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WHO WE ARE
orangebali.com our strengths are our team, technology and network.
This team has been carefully selected and consists of professionals
with extensive experience in everything from export trade and
fine art to product development and manufacturing. See "craftmaster"
profiles for more details on the backgrounds of the team. Our
technology development team is one of the best in Indonesia and
excellent by the standards of any country in the world. Finally,
our craft network is far-reaching which has helped us build a
great craft community. Some of our member vendors are Internationally
recognized designers and suppliers to high-end retail stores in
Europe and the USA (Pier 1 Imports, Habitat, Cost Plus and others).
HOW WE WORK
At orangebali.com the buyer does not pay any commissions or fees
(for the time being anyway ... this may change). We are a B-2-B
(business-to-business) Internet sourcing solution for Indonesian
arts and crafts products. We offer the products of our suppliers
to qualified business buyers, not to end-users or consumers, with
the exception of certain items from our Antique and Fine Art Galleries.
With the evolution of the Internet as an important commercial
trading platform, our business model is relatively new, but basically
an adaptation of the traditional ways of doing business. We are
essentially a hybrid breed or cross between an online manufacturers
representative and buying agent. Our income is derived from two
sources: annual subscription fees and transaction commissions.
The annual subscription fee is paid by the vendors listed on our
trading community. This fee is to cover design, hosting and maintenance
costs. The transaction commission is also paid by the supplier
and is based on FOB (port of departure) price terms. This is the
manufacturer representative characteristic of the business concept.
We also offer the services of a traditional buying agent including
product development, sampling, communication support, quality
control, logistical coordination and other basic services. Normally,
the buyer pays the buying agent a commission for these services
... we are trying something new. orangebali.com acts as an intermediary
between buyers and suppliers and all transactions will be processed
through us. Our philosophy is that while the Internet bridges
the gap between buyers and suppliers in many respects, it does
not completely bridge the cultural and social gap and the impact
it has on communication and business processes. In addition, while
the Internet is evolving rapidly in emerging market economies,
e-commerce solutions are still relatively limited in Indonesia
and our suppliers see us as a relatively low cost Internet marketing
strategy and like the marketplace concept.
FULFILLMENT & DISTRIBUTION
Getting the goods to you … that's the hard part! While the
Internet has exploded with many solutions that get suppliers and
buyers closer together, we are still a few years away from the
"beam me down Scotty" transport technology of the Starship
Enterprise and cannot yet send 40 foot containers in an e-mail
attachment. Until that's possible, we will have to deal with the
rather primitive traditional modes of merchandise transport; sea
and air cargo. Two alternatives are possible for container cargo:
FCL (Full Container Load) and LCL (Less than Container Load).
FCL is the most economically feasible shipping alternative as
the lower cost reduces unit shipping costs. The departure date
of the goods is more flexible and can be more closely synchronized
with the production schedule as the shipper is not forced to wait
for consolidation, as is the case with LCL shipments, when the
shipper does not have enough merchandise to fill a container and
must wait until the freight forwarder accumulates enough goods
of other shippers to fill a container. In fact, in some cases,
it's cheaper to ship a half-full (or half-empty depending on your
philosophy) container than to ship LCL, as shipping companies
make good profit margins on LCL business, due to the high pricing
of this container space. However, this must be looked at on a
case-by-case basis. Airfreight is also feasible if the items being
shipped are small and light weight, or if fast delivery is critical.
If necessary, orangebali.com will handle packing and arrange shipment
for goods sold on FOB (port of departure) price terms. The buyer
bears freight, documentation and insurance transaction costs.
We have an export trade service alliance with DFDS Transport and
can quote very competitive sea and air cargo shipping rates once
we understand your order. The main ports of departure are Bali
and Java (Semarang and Jakarta). Since we are a trading community
composed of many suppliers, we will consider consolidation of
orders placed with multiple-vendors on a case-by-case basis. While
we would like to offer this service on an unconditional basis,
it's not yet feasible to do so. Our suppliers are spread throughout
this 17,000-island archipelago, which provides some unique logistical
challenges. Please inquire about the consolidation possibility
if you are interested.
PRICES
Prices will be furnished upon request and require completion of
the online registration form. We will provide price quotations
on specific products after we have verified your registration
information and determine that you are a bonafide business buyer.
We believe that the basic energy fueling the Internet revolution
is "consumer empowerment". We are not a trading company
that "buys and sells" as an intermediary taking a huge
markup. As previously mentioned, we take a commission only from
the supplier, which means that our suppliers set their prices.
We have wholesale price lists from our suppliers. FOB prices will
normally be based on minimum order quantities (i.e. one 40 foot
container minimum). While we do not control the pricing of the
products offered in our trading community, we do encourage our
vendors to offer preferred "Internet" prices in the
orangebali.com trading community. We reserve the right to change
our commission policy without notice. We are considering a buyer
commission, but would like to try this new approach first.
LEAD TIMES (Production &
Delivery)
Production lead times vary depending on the size of the order,
characteristics of the product and time of year. Lead times can
range from 2 weeks for small craft items to 2 months for larger
items like furniture and even longer for knock-down houses. Stock
items obviously do not have any production lead time, but most
of our vendors produce to order. If a community vendor maintains
stock in a cataloged item, it is indicated as such. Again, we
will give you a better idea of the required production lead-time
once we understand the composition and requirements of your order.
TRADE FINANCE
No major breakthroughs in Internet-based trade finance solutions
yet (i.e. online LC's, etc.). So, the terms of payment are again
traditional. In some cases, we will ask that the buyer and supplier
settle the financial transaction between themselves. However,
if there is a need we may intermediate the process. This will
be determined on a case-by-case basis. As LC's are dangerous,
cumbersome and a huge administrative burden, we suggest 50% of
the payment by TT (Telegraphic Transfer) at the time the order
is placed and the balance of 50% when the goods are ready to ship.
LC's should only be considered in higher value transactions (i.e.
> US$20,000). There are other financing alternatives available,
please inquire if these methods do not meet your needs or if you
would like additional information.
SPECIAL ORDERS
Anything is possible! We have access to some of the most powerful
creative talent in the Indonesian craft scene. If you are interested
in developing a new product or an adaptation of an existing one,
please contact us and we will help make it happen. |
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