AOW Handmade: An Interview with Robbie Stewart of Mbare

This week, I am delighted to share an interview with Robbie Stewart of Mbare, a long-time colleague of AOW. We enjoyed working together on an artisan project for West Elm a few years back and I have loved following his work ever since. 

Robbie has been running his import business since 1997, which supplies a unique collection of handcrafted products from Africa. He also offers warehousing services that are a growing demand for artisan enterprises. He's filling an important niche in this sector and has vast experience so let's dive in!

What advice do you have for those new to the field of importing?  

Importing is not complicated but it does require a lot of attention. There are many variables and unexpected learning opportunities. It's also very much a hands-on process.

Some retailers may find it beneficial to use DHL or Federal Express as they can handle door-to-door delivery. The downside of this approach is the cost. It’s more expensive but less hands-on. The brokerage fee is included in the courier price, which does not include duties, but they get it cleared for you. Certain products like textiles lend themselves well to this approach.

It's worth considering both air and sea freight options for larger-scale imports. My strongest recommendation is to find and develop a relationship with a reliable customs broker who can provide good service.

How do you find a good broker?

Word of mouth and Google are the best ways to find a broker. There are plenty of brokers out there, so shop around to find one you trust. Keep in mind during your search that brokers don't have to be located near the port; they often have local contacts for delivery within their region. You can try to look locally, but broker services also provide a door-to-door service, which can be another option. 

At what point in the lifecycle of a business do you think a broker is needed?

At the point where you are committed to importing full-time for your business strategy or when the cost of warehousing and storing is such that it’s more advantageous than receiving smaller batches of inventory more frequently. Typically, any shipment under $1,200 can be cleared under an informal customs entry. Over and above this amount, you require a more formal customs entry. If you are going to engage a customs broker, you need a customs bond, which guarantees that the duty will be paid. This is a single or continuous entry bond for 1, 2, 3, 4, or 5 years. The longer you take the term on the bond, the cheaper it is.

What % additional should you factor into the price of a container?

You are looking at 30-50% additional cost for containers.

For small volumes, the cost of importing a shipment can be 100% or more of the product cost. As an example, you can imagine an order of $2,000 worth of glass from West Africa. Then, imagine another $2,000 for shipping, including clearance, delivery, and customs fees. Lead times are long for containers, so that’s something to assess before getting started. 

What are some common mistakes you see importers make? 

The most common hang-ups come from not knowing certain import requirements and what documentation is needed. 

For example, a tariff code is always needed. Specific categories of products need import declaration (Lacey Act Declaration), country of origin label, and customs requirements.

People also often underestimate the time it takes when working with a broker. 

Other mistakes usually arise from inefficient or improper packing. There needs to be a level of experience to pack products safely while minimizing the volume of space used when packing. Light products are not necessarily cheaper to ship - shipping charges are calculated on volumetric weight (space consumed) or weight, whichever is greater.

 What are some tips for making this model work?

There also needs to be a threshold of economies of scale to do it efficiently and effectively. It is best to consolidate your purchasing. Purchase larger quantities less frequently to ensure you’re filling containers fully. 

Can you tell readers about the warehouse services you provide?

I am an intermediary, so we take the product into our warehouse and ensure it’s in a ready-to-sell condition. For example, when you purchase Iringa baskets, we make sure the artisan vendor consolidates and packs them well, nesting them so one basket fits within the other - to maximize the shipment. Then, we unnest them and soak every basket to get the shape back so it’s ready to sell.   

As a wholesaler, we are expanding our capability to do warehousing and fulfilment for companies who want to hold stock or for resale (to retailers or consumers) but don't want to manage the warehouse. With the rise of drop ship, this is necessary. Rather than relying on large orders, this allows for a more consistent flow of demand. If you plan to have inventory in the US, you need to have enough to sell and replenish before you run out. We understand the sell-through rate. Our fee is based on space consumed and number of transactions.

Something that sets us apart is that we are used to handling handmade products, which are often high touch. If you went to a more generic service like Ship Bob, it’s less personal and more standardized.

What are some things to ask potential vendor partners before engaging with someone new?

I would want to know about their production capacity and timelines so I could plan accordingly. Always factor delays into your calendar as they’re bound to happen.  

What are they doing to ensure quality control? How is the product packed? I would ask to see photos and videos so we can give guidance. 

Some countries are more bureaucratic than others, especially in Africa, so I would like to see if they have all their bureaucratic requirements. If they have a history of exporting, request references. Clarify the terms of the sale to make sure responsibilities related to shipping, terms, breakage, etc. are clearly outlined.

Where do you see the trends in shipping and warehousing going?

It is becoming increasingly complex to work directly, especially when it comes to artisan-made products. It works for some products like textiles that are high value and unlikely to be damaged during shipping. But for other categories like glass or ceramics, brands will need to become more and more strategic in their logistics to make things work. Of course, you can still work with artists and wholesalers, but choose your products carefully.

Drop shipping and warehousing are the direction to move towards and can minimize the chances that things will go wrong. That being said, it’s best to have a solutions-focused mindset as challenges will always pop up.

For more info, contact: robbie@mbare.com