you have an order valued at $15,000. You need to add transport, taxes, and other costs, which I will allocate $5,000. That means that before any cost of labor hours, you have spent $20,000.
Now, if you expect to class 97% of the goods you receive as saleable, that means that 3% of your goods will be classed as unsaleable due to defects or other issues.
So 3% of $20,000 is $600. Yet if you had an inspection, that, say, costs $300 to do an inspection. You will see a saving in the amount of money you will avoid losing through the unsaleable products.
So if an inspector costs $300 and can save you $600, that means you are gaining by $300.
Pre-Shipment Inspections are designed to save you money, not cost you money.
Plus, I will also mention the amount of money spent on worker hours saved having to deal with sorting out defects, dealing with customer complaints, and negotiating with the supplier for redress.
You can see how massive a difference would make. Basically, pre-shipment inspections bring considerable savings to companies and help them avoid increases in their costs.
How do you order a Pre Shipment Inspection?
You should book the Pre Shipment inspection as early as possible. I recommend at least two weeks before the initial date that goods are expected to be ready.
Don’t worry if you think that date will change. Goodada’s Global Inspection team always contacts the seller to confirm the date. If the date changes, our team can usually adjust the inspection date for you at no charge.
To order a Pre-Shipment Inspection, you need to do the following:
- You register on the Goodada Inspection page.
- After Registration has been done, you log into your Goodada account.
- Then you select the Inspection tab for an inspection order.
- You input all the information in the Inspection Request form.
- After this, one of our inspection order teams will review the inspection order and assign a price to your order.
- You issue payment before the inspection.
- The Inspector conducts the inspection and issues the online report to you.
Pre Shipment Inspection or Container Loading Inspection?
Many people say I want a Pre Shipment inspection to be done on the same day as the goods are being loaded.
Well, that’s not a clever idea. You will receive the Pre Shipment Inspection report AFTER the goods have been shipped out from the Sellers’ location.
A simple rule is to allow FIVE working days from the last day of the Pre Shipment inspection to when the goods can be loaded into a container and shipped out.
This will give both you and the seller time to review the Inspector’s report and address any issues identified during his report.
A Container Loading Inspection is focused on confirming the quantities shipped out of from the Sellers’s location.
Yes, an inspector can do a basic check on the goods, but he will not do a full review of defects.
Some people ask for goods to be inspected when they have arrived at the final destination. This is not a Pre Shipment Inspection because the shipment has taken place. This type of inspection is called an Inbound Cargo Inspection.
Is Pre Shipment Inspections tax deductible?
Yes, it is.
Even though Pre Shipment Inspections take place in a different country, you can use the cost of the inspections to reduce any coronation tax which you might accrue on sales in any jurisdiction.
We can charge our invoice to any country office you request.
What countries can I get a Pre Shipment Inspection from?
It is a common question, especially now as everyone is trying to source from new countries.
At Goodada, we offer Pre Shipment Inspections in over 76 countries. Yes, that’s across all the continents except Antarctica.
So you can expect to receive the same type of service and report if you order an inspection in Austria, Algeria, Argentina, or Australia.
Therefore, if you buy products in Europe, South America, North America, Asia, Africa, or Oceania. Goodada has inspection teams there who can conduct many different types of inspections.
Can the Inspector test a product during a Pre-Shipment Inspection?
Incredible as it sounds, yes, we can.
Most inspections can cover the following tests:
- Assembly Test
- Barcode Scan Test
- Function test
But you might want us to test something else during the inspection. Our inspectors can witness record the seller conducting these tests and note the findings for you. We can send videos of these tests being done so you can see what has been checked.
How is that for service!
What is the maximum number of products which can be checked in a Pre Shipment Inspection?
Some people ask to have 100% of their goods checked. But that can become too expensive in terms of the cost of inspections.
So, many years ago, some clever folks designed a process to make inspections cheaper and easier to use, and they called it AQL (Acceptable Quality Limits).
With an AQL, you simply use the note the total quantity of your goods and then use the chart to find out the number of sample products to be checked. You can also see what defects will determine whether the inspection will be a Pass or Fail.
Another question I am often asked is, “how many products can the inspector can check in one day.” It all depends on what the goods are, the sample quantity, and what you want the Inspector to check.
I am available to chat with you on this if you have any questions.
When should I order a pre-shipment inspection?
As early as possible is the best answer.
We need time to prepare your inspection checklist and make sure that everything is ready before the Inspector goes to the Sellers facility to conduct the Pre Shipment Inspection
Most inspectors like to have the time to communicate with the seller and confirm the inspection date.
Global Inspection Services- Over to you…
So, if you are souring products from across the world and require a Pre-Shipment Inspection, please contact me. or visit Goodada’s Countries Inspection page.
Therefore, for more information contact:
Contact Person: Aidan Conaty
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Phone:(Europe/ Rest of the World) +353 1 885 3919 ; (UK) +44.020.3287.2990 ; (North America) +1.518.290.6604