How to check if a supplier is legit on Alibaba

[LanceUk]

Hi all,

I was browing Alibaba for stock for a niche online business I am setting up and came across a product at USD$10 each. It was unbelievably cheap, so did some hunting. On Alibaba express, they are $649; I looked on Made-in-China.com where the same supplier - who is the manufacturer - has them listed at USD$340.

The supplier is known and appears to white label, but there are a few sites around the globe that seem to sell their product - most at prices consistent with the £340 wholesale price. Althogh there was one site selling them for USD$85. I have double checked the ad - it is for the product and not a spare part or anything like that.,

Normally if things are too good to be true they are. I can see there would have been a global drop in sales due to COVID, but that would imply they during the locldown they had 24x7 manufacturing to want to clear surplus at that price. Or, it could be a mis-price... in which case if it is and I order say 10 units, would they honour it or realise their mistake and decide not to? Or is it that someone is faking the ad as a scam? How would I check for the latter?

Thanks in advance.
Lance

 

[fisicx]

Over to you Ron @MY OFFICE IN CHINA

 

[MOIC]

Normally if things are too good to be true they are.

Say no more.

 

[LanceUk]

Thanks gents.. I know it is... but one can't help wishful thinking...

 

[Ray272]

Alibaba have just introduced a very interesting report on their buyers, you can see all the business they have done over the duration of their entire membership. This maybe does not account for business done directly with the buyer outside of Alibaba's payment portals. It gives good insight.

 

[MOIC]

My advice is not to believe much of what you see on Alibaba, or what you're told by 'salesman' representing some of the suppliers.

They just want your money and will tell you any BS to get you to part with your money . . . . . . .until its too late.

As for Alibaba Assurance - make sure you read the small print . . . . .then the very small print.

 

[Vickyjin]

Lance

Hi Lance, this is Vicky from China, see if I can help you here.
Normally speaking, no matter "alibaba" or "made in china", the prices which they show on their advertising paper is randomly, which means is not the real price. The right way you should do is to contact with the buyer directly by email, ask them the MOQ and the price ranges. Most of them will quotate you price like this for example above 1000 pieces is one price, if quantity above 10000 pieces is another different price. You have also make sure the price term, if it is FOB or CNF.
Not sure if i had made my points clear to you or not

 

[LanceUk]

Thanks, @MY OFFICE IN CHINA and @Vickyjin. I have made contact with the manufacturer and am waiting for a response.. I have made contact through their website to ensure I am dealing with the right people.

The market they operate in would make volumes> 50 risky for an e-tailer. For a distributor in the US, which represents over 50% of the particular market, a distributor may hold 500, max 1000 in stock at any one time...

Their MadeInChina price makes them not terribly price competitive against major US and European players, and the alibabaexpress price would price them out of the park (ir an e-tailer was to purchase them - but that is not the point af abexpress).

I'll let you know how I get on!

Thanks,
Lance

 

[fisicx]

I have made contact with the manufacturer and am waiting for a response.

Assume they will lie. Use Ron to find out the truth.

 

[paulears]

What annoys me on Alibaba is when you see an item and make a specific request and get bombarded with offers on products not remotely similar. So many adverts are technical wrong - copied and pasted from unrelated products. My quotation for a moving head LED product returned with some sensible specs but then mentioned it was 150W RMS per channel - clearly a copy and paste from an audio product, so you suspect they know nothing about the product.

I've just got a sample of two moving lights arrived today - a very dodgy description and half the price of a very similar product I've had quite a few of. There's a bit of swapping from metal to plastic, but they have touch screens, which work OK. I can sell them for the same price as the previous ones and make a lot more. Inside they seem virtually identical, but a quick check shows the LED current consumption is slightly less, suggesting the power quoted might be a bit optimistic - but they're close.

 

[CHUKTC]

Lance you should also be aware that despite exhaustive protestations to the contrary 96% of advertisers on Alibaba are agents and not the factory. This has huge implications for who you are dealing with and what you might end up with by way of product and quality. As Paulears send you often get quotes for the wrong product and the advertised prices often bear little or no relationship to the price you end up paying.
We always recommend doing back ground checks so that you know exactly who you are dealing with. We never let our customers part with money until we have fully checked them out - often visiting the factory before placing orders.
As others have said if it sounds too good etc
One good question to ask yourself is it physically possible to buy the materials and make the product for that price - if the answer is no then .....

 

[LanceUk]

Thanks gents..

 

[Maple Sourcing]

Visit the factory. If you cannot do it yourself, hire someone who you trust to do so.

 

[CHUKTC]

I Agree with Maple visitig is always a good option if the size of order justifies it. Unless you speak fluent chinese take an independant translator with you. Dont rely on one provided by your seller. I have known personally of customers been shown around a factory by a seller followed by the owner of the factory asking them (in Chinese) what they were doing walking round his factory!

 

[LanceUk]

Unfortunatelly, fluent Chinese (Cantonese or Mandarin) are not in my repetoire of skills.. Thanks for your advice gents...

 

[CHUKTC]

It's OK it's not necessary - but if you decide to go to China (when it re opens) hire yourself an independent translator, preferably one with business skills don't rely on a translator offered to you by your proposed supplier - they will try to be very helpful, which is nice, but its worth spending a little money to ensure you get independent advice - after all that's what you are going there for.