With the rapid growth of E-commerce, more and more online sellers or retail stores will look for suppliers on Chinese wholesale websites. There are many trade wholesale websites in China, which one is the best and cheapest for wholesale buyers? Alibaba is the biggest one for sure. It’s the first idea when people are talking about China’s wholesale website. If you want to know how to find the right products and select the first-rate Chinese suppliers on Alibaba, then please keep reading this post.
Alibaba is the world’s largest and most popular B2B wholesale website for international trading. Learning the essential skills about how to source on Alibaba will be very helpful for you to develop your business in China. It helps you to find fine Chinese wholesale manufacturers.
In this post, I will introduce how to source the right product and find the best Chinese manufacturers on Alibaba in detail. But before talking about Alibaba, let me share the Top 5 wholesale websites in China.
Top 5 B2B China Wholesale Websites
#1 Alibaba.com
What is Alibaba? Alibaba is the China wholesale website created by Jack Ma and his team in 1999. It has become the most extensive online B2B wholesale site for buyers who want to buy directly from China. It offers users the opportunity to source various products from different Chinese wholesale suppliers. Generally speaking, Alibaba works like a broad dashboard with its wholesale directory function.
Trade Assurance Function:
People are always worried about doing business with Chinese wholesale manufacturers for the first time, what if they sell me a product with low quality, what if they steal my money?
However, there is a function of Trade Assurance on Alibaba, which is the protection method for buyers. If the supplier doesn’t deliver your shipment on time, or the quality is not comparable as you confirmed, then your deposit will be refunded by Alibaba, it’s a kind of money-back guarantee. It is important that the Trade Assurance is entirely free of charge, Alibaba won’t charge you any extra cost of it.
How does the Trade Assurance work? And how to take advantage of it? Here are some tips for you to use it properly：
- Get in touch with the supplier, send them your inquiry, and confirm all product details, such as quality, material, and packaging.
- Get an official quotation from the seller. All necessary details must be marked, including quality level, shipping window, and shipment terms.
- After confirming all details, then you need to ask for a trade assurance order contract from the supplier. Again, all necessary information must be marked, signed the Trade Assurance means both you and the supplier will follow the terms and conditions.
- After signing the Trade Assurance contract, you can proceed with payment to the supplier.
If the seller doesn’t follow the terms and conditions that have been marked in the contract, please reach out to Alibaba customer service, and ask them for support. Either they will negotiate with the supplier, or they will refund your payment.
Verified Suppliers
If you still worry about working with the China wholesale suppliers, then working with the verified suppliers is another protection method. A verified supplier is a premium membership to Alibaba. They have been checked & validated by Alibaba’s third-party inspectors. Therefore, all verified suppliers are legally registered businesses having a physical presence.
Supplier Qualifications
Don’t forget to check the supplier qualifications before working with them, by clicking the company profile, you will get to check the following info, it helps you to figure out the supplier’s capacity and ability, and if they are qualified for your business,
- Business type: trader or the actual manufacturer
- Product lines: you will get to see if the supplier is capable of your products
- Company Certifications: this is important for you to know more about the company
- Products certificates: it shows what kind of standard their product can reach
- Transactions: show how many buyers are buying from them, and how many orders they got.
Quality Service & Assurance
Alibaba provides a quality inspection service on the buyer’s behalf, and the quality inspector will visit the factory and issue the inspection on your behalf. The inspector can inspect at a different stage of the production,
- Pre-production: will check each detail of the product before official production starts, make sure everything is correct for mass production
- On-line inspection: issue the quality inspection during mass production, it helps to find out the quality issue at the very early stage.
- Final inspection: it’s essential to have a final inspection before shipment. Make sure the products are qualified before shipping.
Buying from Alibaba
Suppliers on Alibaba require a MOQ, and it depends on the product’s kind. Prices from Alibaba suppliers should always be negotiated.
#2 1688.com
1688.com is the Chinese version of Alibaba, also one of the most significant parts of the whole Alibaba group. The difference between 1688.com and Alibaba is that 1688.com is more suitable for Chinese domestic buyers or traders, the suppliers on 1688.com also offer various products, the same as Alibaba, but mostly they can only speak Chinese, which is probably a big problem for overseas buyers.
Buying from 1688.com
Similar to Alibaba.com, suppliers on this platform have their business license, 1688.com is a China wholesale site for domestic buyers/Chinese trading companies/China sourcing agents.
- The buying cost could be more competitive than on Alibaba if you know how to work with Chinese suppliers.
- The chance you found the direct factories through the online wholesale market
- Various categories on 1688.com and you can find everything at a competitive price
- Find the best-selling products on Amazon/Wish/Aliexpress at 1688
5 Features About 1688.com
- The suppliers who are listed on 1688.com might be the origin suppliers for those sellers on Alibaba.com.
- 1688.com is designed as the China wholesale market for domestic buyers, so it’s in Chinese.
- Most of the suppliers on 1688.com are not familiar with FOB Price, International Shipping…etc.
- The best sellers on larger B2C websites like Taobao/Tmall/Wish/Aliexpress/DHgate/eBay/Amazon buy wholesale from 1688.com.
- Most Chinese buyers buy in bulk on 1688.com instead of Alibaba.com.
Challenge When Ordering From 1688
- Lanugage|Coummnication Barrier: Remember you are exploring the territory that belongs to the Chinese domestic buyers.
- Ordering from China(International transfer): Need to find payment solutions while can not pay USD directly to the seller.
- Sellers on 1688.com are not professionals in international trading. The risks of a mistake in quoting the price, calculating the logistic costs…etc.
- Potential Quality Issue if you don’t issue inspection while buying wholesale from China.
3 Useful Tools for Purchasing From 1688.com
- WeChat: Everyone in China uses WeChat during daily life and even for payments. Get yourself used to the local environment then it’s easy to explore your business in China
- Google Translator: You need it when talking to the direct factories
- Quotation format: Most of the suppliers on 1688.com are not professional about providing a decent quotation sheet to you with complete information. Switch your mind and give them a list to fill in the necessary information. It would be beneficial when ordering products from China.
#3 Aliexpress.com:
Founded in 2010, Aliexpress is the Alibaba group’s new cross-border retail platform for the global market. After nine years of rapid development, AliExpress has become China’s largest cross-border B2C export platform. Aliexpress designed its service for customers who want to buy from China for competitive prices. It’s a Chinese online shopping site that works for international buyers.
Buying from Aliexpress
Aliexpress targets customers who intend to get cheap Chinese products or purchase them in small quantities. It’s an online retail service based in China that is owned by the Alibaba Group. Aliexpress doesn’t allow customers from China mainland to buy from this platform.
Dropshipping
Dropshipping is an excellent way to start an e-commerce business without worrying about inventory or shipping. It’s as simple as listing a product for sale on your website and sending an email to your supplier to ship the item on your behalf whenever you get an order. Add the products you would like to sell from Aliepress onto your store, and set a price with a markup. And whenever you receive an order, you pay for that product at wholesale cost and the Aliepress seller ships the orders directly to your customer.
Pricing on Alipress:
People are asking why the price of Alipress is much higher than Alibaba. It’s because Alipress is designed to allow you to order a single unit whereas Alibaba is designed to match a high value or high qty for wholesale orders with a minimum order qty or values, depending on the product character.
#4 Globalsources.com:
Similar to Alibaba, Global Sources is one of the giant China B2B wholesale websites. Thousands of Chinese manufacturers are listed on this platform. It was founded in November 1970 by Merle A. Hinrichs and C. Joseph Bendy as Trade Media Ltd.; its first publication, Asian Sources magazine, was launched three months later. In September 1974, the company’s first spin-off publication—Asian Sources Electronics—appeared. More industry-specific titles were subsequently added.
Unlike other online wholesalers, Global Sources also promotes the forthcoming trade show in addition to being a highly trusted China wholesale website.
It has millions of products for buyers to choose from, and it provides excellent business opportunities to suppliers and buyers.
Buying from GlobalSources:
It has millions of products for buyers to choose from, and it provides great business opportunities to suppliers and buyers. The platform allows buyers to contact manufacturers directly for inquiries and purchases. More than 1.5 million international buyers, including 94 of the world’s top 100 retailers, use these services to obtain product and company information to help them source more profitably from overseas supply markets. These services also provide suppliers with integrated marketing solutions to build corporate image, generate sales leads, and win orders from buyers in more than 240 countries and territories.
Pricing & MOQ:
Buyers are guaranteed to come across the best rates for products they are interested in purchasing as the website houses some of the most trusted Chinese wholesalers, manufacturers as well as retailers.
The suppliers set the minimum order quantity, and it depends on the unit price of the product and the product character, can be higher or lower, but should always be negotiated when you are going to work with a supplier from global sources.
International trade show:
The company organizes export sourcing shows in Hong Kong SAR every April and October with eight events annually, including the world’s largest electronics and mobile electronics shows as well as Lifestyle and Fashion shows. Global Sources is also a majority shareholder in the Shenzhen International Machinery Manufacturing Industry Exhibition (SIMM) and its related shows—the leading machinery exhibitions in Southern China.
Global Sources’ user-friendly website and its focus on trade shows and exhibitions are undoubtedly some of the factors that have contributed to its success. Moreover, the platform makes it seem quite easy to get a hold of credible suppliers.
#5 Made-In-China:
Founded in 1998, Made-in-China.com is a leading comprehensive third-party B2B e-commerce operated by Focus Technology Co., Ltd. It is dedicated to serving the global trade field and providing high-quality Chinese products and supplier information for global buyers. Nowadays, Made-in-China.com is a world-leading B2B portal, specializing in bridging the gap between global buyers and quality Chinese suppliers. China’s first B2B e-commerce platform conducting a full review of paid-up suppliers. Providing product information of 27 categories and 3,600 sub-categories. Displaying website information in 11 languages.
Buying from Made-In-China
Made-in-China.com is a B2B China wholesale website for global buyers to source Chinese products and Chinese suppliers. To become a Gold Supplier, members must pass a verification conducted by a third-party agency. The verification process enables Made-in-china.com to confirm that the business is legally registered in its region.
Made In China releases payment to the suppliers only when the buyer has confirmed receipt of goods in proper condition.
Price & MOQ on Made-in-China
Since Made In China is a popular marketplace, you can rest assured that the wholesale prices will be reasonable. But same as the other whole websites, prices from made in China can be negotiated.
Made-in-China.com has a free standard service for buyers, although additional costs are levied, such as Supplier Matching and Online Sourcing Meetings.
Premium buyer membership starts at $199.90 per year and includes many of the additional costs.
Made In China are O2O platforms: online negotiation, offline production, and delivery. There is a high order quantity requirement; usually, MOQ is hundreds of orders. You can also take a sample at the beginning, but the sample’s price is much higher than big orders.
Pros and Cons:
Made in China is home to a variety of quality products. The heavy emphasis on buyer safety is undoubtedly a plus.
However, the weird enforcement of buyer safety elements and the inconvenient buying process can cause people to choose other Chinese wholesale suppliers over Made in China.
What is the Difference Between Alibaba and Aliexpress?
How do you buy wholesale products from China? Maybe “Alibaba” is the answer for some people who are online sourcing from those wholesale sites.
Alibaba.com
What is Alibaba? Alibaba is the China wholesale website created by Jack Ma and his team in 1999. It has become the most extensive online B2B wholesale site for buyers who want to buy directly from China. It offers users the opportunity to source various products from different Chinese wholesale manufacturers. Alibaba works like a broad dashboard with its wholesale directory function.
Aliexpress.com
Founded in 2010, Aliexpress(Alibaba Express)is the Alibaba group’s new cross-border retail and wholesale website for the global market. After nine years of rapid development, AliExpress has become China’s largest and most popular B2C wholesale website. Aliexpress designed its service for customers who want to buy from China for competitive prices. It’s a Chinese online shopping site that works for international buyers.
Alibaba works for importers who want to private label their products and experience the OEM/ODM service from China suppliers. At the same time, Aliexpress is designed for buyers who intend to get the cheapest Chinese products or purchase in small quantities.
How do Chinese Wholesalers Ranking on the Alibaba?
Ranking rules on Alibaba.com
Many buyers asked me about how the Alibaba stores rank on the site.
The websites work as a search engine by which you can type the target keywords then it comes out the matching results. It’s free to buyers, but it does charge a membership and promotion fee to the sellers.
What you may not know is that there are different types of membership fees for the suppliers to obtain different levels of traffic on Alibaba. The suppliers who pay more to the website then would acquire a high-rank listing on the site. Does it sound similar to Google ads and Facebook ads?
Why should you know about that? Because now, you understand why those Chinese wholesale suppliers rank on the 1st page when you search for a specific product. Ads are not the only factor that affects the ranking on Alibaba, but they are a critical reason.
Here the conclusion is that you may find the right supplier on the front result page, but they are not the only options for the BEST suppliers.
Amazon VS Alibaba, What’s the Difference?
Amazon focuses on selling products online from the US to the world. Alibaba is a platform where buyers and sellers can make a deal about China’s wholesale products. Alibaba Group also has an online shopping website named “TAOBAO,” which focuses on the Chinese domestic retail market. You may hear about the story of “China Singles Day,” which means the same as “Black Friday.” In China, it’s the day 11 of November when you can do online shopping on TAOBAO with a decent discount.
How do find a product on Amazon and Alibaba?
I would say there are tons of Amazon sellers buying from Chinese wholesale websites and selling on Amazon with their private labels and unique designs.
Let’s look at an example. If you are interested in selling a “Daddy” hat on Amazon, then you can access Alibaba to see if you can find a decent-quality product at a low cost.
First, you will need to collect product details before approaching the suppliers.（Product Keywords, material, description, packaging, design..etc）All the different factors that may affect the cost.
Let’s start some basic research about the “Daddy” hat on Amazon. You may need some Amazon-product-analyzing tools to analyze if this product is a high-potential product for selling on Amazon.
Websites like Jungle Scout and AmazeOwl may help you get more ideas.
Here is the listing info on Amazon for some “Daddy” caps for reference. It seems that the pricing is between 10.00 and 14.00 USD.
After you have completed your research and locked in an ideal product, then you can jump to the wholesale market to see what you can find.
Let’s follow the “Daddy” cap case and type the keyword “daddy hat” into the search bar on Alibaba and see what we can get. Below is a sample of the sourcing results page.
On the sourcing result pages, you will see many different options for the keyword “Daddy hat,” and the price range is around 1.00 to 4.00 USD based on the different specifications and materials. Wow! The cost seems low, and you can quickly profit from importing the hat and selling it on Amazon. Is it that easy? Oh no. You have a lot of work to do to reach that goal.
Alibaba can be a useful wholesale website if you want to get more information about the cost of production in China. It is an excellent resource if you can manage and execute your bulk order with essential skills.
See the below tips when importing products from China’s Wholesale Market.
Four Tips When Working with China Wholesale Suppliers
Tip 1. Accept the Learning Curve Period
You can find many online tutorials today about how to source and buy from Alibaba, but you will still need to go through the process yourself. A good swim coach can teach you everything about how to swim well, but you are the one who needs to practice well.
In the beginning, it may be a steep learning curve, and you may be disappointed in the product, especially for the first or second order you place on Alibaba.
Be prepared for that and, even if it costs you some money, learn from it. The most important thing is that you are moving toward reaching your goal.
Always keep in mind that the reason you are sourcing on the wholesale market is the low cost of a decent-quality product. A language or culture barrier may be there, but it should never stop you from deriving value.
Tip 2. Understand the Alibaba Vendor Listing Policy
You need to know why these suppliers show up on the search results page and understand the listing rules on Alibaba. Here is the result when you search the keyword “baseball cap” :
What do you see? You can see “sponsored listing” on the product links, which means the suppliers have paid Alibaba for an excellent position on the results page to increase their traffic on the website. Sponsored listings mostly show up on the first eight results on the first page.
If a baseball cap seller doesn’t want to pay for priority product ranking, then the product may only be shown after ten more result pages.
Why does the Alibaba listing policy work that way? For sure, one of the reasons is that the website needs to be profitable.
Now the buyers on Alibaba can leave reviews and see the supplier’s transaction records for the past six months in the supplier’s company profile. The Alibaba team is trying to make incorporate more B2C elements into the traditional B2B website.
The products you may see on the first results page are usually there because they paid for that, or the company is good at e-commerce marketing.
On the other hand, the vendor will probably pass these costs onto you if they paid Alibaba for the high ranking.
Once you understand the Alibaba listing policy, you can work more effectively when approaching suppliers. Some suitable suppliers are not listed on Alibaba.
Tip 3. Look at the Supplier’s Profile and the Alibaba Reviews.
Check out the supplier’s company profile before you approach the supplier as you can access reports from buyers from over the world. Pay more attention to negative feedback because that might happen to your business, as well.
By reviewing the company profile, you will learn what specific category this vendor is in and if they are a factory or trading company. Defining the vendor through this useful information will give you an idea about how to work with the supplier.
Tip 4. Make Sure You Know the Type of The Suppliers
You may have already realized that you will probably get the best price by purchasing from the factory directly. Is that correct? Yes and no. Both the manufacturer and the trading company or sourcing agent have advantages and disadvantages.
Evaluate your business and sourcing skills before making decisions about the type of partners you want to have.
If you are a professional buyer or have an office in China already, then you could work with the factory directly because you have enough skills to handle different situations. If you are a newbie ready to start your journey sourcing in China, then working with sourcing agents might be a good option because they will help you monitor the performance of the manufacturer through their workflow.
The ultimate target is still to find a low-price and decent-quality product that can ship to your warehouse on time, so do not over-focus on the cost alone. Cost is undoubtedly one of the key points to consider, but you need to view all the factors within the order process.
One of the excellent features of a professional supplier is that they want to work with you and are willing to make your business successful rather than make money from you. More importantly, they work proactively, so you don’t need to push them to deliver a good result.
Six Common Misconceptions when Buying from Alibaba
Different Ideologies (Buyer and Seller)
You may think that the supplier should follow the same doctrines as you, but they may be different because you are from diverse backgrounds
All the China Wholesale Vendors are the Same
Do you think that all sourcing agents, trading companies, and manufacturers are the same? In reality, they are all different, and you should know how they work.
A factory is the place of origin for your products. The factory might produce and pack the final products and then ship them to your warehouse or the Amazon FBA warehouse.
The trading company will collect or organize different samples to create a product line and show buyers to get the PO. They have an existing relationship with various vendors.
A sourcing agent can customize your request and provide various services. It will also share the name of the manufacturer with you if you want. A sourcing agent can help you with factory audits, product sourcing, order follow-ups, inspections, and managing the entire order process. They are helpful if you want to run your own private label business, especially on Amazon.
Assume that Sea Shipping is always the Cheapest Option.
Is sea shipping the best way to ship your goods to their destination? It can be if you can use full-container shipping(FCL), which is when your cargo fills an entire shipping container. For example, a full-size 1′ x 20′ GP container is around 26 m³, so sea shipping would be a good option if the total cubic meter of your cargo is close to 26m³. Then, the total cost will be much lower than that of air freight or air couriers (e.g., DHL, FedEx, UPS).
Learn more about sea shipping.
You most likely won’t meet the load requirements for full-container shipping. Then what do you do? You will need to compare the different shipping methods and costs.
Airfreight
This procedure is similar to sea shipping. You will need to contact a shipping forwarder and arrange delivery of the cargo to the appointed forwarder’s warehouse in China. The shipping forwarder will arrange the shipping by plane to the destination, and it will help you to declare the load at customs and do the standard import process. The most important thing is that you need to hire a forwarder you trust and ask for the price in advance. Then you will have an idea of how much it will cost.
We suggest using air freight when the cargo is above 500 kg, and the price is competitive with that of air couriers such as DHL, FedEx, and UPS.
Air Couriers
Several air carriers are famous for their convenient and fast service. They also help simplify the customs declaration process, especially when the total value of the shipment is under $800, and you don’t need to pay import taxes!
You can always ask air couriers for the door-to-door cost for the shipment and compare them to find the best option for a small purchase. See the price chart below for reference.
In a future post, we will talk about how to choose the shipping method correctly.
Think All the Best Chinese Wholesalers are Listed on Alibaba
Importers, especially the new ones, usually assume that all China manufacturers/suppliers are on Alibaba. Is that correct? Oh, no!
Many top suppliers are not even interested in listing themselves on this website because they are too busy and want to focus on their business. These manufacturers usually work with a trading company, and they don’t have a team to service foreign importers, and they don’t want to do that. Why? Directly servicing overseas customers means that these factories must establish an English-speaking crew which increases the possibility of problems. They would instead focus on the products and work with local trading companies or sourcing agencies instead of extending their business focus.
Over Trust a High Ranking Supplier on Alibaba
You have already learned that high-ranking listings on Alibaba are the result of paying ad fees to Alibaba. As you can imagine, these companies derive more value by listing their products in the best position on the website, and they gain a lot of traffic by continuing to do that.
We suggest not over-trusting the reviews or transactions shown on such suppliers’ Alibaba pages; that’s just a consequence of using the paid service and does not mean that the supplier is indeed a high-level supplier.
Skip the Sample Confirmation Process
Please never ignore the sample check before issuing the PO to the supplier. You may start working on a single product, such as a new design ballpoint pen project. It looks like a simple project but sometimes turns out to be more complicated than you expected. Why? Because you assumed it is a pure product, and you didn’t review samples!
Reviewing samples is a critical step. You need to check especially the master production sample, before giving a direct order to the factory to start production.
It’s essential to check and confirm the sample product and inform the supplier of any defective points before mass production.
How to Source and Negotiate with Suppliers on the wholesale website?
Step 1. Register an Account on Alibaba
First, register on Alibaba so that you can directly communicate with vendors and ask for more detailed information about the product.
Verify your email and fill in your personal or company information to register for free.
Step 2. Analyze and Collect More Product Information
You already know that you need to gather as much information as you can about the product you are going to sell, such as material, dimensions, packing, quantities, and so on. Then, you can approach suppliers.
The China wholesalers expect that you know what products you are looking for, and then they can submit their offers. The suppliers will evaluate your business and see if they want to provide a quote.
Think about it: if you were a supplier and there was a buyer who contacted you who was not so clear about the product he wanted, then how likely is it that he would place an order with you?
Provide suppliers with a detailed “request for a quote” (RFQ) with specific information about the product you want products. Doing so will let them know that you are a real buyer and that you intend to place a purchase order.
China’s business environment is all about relationships, so try your best to establish a good relationship with the supplier. Suppliers receive many inquiries every day, and they must optimize their service targets and work with only the most valuable clients.
Step 3. Narrow Down the Suppliers and Send an Inquiry
We have learned more about our product, and it looks like we’ve found the ideal product with detailed product information already:
Now we can send an RFQ to several potential professional suppliers on Alibaba and await their quotes. Here is an example of an inquiry for reference:
Hi Sally,
My name is Mike, and I’m a buyer looking for a baseball hat to sell on my website. I am interested in your product, especially the “Daddy” hat. Please send your complete quote and pricing for 500–1,000 units. Please also share all the information about the product, such as the MOQ, product dimension, material, packing information, and lead time— it will be helpful when we calculate the landing cost to our warehouse.
Thanks!
Step 4. Check the Details of the Quotes from the Different Suppliers.
Usually, you would need a “quote follow up” because you would find the vendors might neglect the information, which is essential to you, such as the packing info, material, H.S Code, lead time, payment terms…etc. That information is necessary when you intend to fulfill an order.
Here is a list of the necessary information that should be included within a complete quote:
- Item number.
- Image.
- Description (material, color, dimensions).
- Packaging information. The packing method should be based on your request or be the supplier’s standard offer.
- Unit price in USD. Be aware of whether the supplier quotes a fee on board (FOB) price or ex-works (EXW) price because these two prices are different.
- Import duties. Check the import duties with the supplier and verify them later by yourself. Here is an official USA Harmonized Tariff Schedule website for you to check the import duties and the product’s HTS Code when imported from China to the U.S: https://hts.usitc.gov/
- HTS code. The code index in the Customs that categorized one specific product with its corresponding import duty. The supplier can provide it, but you need to verify it later by yourself as the information might be slightly different.
- International freight costs. Check with your shipping agent or let the supplier quote a price if it’s a small shipment that can be shipped by air couriers such as DHL, FedEx, or UPS.
- Packing information. Pieces per carton, carton dimension, master carton weight. This information will help you understand the total cubic meters and carton weight, which will affect the international logistic fees.
- For example, let’s say that you ordered 1,000 “Daddy” caps. The supplier packs 100 units per carton. Each carton is 50 cm x 40 cm x 40cm, the gross weight per box is 9 kg, and the net weight per box is 8 kg. Therefore, the total packing information for this shipment would be as follows:
Number of Cartons: 10 cartons
Full Cubic Meters: 0.8m3
Gross/ Net Weight: 90/80 kg
- Minimum Order Quantity of order. There was a minimum order quantity request when you customized your private-label products. In some cases, the Chinese factories will have the stocks, but usually, they only produce according to the order they received. It always happens that the MOQ is set up in a high number, so you need to negotiate with the supplier if it seems totally out of your range.
- Lead time. The supplier will provide lead time based on the quantity you are going to buy or the MOQ. The lead time gives you an idea of how long production will take so you can estimate when the cargo will reach its destination.
- Payment terms. Check the payment terms requested by the supplier. You can always discuss them if you intend to issue a large order.
- Sample costs. Ask for sample costs and remember to always check the sample before placing the official PO. You need to review a mockup sample, not the initial sample.
- Logo printing costs. Ask the supplier to quote a price based on the specific logo you need to print as a private label on your product.
Use all the above information to analyze the quotes from each supplier and then move to the next step: Check the Sample and negotiate the price.
Step 5. Negotiate the Price with the Chinese Wholesale Vendors.
Once you have targeted a potential supplier to work with and are happy with the sample is provided. It’s time to negotiate the price and specific terms included in the contract.
The negotiations always depend on your order quantity. If your order size is small, then you will probably have minimal negotiation power. Set up your target price after you analyze the retail price and other costs like logistics, and tariffs.
You can also negotiate the sample cost if it is incredibly high. The sample order is necessary before moving to the next step.
Don’t be afraid that negotiating will affect your business relationship or your reputation. Negotiating is a business, and you have the right to discuss each term before making the official purchase order. You won’t be the first to ask nor the last to negotiate contract terms.
Safety Sourcing and Buying from Alibaba: Pros and Cons
Pros
- Low Cost: You can directly communicate with the supplier and get a low cost by connecting with them on Alibaba.
- Easy to Analyze: The abundant resources and simple category structure on Alibaba make it easy to analyze high-potential products
- Saves Time and Money: You can find everything on this website due to the wide variety of products available. It will save you time and money compared to participating in a trade show such as the Canton Fair.
Cons
- Biased Product Listing Policy: Alibaba’s listing policy has made it difficult for other suppliers to show up. Therefore, buyers end up paying more by working with suppliers who pay extra to Alibaba. Always remember that suppliers will pass the cost to their buyers.
- Suppliers’ Poor Order Management Skills: You can hardly identify if a supplier is professional enough to manage your order. It might happen due to poor communication, the language barrier, or meeting a supplier who is not professional enough.
- Lack of Responsibility: Even with assurances on the Alibaba website, it’s hard to define who is responsible when an issue occurs. Alibaba might not be able to judge the trade issue during the ordering process.
Read more similar posts from OwlSourcing:
Final Thoughts
You need to start your journey with the online wholesale market and go through the process by yourself. And then, you will find the best ways to derive value in the resource market.
Don’t be frustrated with the hassles of importing from China. Your ultimate target is to get a cheap, high-quality product from China that can make you a good profit.
