How to Buy from Alibaba -The Definitive FAQ Guide

I know you want to learn how to buy from Alibaba.

That’s why this guide will answer all questions you have been asking about importing from Alibaba.

From the basic definition, checking quality, avoiding scams, shipping options to methods of payments – you will find everything here.

Keep reading to learn more.

What is Alibaba?

It refers to a wholesale marketplace, which allows sellers and buyers to sell and buy different types of products in bulk, globally.

It is regarded as one of the largest e-commerce websites in the world where buyers can source and buy different commodities affordably.

Alibaba has tons of suppliers, making it easy for you to buy single, numerous, or assorted items.

It depends on how you negotiate with the specific suppliers you are dealing with.

The platform allows you to interact directly with the manufacturer, which is beneficial since it facilitates easy and speedy delivery of commodities.

Moreover, it enables you to negotiate on competitive discounts and, at the same time, obtain custom products.

What is the difference between Alibaba and AliExpress?

There is a thin line between Alibaba and AliExpress.

Both are owned by the same company, but each operates differently with a specific purpose.

Each entity is also designed for a different target audience.

One major difference is Alibaba operates of a business to the business model and AliExpress works on a business to consumer model.

In short, with Alibaba, you’ll be dealing with manufacturers directly for the purchase of products in bulk.

On the other hand, with AliExpress, you can source products as low as a single piece directly, albeit at slightly higher rates.

AliExpress thus acts as a retail unit to Alibaba’s wholesale.

Therefore, you’ll find many potential clients using the former for sample products before placing larger orders on the latter.

Another difference is Alibaba offers the lowest unit cost for every product purchases on wholesale terms.

AliExpress, on the other hand, is ideal for newbies testing new products suitable for their niche.

Alibaba allows you to create custom products using your designs to suit your demands.

In contrast, you can purchase items on AliExpress individually at relatively costly rates.

Alibaba is an ideal platform for frequent and experienced customers with an already established market.

This helps in reducing the risk significantly.

By contrast, AliExpress is ideal for newbies trying out with different types of products, running a passive income trade.

Who can Buy from Alibaba?

Anybody can buy items from Alibaba as long as you meet the MOQ.

It can be an individual, company, or government.

Alibaba has a directory, which allows anybody or any entity to purchase directly from specific manufacturers.

What are the Benefits of Buying from Alibaba?

It is beneficial in numerous ways to buy from Alibaba.

Some of these advantages include the following;

a) It provides an online directory for a wide range of manufacturers you can reach out to and purchase different types of products from.

The benefit here is it gives you broad options of suppliers to source from.

b) It allows you to design customized products, which suit your demands at affordable rates.

c) It has millions of products to select from, thus enabling you to have broad alternatives when looking for a suitable commodity.

d) It is a platform, which offers the lowest pricing when purchasing goods on wholesale. It thus makes it possible for you to increase your profit margin.

e) It makes it easy for you to evaluate the manufacturers or suppliers you’re dealing with.

It gives you the option to determine the type of supplier, check reviews, and a number of transactions carried out.

f) It allows for monitoring of the quality of items a customer is ordering before dispatching.

And this is fundamental since it prevents inconveniences and costs arising from returns.

g) It gives you control over the packaging and shipping of your product.

Therefore, you can be certain the products’ packaging, and specification criteria meet your specific demands.

Which Products can you Buy from Alibaba?

You can buy almost any item from Alibaba as long as it is legal in your country.

There are millions of different commodities on this platform.

Alibaba connects you to all sorts of manufacturers and suppliers selling all types of products.

The products include electronic components and supplies, healthcare products, beauty, and personal care and fashion items.

You can also buy equipment and machinery, automotive parts, home improvement tools, computers, and gaming gadgets, among others.

In short, there is a myriad of items you can buy from this eCommerce site.

What is the Step by Step Process of Buying from Alibaba?

It is a detailed process on paper but quite easy practically. These steps include the following;

1. Set up an Alibaba Account

The first thing to do is set up your account on Alibaba.

You need to use your credentials such as user ID and password to log in to this platform.

It is quite easy and direct since the interface is in English, which you can switch to your preferred language if need be.

2. Finding a Niche on Alibaba

Before thinking of purchasing any item from Alibaba, you ought to validate your niche.

Finding a niche enables you to identify trending products within the category you are looking for.

3. Find the Ideal Supplier

The moment you identify and find a niche category for your products, the next step is finding a suitable supplier for the items.

If you’re a frequent customer on Alibaba, it would be ideal to always have at most three core suppliers.

helps in strengthening a business relationship, reliability, and cohesive product collection.

If you’re a newbie, you can use several techniques to find the ideal supplier on this platform.

First, you can run a suppliers’ search at the homepage of this e-commerce website.

Type the specific product you’re searching for and narrow the search further to get the most suitable suppliers for your needs.

Under the Sort By option, you can choose by “response rate”, “Transaction level” or leave it at its default’s “Best Match”.

The “Transaction level” option is recommendable when seeking a supplier with the highest processed orders.

You can also opt for a “Response rate” if you’re looking for a supplier to build a good rapport with.

Essentially, your choice when narrowing options is dependent on your needs as far as dealings with suppliers are concerned.

Once you identify one, there is a need for ensuring you do due diligence to confirm you’re dealing with a legit and reliable party.

Some elements to look into in a supplier include ratings, reviews, past transactions, and modes of operations, among others.

4. Selecting the Product

This is the next step after finding the right supplier.

Ideally, it can be quite challenging to navigate the website to select products you want to sell from Alibaba’s platform.

You have to be extremely keen on this aspect by matching the products you’re looking for to factories on this eCommerce website.

An essential element to look into at this stage is unit price against MOQ.

It helps you to figure out whether or not your budget is within limits.

5. Get in Touch with the Suppliers

When you’re on Alibaba’s product page, you’ll see a relatively large orange button labeled “Contact Supplier”.

This button enables you to get in touch with the sellers before you place your order.

It is not compulsory to contact the seller before placing an order.

However, it would be an ideal opportunity to inquire and find out clarification regarding particular concerns.

The concerns could be about asking for a sample for quality assessment, or MOQ, or price negotiation or any issue you’d need clarification on.

6. Order Confirmation

After doing all the necessary formalities, including order payment, the items are sent to your delivery destination.

Upon receiving them, you’ll need to evaluate the quality to find out whether or not they match the specifications.

While at it, you are advised to assess and test each product you receive.

Verify if they are in good condition as soon as you can.

Also, countercheck the quantity to ensure it matches what you’d ordered for.

Of course, it can be quite challenging, especially where the order has a higher volume.

Even so, you can task your team members with this responsibility.

Furthermore, ensure the product packaging meets your requirements.

Pay attention to how every item was packaged and determine if it was suitable.

Once you assess the consignment, counteract accordingly if there is a need to.

For instance, if you find damaged items, you may want to raise a complaint about a possible return.

If there was a short landing, you could as well communicate to the supplier for possible replacement.

Basically, that’s the step by step process involved in purchasing items from Alibaba.

Once you start doing it practically on the website, you’ll notice it is easier than it sounds herein.

How do you Find Trustworthy Suppliers on Alibaba?

Some of the ideal ways you can use to find a reliable supplier include the following;

• Select a gold supplier – On Alibaba, you can filter the options to allow you to find gold suppliers only.

These are the type of suppliers who often subscription fees to Alibaba, thus tend to be more reliable.

It means Alibaba has verified the authenticity of a gold supplier, thus worth transacting with.

• Deal with a manufacturer where possible – On Alibaba, you’ll find two categories of suppliers; Trading company and manufacturer.

A trading company is more or less like a third party involved in listing and selling of commodities they do not produce.

• Manufacturer, in contrast, make the products they are selling. In most cases, manufacturers tend to have a limited and more niche product variety. The manufacturer is more reliable, organized, and cost-effective.
• Check the response rate – When searching for items on Alibaba, always check the item card showing additional information.

Go for a supplier with a response rate of over 70%.

A less responsive supplier is a sign of lack of seriousness or enthusiasm; hence can easily inconvenience you.

• Check if the supplier is verified – From the supplier’s homepage, you can be able to tell whether or not they are verified. The more verified details, the better chance to transact business with the dealer.
• Request multiple samples – Always ask for samples from the supplier before making a large order. Pay for the cost, and once you get them, assess to determine whether or not the quality meets your demands.

How do you avoid getting Scammed when Buying from Alibaba?

To avoid being scammed on this platform, you should be cautious of any supplier portraying characteristics such as the following;

• Offering extremely low prices – Mostly, you’ll find multiple suppliers selling similar products, but the price disparity will always be reasonable among all.

However, if you find one offering a similar product at let’s say half the price, that should be a red flag.

• Unwilling to send samples – A trustworthy supplier will always be ready to send sample products as long as you can pay for the same.

If you persistently ask for samples, but the supplier seems unwilling, avoid such since that’s a sign of a con.

• Rigid payment methods – Alibaba is an international ecommerce platform. It means suppliers expect to get customers from various nations.

Avoid any supplier who’s hell-bent on a specific mode of payment.

• Unwilling to accept Alibaba Trade Assurance – Alibaba Trade Assurance protects your transaction; hence you can easily claim money in case the deal doesn’t go through as expected.

Deal with any supplier unwilling to head this direction with a lot of caution.

• Unverified account – Since Alibaba offers a platform for thousands of suppliers, it becomes easy for anyone to create an account.

It makes it easy to be scammed even with “ghost supplier”. Therefore, always go for suppliers with verified accounts.

• Unregistered address – A reliable supplier should have a registered address, contact information, and in some cases, a website platform.

Avoid dealing with suppliers who regularly change their contact information, such as addresses and phone numbers.

Buyers are not Alibaba’s customers.

Instead, Alibaba makes money by selling membership to sellers or suppliers.

It is thus apparent it’s the sellers they’ll always keep on their side.

In essence, it explains the reason you need to be vigilant when looking for suppliers.

Can you buy from Alibaba to Amazon FBA?

Yes.

The supplier, through a third party, will place shipping labels, package and inspect the products before leaving the warehouse.

Once your commodities are shipped to Amazon FBA warehouse, you’ll take care of the storage and related costs.

You are at liberty to decide whether to ship all products on Amazon FBA warehouse or allow Amazon to distribute your stock.

Prominently is to understand Amazon FBA has stringent rules regarding quality, labeling, and documentation.

What is the safest way to pay Alibaba Suppliers?

Different suppliers accept varied forms of payment on Alibaba, depending on a wide range of circumstances.

There are several payment options you can use for paying suppliers on this platform.

But only a few are regarded as safe, especially among legit suppliers.

They include the following;

· PayPal

This is an international online payment system for electronic money transfer from one user to another.

It is an electronic alternative for conventional paper payment methods such as checks and money orders.

It is safe, instant, and convenient.

However, both parties need to have PayPal accounts for the transaction to go through.

It converts foreign currencies at a fee and also can wire funds between users’ bank accounts.

· Alipay

It is a third-party online and mobile payment platform used in a wide range of money transactions.

It enables users to conduct transactions directly from their registered mobile devices.

It is a relatively safe payment option, which you can use to move funds between buyer and merchant accounts.

· Credit Cards

It is a mode of payment, which allows the buyer to pay for items without using cash.

The customer uses their cards, which has money to make purchases.

The buyer, therefore, transfers money from their account to the merchant’s account electronically using the card.

It is instant, safe, and convenient.

What is Alipay, and How does it Work?

It is a third-party mobile payment app used for transferring money from one user to another one.

It offers e-wallet service on a smartphone for fast and convenient payment methods.

You can also use Alipay for receiving international money from friends, relatives, and acquaintances in overseas countries.

It is easy to use since you only need to download the app on your smartphone and scan the QR code to complete your payment.

Another option is logging in to your Alipay account online and complete the transaction from that end.

Once the payment is successful, the status will appear as “Payment Sent” on the interface.

How do you Contact a Supplier on Alibaba?

There are four ways on Alibaba you can use to contact the supplier.

The product page on Alibaba has a large orange button labeled “Contact supplier”.

This button allows you to contact the supplier before making and actualizing your order.

The second option is clicking the “Get Latest Price” button, which is often quicker and a bit easier.

The downside of this option is most suppliers are unlikely to pay attention to messages from this channel.

The third alternative is using the “Start Order” button. Even so, this order is only sensible if you’re sure ultimately, you’ll order from the supplier.

In most cases, this is never the case, especially for first-timers.

The last option, in this case, is using the “Chat Now’ channel.

It is a comparatively, effective method for contacting the supplier directly.

However, it can be limited by time differences between the seller and buyer.

And this makes it difficult to coordinate or have effective communication.

Therefore, the “Contact Supplier” option stands out as the best channel for contacting the supplier directly.

It is more or less like sending an email, but this time on the Alibaba platform.

Upon clicking the button, you’ll find a space for typing your message to the supplier.

However, it is recommended to always be brief and straightforward in the message.

You’ll always receive a notification message on your email in case of a response from the supplier or their representatives.

What is Alibaba Shipping, and How does it Work?

It refers to the transportation of commodities you buy from suppliers in China to your preferred destination through Alibaba.

Alibaba acts as the middleman in picking the goods from the supplier’s warehouse upon payment of the order to the shipper.

In essence, Alibaba coordinates the delivery of the consignment from the supplier to the buyer.

Primarily, Alibaba cooperates with different shipping agents to facilitate the transportation of customer’s items from various suppliers to customers.

Once the customer provides the quantity of the products he/she is buying, the Alibaba agent calculates the weight and volume.

This information is then communicated to the shipping agent, who, in turn, provides a quotation for the shipment.

Then Alibaba will communicate to the customer to facilitate payment and enable shipping of the commodities to the delivery destination.

Mostly, Alibaba usually offers reasonably low charges than what the shipping agent quotes.

Once the customer pays, the products are transported to the destination using the preferred shipping mode.

Does Alibaba offer Door to Door Shipping?

Yes, albeit indirectly.

What happens with Alibaba is that the customer chooses their preferred mode of shipping and delivery when placing the order.

Alibaba, through your seller, coordinates with the ideal courier service such as DHL, FedEx, TNT, EMS, or China post, among others.

It is the courier service that delivers your consignment to your doorstep.

In fact, Alibaba door to door shipping is convenient.

What other options are there for Shipping Goods from Alibaba?

They are quite a number, but the major ones include the following;

Airfreight – It involves the loading of your goods onto a cargo flight for transportation.

This option is relatively cheaper than using courier services, albeit taking more days for you to get the consignment.

It requires you to work with an air fright agent, it requires relatively less paperwork and enhanced security for your cargo.

Ocean freight – It involves using water vessels to transport the commodities from country of origin to country of destination.

Ocean freight is the cheapest mode of shipping goods from Alibaba, but the delivery time is a bit longer.

It is also ideal for shipping large consignment, especially when working within a tight budget.

Ensure you use FOB shipping incoterms in ocean freight to avoid any hidden costs.

Trucking – It is the use of cargo trucks for hauling goods purchased from Alibaba

It is ideal for mainland transportation, especially if the delivery destination is within proximity to the supplier.

Rail freight – It involves use of a cargo train to ship cargo from Alibaba. It is relatively faster than ocean freight and reasonably affordable.

It is also ideal for large consignment since one cargo train can haul an equivalent of up to about 400 trucks.

It has a safety record and helps in preventing congestion on the highways.

What are the Disadvantages of Buying from Alibaba?

The common disadvantages include the following;

• The MOQ for some products can be relatively high, which means the upfront cost will also be higher. It is advantageous since it transfers the risk to the buyer.
• Some niches pose difficulties since they have disparity between countries. For instance, in clothing and fashion, the Asian sizing is usually different from American sizing. This can lead to confusion for your key demographic.
• In some instances, the product photos tend to be different from the actual item you receive upon ordering. This makes it hard and frustrating to sell to the end-users.
• Buyers are likely to face legal actions, especially when selling products from Alibaba, which are branded, and they’re not officially accredited.
• In some cases, you may find faulty products or a short landing, which can be inconveniencing since the return policy can be frustrating.

Moreover, there could be instances of quality degradation, particularly in subsequent shipments.

What are the Minimum Order Requirements for Alibaba Suppliers?

It varies from one supplier to another.

However, most suppliers on Alibaba are always willing to negotiate with buyers on the ideal MOQ based on different factors.

It usually varies also depending on the unit cost for purchasing the product.

In many instances, most manufacturers will always try to find a balance between unit price and order quantity to determine suitable MOQ.

How do you Verify Company Credibility on Alibaba?

Alibaba verifies all credible seller accounts.

Before getting the verification badge, the seller has to attain certain stipulated conditions.

One way is by checking whether the supplier has a business license registration number.

Typically, Alibaba often verifies business licenses for each supplier every year.

It thus means the registration number of a company’s license is true.

The other way is by checking whether the company agrees to Alibaba Trade Assurance policies.

It shows commitment and goodwill from the seller’s perspective since, in most instances, this serves to protect the buyer.

You also need to obtain reports from the Assessed supplier.

This is one inspected with third parties, and you can download all the relevant verification documents regarding the same.

There are several websites, which you can use to verify the legitimacy of the supplier on Alibaba.

Most of these websites are coded in Chinese, so it becomes easier if you’re familiar with the language.

If not, you may need to translate with Google Chrome web browser.

These websites include China’s Commerce Ministry Database, CECIPS, QiChaCha, and China’s General Administration of Customs Database.

Which is the Best Incoterm to use when Buying from Alibaba?

Free on Board (FOB) is the arguably the best shipping incoterm when sourcing goods from Alibaba.

FOB is more secure and competitive than any other incoterms, including CIF.