17/08/2022
Things you MUST Do Before Placing Your First Alibaba Order.
Alibaba is going to be the first point of call when it comes to finding manufacturers who can source your products for sale on Amazon.
With over 200M products and countless merchants, it is easy, simple, safe, and secure.
1. Only Select Qualified Suppliers.
-> Make sure that your supplier has a verified badge (audited)
-> Check how many years your supplier has been on Alibaba (3ys+)
-> Ensure that your supplier has trade assurance (insurance)
-> Compliance certification for customs clearance
2. Communicating with Suppliers.
Use Alibaba's built-in messaging service to communicate with your supplier.
You can colour code and group suppliers easily. This is invaluable when you are dealing with multiple supplies and multiple products/niches.
When you speak to suppliers, you need to get an accurate quote for the product.
The price listed on Alibaba isn't the 'real price'.
In order to obtain the real price, ask for the MOQ (Minimum Order Quantity).
You can negotiate this down.
You could even negotiate to pay a higher unit price per item, in order to bring the MOQ down.
I've gotten suppliers down from MOQs of 5000 units, all the way to 350 units.
Don't take the stated MOQ as law.
Once you have the MOQ, ask for the pricing tiers.
Generally speaking, the larger the quantity of your order, the cheaper the cost per unit.
Manufacturers do this to incentivize you to place a larger order.
Ask for the pricing on 500, 1000, and 5000 units.
Also, make sure you enquire about customization details and packaging.
3. Know Whether Your Supplier is a Manufacturer or Trading Company.
Trading companies are middlemen and typically are higher priced.
However, they will have greater access to manufacturers.
Manufacturers are cheaper as they are the source.
I prefer using Manufacturers.
4. Make use of RFQs.
If you know exactly which product you want to sell, take advantage of Alibaba's RFQ (Request for Quotation).
Here you can submit a request for your product (with photos).
Within an hour, you will have suppliers come to you.
5. Find Out Your Supplier's Other Products.
Your eyes may have dived into one product, but you should explore other products within your supplier's catalog.
You might not need to look far for your next opportunity and can build out your brand.
6. Get Samples.
Get at least 3 samples from 3 unique suppliers.
Have them ship you these samples so that you can touch and feel your products.
If you're going to be a brand owner, you need to make sure that you're selling the best products.
When placing your order, make sure that you place your order with a 30% deposit which enables your supplier to start production.
Make sure that you are paying no more than 30%.
Once the goods are manufactured, you can pay the remaining 70%.
A final point is to ensure that you get the products inspected by a third-party inspection agency.
A third party, not affiliated with your supplier will come to the supplier's facility and manually inspect the products in your order.
This is to ensure that the goods are of high quality before being sent.
When using an inspection company, hold off on paying the balance of your order until the inspection agency notifies you that they have passed the inspection.
Get the supplier to remedy any faults.
You can add an inspection service to your order when you check out in Alibaba Pay
Highly recommend that you do this.
hope that you found this useful!
