Alibaba is nothing short of a treasure cove to explore. It houses millions of products that can excite anyone or everyone in this world. However, buying can be a thrilling and adventurous task on Alibaba as many people have already been scammed in recent years.
But the truth is that one needs to be careful while buying online platforms. It’s not just about Alibaba. One can get scammed on any online platform or store if safety tips are taken for granted. Almost every online platform nowadays has some undesirable sellers and spammers who are ready to spam new users.
The good news is one can now easily enjoy buying safely on Alibaba without incurring a loss. Here is an elaborative guide to buying safely and profitably on one of the leading online e-commerce stores, Alibaba.
PROS
- Alibaba offers the lowest wholesale price
- One can make higher profits
- It has a huge range of products across several categories
- Instant access to reliable and know suppliers
- Dropshipping program is lucrative
- One can monitor the quality of products pre-shipping
- Several payment methods are available
CONS
- One has to buy in good quantity which involves risks
- Businesses may land up in legal troubles on selling brand name products
- Some brands are not legally or officially licensed
- The images of the products shown on the website may differ from the actual products
- Clothing products come in different sizes
- There are chances of getting faulty or defective products
- Delivery often takes good time.
Know About Alibaba
Before coming to the guide to buying safely on Alibaba, let’s quickly understand Alibaba and it’s functioning and features.
Alibaba was founded in 1999 by Jack Ma along with 17 more co-founders. The brand brought the concept of business to the business model for e-commerce businesses. The whole idea was to bring onboard international buyers for Chinese manufacturers so that they can expand their market.
The idea brought a lot of success for Alibaba and Chinese sellers. It works exactly like Amazon and lets people buy a huge stock of products for their stores without worrying a little. It also gives you the option to contact the dropshipping partner in order to avoid storing bulk quantities and fulfilling delays.
Alibaba is nothing short of an ocean of suppliers and manufacturers. One doesn’t need to rely on any online portal. Small businesses can do wonders via Alibaba’s list of suppliers and manufacturers. One can either buy a small quantity or make a contract with a particular manufacturer using a dropshipping mode to witness amazing discounts and customizations.
Alibaba & It’s 4 Platforms
Alibaba has 4 major businesses. Each business, it has a specific platform.
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Alibaba
It’s the main supplier hub that instantly connects businesses to manufacturers and vice versa. Here, one can find out a huge number of manufacturers and factories to make your own products that you can label with your own brand name.
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AliExpress
It is nothing but a marketplace letting small businesses sell individual products to customers all across the world. It acts as eBay of China.
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Taobao
It also works like AliExpress. However, it’s restricted to Chinese customers. It doesn’t operate internationally level.
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TMall
It is an e-commerce platform designed for some of the big and premium brands such as Nike, Gap, Apple, etc. It’s just like Amazon serving consumers online. However, it’s available for Chinese customers only.
How Does Alibaba Function?
Alibaba is not entirely like eBay or Amazon. Here, one can’t sell intellectual property. It is meant for trade and business between firms. It works on a B2B concept. Here, one can get instant access to a huge list of products right from the factories and manufacturers.
However, one needs to thoroughly check the quality of various products and manufacturers. Although Alibaba has several quality checks and secure trade practices in use, still one needs to be quite vigilant. It’s like an ocean full of various fish. One has to cross-check details to analyze whether the seller or manufacturer is safe.
When someone registers on Alibaba, they can display over 50 products. The registration process doesn’t cost a single penny. On top of that, Alibaba doesn’t even charge any kind of transaction fees or commissions.
Instead, it has a gold supplier membership program wherein it certifies the manufacturers or suppliers as ‘Gold Suppliers’ to simplify the task for sellers or customers to get the reliable and best suppliers without beating around the bush.
Know About Gold Supplier Program
While visiting Alibaba, one will come across two types of suppliers, Gold, and non-Gold ones.
A Gold supplier gets certification from Alibaba for reliability and quality. In return, these suppliers get enhanced rankings and better marketing services. Alibaba also does some sort of verification for such suppliers in order to put them in the reliable category. However, it doesn’t mean that these suppliers have quality products to sell. It’s just that the supplier is verified by Alibaba and he’s not a fraud.
On the other hand, non-Gold suppliers don’t have a Gold badge from the e-commerce brand. Users have to make efforts to dig into their details and verify them on their own. Here, customers need to make some efforts to get suppliers’ details. However, one can also find quality products at the best price at these non-Gold suppliers.
Essential Tips To Buy Safely On Alibaba Without Getting Scammed
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Validate your products before making a purchase
Before placing a bulk order, it’s better to validate your category and products. For instance, if you want to make a sports store, you may try dropshipping a couple of products. In this way, you can avoid any risk related to fake or damaged products.
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Try to pick reputed or Gold suppliers
Alibaba runs a special program where it gives a badge of Gold to verified and reputed suppliers. These suppliers are qualified to offer quality products.
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Avoid buying products with a brand name on them
There are some suppliers on Alibaba who sell the first copies of popular brands such as Nike, Disney, etc. Don’t buy them to avoid any legal action in the future.
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Take the help of Google to check the supplier’s credentials
If you are finding it difficult to essential details related to a supplier then check on Google. There is one website called Supplier Blacklist that has a list of supplier complaints from users. To simplify your task, you can just put a supplier’s name to know whether he is a scam or legit. You can also get a good number of reviews from other users.
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Use your contacts, if any, to validate a supplier or company
If you have good contacts then validate your supplier before taking the plunge. Ask someone to have a good look at his factory. Or, enquire about the supplier from your sources.
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Read reviews about your supplier
Before dealing with any supplier read carefully what previous customers or users have to say about him. If you can’t find any reviews on Alibaba, then you can visit online forums to check about that supplier. Or, search in Alibaba Forum.
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Order a small quantity first
The rule of thumb is to try first then place a big order. Check whether the products deliver the quality that a supplier claims. A small order will tell you the entire story about the supplier and his products.
How To Buy On Alibaba? A step-by-step guide
Let’s quickly know the process of buying products on Alibaba.
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Pick your niche or category
Alibaba has so many categories to choose from. Hence, your first task is to pick a niche to get the best results quickly. It’s better to pick an evergreen category that is also safe at the same time. Otherwise, pick the category you have in your mind to get the list of trending suppliers and manufacturers without beating around the bush.
In case, you find it difficult to find a trending niche, then you can take the help of :
– Popular keywords based on search results
– Amazon’s best-selling products
– Trending products list
– The website called Trend Hunter
– Google Trends
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Pick a supplier
It’s always recommended to pick a Gold supplier to simplify your search and efforts. Also, pick a supplier who offers a huge variety.
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Simplify your search
If you want to further simplify your search results without putting much effort and time then pick only Trade Assurance and Gold Plus, suppliers. Go to the Sort option and choose Transaction Level or Response Rate to get the best suppliers with the fastest delivery and response rate.
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Check every supplier thoroughly
Before picking any supplier make sure to check his:
– Company details
– Factory conditions
– Product ratings
– Reviews
– The transactions made
– Employees working in a factory
– Product photos
– Ratings
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Pick a product
It’s quite a daunting task to pick a product on Alibaba. It has millions of products listed in various categories. If you have already chosen your niche then it becomes easier to pick the relevant products. While picking the products, make sure to follow the below pointers:
– Check the minimum order quantity
– Check and compare the price.
– Pick the assured suppliers
– Pick a supplier with a good variety
– Validate the products of the supplier
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Contact the supplier
Once you come to the product page you can easily find an option ‘Contact supplier. Make sure to talk to the supplier before you place an order. You can message him about your query, product criteria, samples, etc. You can also negotiate prices and ask questions related to the quality, shipping, etc.
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Check your order
Once you have placed an order then you need to wait for the delivery. When it’s delivered to your doorstep, check the quality properly. You need to examine every product carefully. Check
– Tears or rips
– Dust or dirt
– Damages
– Product count
– Product packaging
How To Make Payments on Alibaba?
Once you have picked up a seller and products, it’s time to make a payment. Most suppliers often send a proforma invoice to customers so that they have a record of payment.
If your order is over $5000, you can make use of PayPal or Alibaba’s Trade Assurance. It gives you an assurance that your products are shipped. However, there is quality assurance for the products.
If your order value exceeds $5000 then most suppliers often ask for a 30% advance via a wire transfer. The remaining 70% payment needs to be done when the total order is ready to ship.
How To Ship Orders From China?
If you are new to Alibaba then you need to know about the shipping policy. It’s always recommended to ask your supplier to take care of shipping rather than arranging it yourself. It’s quite a daunting task. It’s better to pay him extra shipping charges to avoid inconvenience and trouble.
If your shipping consignment is anything lesser than 200 lbs then it’s better to ship via a plane. You can pick courier services such as FedEx, DHL, or UPS. You may need to pay between $6 and $15/pound along with a minimum fee of $75.
However, if your shipping consignment is above 200 lbs you have to ship via sea freight. It’s quite cumbersome to arrange and you may need a freight forwarder.
However, if your shipment is going to the US and is under $800, then you don’t need to pay any duty fees.
Overall, shipping products from China to other countries is quite expensive. It is because of the distance. The shipping time via air is quick. However, if you are shipping via sea then it usually takes between 30 and 60 days.
Alibaba Alternatives
Currently, one can find out multiple alternatives to Alibaba. However, some of the prominent ones are:
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1688
It is also a Chinese wholesale platform. However, it’s only for Chinese buyers.
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AliExpress
If you have a small requirement for products then it’s an apt choice for you. However, the prices are a little higher here.
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Global Sources
It is also one of the popular alternatives to Alibaba. However, it’s not as vast and intense as Alibaba. One can find more Hong Kong trading companies.
Final Verdict
If you are an online seller or stepping into an e-commerce business then Alibaba will surely give your wings to fly. It has an immersive list of categories and products. You can find out a huge number of suppliers offering the best prices. However, there is a risk of selling products from Alibaba that can be minimized to a great extent by following our above guide. You just need to follow the tips and skills that we have mentioned above to get the best suppliers and products without getting scammed.
Alibaba mostly sells good quality products and delivers on time. However, there is always a chance to encounter a bad supplier or spammers which can be minimized by taking a set of essential precautions.