My stocklot trading journey started 17 years ago, following a setback. I had recently suffered a financial loss due to a problematic partnership in a clothing store. However, I still held the spirit to forge my own path.
I made my initial stride into Bangladesh, securing a small deal of 4,000 pieces with a local agent. Challenges were abundant from the start. Overpaying, dealing with misrepresented goods, and assorted items resulted in trust issues with my early buyers. Yet, through it all, my sincere efforts resonated with the buyers, earning their unwavering support.
Now, let's delve into the darker side of the stocklot business, often hidden from the limelight.
The Tale of Stolen Goods
Unbelievable price points attract every buyer. Once, I received an offer at a price far below expectations. Goods travel for over 10-12 hours from Dhaka to Chittagong, and theft during transit is not unheard of. In this case, the goods were stolen from a hacked container en route to the port.
The goods were red-flagged and exporting them was not possible. The consequences of getting caught were awfully punitive. This episode taught me the importance of due diligence in trading. Always question the legitimacy of deals that seem too good to be true. Request FOB documents and verify the goods' origin, especially when the exporter isn't a well-established entity.
The Perfect Illusion
Once, I came across a deal from a well-known fashion brand's cancellation. The items, sold for less than a dollar apiece, were seemingly immaculate. Under the glossy polythene packaging hid a deceitful reality – mended holes.
The factory owner feigned ignorance about the issue, but his refusal to give us the good, unmended pieces spoke volumes. It seems he had to continue the deceit to find another unsuspecting buyer. This experience underscored the need to inspect the goods thoroughly before closing a deal.
The Deceptive Switch
Our most challenging incident involved a major deal with a large, compliant factory. We bought 70,000 cargo shorts originally made for a leading retail chain in North America. The factory only allowed two of my team members to perform quality control, providing them with just one table and a rather uncomfortable workspace.
After an exhausting 24-day QC period, we discovered most of the 'good' items were unsalable. A nighttime switch had occurred, with good items swapped for bad ones. This incident was a harsh reminder that vigilance is crucial, even when dealing with seemingly reputable entities.
The stocklot clothing trade, while lucrative, has its pitfalls. Over the years, I've learned to remain alert, to question everything, and never let my guard down. Ensuring the highest quality for my buyers remains my primary goal. In my upcoming blogs, I'll share more insights and experiences from my journey in the stocklot clothing trade.
