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6 Things You MUST Do Before Placing Your First Alibaba Order

Published on: December 2 2022 by Tatiana James

6 Things You MUST Do Before Placing Your First Alibaba Order

6 Things You MUST Do Before Placing Your First Alibaba Order

hey everyone i'm tatiana and today i'm
going to be giving you
your alibaba checklist six things
that you must do before you place your
order on alibaba.com
so what i would recommend is that you go
ahead and bookmark this video because
yes it's good to watch this video in
full
so that we can plant these seeds in your
mind right now however when it comes
time for you to place your order you're
going to want to reference this video
again
and review it just to make sure that
you're checking off all these boxes
so it's very important because we want
to make sure that we're protecting you
from illegitimate suppliers but we also
want to protect your brand
by only sourcing the highest quality
products from
the top suppliers so let's get started
we've got a lot to cover
so the first thing i want you to check
is to only select
qualified suppliers well what makes a
qualified supplier
i have four things that i'd like you to
review number one
is to understand alibaba's badge system
so they've got a bit of a badge system
you might see two badges gold supplier
and verified supplier
the gold supplier means that the
supplier has paid a membership
fee but what's more important than that
is the verified supplier badge
which means that the supplier has been
audited by a third party
either online or offline and so their
production capabilities their system
management
their products all of that has been
audited
and verified and that's going to give
you more peace of mind
knowing that the supplier is who they
say they are and
they are a trusted supplier so this is
helpful because when you're searching
for a product on alibaba.com you're
going to see
thousands of products that show up and
so they've got a filter system
and you can check you can select only
verified suppliers
to be displayed and that's going to help
narrow that list down
now the second thing i want you to check
is how many years
has the supplier been a supplier on
alibaba.com
now this is helpful because there are
some suppliers who have only
one year or two years that they've been
on alibaba.com
and you know maybe they just haven't
been on long enough they haven't been
seeing as much demand for their products
as they hoped and then they all of a
sudden decide
they no longer want to be displayed on
alibaba.com
and that's not helpful for you because
you want a supplier who's been around
for a long time
who is experienced because that gives
you certainty that you know three years
from now when you want to place an order
again they're still going to be around
so i recommend only looking for
suppliers that have at least
three years of experience selling on
alibaba.com
anything below that yes it's still worth
possibly contacting them and finding out
more details
but there are plenty of suppliers who
have 3 10
years experience selling on alibaba.com
okay now the third thing i want you to
check is to choose suppliers
who accept trade assurance
so trade assurance is something that
alibaba provides
and it's a type of insurance for your
order
and i highly recommend that you take
advantage of this
so i place all of my orders through
alibaba.com
i use alibaba to find my suppliers and
then once i found my suppliers
i place my order using trade assurance
and so that gives me peace of mind um
that my
order you know i'm going to get the
products that i'm expecting to receive
so essentially when you place an order
with trade assurance
you are going to be sending the money to
alibaba and alibaba
alibaba will be holding that money for
you until you receive the products from
the supplier
or until your supplier ships those
products and you've received them
at wherever whatever the destination is
so it's kind of like an escrow
and so this gives you um a lot of kind
of assurance that you know you're going
to get what it is that you're expecting
to receive
so there are plenty of suppliers that
accept trade assurance
and so i recommend filtering out those
suppliers to make sure that the
suppliers you're searching for
do accept trade assurance now the fourth
thing that i want you to check
is for compliance certification for
customs clearance
so depending on what products you wish
to import
you may need certain certifications in
order for those products to clear
customs and so for example if you're
going to sell electronic products in the
u.s
you'll need an fcc certificate and so
the suppliers often
can provide these certifications and you
can
check to make sure that they have those
in advance
so i do recommend looking into that if
you
know what products you want to source
from alibaba.com
then you can find out what kind of
certifications are
necessary for clearing customs in your
country
and that way when you're searching for
suppliers on alibaba you can make sure
that these suppliers
are providing those certificates in
advance number two
communicate with these suppliers so
alibaba.com has this messaging system
kind of like an instant messaging system
and i think it's great because it helps
you to stay organized with all of these
suppliers that you're going to be
contacting
and you will be contacting a lot so if
you're just going to be
you know sending them whatsapp messages
or wechat
those are fine too you can absolutely do
that but i find it to be a little bit
more disorganized because you might be
chatting with one person but then you
forget
oh what is what is the manufacturer
called and you forget
what the name is versus if you just use
the messaging system
that's built into alibaba then you can
easily reference that
click on the suppliers link see the
suppliers website see their catalog
very easily so i recommend doing that
now what should you be
asking your supplier well first of all
the price that you see listed
on alibaba.com when you are searching
for products
is usually not how much the product is
actually going to cost
yes sometimes they are accurate but
usually the prices are a bit lower
because the suppliers want to attract
your attention
so if you want to get an accurate quote
you have to reach out to the supplier
and ask them directly
now how you get an accurate quote well
first of all you want to be asking them
what their moq
is moq stands for minimum order quantity
so this is the minimum number of units
that you could
order from the supplier so for some
suppliers that might be
200 units others it might be 500
and for others it might be a thousand so
it depends on the supplier
now i will say that this is something
that you can absolutely negotiate
sometimes it's a little bit difficult to
negotiate on price but you certainly can
negotiate on the moq order you could
even suggest
you know hey i'm willing to pay more per
unit if you could
lower the moq if it's too high and you
don't want to place such a large
inventory order
for your first order so ask them about
what the minimum order quantity is
and then ask them for the pricing tiers
so pricing tiers
uh you know the price per unit depends
on how much you're ordering
so if you're ordering 200 units you're
gonna be paying a higher price
than if you're ordering a thousand or
two thousand or
five thousand so generally speaking the
larger the quantity of your order
uh the cheaper the cost per unit so they
want to do that to incentivize you to
place a larger order
so ask them about the pricing tiers for
you know 500 units a thousand units 1500
units and that can give you a better
idea of
you know is it worth it to get a larger
order
for me at this time are the cost savings
worthwhile now the next thing you can
ask is about
customization so if you are
private labeling a product chances are
you're going to want to put your brand
name on the product packaging
and possibly customize it a little bit
so you want to ask them about the
details of that
and in partikular you want to find out
the cost
so the price that they quote you might
not include
the additional cost to put your brand
name on the packaging
or to customize the packaging so inquire
about those details because
it you want to make sure that the quote
that you're getting is going to be as
accurate as it can be and the last thing
you should ask them
is about the packaging so usually with a
product if you decide to
whatever product you're ordering the
supplier will include free packaging
which is very basic it's just something
very simple that just comes with the
product
free of charge now you can usually
upgrade the packaging
each supplier has you know different
options some suppliers have more
packaging options than
others but it's good to see what those
options are
because maybe the basic packaging is
just horrendous looking and you just
don't want to sell that on amazon
and then you prefer to pay a little bit
extra to upgrade that packaging
or perhaps the packaging that it comes
with is is good for now good enough for
now let's go with this don't need to pay
the extra cost
so ask them these questions because this
is going to get you a much better idea
of you know exactly how much this
product is going to cost you
but what's also valuable is to start to
build the relationship with the supplier
communicating with them and seeing you
know are they answering all my questions
are they willing to work with me how
quick is the response time
you have to take into consideration that
yes you might be in a different time
zone and respect that
but it also is is valuable to see you
know how quickly does the supplier get
back to me because
you do want a supplier that wants your
business and that is
willing to communicate with you
efficiently
and in a time sensitive manner
so number three is to know the different
kinds of suppliers
so they are trading companies
wholesalers and manufacturers
and they're all different so trading
companies and wholesalers will usually
buy products from the manufacturers and
they will be
reselling those products to you now the
difference between trading companies and
wholesalers is that trading companies
usually will specialize
in a partikular product category whereas
wholesalers will sell
pretty much anything anything that is
is a good selling product and
wholesalers
usually have a lower moq so the minimum
order is
lower however the cost is slightly
higher
so understanding those differences now
manufacturers are actually producing
in-house those products themselves so
they are
manufacturing those products so you know
i can't say that any one is better than
the other
you know there are benefits to working
with a manufacturer who is producing the
products themselves
you have more customization options
there are also benefits to working with
a trading company
that can get products from multiple
suppliers and have more options for you
or wholesaler where their product
catalog
is quite large but i tend to prefer
working with manufacturers
it's just a personal preference you
don't have to filter these out it's just
good to take note of it it's good to
understand
if you are communicating with a
manufacturer
a trading company or wholesaler now you
might notike that there
are companies that are both so you might
find a manufacturer and a trading
company
so they're they're two in one and so
just taking note of that again
it's not that there's one that's
necessarily better than the other they
each have their advantages and
disadvantages
it's just what's a personal preference
preference for you
number four the better way to search
for products on alibaba.com rfq
so if you don't know what product you
want to sell
and you just kind of want to browse the
alibaba.com catalog
then you can just search for the product
or search for
a partikular niche in the search box and
you'll see a bunch of suppliers a bunch
of products pop
up which is great you could totally do
that but if you know
specifically what product it is that you
want to sell
you know the product details you know
what it looks like then the more
efficient way to source this product to
find suppliers
is to take advantage of alibaba's rfq
which stands for request for quotation
so you can go to rfq.alibaba.com
and what you can do is you can submit a
request
and when you submit this request you are
essentially
specifying the details of the product it
is that you wish to source
you could insert photos if you have
photos and then
once you submit that request within 15
minutes to an hour
you're going to have lots of qualified
suppliers
that are going to be producing those
products for you so rather than you
having to go out and find suppliers you
can submit a request using the rfq
and have suppliers come to you and this
is just going to be much more
time efficient for you and it's going to
help you find suppliers that are
specifically sourcing the product that
you want to sell
now before i share with you my last
couple tips and if you stay tuned to the
end of the video
i'm going to be sharing with you a
couple of bonus tips
i want to take this time to share with
you the alibaba
march expo so march is typically the
time of the year where global suppliers
are on boarding new
products to their product catalog so
thousands of thousands of new products
are arriving
and are being introduced during this
month and typically there
are in-person exhibitions where people
can go and the suppliers will present
these products
but due to cobit everything has been
shifted online
which is great for all of us who are
living internationally because we don't
have to travel anywhere
so alibaba.com will be hosting the march
expo
uh it's going to be the biggest expo in
the world and you're going to be able to
see
thousands of new products from the best
suppliers so alibaba is going to be
introducing something new
called trendy hunter which helps you see
the top
10 products in each category every
single month
now i love this idea because for us
private label sellers
if you don't know what the next product
is that you want to sell
this could be a great way to get some
new ideas to get some inspiration
as you know alibaba's got lots of data
points they know a lot they've got a
huge
catalog they know what products are
selling and so they're using this
information
to share with you what are the top 10
products in each category
so this could be a great idea for some
new product inspiration
now during the march expo alibaba will
announce the elite
partner event which allows you to
discover the top
quality pre-vetted suppliers from all
over the world
so every month 10 of the best suppliers
will be highlighted
and able to display their products now i
love
this idea because again this is an easy
way for me to find out who are the best
suppliers
and what products are they selling
all the suppliers during the elite
partner event
are carefully vetted by alibaba and they
have to go through a strict process
in order to be selected into the event
let's just take this first
suppliers example as you can see there's
a big elite partner
banner here showing that they have been
selected into this event
those elite partners often have their
own patented tiknology
you can see that the supplier has
something called copper shield fabric
which claims the materials they
manufacture can self sanitize
and be laundry free for 15 days those
are great selling points
you can directly put in your product
description if you choose to work with
the supplier
of course it also has lots of
certificates if you scroll down the page
you can see the supplier has a rating of
4.5 out of 5.
in fact suppliers in the elite partner
program on average have a super high
rating of 4.8 out of five
they have a whopping 91.4 percent on
time delivering rate
if you consider those products are often
shipped outside the usa
this is actually a very impressive
number
the suppliers in the elite partner
program are also guaranteed to respond
to your request super fast as you can
see
this supplier has a 91.4 percent
response rate
we all know how hard it is to grab a
real support person
answering your questions when shopping
online right
well if you tok to those suppliers you
will not have this issue
if you're new to alibaba.com and you
have no idea what suppliers you should
choose out of millions
then the elite partner event is a good
resource for you to start with
you can check the link in the
description below to grab the list
so let's get back to our tips with tip
number five check
the suppliers product catalog so once
you've found a supplier that you like
it's helpful to click on their page to
view their full
catalog and see what other products they
sell what other
niches or categories they are selling
products in
now i like to do this because number one
it's helpful for me to
determine whether or not this is a
supplier that i could work with long
term
say if i want to build a brand in the
fitness niche and the first product i
want to sell
is you know some sliding disks
then that's great but what else does the
supplier sell do they sell other
products in the fitness space
if so then the supplier is a supplier i
could possibly work with
long term i could source my second my
third my fourth product from the same
supplier
and this just makes a lot less work for
me having to find a new supplier for my
my future products so it's worth looking
into
their product catalog to see if there
are other products that pique your
curiosity
or products that you might be interested
in selling in the future
now tip number six is to get samples
so once you've contacted a number of
suppliers and you've kind of narrowed
down that list to your top three
suppliers
i recommend getting a sample from each
of those three suppliers
it's important because you need to see
the product you need to feel the product
you need to use
your senses to experience the product
and you can't do that
from your your computer screen so it's
really helpful to have them ship you
those samples and yes it will cost you
30 60 bucks to have those samples
shipped to you
but it's going to be well worth it
because ultimately if you're going to be
a brand owner you want to be selling the
best
quality products you want to make sure
that you are the top of the line
and you want your customers to have a
fantastik
experience with your brand you don't
want them to have products that fall
apart or that are low quality
and you don't want the negative reviews
that come with that so it is important
to
get samples from your suppliers they
understand that they're more than happy
to ship you samples you just have to
request it
so again i do recommend getting one
sample from three unique suppliers so
that you can compare the samples
and you can determine which of these
suppliers is producing the highest
quality product
now i'm going to give you a couple of
bonus tips because you stuck with me
all the way to the end of this video and
if you have enjoyed it
please do give me a thumbs up and let me
know in the comment section if you have
any questions
about the process so far or any
questions
about alibaba.com i'll do my best to
answer you
so the first bonus tip is to submit your
deposit
so once you have received your samples
and you've decided what supplier you'd
like to move forward with
you then will be placing your order and
in order for your manufacturer to start
production
they are going to require a sample from
you now the tip
is to make sure that the stamp this
deposit is no more than 30
of the order total it doesn't need to be
50
or 70 percent 30 is plenty
for them to start manufacturing and then
once the goods are manufactured
you can pay the remaining 70 balance
now the last bonus tip is to get the
products inspected by a third-party
inspection agency
so what this means is that a third party
that isn't affiliated with your supplier
will come to the supplier's facility and
will manually
inspect the products inspect the
products within your order
whether they inspect 10 percent of the
inventory 50
of the inventory or 100 of the inventory
is your choice
um and you can choose how much you want
them to inspect
but the point is that you want to make
sure that they are passing the
inspection
so that the products that you received
as a sample match the products that
you're receiving in your order
and that they're high quality so that
when you ship them when they're sent to
your house or an amazon warehouse
that there aren't any damaged items or
items that are just not up to standard
so get a hire a third party inspection
agency
and another thing is that if you do hire
a third party inspection agency
you want to hold off on paying the
balance until
the inspection agency notifies you that
they have passed the inspection so if
they haven't passed the inspection
then you don't have to pay the remaining
balance you can ask them hey
there's a 10 units that are broken can
you please
supply me with 10 new new units or you
can ask them to just remedy the
situation you have to communicate with
the supplier
and once the situation has been remedied
and the inspection
passes then you can pay the remaining
balance
so it's valuable because if you have
already paid 100
of the order then it doesn't really
incentivize the the supplier to
help fix things for you or to
come to terms with you so i recommend
doing that
so those are my bonus tips for you and
if you aren't sure
where to find an inspection agency
alibaba offers it
it's something that you can get when you
place your order with alibaba they do
have
third-party inspection agency it doesn't
cost much so that could be a great
option for you
so i hope that you enjoyed this video um
if you want to learn more about
alibaba.com they've got a youtube
channel which i'll be linking down below
really great information helpful videos
where you can learn more about suppliers
and about navigating the alibaba.com
website and understanding like how you
can best find suppliers
i also have another video that i will
link in the description box below
about how to find the best suppliers on
alibaba.com
so if you want step-by-step guidance
that's something that i kind of take you
through with
on a screen share and show you how to do
that so i've been toking long enough
i hope that you enjoyed this video again
give me a thumbs up if you liked it
and be sure to check out the march expo
that's coming up real soon
because there's going to be thousands of
new products that suppliers are going to
be displaying on alibaba.com so
a lot of new product opportunities there
so thanks for watching and i'll see you
next time