Your Strategic Partner for
Unlocking China's Sourcing Potential
How can you find a reliable supplier on Alibaba?
eCommerce frauds have recently become a trending topic. This is because of the increasing number of scams associated with credit cards, fake purchases, and quality scams.
According to Juniper Research, there has been a 44 billion dollar loss due to scams. It will even cross 100 billion USD by 2029.
Since then, Alibaba has been under fire due to quality scams. Millions of consumers purchase products from Alibaba. They fall prey to scammers every day. You must wipe out scams and make a safe trade. How can you do that?
Find the top suppliers. Today, we will shower light on the Alibaba suppliers and ensure a safe purchasing experience.
1. Before You Start Searching
Do your homework before you search for the suppliers. There are some essential preparation steps to follow. These include:
1) Essential preparation steps
Step 1: Defining your product requirements clearly
Do you have specific product demands in your mind? Highlight it. Any product quality, dimensions, and specifications are of prime significance. You must decide on each aspect.
Step 2: Setting your budget and MOQ expectations
No MOQ is good. However, many suppliers have an MOQ. To bypass such issues, you can define your MOQ and then hunt down such suppliers. Also, set your budget and find the relevant suppliers who offer the best rates.
Step 3: Understanding your target market’s quality standards
CE for Europe, FDA for the U.S. These are some security checks verifying the product standards. Based on your region, you can go for relevant certificates and standards.
Step 4: Having your compliance requirements ready
FCC certificates. CE certificates. FDA-approved products. All such certificates give a clearance at the borders. Keep them ready for quick approval and shipping at the borders.
2. Initial Supplier Search on Alibaba
A supplier search on Alibaba is necessary. For safe research, you can follow the tips below.
1) Using Alibaba’s search filters effectively
There are a few Alibaba filters in this case. Let’s explore them.
Trade Assurance filter
Trade assurance offers the ultimate payment security. Therefore, apply this filter and get all those suppliers to provide a trade assurance program.
Verified Supplier filter
Do you want the safe suppliers? Apply the verified supplier filter that removes the unverified and brings the verified ones to the top.
Gold Supplier status explanation
Gold suppliers are premium suppliers who have paid a fee to Alibaba. Confirm the gold supplier status before making a deal.
2) How to interpret supplier profiles
Check the following aspects in your supplier profiles.
Years in business
How many years have been passed in the business? More years mean more reliability. Find a more experienced supplier.
Transaction history
If transactions are large in number, it means consumers trust this supplier. Choose a supplier with more transactions.
Response rate and delivery time
The response rate must be one day, while the delivery time depends on the location.
3) Red flags to watch for in listings
When selecting the suppliers, there are a few crucial red flags. Here is the list.
- Unbelievably, low prices are a good indicator.
- If listings contain generic photos picked from the internet collection, they indicate fake products.
- Excessive MOQ requirements if the product value is low.
3. Evaluating Potential Suppliers
Evaluation of the suppliers is an essential task. However, you have to consider the various aspects related to the evaluation. Let’s discuss some crucial points.
1) Must-check verification points
A few must-check verifications can help evaluate the suppliers better. If suppliers don’t have that, run away. You can’t stop at such suppliers.
Business license verification
Every supplier has a business license. It shows the legal registration of suppliers with the local government. First, confirm the business license.
Alibaba verification status
Is your supplier verified on Alibaba? Alibaba team checks the suppliers and gives them verification labels only if they comply with rules and regulations. So, check the Alibaba verification status.
Factory vs. trading company identification
Factory offers wholesale prices. However, the number of products are limited. On the other hand, a trading company is an intermediate partner but has diverse products due to contact with multiple suppliers.
2) Analyzing supplier credentials
Verify and check the following aspects of the suppliers.
Relevant certifications (ISO, CE, FDA, etc.)
Suppliers obtain the standard certificates from different authorities. ISO, CE, and FDA are common certificates.
Export experience to your region
Can suppliers ship products to your region? High experience means seamless shipping opportunities.
Production capacity
Does your supplier have a high production capacity? Great. It can meet all your demands.
4. Making Initial Contact
When making an initial contact, you must discuss the matter in detail. Here is what you should do when making initial contact with the suppliers.
1) Professional communication template
Describe your needs. Don’t hesitate to discuss the terms and conditions. Follow the professional communication templates and talk politely.
2) Critical questions to ask suppliers
There are a few crucial questions to ask each supplier.
What are your payment terms and conditions?
Can you provide product samples?
Do you offer customizations?
3) Red flags in supplier responses
Here is the list of red flags in supplier responses.
- Inconsistent answer.
- Improper replies.
- Delayed responses.
- Attempting sales tactics without giving comprehensive answers to your questions.
4) Tips for price negotiation
Are you short on budget? Negotiate prices with the suppliers and reduce the prices by comparing quotes from multiple suppliers. You can also discuss the bulk order discounts and enjoy better project prices.
5. Verification and Due Diligence
1) Requesting samples
Requesting samples is common to test the product quality before bulk ordering. You can consider the following verification areas.
How to order samples effectively
Order samples effectively. All you have to do is to negotiate the sample prices. Some suppliers offer free samples, while others can charge a fee. So, confirm the cost from your suppliers and know the best price for your sample.
What to look for in samples
Whenever looking at the samples, you have to consider the following aspects.
- Are there any defects?
- Check material consistency.
- Match the product specifications and ensure adherence.
Common sample scams to avoid
Some suppliers try to charge higher prices for the samples than expected. If the supplier charges a high price, abandon the deal and move on to the next supplier.
2) Background checks
Run the background verification to confirm if the supplier is 100% authentic. So, what should we do about this?
Here is the detailed discussion.
Company verification services
Use official services to confirm the company status. SGS or Bureau Veritas are some famous names offering these services.
Online reputation research
Go to Google and check the reviews. Yelp, Facebook, Official Websites, and other resources can also be helpful in such cases.
Reference checks with past clients
Every experienced supplier has many past clients. Contact them and know their reliability. Only the top suppliers have positive comments from their past consumers.
6. Common Pitfalls to Avoid
The ultimate goal of the supplier is to avoid the scam. It is possible when you keep an eagle eye on the scamming cases and filter out the suppliers.
Let’s know the following aspects.
1) Major red flags
The major red flags are often related to the payments and verification documentation. Here is the list of major pitfalls to avoid.
If the supplier is asking for payments to personal bank accounts, it can be a probable scam. Pay only through Alibaba.
Asking for payment before the project is completed is also a red flag.
The supplier does not offer the certificates. This leads to significant scam issues and trouble.
2) Common scams on Alibaba
Alibaba scams are common. This is due to the rising trend of Alibaba purchases. However, you can avoid this scam by checking out the clear-cut signs. These include:
- Fake “verified” statuses are quite common on Alibaba nowadays.
- If the supplier sells counterfeit products, it is also a common scam.
- Switching agreed products with inferior alternatives.
3) Warranty and after-sales considerations
Settle the warranty terms with the suppliers and know the prices. Finalize deals only when you settle at the specified terms and conditions. Get after-sale support to avoid any quality scams.
7. Frequently Asked Questions
Is it safe to purchase through Alibaba?
Yes. It is 100% safe to purchase through Alibaba. Verify your suppliers and apply trade assurance programs for safe deals on Alibaba.
Can individuals buy from Alibaba, or is it only for businesses?
Both can be purchased from Alibaba. Individuals have to meet with the MOQ to buy products at the wholesale rates. However, Alibaba is a B2B platform that facilitates purchases between suppliers and businesses.
How do you avoid scams when buying from Alibaba?
Purchasing from Alibaba can involve scams. However, you can avoid scams through the following hacks.
- Verify supplier credentials
- Request samples
- Use Trade Assurance
What payment methods are recommended?
Multiple payment options are available on Alibaba. You can use the most secure ones like Trade Assurance, PayPal, or bank transfers. These offer a money-back guarantee.
How does Trade Assurance work?
Trade assurance is like an escrow payment. Suppliers get paid only when you give a green signal about product quality and integrity. It protects your payments and offers refunds against delayed shipments or low-quality products.
Conclusion
Finding reliable suppliers on Alibaba is not a walk in the park. Instead, you must dig up the top suppliers and filter them from scammers. Then, you can verify them and chase the reliability.
What if you get a reliable supplier at hand? That is possible with JustChinaIt. We have years of experience and know-how to explore quality suppliers. Work with the top suppliers. You can enjoy the following services.
- Source products at wholesale prices
- Ship them to your destination