The marketplace has grown significantly as a recent phenomenon and is now a crucial aspect of the world's consumer environment. Each of the main online retailers has its own platform.
Among the major global players in e-commerce, we find the Chinese giant Alibaba which offers a multitude of products at cheap prices and allows you to connect directly with the supplier or manufacturer in China.
DocShipper info : DocShipper is sourcing company based in Hong Kong, that helps small businesses and individuals like you buy and import safely from Asia, and especially from China. Send us the product you're looking for by filling out this form or get your questions answered immediatly by calling our experts.
What is Alibaba?
Alibaba is one of the world’s largest online e-commerce businesses. It offers various services like businesses to businesses (B2B), consumers to consumers (C2C), and businesses to consumers (B2C) thanks to his several sites related to retail, wholesale, and dropshipping business, such as Taobao, Alibaba, Aliexpress and 1688.
Business owners can visit Alibaba.com to purchase products in bulk. The website gives you the chance to discuss with the manufacturer directly. You can even customize products if needed.
Is Alibaba safe?
Alibaba is very legitimate and safe and enjoys a solid reputation. The majority of the platform's transactions are secure because of its tight laws and restrictions. The platform has also put in place measures to cushion its users if they do run into people who are just out to steal their money.
Alibaba, however, is merely an online marketplace that links suppliers and customers.
Customers on Alibaba should constantly conduct due diligence on the manufacturers and traders they are working with. Take a look at what prior customers have to say and how many orders they've successfully completed. You can then decide whether to continue working with them or not after learning this.
When making a bulk order, order a few samples first and then try them out to determine if they're satisfactory, for instance, if you're a business. This is a secure method of figuring out whether the merchant is dependable and offers high-quality items.
How to find great suppliers on Alibaba?
When using Alibaba, you browse suppliers. Instead of screening for products, you should do so for suppliers. Use Trade Assurance, Gold, and Assessed suppliers to filter out potential suppliers.
Trade Assurance, a free service provided by Alibaba, will protect you if the things you ordered do not arrive as scheduled or if they do not meet your expectations for quality or specs. Alibaba will issue a full refund if this occurs.
Suppliers with premium memberships must pay a hefty membership fee to be granted gold status. Usually, scammers target free Alibaba accounts. The membership fee does not ensure they are trustworthy, but gold providers are less likely to be shady operators that vanish after taking your money. Look for the number that indicates how long the supplier has held the Gold designation on the product page or supplier profile.
Your greatest option might actually be verified suppliers. They are gold vendors who are from China, Hong Kong, or Taiwan and who have undergone an examination by an independent inspection firm. On the supplier's Alibaba page, you can see if they have been confirmed along with a list of the things they have been approved for.
Why are Alibaba products so cheap?
Products sold on Alibaba are usually cheaper for many reasons, here are the 4 main ones :
Cost of labor
The products' ostensibly "affordable" price has a lot to do with the fact that they are manufactured in China. Chinese producers use what some could refer to as "cheap labor," which lowers the cost of production.
Cost of electricity
The price of electricity in China is VERY low when compared to other global manufacturing hubs. It might be $400% less expensive than what it would be in the US. Naturally, this results in lower production costs and, consequently, lower product costs.
Selling in bulk
Unlike when you sell individual things when you offer products in bulk, you are certain to sell more of them and for higher prices. For this reason, wholesale prices are lower everywhere in the world, benefiting both the consumer and the supplier.
Less consumer targeting
The businesses that sell the products to customers are more concerned than the producers. For instance, Apple must allocate funds for advertising, public relations, customer service, marketing, etc. The total cost of the product that you purchase is impacted by all of those expenses. While manufacturers on Alibaba must engage in some marketing, they don't compete as fiercely for customers, thus their costs will be lower in that respect.
Why you shouldn’t trust Alibaba’s prices
There are several reasons why we say that the prices on Alibaba are not as low as we imagine and that you have to take into account other parameters.
- Reason n°1: you have to take into consideration the exchange rate, which directly impacts the price of the order.
- Reason n°2: Suppliers post very low prices to gain visibility, but in reality, the price is much higher.
- Reason n°3: the cost of production and raw material can drastically increase the prices, but those posted on Alibaba are not updated
- Reason n°4: you have to add the shipping costs, which are important.
- Reason n°5: to entice you to place the order, some suppliers may provide you with a highly attractive quote. They will increase the price as soon as you try to send the deposit after all the details for the packaging, samples, etc. have been confirmed.
- Reason n°6: The low prices you see on Alibaba are for a bulk order.
DocShipper info : DocShipper offers a procurement service that takes care of the entire sourcing cycle from start to finish. We find the right supplier or manufacturer for your needs, negotiate the price, handle the communication, and arrange for the shipment of the samples so you don't have to stress about anything. Tell us more about your needs by filling out this form. Have a question? Call us now
FAQ | Here is Why Alibaba’s Cheap Prices aren’t real
How can you tell a fake Alibaba supplier?
Usually, scammers target free Alibaba accounts. The membership fee does not ensure they are trustworthy, but gold providers are less likely to be shady operators that vanish after taking your money. Look for the number that indicates how long the supplier has held the Gold designation on the product page or supplier profile.
Is Alibaba better than Amazon?
In China, Alibaba is the most profitable e-commerce platform, whereas Amazon is the most profitable and lucrative in the United States. Beyond the fact that their fundamental businesses are comparable, Alibaba and Amazon also have cloud computing divisions.
Is Alibaba better than AliExpress?
Because you are buying directly from a manufacturer who can make products to your specifications, Alibaba is the superior option for sourcing private label and custom products. You can buy pre-made items from AliExpress that are normally not customizable.
What does gold crown mean on Alibaba?
The Gold Supplier is also running a validated operation at their place of business if they have this emblem. The onsite verification further supports the accuracy of the corporate information provided online.
DocShipper info: Do you like our article today? For your business interest, you may like the following useful articles :
- Top 50 Best Sellers Alibaba [September 2022]
- Trends to follow to grow your e-commerce business
- The global Supply Chain updates and news: a brief introduction for casual consumers
- 7 Quick Tips for Establishing a Logistics Sourcing Strategy
- 4 Strategies to Help You Manage Supply Chain Risk effectively
DocShipper Advise : We help you with the entire sourcing process so don't hesitate to contact us if you have any questions!
- Having trouble finding the appropriate product? Enjoy our sourcing services, we directly find the right suppliers for you!
- You don't trust your supplier? Ask our experts to do quality control to guarantee the condition of your goods!
- Do you need help with the logistics? Our international freight department supports you with door to door services!
- You don't want to handle distribution? Our 3PL department will handle the storage, order fulfillment, and last-mile delivery!
DocShipper Sourcing | Procurement - Quality control - Logistics
Alibaba, Dhgate, made-in-china... Many know of websites to get supplies in Asia, but how many have come across a scam ?! It is very risky to pay an Asian supplier halfway around the world based only on promises! DocShipper offers you complete procurement services integrating logistics needs: purchasing, quality control, customization, licensing, transport...
Communication is important, which is why we strive to discuss in the most suitable way for you!