How To Safely Source Products For Your Business From Alibaba
The news that Alibaba is an accomplished platform for businessmen to browse upon, all across the world. It has the reputation of being the world’s largest E-Commerce Company. Founded by Jack Ma in 1999, the base of active members has been on a steady rise since 2012. Putting some spotlight on Alibaba, let’s highlight important points to
consider on buying for the first time.
Looking for Products/Suppliers
In the world of escalating number of E-Commerce companies and online transactions, the basic mechanism for buying is not a hard guess. The same approach can be attributed to while searching on Alibaba.
The primary classification here is between products or sellers. Products option giving an array of products to choose from and option supplier to select suppliers who specialize in that particular product. Checklist for a satisfactory purchase Once a product page opens, the key factors to keep in mind are unit price, MOQ and payment option.
While buying a product for business, an aspect that cannot be overlooked or underestimated is the pricing. The site will present a FOB price i.e Free on Board. FOB necessarily includes the price that the seller will pay in order to get the product to marine port, and the cost of transporting it from there onwards lies with the customer.
MINIMUM ORDER QUANTITY(MOQ)
As the name itself suggest, M0Q is the minimum quantity that the seller is willing to sell. It is essential to get an idea about the minimum cost to bear as the price and quantity will provide a fairly reasonable portrayal. The overall cost along with cost charged for shipping will provide an outline, to go forward and negotiate the MOQ for a satisfactory
purchase, agreed upon by both the parties.
OPTIONS TO CHOOSE FROM FOR PAYMENT
The purchase involves a hefty transfer of material, thereby creating doubts for a beginner regarding options that can be relied upon for safe purchase.
Buyer security regarding payment is not doubtful in the case of PayPal. Being a popular choice among buyers, it offers apt buyer protection. Among seller, however, it’s not a preferred option due to high tax rates, difficulty in withdrawing money and a possible chargeback on demand for unauthentic buyers.
Here third-party involvement provides security for both the supplier and the buyer. In this case, the third party holds money of the buyer and pays to the seller only after satisfactory delivery of the order.
- Bank Transfer
This scenario presents a full payment of order to supplier even before production. This is highly risky for payment and is not prescribed for a beginner.
- Letter of Credit
Although this method offers security, it’s often not a preferred mode of payment due to its complex procedure. Hence, it should be utilized for a larger purchase. E-mailing can be used to be in contact. Terms should be precise and unambiguous.
From the plethora of supplier to choose, it’s difficult to select a truthful supplier. Alibaba offers a verification procedure by categorization and enlisting suppliers under verified information. Buyer should make a
point to see through the verification badges before forming an opinion.
Knowledge is power. To have a further level of understanding, it’s pre-evident to be inquisitive. Looking through their license, requesting a phone number and calling it, getting to know what the products offered by them and spread of business. A Skype call can follow after the aboveto leave no room for doubt.
TOO GOOD A DEAL CAN BE A TRAP!
An unbelievable deal is not an affirmation for luck, but a red signal to pay attention. Getting a few samples will not be unreasonable. While contacting, can ask for them, to seal the choice.