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Find Legit Suppliers On Alibaba In 4 Easy Steps (And Avoid The Scams)

Published on: December 9 2022 by MyWifeQuitHerJob Ecommerce Channel

Find Legit Suppliers On Alibaba In 4 Easy Steps (And Avoid The Scams)

Find Legit Suppliers On Alibaba In 4 Easy Steps (And Avoid The Scams)

in this video you'll learn what the
various scams are on Alibaba and four
tips on how to avoid getting ripped off
now Alibaba is one of the best platforms
to find Chinese suppliers for your
eCommerce business but is Alibaba legit
and safe to buy from now the short
answer is yes but you must understand
how to use Alibaba correctly and do your
own due diligence in order to find a
quality supplier without getting ripped
off in other words you can't just
haphazardly perform supplier searches on
Alibaba and expect to get good results
now in this step-by-step video you'll
learn how to avoid Alibaba scams
middlemen and outright fraud on the
platform now first off there's this
common misconception that Alibaba is an
e-commerce storefront that sells
physical products online but in
actuality Alibaba doesn't sell a single
thing instead Alibaba is a supplier
directory where you can find factories
to build your products and in fact you
should think of Alibaba as a matchmaking
service as opposed to an online
marketplace now overall most business
owners use Alibaba to find factories
when you build your own products you
almost always get the lowest price by
working with manufacturers you can be
involved in how your product is made
built and shipped you can also create a
private label brand most Alibaba
suppliers allow you to place your own
private label brand on any product
that's produced you can also create
custom design products you can create
your own custom products that you design
and fabricate
now why is Alibaba so cheap products in
Alibaba are cheap because the cost of
Labor and Manufacturing is lower in
China which is where most Alibaba
products are made you are also expected
to purchase products in bulk on Alibaba
which allows for better pricing and
economies of scale in addition most
sellers in Alibaba are factories and
don't sell directly to Consumers as a
result they don't have as much overhead
associated with Marketing sales and
customer service
now is Alibaba legit and safe well
Alibaba was 100 legit and finding
suppliers and sourcing products and
selling Alibaba is very safe and in fact
Alibaba has many safety measures in
place that allow you to thoroughly
research every supplier along with an
escrow service that eliminates fraud
however you must take advantage of the
resources that Alibaba provides in order
to ensure a safe and legit transaction
now if you ever decide to conduct your
own private transactions outside of
Alibaba you do so at your own risk
because remember Alibaba is just an
online directory of Chinese suppliers
and it's your responsibility to perform
your own due diligence Now by following
the step-by-step guide and taking
advantage of alibaba's secure payment
features you'll almost never get ripped
off step one filter out the non-verified
suppliers now because Alibaba is such an
enormous directory there will always be
low quality suppliers on the platform
some Alibaba suppliers are just
middlemen who don't provide any value
and just sell you marked up products
some Alibaba suppliers just cut corners
and specialize in producing cheap
quality junk in order to avoid the
middlemen and the poor quality factories
Alibaba allows you to filter out the low
Quality Companies right off the bat once
you perform a search in Alibaba make
sure you have the following three boxes
checked off here's what these check
boxes mean Alibaba verified supplier
verified suppliers pay significant
premium to Alibaba in order to be
pre-qualified and this fee is high
enough to weed out most non-serious
companies now now here's a point by
Point table what Alibaba checks for
every verified supplier all these checks
are made by an independent third party
basic profile Alibaba checks and
supplier business license and ownership
status their contact information and the
location to make sure the supplier is
legitimate it also provides a company
overview Alibaba checks whether the
business is a Trading Company versus a
manufacturer they also inspect the
premises with video that you can see on
the company's profile page on Alibaba
Alibaba will also display r d
capabilities Alibaba makes a note of how
many r d staff the factory employs and
whether they offer Design Services you
can also find out their production
capabilities Alibaba checks the
production capacity of the factory and
the machines and automation they employ
you can also check quality control
Alibaba checks the Factory's Quality
Management Systems quality control
processes and testing capabilities so
overall Alibaba performs a comprehensive
list of checks that pretty much weeds
out most smaller middlemen
you should also look for trade Assurance
A supplier with the trade Assurance
designation means that your order is
protected from fraud when you make a
purchase using alibaba's trade Assurance
program now in the event that the
product quality or the delivery date is
different than what you and the supplier
agreed upon Alibaba will mediate the
dispute and ensure that you are
satisfied now if a resolution cannot be
reached Alibaba will refund you your
money now the trade Assurance program is
what makes Alibaba 100 legit and safe to
buy from I've had students in my course
receive full refunds through trade
Assurance when the merchandise they
received from the factory was not as
expected you should also check off the
less than one hour response time box
this checkbox is self-explanatory but
you should expect a reasonably fast
response time from every supplier that
you contact if a factor responds within
an hour it's an indication that they
have a dedicated customer support team
to help you in case something goes wrong
now overall there's no guarantee of
total quality but if you look for
suppliers with all three of these boxes
checked you are much more likely to find
one that takes quality very seriously
step two check the supplier's reviews
and ratings now in the event you did not
click on the verified supplier check box
you should at a bare minimum look for
the Alibaba gold supplier badge for
every manufacturer you refer now what is
a gold supplier gold supplier is the
lowest paid membership for suppliers in
Alibaba now I verified gold supplier in
China must pass a detailed on-site check
in addition to an address and
verification check all background checks
are conducted by a third party to ensure
that the gold supplier is a legally
registered business however it's
important to note that the gold supplier
badge does not guarantee a reliable
supplier and it's relatively easy for a
company to achieve gold supplier status
some gold suppliers are legit companies
but they provide lousy service or poor
quality product
some gold suppliers are just a couple
random guys who set up a trading company
and run in an office regardless the gold
supplier badge is a good first pass way
to screen most legit suppliers once
you've verified gold supplier status the
next step is to dig into alibaba's
verified supplier reports now in Alibaba
verified supplier has gone through a
much more in-depth inspection than a
gold supplier and every verified
supplier has a complete company profile
on the Alibaba website
now here's what I look for in a
potential supplier the year it's been
established has the company been doing
business for at least five years I also
look at their main markets does the
company typically export products to
your country what is their on-time
delivery rate does a company have a
history of on-time shipments I look at
number of employees does the company
have a decent sized staff and then I
look for facility images does a company
have a legit facility to manufacture
your goods a look at business type it's
a supplier a manufacturer or a Trading
Company manufacturers will generally
offer lower pricing and higher minimum
order quantities Now by only working
with verified gold suppliers in Alibaba
and analyzing a suppliers company
profile you can quickly assess whether
the factory is legit
now just a quick note I'm often asked
whether it's advisable to work with
Chinese trading companies as opposed to
real manufacturers now even though
trading companies are just middlemen
they make it extremely convenient to
purchase different products from
different factories from a single source
trading companies often charge a premium
for this service but it can be well
worth the money after all if you can
make a decent profit working with a
Trading Company doesn't matter trading
companies also typically have lower
minimum order quantities as well step
three use Alibaba trade Assurance now
once you've finalized your first bulk
order make sure you indicate to your
supplier that you would like to pay
using Alibaba trade assurance
now as mentioned earlier trade Assurance
is the safest way to buy products from
Alibaba suppliers and it's 100 free
trade Assurance ensures that your order
is protected from outright fraud Alibaba
will guarantee your money back if you
are not satisfied with your order or if
the supplier did not follow the agreed
upon terms now alibaba's trade Assurance
works I've had several students get
their entire order refunded when their
products didn't meet their
specifications now the mediation process
can take a while but it's extremely
effective meanwhile with trade Assurance
the Alibaba supplier is incentivized to
deliver quality products because bad
shipments affect their credit rating and
they're standing in the Alibaba
directory now here's how to pay with
trade Assurance in order to pay with
trade Insurance you must use a supplier
that supports it and this is why
checking the trade Assurance box is
essential during your research now once
you're ready to order just follow these
directions to pay
now just a couple notes a trade
Assurance order must be placed directly
on the Alibaba website otherwise there's
no protection so what you want to do is
you want to click on the orders button
and select order with trade Assurance
then fill out the form with as much
information as possible regarding your
order and the agreed upon terms quick
note the product details area of the
form is a place where you will work with
your vendor to document the terms of
your agreement and then finally enter in
the payment information to place your
now what is the safest payment method
for Alibaba well when you pay by Alibaba
trade Assurance your order is 100
protected if you don't receive your
products or if the supplier does not
deliver as promised Alibaba will open up
a dispute with your supplier on your
behalf and then from there Alibaba will
help you mediate with your supplier to
reach an agreement on what to do next if
no agreement can be reached you simply
get your money back now while trade
Assurance is safe and effective the
mediation process can take some time for
example your money could get tied up for
several months until a resolution is
reached as a result if you want the
ability to dispute a charge outside of
Alibaba the safest way is to just pay
for your trade Insurance order via
PayPal or credit card and again paying
by PayPal or credit card is not
explicitly necessary with trade
Assurance but it will provide you with
an extra layer of protection for your
payment step 4 hire an inspection
company now with Alibaba trade Assurance
your hard-earned cash is protected but
what about your time when you are
shipped poor quality products it can
take months to go through the the entire
manufacturing process again and receive
another shipment now while trade
Assurance protects you from monetary
loss delays in manufacturing can also
hurt your business especially if you're
trying to get your products in time for
the holiday season now in order to
ensure a high quality shipment on your
first try you should hire an inspection
service to inspect your products as they
come straight off the assembly line
Inspection Services like keema will send
a representative directly to your
factory in China and perform a detailed
inspection of your products right off
the line and at the end of the
manufacturing build now the cost of your
inspection will vary depending on how
thorough of an inspection you need but
in general expect to pay around two to
three hundred dollars for just two to
three hundred dollars you can fix your
production issues immediately by finding
manufacturing flaws directly on the line
you can quickly make adjustments without
losing time now for most bulk purchases
in Alibaba the cost of your inspection
will be a single digit percentage of
your overall total which makes hiring an
inspection a no-brainer alright so here
are some Alibaba scams to watch out for
4. now if you follow all the steps that
I just outlined you will save both money
and time on your first bulk order with
minimal risk of loss and overall Alibaba
is 100 legit and safe but there are some
cases where you can be tricked into
paying higher prices for your products
than they are worth
here are some scenarios that aren't
outright scams but they're evil tactiks
that A supplier might pull on you during
the negotiation process after all trade
assurance and inspections can only
protect you after an agreement has been
made not before all right so the first
tactik I want to tok about is what I
call the sudden price increase tactik
the sudden price increase tactik is one
that I see all the time the supplier
quotes you a low price to get you in the
door and make a commitment to place an
order and oftentimes you'll spend a good
amount of time going back and forth with
samples until you refine the exact
product that you want to buy then once
you're ready to place a bulk order the
supplier surprises you with a price
increase now in most cases they'll
mention the rising cost of materials of
the high labor costs and ask you to pay
more now the only way to combat this
practike is to work with multiple
suppliers at the same time if a supplier
tries to screw you you have a backup
just in case and if you have the means
never put all your eggs in one basket
now the next situation is when a
supplier tries to sell you popular
branded products now some Alabama
suppliers will claim to be the original
manufacturers for popular brands that
you may recognize like Disney or Nike
these products fell off the truck well I
can say with 99 confidence that all
recognizable branded products that A
supplier claims to have for sale will be
100 fake Chinese suppliers that work
with Disney Nike or any popular brand
will not dare violate the terms of their
agreement now here's something that
happens all the time your samples and
your final products have a large
difference in quality now when you ask
for a sample from A supplier the product
quality is usually great because they
want your business but once they have
you hooked they may ship you lesser
quality products when you first place
your bulk order now the only way to
combat this practike is to hire a
third-party inspection service like
Kemah and document every aspect of your
product on a quality control checklist
trade Insurance can help in this
situation too but only if your product
specifications are extremely detailed
and well documented by hiring an
inspector to examine your products as
they are made you can spot low quality
products immediate immediately and take
action with minimal losses in time and
money now the next situation that could
happen is when a supplier promises
certifications that don't comply now
some products like toys and electronics
must comply with your country's
regulations and certifications but
sometimes Chinese suppliers will claim
to have performed their own independent
testing to avoid you the expense
never trust the certifications that any
supplier provides you must do your own
due diligence ask your Customs agent to
help you look over the certification
documents or contact the test lab
directly to double check if you want to
be 100 safe you should perform your own
lab testing and certifications
another thing that can happen is a
supplier agrees to a lower price and
then Cuts corners on quality and again
this situation can be 100 mitigated with
the use of an inspection service like
keema trade Assurance can protect you
from monetary loss as well but only if
the expected product quality is well
documented so for example one time we
negotiated a 10 discount on our
handkerchief order thinking we got a
great deal but when our products arrived
every handkerchief was super thin
because we didn't hire an inspector nor
did we specify the thickness of the
product explicitly we were out of luck
fortunately our supplier was willing to
compromise with us to fix the order but
in theory they didn't have to do
anything so here is my Alibaba safety
Alibaba is 100 legit and safe to use as
long as you follow a certain set of
guidelines and perform your own due
diligence here's a summary of Best
Practikes I personally use before
placing any order on Alibaba document
and save everything be as specific as
possible with your product
specifications and write everything down
on paper make sure you save any and all
correspondence with your supplier just
in case a dispute arises
use trade Assurance do not conduct your
monetary transactions outside the
Alibaba for your first order
use trade assurance and pay by PayPal if
possible to provide an extra layer of
payment protection now once you trust
your supplier you can forego trade
Assurance to save money hire an
inspector don't be cheap and pay the two
to three hundred dollars for a third
party inspection company it's an
insurance policy that will pay for
itself now from a psychological
perspective your supplier will
manufacture better quality products
knowing that an inspection will be
always have a backup never depend on a
single supplier for your goods otherwise
you'll have limited negotiation power
and then finally trust no one do not
believe anything A supplier says
regarding certifications or product
authentikity do your own research only
work with gold suppliers but remember
that gold supplier status doesn't
guarantee anything you still have to do
your own due diligence
now that I've gone over some guidelines
on Alibaba scams watch this video now to
learn step by step how to make your
first purchase on Alibaba

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