B2B

There is enormous latent supply of equipment and machinery in China across a wide range of industries. The amount of arbitrage happening in the China-to-US machinery and equipment space seems almost too significant to not be disintermediated. Why has no one been able to tap into it, especially the marketplace giants, Amazon and Alibaba?

High-Touch or Low-Touch?

One reason is the unique high-touch service needs of equipment and machinery industries. High-touch means that customer service issues are often more complex, but the business involves high value customers. In contrast, most consumer goods follow a low-touch customer model.

From operating call centers trained in technical advice and troubleshooting, to providing adequate after-sales maintenance and repair, the need for high-touch customer service from end to end is unavoidable in the world of big-ticket machinery and equipment purchases. Few Chinese manufacturers can afford to operate a dedicated US-based team to fulfill this for US customers.

If traditional cross-border intermediaries such as trading companies and OEM buyers can fill this need and profit handsomely, why couldn’t a horizontal marketplace platform step in and steal their thunder (along with billions of dollars of profit)?

As Alibaba and Amazon's marketplace platforms have been built out around consumer goods, these incumbent players follow highly entrenched low-touch service models. This because the relatively low value of consumer purchases prevent a high-touch model from ever being profitable. However, conversely, a low-touch model greatly limits these platforms’ ability to accommodate Chinese direct-selling of industrial equipment and machinery the same way they have – to an extent – for Chinese consumer goods.

One Man's "Innovator's Dilemma" is Another's...

It would go against Alibaba or Amazon’s core business models if they were to establish a dedicated after-sales service team to answer customers’ various technical industry-specific questions, much less provide on-site maintenance services. But that is exactly what is needed by Chinese industrial sellers in order to sell to the US.

A platform that provides high-touch English-language service is the very key that will unlock an enormous volume of latent supply. It is a key that may not seem intuitive at first due to the consumer models proven out by the giants, Amazon and Alibaba. But it’s one whose numbers make complete sense if you take a look at the US market from a buyer perspective, in conjunction with understanding the challenges and incentives from a Chinese seller perspective.

SHENGYANG, Liaoning-September 21, 2017 -Toolots CEO Jason Fu met with Bi Chunguang, the president of Liaoning Chunguang Pharmaceutical Equipment Co., Ltd., at Qibaoshan Hotel in Sheyang Province on Thursday, to discuss business opportunities.  

Liaoning Chunguang Pharmaceutical Equipment Co., Ltd. is an award-winning manufacturer of packaging machinery, pharmaceutical machinery, and other equipment in Liaoning Province. They are a trusted brand of equipment used widely among manufacturers in the pharmaceutical, food, cosmetic, and household chemical industries. The company has five main product lines: liquid blowing potting automatic molding filling machinery, blister packaging machinery, automatic cartoning machinery, and automatic production line equipment, totaling more than 20 models overall. In addition to being a leading packaging machinery company in China, the company also exports to more than 60 countries in Southeast Asia and Europe. Customers include many well-known pharmaceutical companies in China, including Yunnan Baiyao, Tongrentang, Harbin Pharmaceutical Group, and Tasly Pharmaceutical. 

Chunguang mentioned that the pharmaceutical packaging industry in the US lags behind that of several other top economies like Germany, but that means room for improvement and therefore great opportunity. 

Toolots CEO Jason Fu (right) with Bi Chunguang of Liaoning Chunguang Pharmaceutical Equipment Co., one of the industrial suppliers slated to expand into U.S. exports using Toolots.

"To me this represents a collaborative effort, not only in regards to sales, but also in terms of development strategy for mutual growth," said Chunguang during the meeting. He also embraced Toolots' product display center concept in California, where flagship products are shown to prospective U.S. customers hoping to familiarize themselves with various product lines. Chunguang will be the first vendor to sell pharmaceutical packaging machinery on the platform. The machines manufactured by Chunguang will be vital to U.S. SMEs seeking to seal and protect their products from contamination or exposure during processes such as distribution, storage, and sale prior to their use. However, Chunguang's packaging machines also allow businesses to reduce their labor, improve productivity, and protect their workers from handling materials that may be hazardous or adversely affect their health.  

Toolots will hold its Second Annual China-US Manufacturing Exchange Summit in China from November 12-14, 2017, to which Chunguang is invited, along with several other medical equipment manufacturing companies from China and the U.S. For additional information on the Summit, or to RSVP, visit our Eventbrite page here. 

To view a Chinese version of this article, please click here.

CHANGCHUN, Jilin-September 22, 2017- Toolots CEO Jason Fu and board member Dr. Peter Wei attended a business roundtable Wednesday in Jilin Province to discuss how Toolots can play a role in creating export opportunities for Jilin's industrial equipment manufacturers.  

Toolots attends a business roundtable with top industrial supply business leaders in Jilin.

Director of the European and American Affairs Office of Jilin Province Liu Zhijian speaks at the exchange.

Toolots CEO Jason Fu describes the company's business model at the exchange.

The exchange featured a panel of 18 manufacturing executives, including several top industrial supply companies in Jilin. Several heads of the Jilin Provincial Government were also in attendance, including Liu Zhijian, the Director of European and American Affairs Office of Jilin Province. Changchun City Foreign Affairs Office Deputy Director Ou Shuo, Changchun Bureau of Commerce International Market Development Director Suo Tie, Deputy Director Jiang Xutang, Siping City Economic and Trade Bureau deputy director Liu Dongyu were among the officials in attendance.  

The 18 top manufacturing executives represented companies producing a wide range of industrial products, including automobile manufacturing, transformers, industrial automation, valves, power generation equipment, and other equipment. 

Toolots was given the opportunity to speak about its business model and how its platform makes it possible for industrial equipment SMEs in Jilin to become export-ready, particularly as US manufacturing heats up and its demand for equipment grows. 

"Toolots coming to Jilin is a win-win situation," said the Changchun Deputy Director of Foreign Affairs during the roundtable discussion. "It is always our goal to facilitate and build bridges when it comes to global trade, so we will do everything we can to support Toolots in helping Changchun industry explore export opportunities."  

Deputy Director of Foreign Affairs Office of Changchun City Ou Shuo speaks at the exchange.

After Toolots spoke about their platform, the Siping Economic Cooperation Bureau said that he was optimistic about the company's impact on industrial exports, and looked forward to spreading the word.  

Deputy Director of Changchun Bureau of Industry and Information Technology Jian Xutong also expressed his full support of Toolots's business model, noting an interest in helping bring more companies onboard.  

"The U.S. is bringing back manufacturing to the States, but Toolots has turned this trend into opportunity. China's industrial industry has accumulated a degree of excess capacity, yet there is a prevailing lack of know-how in terms of how to export it to U.S. manufacturers. Fortunately, this is precisely Toolots's area of expertise."  

Deputy Director of Changchun Bureau of Industry and Information Technology speaks at the exchange.

Toolots CEO Jason Fu spoke about Toolots's plans for the future:

"Before October of next year, we will have onboarded 300 industrial equipment companies which will serve as business model validation, showing investors, local governments, and business leaders our platform's potential for incredible growth." 

Toolots CEO Jason Fu speaks at the exchange.

A Chinese translated version of this article can be found here.

Strengthening SEO, advertising, and SERPs to energize Toolots' global manufacturing platform

CERRITOS, Calif.- September 19, 2017- Toolots, Inc., an online marketplace and distribution channel for the latest high quality industrial equipment, machinery, and technology, is revitalizing their online presence and streamlining their content systems with the addition of David Alpern, their new Director of Marketing. Enlivening existing content and discovering new opportunities, the southern California based start-up is excited to see what Alpern brings to the table.  

With over two decades of professional experience in search engine optimization (SEO), Pay Per Click (PPC), and search engine results pages (SERPs), Alpern plans to work closely with Toolots executives to shape the company's messaging through optimization of internet marketing. This includes examining the current marketing, product, and supporting content of the company to refine its messaging. On a broader level, Alpern's main goal will be to increase traffic on Toolots' site, therefore resulting in the potential increase in sales for the company's vendor partners as well. Furthermore, Alpern's work will also be essential in helping Toolots as it continuously strives to promote economic growth and streamline commerce in the global manufacturing industry while fostering trade relations between the US and China. 

In regards to Alpern's hiring, Toolots Human Resources Manager Emilie Sperling said, "I'm excited to introduce David as the newest member of the Toolots team and I'm confident he will continue the progress we've made thus far. He is an asset to the department, who should see him as a mentor to help educate and assist at any step along the way."  

When asked about his understanding of the company, Alpern described Toolots as a "trailblazing" company redefining B2B eCommerce and international trade through competitive price points and comprehensive services. "I love companies with international scope," Alpern stated when discussing his decision to join Toolots. He continued by citing Toolots' efforts on international trade as a significant component in his decision to join the company. "Economy goes past our [the United States'] borders," Alpern said in reference to the global manufacturing community and its' impact on both the economy domestically and internationally.  

We’re pleased to announce the addition of David as Director of Marketing to our team.To learn more about him, visit: https://t.co/i9ujzqcaGN pic.twitter.com/U0lUZArOHw

— Toolots (@ToolotsUS) September 20, 2017

An experienced team leader, Alpern also expressed his passion for education and helping others as well. Infact throughout his career, he has worked on popular educational programs like Reading Eggs, and been a speaker and presenter at various conferences such as the Data & Marketing Association Conference, National Conference for Database Marketing, and Retailing.org’s Direct 2 Customer Conference. 

Alpern has also taken his experience to the classroom as an Instructor of Internet Marketing at California State University, Long Beach's College of Business Administration. During his time there, his classes were so highly sought after that the waiting list for his course became considerable.  Then in 2009 Alpern founded his own company, InternetOMG, also known as the Internet Online Marketing Group.   

"My initiative [was] to coalesce several freelancers together to help clients with their lead generation, traffic acquisition needs," said Alpern reflecting on how the company came to be.  

With eleven years of experience in multiple industries already behind him, Alpern was able to establish, maintain, and grow the interactive marketing consulting firm to what it is today. Through InternetOMG he had the opportunity to work with companies like Skechers and Everyday Health, in addition to other agencies like Phelps, and Rhythm. 

"I love opportunities where there's creation," Alpern said when discussing his desire to create InternetOMG and its relation to his new role at Toolots. He cited the value of innovation and discovery within a start-up company before recalling his time at AltaVista twenty years ago, when the internet company was experimenting with the mechanics and best practices of PPC.  Upon asking his personal objectives for Toolots he stated he planned to, “pursue the fundamentals, pursue internal education, and pursue our audience” to create universal knowledge throughout the company and increase efficiency online. 

"I call this whole process 'traffic optimization'" Alpern stated, referring to the full creation and employment of Toolots' new online systems. The implementation of these processes will streamline online content for the company, and enhance the experience for visitors of the site. Toolots' existing and potential vendors and customers alike will be able to access their desired information more readily, therefore enhancing their shopping experience as well. 

About Toolots 

Toolots, headquartered in Cerritos, California, offers an online marketplace and international distribution channel for factory-direct industrial tools, machinery, and manufacturing technology. Our user-friendly platform provides fast, easy access to high-quality, affordable equipment for manufacturers. More than a simple distribution channel, Toolots provides comprehensive services for companies around the world who produce the industrial machinery and equipment we sell, helping streamline the marketing, omni-channel sales, warehousing, fulfillment and after-sales service. On the customer end, Toolots simplifies the purchase, delivery, installation and warranty of industrial technology, machinery and components, and upholds product quality through a vetted network of vendors and service technicians. The company’s dedication to fostering international trade relations passes on cost savings to the consumer, contributes to reduced downtime, improves productivity and expands a manufacturer’s reach. Toolots has strategically located warehouses, showrooms, and offices across the United States, China and as of May 2017, has expanded into Taiwan. For more information visit us online at www.toolots.com. 

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Atosa Catering Equipment President Michael Shao said his company's product quality and emphasis on service sets them apart from competitors.

BREA, Calif. – July 3, 2017 – Atosa Catering Equipment, Inc., a leading provider of commercial refrigeration, gas equipment, food warmers and smallwares, didn’t start out as a global business. But by focusing on providing excellent customer service, reliable equipment at aggressively competitive prices, and by funding research and development to enable product innovation, Atosa Catering has established a wide ranging customer base that has allowed them to extend sales to more than 100 countries so far.

Founded in 2003 and based in Hangzhou, China, the family-owned company now led by President Michael Shao started small. Ten years after it was founded, Atosa expanded its sales into the United States marketplace. Today, Atosa Catering Equipment now has 12 facilities stretched across the United States, all staffed with in-house technicians to provide after-sales service – an aspect of the business model Atosa leadership takes seriously.

Atosa first expanded its reach into the U.S. market four years ago, and now utilizes a network of authorized distributors to get its efficient and long-lasting refrigeration equipment in the hands of American commercial consumers, including on Toolots.com through a distribution agreement with Toolots’ sister company, Bolton Tools. Shao said customers have relayed that the quality of Atosa products greatly exceeds their expectations and that their extensive service network, with technicians available in 12 states and on-demand across the country, help ensure long-term sales into the future.

“Nobody in this industry has this kind of service,” he said. “Customers tell us they’re extremely happy with my company’s products and service. The American saying goes ‘you get what you pay for,’ but with Atosa Catering Equipment, you get more than you pay for.”

As a testament to the company’s emphasis on excellent service, the entire Atosa USA sales team has visited the company’s factory in Hangzhou, as part of an educational trip to help them become more familiar with not only the products, but the people and the technology behind them.

One of many Atosa products perfect for commercial and industrial applications is the bottom mount three-door refrigerator - promising not only energy cost savings but also reliability, competitive affordability and longevity.

“They were impressed by our China facility and were amazed at how much automation is available. The experience makes them more confident selling on the U.S. market,” Shao said.

Since Atosa products hit the Toolots Merchant Center in May through the Bolton Tools agreement, sales of the global company’s products have increased, as have inquiries from new customers looking for durable yet cost-effective commercial refrigeration units.

Speaking of Toolots Founder and Chief Executive Officer Jason Fu, whom Shao has developed an effective business relationship with since, he said, “Jason is a visionary businessman. What he is doing with Toolots is inspiring.”

“With the help of Toolots, we’ll be penetrating markets we didn’t expect to be in,” Shao added.

When asked what sets apart Atosa products from its competition, the company president said heavy, longstanding investments in research and development, striving for increased energy efficiency and durability, are a top priority. The company does not cut corners, but strives to serve as a responsible ambassador of what the best of Chinese manufacturing can truly accomplish.

“You have to invest heavily in R&D. Your quality cannot be dropped,” Shao said. “You need to keep investing to do everything you can to defend your brand, your reputation. Conquer the problems in order to make your product better and better.”

One of the challenges faced by many foreign companies considering entering the U.S. market, Atosa included, are the shifting legal standards, import restrictions, labor laws and many others. With Toolots’ help, Atosa has access to logistical, capital and other types of support that makes the manufacturer’s job easier.

“Toolots allows them to focus on product development, education and guiding them to comply with U.S. laws and standards,” Shao said.

Shao added he believes himself to be an ambassador for the Chinese manufacturing industry, taking pride in the heavy investments into research and development to make his company’s products more efficient year after year and of increasingly high quality. Additionally, an emphasis on growing the company’s service team, both from a customer service and technical perspective, has helped grow Atosa’s reputation, Shao said.

Looking ahead, the Atosa Catering Equipment president added, “I am excited about the future of Atosa. I have great faith in Toolots. It has great leadership and a professional team. It’s an excellent platform for Chinese manufacturers to enter the U.S. marketplace."

Atosa Catering Equipment Inc., products are currently available on Toolots.com and are distributed through Bolton Tools. For additional information, visit Toolots.com or contact our Customer Service Representatives at (844) 866-5687.

Founder of Growing Platform, Toolots.com, Aims to Revolutionize Industrial Equipment Market

Toolots Founder Jason Fu addresses his employees in the 2017 State of the Company Address.

CERRITOS, Calif. - May 22, 2017 - Toolots Founder Jason Fu is building much more than his business, a full-service online marketplace based in Southern California that fuels the global manufacturing industry. The early veteran of industrial eCommerce and chief executive officer said he is building an “ecosystem” with Toolots – a platform to revolutionize the eCommerce marketplace for industrial machinery, equipment, and technology.

In remarks to all Toolots employees as part of his State of Company Address Friday, Fu outlined this message, envisioning the future of the company he formally launched in May 2016. The chief executive for Cerritos-based Toolots described his own personal journey as a business owner – the lessons learned, the ground gained, and effective strategies to push the enterprise far beyond a simple distributor of the tools of the manufacturing trade.

Fu, also Chief Executive Officer for Toolots, outlines the fiscal growth of the company he launched in May 2016.

With plans to streamline the current business model and develop nationwide brand recognition as the company’s international footprint expands, Fu pointed to recent growth in Asia, citing the establishment of Toolots Taiwan last month. The company has two additional facilities in China, located in Hangzhou and Ningbo, as well as a distribution center in Houston, Texas. But the growth isn’t limited to the physical realm. As part of the flourishing Toolots supplier network, Fu reported that more than 120 businesses from the United States and China have partnered with the California company to sell their industrial products – both domestically and internationally – on Toolots.com.

“We are adding a lot of new products on a daily basis,” Fu said. “We are moving along very fast.”

Providing genuine customer service is one of the most important components in any successful business, Fu said. As an immigrant from China who followed his dream of building businesses in the United States and becoming a U.S. citizen, the Toolots chief executive learned English, striving to be able to more effectively communicate.

In his first State of the Company Address, the Toolots founder spoke directly to all his employees and outlined the company's expansion plans.

When Fu arrived to the U.S. in 1996, he was motivated by his dream to open an online marketplace for industrial equipment. More broadly, he yearned to bridge the gap between U.S. and Chinese equipment manufacturers, fostering improved relations between both countries, he said. The language barrier leads to lots of dollars lost for companies, he said, and it demonstrates the need for clear communication – not only with customers and potential customers, but also employees and colleagues within the industry from around the world.

“For us new immigrants, we hit the same roadblocks, but we all succeed when we try,” Fu said.

The industrial space has additional roadblocks, the chief executive pointed out. Some customers are uncomfortable purchasing heavy machinery online, without the ability to see it in person, and are more accustomed to the traditional distributor model complete with segmented territories. Toolots changes that; the Cerritos showroom includes some of the most popular online items, and new machinery or stock is proudly displayed for walk-in customers, in addition to high-quality photos and videos of many products posted on Toolots.com.

Toolots engineers install a robotic device on a plastic injection molding machine to greatly speed up production.

Another roadblock for the industrial equipment industry, particularly eCommerce businesses, is providing effective warranty protection, service and maintenance to online customers in a simple way.

“After-sales service is the biggest barrier for industrial supply” Fu said. With the release of its companion smartphone application YuuTool, Toolots is redesigning how online marketplaces provide after-sales services to customers. By connecting users of industrial machinery with qualified service technicians, in a similar manner to the way Uber connects those in need of a driver with a quick, affordable ride, YuuTool brings people together. This focus on service distinguishes Toolots from its competitors and other providers of industrial equipment, Fu said.

“We’re providing big services through YuuTool. It’s all within the Toolots ecosystem, where everything has value,” he said.

Toolots Chief Strategy Officer ZeMing Gao speaks to the company's employees May 19 during a companywide address.

“The Toolots business model is revolutionary,” added Toolots Chief Strategy Officer ZeMing Gao, stressing how Fu intelligently constructed a vertical business that can be easily scaled to other horizontal markets.

A business only succeeds with its employees, Fu pointed out. Addressing all Toolots employees in a video broadcast in Mandarin and English, the chief executive said, “You are all part of the foundation, what we build upon. It is on this foundation that we are constructing a building, one that went from zero to something that will bloom.”

It is vital that each department within Toolots has a “good foundation,” he added, and strives to continually inject fresh vision through the hiring of powerful leaders.

“New blood is bringing big experience, and this will help us in ongoing efforts to continue building a great team,” Fu said. In the coming weeks, Toolots will have significant announcements about new executives joining the enterprise. Those announcements will be released soon.

Fu pivoted from discussion of Toolots, its business model and its growth to Alibaba, an eCommerce firm that has grown exponentially in recent years. Alibaba started as a simple directory of information, similar to Yellow Pages, to help manufacturers find and locate new suppliers. What began as a simple online platform created by Chinese national Jack Ma to provide an online marketplace of suppliers has evolved to become a behemoth as the world’s largest retailer, even surpassing Walmart in domination of the marketplace, according U.S. Securities and Exchange Commission filings in 2016. As of 2014, Alibaba had a market value of more than $231 billion.

Explaining that the key to Alibaba’s success was creating a platform to connect businesses worldwide and fulfill their needs, Gao suggested that Toolots is on track to one day become an influencer in the global trade environment. “You want your platform to be so essential that you can’t imagine what life or business would be like without it,” Gao said, stressing the need to offer something completely original from your competitors. He is confident Toolots is that platform.

T18 Capital, Inc. to invest significant capital following successful fundraising venture

CERRITOS, Calif. – March 7, 2017 – Toolots, Inc., a California-based online distributor of industrial machinery, tools and technology, entered an agreement with an investment firm Tuesday to inject capital into the enterprise following completion of a successful fundraising campaign. Members of the Toolots Board of Directors, including Founder, Chief Executive Officer and Board Chairman Jason Fu, were on hand to sign the agreement, which injects a significant yet undisclosed amount of capital into the enterprise.

Toolots partnered with T18 Capital, Inc. for the fundraising venture, which will help support the company’s initiative to enter sales agreements with more than 100 American manufacturing companies by the year’s end. So far in 2017, Toolots has achieved over 20 percent of that goal, partnering with small to medium-sized manufacturers based in the United States to distribute their products both domestically and internationally.

About Toolots

Toolots, headquartered in Cerritos, California, offers an online marketplace and international distribution channel for factory-direct industrial tools, machinery, and technology. The user-friendly platform provides fast, easy access to high-quality, affordable equipment to manufacturers. Toolots’ comprehensive services streamline the purchase, delivery, installation and warranty of industrial technology, machinery and components, and uphold the quality of important goods through a vetted network of vendors and service technicians. The company’s dedication to fostering international trade relations passes on cost savings to the consumer, contributes to reduced downtime, improves productivity and expands a manufacturer’s reach. Toolots has strategically located warehouses, showrooms, and offices across the United States and China. For more information about Toolots, visit their website at www.toolots.com.

CERRITOS, Calif. - Feb. 23, 2017 - Toolots is pleased to announce the sale of the first United States manufactured product offered on our online marketplace, following the launch of our Made in USA network earlier this year. The sale was for a MS100 Media Separator, part of Cyclone Manufacturing’s dust collector line. Based in Southwest Michigan, Cyclone Manufacturing has over 40 years of experience and expertise in the industry and proudly engineers and manufactures sandblasting equipment and supplies. As a company we are excited to see our vendors succeed, and to delighted to know the manufacturing industry in the U.S. continues to grow.

Toolots is pleased to announce the addition of Karmetal (KMT) products with Bolton Tools as their official licensed distributor to our E-Commerce marketplace. KMT manufactures high quality industrial bandsaws using the latest technological advancements to ensure quality and offer their customers competitive pricing. Additionally, KMT provides a two-year warranty for machine mechanics, and a one-year warranty for electric/electronic parts and components on each purchased bandsaw. KMT bandsaws domestically ship out of their North American warehouse in Chicago and, like Toolots, the company offers quality after-sales services.

Toolots is excited to offer our customers precision industrial bandsaws through the addition of Karmetal (KMT)’s products through distribution by Bolton Tools. For purchasing information, visit KMT’s marketplace on Toolots.com.

Toolots has announced the addition of Advanced Precision Linear LLC (APL) products and services to our E-Commerce marketplace. APL is the exclusive U.S. distributor of TBI Motion Technology Co. who manufacture linear motion products including ball screws, precision ball screws and splines, and linear guard rails. Advanced Precision Linear distributes TBI Motion products for use in industrial machining and the robotic industry, and for tooling, medical equipment, solar energy equipment, and more. Additionally, APL provides servicing for all their linear motion products, as well as technical support in tandem with TBI Motion.

Toolots is pleased to offer our customers high-quality ball screws, linear guide rails, ball splines through the inclusion of Advanced Precision Linear LLC’s products in our marketplaces. For purchasing information, visit APL’s marketplace on Toolots.com.