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Ask Me Anything On Importation Of Goods From China - Business (12) - Nairaland

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Re: Ask Me Anything On Importation Of Goods From China by Nobody: 12:27pm On Jan 12, 2016
Am I secure paying my seller through PayPal? Me and her have secured our deal and she has sent me their company PayPal email account.
Here's their address and paypal account
Add:908, Licheng Kaiyi Mansion, No. 436, Dongjiao North Rd., Liwan Dist., Guangzhou, Guangdong, China (Mainland)
Website:http://isuni.en.alibaba.com/
Tel:0086-20-81734730

Paypal
215335837@qq.com Xie Xiyuan

I'm to pay 68$

Guru in the house, Hope she's not a scam?

Have anyone come across her?
Re: Ask Me Anything On Importation Of Goods From China by LUDALOOLO(m): 12:42pm On Jan 13, 2016
if you are looking to start mini importation like me you can choose to buy and wait for the goods to arrive in 7days with all shipping charges taken care by the seller. go to http://www.dhgate.com/store/19786412 thank me later. you can contact bill on his whatsapp +8618806655712

3 Likes

Re: Ask Me Anything On Importation Of Goods From China by uchman(m): 1:30am On Jan 23, 2016
eminikansoso:


My friend don't mind those people that said they know major cities in China. It is pure lie. China is a developed country and been major manufacturer to major European countries and America because of her cheap Labours.
China can give whatever you want base on the quality you requested.
Dubai is a big market place. Their products is first class based on their product quality control measure. Any substandard product can not be accepted in dubai talkless of marketing it in their country.
What I can assure you is that if you large quantity of items go to China because the cost will be Less while in dubai any quantity you want with uniform price.
China uses best means of measurement of goods called CBM while dubai uses container line as a means of measurement.
Names of Nigeria Clearing Agents in China are
Divine Bumazek cargo
Liberty link China Air and sea cargo
Choice air and sea cargo
multi Ray logistics
And many more
Bye


Hello Boss,
please CBM china and LINE dubai,
are they referring to the same thing?

If no,
please can you differentiate them for me...

Thanks brother
Re: Ask Me Anything On Importation Of Goods From China by BilginMuh(m): 9:56am On Jan 23, 2016
l appreciate that you invite people for free information. l believe people in a nation should help each other as same you do as.
l am ready for same sesrvice from Turkey too.
www.bilginmuhendisliktr.com

fatai2:
Hello All,

I will like to give free information for anybody wishing to import any goods from any angle of China to Nigeria or any African countries.

Gud luck!
Re: Ask Me Anything On Importation Of Goods From China by BilginMuh(m): 11:25am On Jan 23, 2016
Can you please send some photos of you want to kamisoglu@bilginmuhendisliktr.com
www.bilginmuhendisliktr.com


oln:
Please,I want to import a few home accessories from Malaysia into Nigeria.Any help people of any reliable shipping or better still airspace freight companies that ply that route
Re: Ask Me Anything On Importation Of Goods From China by carolineguo(f): 7:44am On Feb 04, 2016
EASYWAY CHUMACO LOGISTICS
 CHINA  TO  AFRICAN
 
CAROLINE :0086-18561893286.(WECHAT,WHATSAPP,IMO)
 CHUMACO: 0086-13168300844.0086-18588631673. WECHAT,WHATSAPP,IMO)
NORMAL CARGO : $4.5/KG, CLEARING:350NGN
 NORMAL CARGO:$ 5 /KG, CLEARING:350NGN  ( WITH BATTERY)
 EXPRESS : $8 /KG ,   CLEARING :480NGN
 EXPRESS : $9 /KG ,   CLEARING :480NGN (WITH BARTTERY)
 
we are your loyal agent and link for you. If you want to do very good business with Chinese, 
we will be the biggest logistics company for china and African. ALL FOR YOU.,MY CUSTOMER.
Easyway chumaco logistics. CHUMACO :008613168300844
Address in china: Shop 1088 1F,xinghua Building Zhanqian Road, Guangzhou
广州市,站前路二街1号,兴华国际饰品城,1楼,1088号.

Re: Ask Me Anything On Importation Of Goods From China by jamarionj(m): 5:50am On Mar 21, 2016
Gamboh55:
Okay...which courier service do you use since you said chrisvicmall is expensive...thanks
purplecircle:
Exactly which shipping service aside chrisvis
there are many other logistics for China importers apart from chrisvicmall. Actually Have only use there logistics ones but Not satisfactory. Thou, many enjoy it but to me. I Don't. there are logistics like "uche logistics", "Happy time logistics" , "Arise and shine" .
there is normal and express shipping method use by this logistics

-Normal shipping: you goods get to Nigeria to there Lagos office WITHIN 1 or 2 weeks. but Don't cost much.

Express shipping: you goods get to Nigeria to there Lagos office within 24hrs , but this service Don't cost much compare to dhl and other international logistics. Thou, this is for business men&women. you can try to Check there difference.
Re: Ask Me Anything On Importation Of Goods From China by jamarionj(m): 5:53am On Mar 21, 2016
owang:
@Fatai2, I have burnt my fingers wth Alibaba traders & even the GTB charges on T/T is too much for me. Pls can U let me know other cheaper means of payment & give me information on cheaper shipment for small scale trader.

Thanks.

paying your manufacturers through PayPal is Good, but you must 1st...verify your supplier very well b4 making payment.
Re: Ask Me Anything On Importation Of Goods From China by jamarionj(m): 5:56am On Mar 21, 2016
cachiskky:
i have tried using aliexpress and i used dhl for faster means. the amount charged for custom duties was outrageous, its there anyway one can avoid these or atleast minimize the cost
sure! use third party logistics like uche logistics. Arise and shine logistics, Happy time, etc.
Re: Ask Me Anything On Importation Of Goods From China by Talkingboy: 8:43am On Mar 21, 2016
I want to start importing goods from China, which is the cheapest site and how do I go about it?


I need tutorial pls. Thanks
Re: Ask Me Anything On Importation Of Goods From China by Ubachi: 3:27pm On May 28, 2016
LIBERTY LINKS WORLDWIDE AIR & SEA CARGO is the best logistics company amongst equal.
they charge for normal aircargo is $3.5 a kilogram for freight plus custom clearing at N300 a kilogram. It takes 6-7 days to arrive for collection.

for battery goods, phones, laptops, iPad, cosmetics, power bank, liquid content, powder or similar items, they $5.5/kg for flight plus custom clearing at N300 a kilo. It takes 7 days to arrive for collection.

For SEA CARGO:
LAGOS SEA PORT: they charge $100/cbm for shipment and N30,000/cbm for custom Clearing.

ONITSHA SEA PORT: they charge $130/cbm for shipment and N30,000/cbm for custom clearing.
SEA CARGO takes 45 days to arrive for collection.
Fred: 08036245766
chinedu: 0802 322 3100 Lagos PORT
Bosco: 08032646300 Onitsha PORT
Fred 08036245766 Abuja

1 Like 1 Share

Re: Ask Me Anything On Importation Of Goods From China by Mikechinos(m): 7:31am On May 31, 2016
pls guys which shipping company should I use to import my Goods from China. for large importation. the goods is 250kg
Re: Ask Me Anything On Importation Of Goods From China by Segabson(m): 1:01am On Jul 09, 2016
please who is into the production of Thailand AAA sports jersey ? please I need a good sellers contact. thanks in advance.
Re: Ask Me Anything On Importation Of Goods From China by mygee2(m): 1:11am On Jul 09, 2016
fatai2:
Hello All,

I will like to give free information for anybody wishing to import any goods from any angle of China to Nigeria or any African countries.

Gud luck!
please can I gt a mentorship from you onimportation busieness I currently resides in Kaduna
Re: Ask Me Anything On Importation Of Goods From China by Segabson(m): 3:42am On Jul 12, 2016
please how many people has tried using GTB card for transaction since last week Friday? mine is no longer going. can someone also confirm this?
thanks
Re: Ask Me Anything On Importation Of Goods From China by Segabson(m): 1:00pm On Jul 12, 2016
Segabson:
please how many people has tried using GTB card for transaction since last week Friday? mine is no longer going. can someone also confirm this?
thanks


now working back. charges #330/$ today
Re: Ask Me Anything On Importation Of Goods From China by babz510(m): 11:05pm On Jul 12, 2016
Segabson:
please who is into the production of Thailand AAA sports jersey ? please I need a good sellers contact. thanks in advance.

I know few ..quote if u re still interested
Re: Ask Me Anything On Importation Of Goods From China by babz510(m): 11:10pm On Jul 12, 2016
Talkingboy:
I want to start importing goods from China, which is the cheapest site and how do I go about it?


I need tutorial pls. Thanks

Dyu stl wana learn ??
Quote if yes
Re: Ask Me Anything On Importation Of Goods From China by jamarionj(m): 11:57pm On Jul 25, 2016
HI ...IT'S BEEN ALONGTIME HERE What are your questions relating to importation... will handle your questions.
Re: Ask Me Anything On Importation Of Goods From China by DZTech1: 12:52am On Jul 26, 2016
Thanks for keeping the thread alive.
How would you advise a first time importer? I ask because many of the rules have changed and it's still unclear to some of us on how best to search for, order and pay for goods online.
Your advise will be highly appreciate.
jamarionj:
HI ...IT'S BEEN ALONGTIME HERE
What are your questions relating to importation... will handle your questions.
Re: Ask Me Anything On Importation Of Goods From China by jamarionj(m): 3:48am On Jul 26, 2016
DZTech1:
Thanks for keeping the thread alive.
How would you advise a first time importer? I ask because many of the rules have changed and it's still unclear to some of us on how best to search for, order and pay for goods online.
Your advise will be highly appreciate.

Since I started IMPORTATION ...
Have Not forgotten this piece of advice. Actually there are innovative process in importation. here comes the advise

Alibaba 101:

How to Safely Source Products from the World's Biggest Supplier Directory
In order to start an online business, you need two things, a product idea and supply. If you already have your product idea the next step is finding the perfect supplier. In our global village, it has never been easier to find a manufacturing or wholesaling partner halfway around the world, however sourcing your products from overseas can still seem like a daunting task for new online entrepreneurs.
In today’s post, we’re going to look at how to effectively and safely source a supplier for your product idea using the popular business directory Alibaba. We'll introduce you to the pros and cons of going overseas and show you how to navigate this new terrain so you can lock onto the perfect supplier for your product idea and get started selling online.
Let’s jump right into it.

Disclaimer: Before making any purchases from Alibaba, make sure you read their most up-to-date information and safeguards to protect your purchase.
Advantages & Disadvantages Of Sourcing Overseas
The most common reason many entrepreneurs look to Asia, and in particular China for product suppliers is to take advantage of the low manufacturing costs. Costs of manufacturing in Asia can be significantly lower than North America and other parts of the world, so much so that for many businesses, it could be quite difficult to be profitable if it wasn't for overseas manufacturing.
Cheaper product costs are great, but they aren't the only reason Asia is an attractive place to find a supplier, there are some additional benefits as well:

Advantages
-Lower manufacturing costs
-Suppliers are (generally) much more open to working with smaller businesses and providing smaller quantities
-High number of suppliers to choose from
-For many products, Asia might be the only place that produces the item
-One-stop services like Alibaba have made it very easy to navigate and purchase from suppliers
Along with the advantages of sourcing from overseas suppliers also comes several

disadvantages that you should be equally aware of. Some of the biggest disadvantages include:

Disadvantages
-Perceived lower quality from customers
-(Usually) lower manufacturing and labor standards
-Almost no intellectual property protection
-Language and communication barrier can be difficult to overcome
-Difficult/costly to verify manufacturer and visit on-site
-Longer shipping time
-Cultural differences in business practices
-Product importation and customs clearance
-Lower level of payment security and recourse

What Is Alibaba?
If you've decided and are determined to source your supplier from overseas, there's a good chance you will be buying from Alibaba. By the numbers, Alibaba is the largest ecommerce company in the world (bigger than Amazon and eBay combined) and it's also the most comprehensive directory that connects suppliers (mostly from Asia) with buyers from all over the world. Alibaba literally has millions of products from hundreds of thousands of suppliers so there's not much you wont find on the directory.
Begin Your Search
Buying on Alibaba and using the directory is fairly straight forward to use and similar to other marketplaces like eBay. Browse the product categories or do a search for the particular product you’re looking for.

There are two common approaches to doing a search on Alibaba. You can either search for items based on product descriptions, for example: dog collars, which will give you thousands of results for dog collar products. Alternatively, from the drop-down menu, you can select “Suppliers” instead of “Products” and instead search for manufacturers that specialize in that particular type of product.

What to Look for on Product Pages
When starting your search for a supplier on Alibaba, there are a few things you want to look at and pay attention to on the product listing page. Let’s take a look at a example listing for a dog collar listing we found on Alibaba.

Unit Price
One of the first things you’ll likely want to look at is the price. For this listing we can see a price of $2-$3 USD FOB.

-FOB stands for (Free On Board) and means that the seller will pay also costs associated with getting the product to the marine port (the cheapest way to ship products from Asia) and the buyer pays the cost of actually transporting the goods across the ocean to the final destination.

Minimum Order Quantity (MOQ)
Next, you’ll likely want to look at the minimum order quantity. The minimum order quantity (MOQ) is the smallest order the manufacturer is willing to accept. However, it’s important to note that this is almost always negotiable. This is good to know for later when it comes to negotiating because it give you a good start point.

Payment Options
After understanding price and MOQ, you will likely want to know how you can pay the supplier. There are several common methods of payment, each have their pros and cons for both the buyer and the seller.
Let's take a look at the most common payment options below and the associated risk level to you as the buyer:

1. Upfront TT (Bank Transfer)
Risk Level For Buyer: Risky
With a bank transfer, the supplier will receive full payment before production starts. This payment method bears a high level of risk to the buyer and generally is not recommended when dealing with an unknown supplier. There is little if any recourse to get your money back if something goes wrong.

2. Letter of Credit
Risk Level For Buyer: Fairly Safe
A Letter of credit is fairly safe for both parties, however a letter of credit carries some complex procedures and is generally only recommended for larger purchases ($20,000 and above).

3. Western Union
Risk Level For Buyer: Very Risky
A risky payment method for the buyer that's not recommended when it comes to paying suppliers if the payment is not protected by escrow. Western Union generally should only be used when dealing with people you know very well. There is no recourse if something goes wrong.

4. PayPal
Risk Level For Buyer: Fairly Safe
Paypal is a popular payment method for buyers as it presents a much lower risk, ease of use and generally pretty good buyer protection. Although it's a popular option with buyers, it's less popular with suppliers due to difficulties in withdrawing money, high tax rates and potential charge backs from less than honest buyers.

5. Escrow
Risk Level For Buyer: Fairly Safe
When using an Escrow service, the buyer's money is held by a 3rd party and is only paid to the supplier after the buyer confirms satisfactory delivery of their order. Escrow is a fairly safe payment method for buying and selling online because Escrow protects both the buyer and supplier.

You can read about common payment methods on Alibaba on the Alibaba Safe Buying page.
Generally, when you are just starting, you’ll probably want to look for or negotiate with suppliers to either accept PayPal or some type of Escrow service to give you the highest level of protection.

Buyer Beware
As great as Alibaba is, it’s also plagued with some problems that you need to make yourself aware of when you are researching and contacting various suppliers.
Let's take a look at three of the biggest problems with sourcing suppliers from Alibaba:

Middlemen - As mentioned previously, Alibaba has hundreds of thousands of “manufacturers”. However, many of these “manufacturers” are not manufacturers at all, rather middlemen that masquerade, marking up the price, increasing the level of miscommunication between you and the actual manufacturer while providing little, if any real value.

Scammers - Middlemen are bad but they will only take a bit of your money by charging you higher fees, scammers will take all your money. Although Alibaba has put forth a strong effort to combat and remove scammers from their platform, there are still a good share of dishonest suppliers on Alibaba that you need to be cautious of.

Quality - Quality is another big concern when ordering from overseas. Many products will be advertised as premium or high quality, however it's not uncommon to find that your opinion of premium quality and the overseas supplier's opinion are vastly different.

Safeguarding Yourself
So how exactly do you protect yourself from middlemen, scams and low quality products on Alibaba? Although no single method is perfect, together practicing several safeguards is your best bet.
Let’s take a look at several things you can do to protect your money when sourcing from overseas:
1. Verify suppliers - Alibaba has their own verification program in place which includes several levels of verification. Below is a chart that summarizes the three different levels of verification Alibaba has. These verification badges will appear on product listing and supplier profiles if they have them. Looking for these verifications is a good first step.
In addition to Alibaba's verifications, there are also independent 3rd party services located in Asia that will visit factories on your behalf to verify the supplier and product quality. Depending on the size of your order, a few hundred dollars extra for added piece-of-mind may be well worth it.
2. Ask questions and followup - As you begin narrowing down suppliers make sure to ask a lot of questions about their business and their products. Ask for a copy of their business licensee, ask for a phone number and actually call it. Have a Skype meeting with your contact. Ask for photos of the factory and sample products.
Feel free to ask for whatever makes you feel more comfortable doing business with someone a world away. It wouldn't be crazy for you to even ask your factory contact to take a photo of themselves on the factory floor holding up the current days newspaper and one of their products.
3. Get samples - It should go without saying that before you invest any significant amount of money into inventory you need to get samples to check and verify quality. Feel free to even contact them through another (fictitious) name and email and get an additional sample so you can compare quality.
4. Too good to be true - Finally, if something is too good to be true, it usually is. Be weary of pricing or promises that don’t seem right or that are way off from other suppliers you've contacted. Always be willing to walk away from a deal if something doesn't feel right.

Contacting Suppliers
Now that you understand how to better protect yourself when doing a transaction on the other side of the globe, it's time to contact some suppliers. When contacting suppliers overseas, email will likely be your main method of communication. In many cases, they will likely be using a translation program like Google Translate to translate your email as well as their reply back to you. Remember, computer translation is still an imperfect art so expect some errors and possible misunderstandings. To make sure communication is as clear as possible, keep your emails short, concise, well formatted and spelling error free. This will not only help the manufacturer but it will ultimately provide you with better replies in the end.
Tip: When asking your questions and formatting your emails to suppliers it's best to number your questions so that they can easily reply to each number. This keeps the questions and communication clean and organized.

Requesting a Quote
Requesting a quote (many times referred to as a RFQ, Request For Quote) is a relatively simple process, however, taking a few extra minutes to plan your email can make a significant difference in the number and quality of replies you receive.
Here are a few important questions to consider for your email:

Minimum Order Quantities (MOQ’s)
- Even if a listing has their MOQ listed, you should double check with them to make sure it’s accurate. If the MOQ’s are much higher than what you know you can afford, you'll want to ask them if they are willing to negotiate the minimums. Make sure to give them an idea of what you can afford. Keep in mind, minimum order quantity is almost always negotiable with overseas suppliers.

Pricing For Samples - Samples are important to inspect for quality. You’re going to want to ask what their pricing is for samples right away. Some suppliers that receive a lot of sample requests and may change the full retail pricing, others will offer you samples at a discounted rate, and some may even provide you samples for free if they feel you're a serious buyer.

Production Pricing
- One of the most important questions is how much your products cost per unit will cost. Many times on Alibaba they will give you a range (Example: $2-$3 per unit), but you’ll want to know exactly how much each unit will cost you.
Production Time - Knowing how long it will take to produce your order is an important consideration and depending your exact business, time can be critical.
Payment Terms - Many suppliers will require new businesses to pay for the full order upfront. This is important to know since inventory is a major cost for ecommerce startups. You may also want to also ask if they provide payment terms on future orders.
Here's an example of an email template you may want to consider as a guideline when contacting overseas suppliers from Alibaba:

Hi,
My name is AbbeyForex and I am with Plan B Investments.
I am interested in placing an order for Widget A. Before I do however, I just have several questions:
What is your minimum order quantity?
What is your cost per unit and at what quantity levels do you offer quantity discounts?
What are your payment terms for new customers?
I would also like to order a sample of Widget A before placing a full order. Can you please send me the cost for the sample including shipping to:
AbbeyForex
80 Spadina Ave., Floor 4
Toronto, ON, Canada
M5V2J4
Thank you.
AbbeyForex,
Plan B Investments
website
phone number
As you can see from the sample above, it's short, concise and it's goal is to make sure at a high level that there is a fit between both parties.

Negotiating
Once you have begun conversations with several suppliers and have a good idea of each of their prices, MOQ's and payment terms, you can begin negotiating with them. As mentioned previously, the minimum order quantities are almost always negotiable, it's simply a matter of asking. Remember, a good negotiation leaves both parties happy with the outcome so push a little but not too hard.

Weighing Your Options
Once you've narrowed it down to a select few suppliers, you'll want to weigh all your options. Keep in mind that when weighing your options, you'll want to consider more than just price, MOQ and payment terms. Make sure you factor in how well and how quickly each supplier replied to you. Your communication with your supplier can be a critical element of your business going forward so you'll want to make sure you start off on the right foot.

Conclusion
Sourcing a reliable supplier for your product from Alibaba might be a new experience but also a rewarding one. With some basic knowledge and common safeguards, it can be pretty safe. Always do you due diligence and if a deal feels too good to be true, be ready and willing to walk away. There’s a hundred other suppliers you can find in just a few clicks.

YOU ARE GOOD TO GO.

5 Likes 1 Share

Re: Ask Me Anything On Importation Of Goods From China by matthieugene: 7:15pm On Oct 10, 2016
babz510:

Dyu stl wana learn ?? Quote if yes

1 Like

Re: Ask Me Anything On Importation Of Goods From China by stanleyalpacino(m): 10:08pm On Oct 10, 2016
babz510:


Dyu stl wana learn ??
Quote if yes


bros i want to learn. teach me.

2 Likes

Re: Ask Me Anything On Importation Of Goods From China by Ubachi: 12:49am On Oct 11, 2016
Liberty Link world wide logistics

can help you pay to your suppliers in China,

give you loan to support your business,

connect you to suppliers and manufacturers of your products

help you with your visa processing

give you free hotel accommodation when you visit china

and a lot more benefits.

our rate is the cheapest and our services and network of branches is second to none.

for more information about liberty link services and benefits:

talk to:
Jane +8613922171527 china GM
Chinedu 08023223100 lagos
Bosco 08032646300 onitsha
Fred 08036245766 Abuja

3 Shares

Re: Ask Me Anything On Importation Of Goods From China by ccollins(m): 9:10am On Oct 25, 2016
omoayeni1:
Hi everybody,I think you can aswelll consider this aspect,I have stay in china for 6yrs and I know when you are talking about business in guanzhou. now if you buy anything you want to send to nigeria from china you can contact me,will charge 9usd per KG,and you can get your goods in just 2day or 3,and if you want to send your goods by cargo then will charge 4.5usd for you to get it 7days.and if you want to send money to china you can come to my office in lagos or ibadan office. O8o58693437
And will also do invitation letter.
invitation letter for what purpose
Re: Ask Me Anything On Importation Of Goods From China by bobojoshua(m): 6:39pm On Oct 25, 2016
jamarionj:


Since I started IMPORTATION ...
Have Not forgotten this piece of advice. Actually there are innovative process in importation. here comes the advise

Alibaba 101:

How to Safely Source Products from the World's Biggest Supplier Directory
In order to start an online business, you need two things, a product idea and supply. If you already have your product idea the next step is finding the perfect supplier. In our global village, it has never been easier to find a manufacturing or wholesaling partner halfway around the world, however sourcing your products from overseas can still seem like a daunting task for new online entrepreneurs.
In today’s post, we’re going to look at how to effectively and safely source a supplier for your product idea using the popular business directory Alibaba. We'll introduce you to the pros and cons of going overseas and show you how to navigate this new terrain so you can lock onto the perfect supplier for your product idea and get started selling online.
Let’s jump right into it.

Disclaimer: Before making any purchases from Alibaba, make sure you read their most up-to-date information and safeguards to protect your purchase.
Advantages & Disadvantages Of Sourcing Overseas
The most common reason many entrepreneurs look to Asia, and in particular China for product suppliers is to take advantage of the low manufacturing costs. Costs of manufacturing in Asia can be significantly lower than North America and other parts of the world, so much so that for many businesses, it could be quite difficult to be profitable if it wasn't for overseas manufacturing.
Cheaper product costs are great, but they aren't the only reason Asia is an attractive place to find a supplier, there are some additional benefits as well:

Advantages
-Lower manufacturing costs
-Suppliers are (generally) much more open to working with smaller businesses and providing smaller quantities
-High number of suppliers to choose from
-For many products, Asia might be the only place that produces the item
-One-stop services like Alibaba have made it very easy to navigate and purchase from suppliers
Along with the advantages of sourcing from overseas suppliers also comes several

disadvantages that you should be equally aware of. Some of the biggest disadvantages include:

Disadvantages
-Perceived lower quality from customers
-(Usually) lower manufacturing and labor standards
-Almost no intellectual property protection
-Language and communication barrier can be difficult to overcome
-Difficult/costly to verify manufacturer and visit on-site
-Longer shipping time
-Cultural differences in business practices
-Product importation and customs clearance
-Lower level of payment security and recourse

What Is Alibaba?
If you've decided and are determined to source your supplier from overseas, there's a good chance you will be buying from Alibaba. By the numbers, Alibaba is the largest ecommerce company in the world (bigger than Amazon and eBay combined) and it's also the most comprehensive directory that connects suppliers (mostly from Asia) with buyers from all over the world. Alibaba literally has millions of products from hundreds of thousands of suppliers so there's not much you wont find on the directory.
Begin Your Search
Buying on Alibaba and using the directory is fairly straight forward to use and similar to other marketplaces like eBay. Browse the product categories or do a search for the particular product you’re looking for.

There are two common approaches to doing a search on Alibaba. You can either search for items based on product descriptions, for example: dog collars, which will give you thousands of results for dog collar products. Alternatively, from the drop-down menu, you can select “Suppliers” instead of “Products” and instead search for manufacturers that specialize in that particular type of product.

What to Look for on Product Pages
When starting your search for a supplier on Alibaba, there are a few things you want to look at and pay attention to on the product listing page. Let’s take a look at a example listing for a dog collar listing we found on Alibaba.

Unit Price
One of the first things you’ll likely want to look at is the price. For this listing we can see a price of $2-$3 USD FOB.

-FOB stands for (Free On Board) and means that the seller will pay also costs associated with getting the product to the marine port (the cheapest way to ship products from Asia) and the buyer pays the cost of actually transporting the goods across the ocean to the final destination.

Minimum Order Quantity (MOQ)
Next, you’ll likely want to look at the minimum order quantity. The minimum order quantity (MOQ) is the smallest order the manufacturer is willing to accept. However, it’s important to note that this is almost always negotiable. This is good to know for later when it comes to negotiating because it give you a good start point.

Payment Options
After understanding price and MOQ, you will likely want to know how you can pay the supplier. There are several common methods of payment, each have their pros and cons for both the buyer and the seller.
Let's take a look at the most common payment options below and the associated risk level to you as the buyer:

1. Upfront TT (Bank Transfer)
Risk Level For Buyer: Risky
With a bank transfer, the supplier will receive full payment before production starts. This payment method bears a high level of risk to the buyer and generally is not recommended when dealing with an unknown supplier. There is little if any recourse to get your money back if something goes wrong.

2. Letter of Credit
Risk Level For Buyer: Fairly Safe
A Letter of credit is fairly safe for both parties, however a letter of credit carries some complex procedures and is generally only recommended for larger purchases ($20,000 and above).

3. Western Union
Risk Level For Buyer: Very Risky
A risky payment method for the buyer that's not recommended when it comes to paying suppliers if the payment is not protected by escrow. Western Union generally should only be used when dealing with people you know very well. There is no recourse if something goes wrong.

4. PayPal
Risk Level For Buyer: Fairly Safe
Paypal is a popular payment method for buyers as it presents a much lower risk, ease of use and generally pretty good buyer protection. Although it's a popular option with buyers, it's less popular with suppliers due to difficulties in withdrawing money, high tax rates and potential charge backs from less than honest buyers.

5. Escrow
Risk Level For Buyer: Fairly Safe
When using an Escrow service, the buyer's money is held by a 3rd party and is only paid to the supplier after the buyer confirms satisfactory delivery of their order. Escrow is a fairly safe payment method for buying and selling online because Escrow protects both the buyer and supplier.

You can read about common payment methods on Alibaba on the Alibaba Safe Buying page.
Generally, when you are just starting, you’ll probably want to look for or negotiate with suppliers to either accept PayPal or some type of Escrow service to give you the highest level of protection.

Buyer Beware
As great as Alibaba is, it’s also plagued with some problems that you need to make yourself aware of when you are researching and contacting various suppliers.
Let's take a look at three of the biggest problems with sourcing suppliers from Alibaba:

Middlemen - As mentioned previously, Alibaba has hundreds of thousands of “manufacturers”. However, many of these “manufacturers” are not manufacturers at all, rather middlemen that masquerade, marking up the price, increasing the level of miscommunication between you and the actual manufacturer while providing little, if any real value.

Scammers - Middlemen are bad but they will only take a bit of your money by charging you higher fees, scammers will take all your money. Although Alibaba has put forth a strong effort to combat and remove scammers from their platform, there are still a good share of dishonest suppliers on Alibaba that you need to be cautious of.

Quality - Quality is another big concern when ordering from overseas. Many products will be advertised as premium or high quality, however it's not uncommon to find that your opinion of premium quality and the overseas supplier's opinion are vastly different.

Safeguarding Yourself
So how exactly do you protect yourself from middlemen, scams and low quality products on Alibaba? Although no single method is perfect, together practicing several safeguards is your best bet.
Let’s take a look at several things you can do to protect your money when sourcing from overseas:
1. Verify suppliers - Alibaba has their own verification program in place which includes several levels of verification. Below is a chart that summarizes the three different levels of verification Alibaba has. These verification badges will appear on product listing and supplier profiles if they have them. Looking for these verifications is a good first step.
In addition to Alibaba's verifications, there are also independent 3rd party services located in Asia that will visit factories on your behalf to verify the supplier and product quality. Depending on the size of your order, a few hundred dollars extra for added piece-of-mind may be well worth it.
2. Ask questions and followup - As you begin narrowing down suppliers make sure to ask a lot of questions about their business and their products. Ask for a copy of their business licensee, ask for a phone number and actually call it. Have a Skype meeting with your contact. Ask for photos of the factory and sample products.
Feel free to ask for whatever makes you feel more comfortable doing business with someone a world away. It wouldn't be crazy for you to even ask your factory contact to take a photo of themselves on the factory floor holding up the current days newspaper and one of their products.
3. Get samples - It should go without saying that before you invest any significant amount of money into inventory you need to get samples to check and verify quality. Feel free to even contact them through another (fictitious) name and email and get an additional sample so you can compare quality.
4. Too good to be true - Finally, if something is too good to be true, it usually is. Be weary of pricing or promises that don’t seem right or that are way off from other suppliers you've contacted. Always be willing to walk away from a deal if something doesn't feel right.

Contacting Suppliers
Now that you understand how to better protect yourself when doing a transaction on the other side of the globe, it's time to contact some suppliers. When contacting suppliers overseas, email will likely be your main method of communication. In many cases, they will likely be using a translation program like Google Translate to translate your email as well as their reply back to you. Remember, computer translation is still an imperfect art so expect some errors and possible misunderstandings. To make sure communication is as clear as possible, keep your emails short, concise, well formatted and spelling error free. This will not only help the manufacturer but it will ultimately provide you with better replies in the end.
Tip: When asking your questions and formatting your emails to suppliers it's best to number your questions so that they can easily reply to each number. This keeps the questions and communication clean and organized.

Requesting a Quote
Requesting a quote (many times referred to as a RFQ, Request For Quote) is a relatively simple process, however, taking a few extra minutes to plan your email can make a significant difference in the number and quality of replies you receive.
Here are a few important questions to consider for your email:

Minimum Order Quantities (MOQ’s)
- Even if a listing has their MOQ listed, you should double check with them to make sure it’s accurate. If the MOQ’s are much higher than what you know you can afford, you'll want to ask them if they are willing to negotiate the minimums. Make sure to give them an idea of what you can afford. Keep in mind, minimum order quantity is almost always negotiable with overseas suppliers.

Pricing For Samples - Samples are important to inspect for quality. You’re going to want to ask what their pricing is for samples right away. Some suppliers that receive a lot of sample requests and may change the full retail pricing, others will offer you samples at a discounted rate, and some may even provide you samples for free if they feel you're a serious buyer.

Production Pricing
- One of the most important questions is how much your products cost per unit will cost. Many times on Alibaba they will give you a range (Example: $2-$3 per unit), but you’ll want to know exactly how much each unit will cost you.
Production Time - Knowing how long it will take to produce your order is an important consideration and depending your exact business, time can be critical.
Payment Terms - Many suppliers will require new businesses to pay for the full order upfront. This is important to know since inventory is a major cost for ecommerce startups. You may also want to also ask if they provide payment terms on future orders.
Here's an example of an email template you may want to consider as a guideline when contacting overseas suppliers from Alibaba:

Hi,
My name is AbbeyForex and I am with Plan B Investments.
I am interested in placing an order for Widget A. Before I do however, I just have several questions:
What is your minimum order quantity?
What is your cost per unit and at what quantity levels do you offer quantity discounts?
What are your payment terms for new customers?
I would also like to order a sample of Widget A before placing a full order. Can you please send me the cost for the sample including shipping to:
AbbeyForex
80 Spadina Ave., Floor 4
Toronto, ON, Canada
M5V2J4
Thank you.
AbbeyForex,
Plan B Investments
website
phone number
As you can see from the sample above, it's short, concise and it's goal is to make sure at a high level that there is a fit between both parties.

Negotiating
Once you have begun conversations with several suppliers and have a good idea of each of their prices, MOQ's and payment terms, you can begin negotiating with them. As mentioned previously, the minimum order quantities are almost always negotiable, it's simply a matter of asking. Remember, a good negotiation leaves both parties happy with the outcome so push a little but not too hard.

Weighing Your Options
Once you've narrowed it down to a select few suppliers, you'll want to weigh all your options. Keep in mind that when weighing your options, you'll want to consider more than just price, MOQ and payment terms. Make sure you factor in how well and how quickly each supplier replied to you. Your communication with your supplier can be a critical element of your business going forward so you'll want to make sure you start off on the right foot.

Conclusion
Sourcing a reliable supplier for your product from Alibaba might be a new experience but also a rewarding one. With some basic knowledge and common safeguards, it can be pretty safe. Always do you due diligence and if a deal feels too good to be true, be ready and willing to walk away. There’s a hundred other suppliers you can find in just a few clicks.

YOU ARE GOOD TO GO.

1 Like

Re: Ask Me Anything On Importation Of Goods From China by omonnakoda: 12:04am On Dec 11, 2016
Is this thread still going

1 Like

Re: Ask Me Anything On Importation Of Goods From China by arabianights: 12:23am On Dec 11, 2016
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Re: Ask Me Anything On Importation Of Goods From China by arabianights: 12:27am On Dec 11, 2016
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Re: Ask Me Anything On Importation Of Goods From China by babz510(m): 8:08am On Dec 12, 2016
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Re: Ask Me Anything On Importation Of Goods From China by Nobody: 9:23am On Dec 12, 2016
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