Is buying from China risky?

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Fred_the_frog

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Jan 30, 2011
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  • #1
    When I was looking for dropshippers I found I couldn't really get a good selection of a product, so I'm thinking maybe I could start a wholesale/ dropshipping business selling these products.

    I would need to buy from China but i've heard lots of horror stories. Will I be ok if I stick to alibaba.com?
     
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    Deleted member 138423

  • #3
    Fred_the_frog said:
    When I was looking for dropshippers I found I couldn't really get a good selection of a product, so I'm thinking maybe I could start a wholesale/ dropshipping business selling these products.

    I would need to buy from China but i've heard lots of horror stories. Will I be ok if I stick to alibaba.com?
    Click to expand...
    Alibaba is full of thieves!! Get it?

    Anyhoo, if you really want to buy goods from China, get yourself over there and see the lie of the land. Don't be fooled by internetty stuff, you need to go visit and you'll soon pick up the vibe. Don't under any circumstances though rely on Alibaba ok!!
     
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    Fred_the_frog

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  • #4
    NickJ said:
    Alibaba is full of thieves!! Get it?

    Anyhoo, if you really want to buy goods from China, get yourself over there and see the lie of the land. Don't be fooled by internetty stuff, you need to go visit and you'll soon pick up the vibe. Don't under any circumstances though rely on Alibaba ok!!
    Click to expand...

    I can't afford to go over the China! :eek: :redface:
     
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    Deleted member 138423

  • #5
    Fred_the_frog said:
    I can't afford to go over the China! :eek: :redface:
    Click to expand...
    How much would you spend if you found the right product? Would you be prepared to lose all that money on a bad investment? You can get to China for £500 return. Accommodation can be very cheap, so think very carefully if you wish to invest in Chinese made items, the risk far outweighs the potential profits if you don't do your homework carefully!
     
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    Esk247

  • #11
    What products where you looking for Fred?

    Was it RC toys and Gadgets you were after?

    We're just setting up a dropship biz in Yorkshire but we are still visiting all the trade shows at the moment so we're not up and running. The office is set up...pretty sparse at the moment :D

    The one thing you'll struggle with is financing it, especially if you're dealing with China direct. We import items through a company that have offices in London and Hong Kong but they're talking 1000 units of each product to make it worthwhile, some items you can get 500 units ordered.

    If your'e dealing with electronics then you really need to work with a company that already import all that stuff because it has to pass all the relevant safety and electrical tests before you start selling them to the public....and no..you cannot trust the Chinese company to test everything as they'll sometimes just write out a sheet of nonsense and say "passed" even though they haven't tested them. Thats why you have eyes on the ground.

    It's the same with toys. We tried importing items before on our own but they were dreadful quality and we binned them as we didn't think they were safe.
     
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    Steve Sellers

  • #12
    No offence Esk but whats the point? The whole point of importing from China is to cut the middle man out and increase the margins. Why then give that margin away to a middle man again?

    *not claiming to be an expert I have only recently set up a very small business importing trophies.
     
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    jakew009

  • #13
    There is nothing wrong with buying from Alibaba.

    But you must do your detective work. You must work out if the factory is legit.

    Build up a rapport with the factory. Chat to them on skype every day for a few weeks. Ask if you can visit them. Google map them.

    Most will send a sample. Always try and get a sample first.

    If the goods look to good to be true THEY ARE! No exceptions to this rule ever.

    Never spend more than you are prepared to loose. Its about balancing risk. You are taking a punt on whether you will get what you ordered. If it works youll make some money. You need more successes than failures!

    I have built my business off Alibaba and now have 1 factory building an expensive high end product exclusive to us. Its about give and take and building up trust. They are just as suspicious of you as they you are of them.

    Pm me if you want to have a chat about it
     
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    Moneyman

    Moneyman

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    May 3, 2008
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  • #14
    For large orders always have a local agent who can inspect the items and find the products.
    look at wholesalers and check alibaba for chinese companies who have an importer in this country. You will pay more but not much more than doing it all yourself in small quantities.
     
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    M

    mobious

  • #15
    Fred_the_frog said:
    When I was looking for dropshippers I found I couldn't really get a good selection of a product, so I'm thinking maybe I could start a wholesale/ dropshipping business selling these products.

    I would need to buy from China but i've heard lots of horror stories. Will I be ok if I stick to alibaba.com?
    Click to expand...

    can you not partner with a current seller if you can't put more time into this?
     
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    Esk247

  • #16
    Steve Sellers said:
    No offence Esk but whats the point? The whole point of importing from China is to cut the middle man out and increase the margins. Why then give that margin away to a middle man again?

    *not claiming to be an expert I have only recently set up a very small business importing trophies.
    Click to expand...

    It's fine to cut out the middle man, if you're confident of dealing with a Chinese factory direct and know the product will meet any UK or EU safety criteria e.g. soft toys for example must meet CE standards, if they don't, all those boxes you've just imported could be void by Trading Standards, good luck getting your money back.

    For Fred I assumed he was making the step up from dropshipping other peoples products to holding his own stock and dealing with deliveries of RC toys and such. It would be a steep learning curve to go from dropshipping to importing direct from a factory in Guangdong.

    How is he going to get the best prices? How is he going to do a quality check? How is he going to be sure he can deal with the import tax, the freight forwarding, the general logistics with this being his first foray?

    You can dump the middle man later, once you've learned the ropes and have a steady turnover. If i'd tried importing a few years ago i'd of failed miserably, well, we did with the soft toys. We thought they'd be fine but when the first batch rolled up we had to bin them all.
     
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    Fred_the_frog

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  • #18
    I like how many assumptions are being made on this thread.

    I'm at college at the moment, it's my last year. There is no reason why I cannot run a business. Sure I don't have experience but I've spent the last 14 years learning and i'm not going to suddenly stop learning the day I finish college.

    The products are not electronic. I am simply looking to bulk buy certain unique products and sell them in wholesale to businesses in the UK, as well as offering a drop shipping service to customers.

    Obviously I don't have money to go out to china to see the products as well as buying the stock and renting a warehouse etc. I'll get a loan for it (Yes, easier said than done but i'm willing to give it a good go).

    I don't mind using a middleman so long as they have the selection of products i'm looking for.
     
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    Deleted member 138423

  • #22
    Each to their own I guess, Fred, good luck in trawling through the mire to find a factory on Alibaba that is in fact a reputable factory that isn't a front owned by some geezer who will take your hard earned and run, same with some 'agents' who will charge you flat or %age rates of anything you purchase as their fee, to provide you with something they feel is quality where you don't.

    People are not telling you what to do, they are suggesting that maybe you should consider that their experience, hard earned because of mistakes they themselves have made may in some way help you to not make the same mistakes yourself, but if you feel that that advice is presumptious, then you are right to ignore it.
     
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    S

    Steve Sellers

  • #23
    GraemeL said:
    Well said Fred. Lots of China experts on here. If everyone stays away it means I can earn a few yen. Don't give up.

    G
    Click to expand...

    Nobody is telling him to give up, just to give him some honest advice.

    Tell you what Fred, why dont you go throw all your money down the drain - what a way for him to start his business career. There you go, some classic bury your head in the sand advice that often people seek on here.

    He needs to make mistakes, but there is no harm from pointing out the obvious ones.
     
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    Fred_the_frog

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  • #24
    Again, more assumptions. At which point did I say I was going to ignore advice?

    Everything I read on this thread is making me aware of problems you have had. That doesn't mean I am ignoring the advice or pretending you're wrong. Obviously you're right because you've got the experience, not me.

    Sure I'll make mistakes, I want to make mistakes so I can learn things to tell other people. In fact if I don't make mistakes then I'm probably not doing much.

    I'll keep looking on alibaba. Before I started this thread I assumed the sellers on there were reputable. Now I know that a lot of them are scammers or agents and they will promise you everything under the sun but won't deliver. That doesn't mean I am going to ignore alibaba completely, there is no harm in looking, I may even find a good supplier on there.
     
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    Scott-Copywriter

    Scott-Copywriter

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    May 11, 2006
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  • #27
    China is just like any other country. You do get scammers and poor quality businesses, but you also get honest people trying to use the worldwide markets to make a living.

    As people have said, just do your homework. Search for the name of businesses you find to see if others have made comments or reviews about them. I would also try to seek recommendations.
     
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    nehpetsecarg

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    Jan 21, 2013
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  • #32
    Hi Im new to importing from China but I want to import Decorative PVC Hollow Board I have made some initial enquires unfortunetly via Alibaba.We want a regular suppler but short of actually going out there we are having no luck finding any .We run a small dryling company and want to branch out into wholesale/retail .Does any body know of any websites which would be able to help us resolve the issues surrounding this type of importing, I have been looking for a while now and it seems the more I look the more confusing it gets any help would be greatly appreciated thanks ste.
     
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    billie1

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    Nov 3, 2008
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  • #34
    I would say it is risky buying from overseas manufacturers anywhere in the world, not just China. I'm sure you can find ligitimate manufacturers from Alibaba, but it's difficult telling the frauds from the ligitimate. I would say the only way to pay is via Paypal as they do provide some security. I would say avoid any company which doesn't have Paypal as an optional payment method.
     
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  • #36
    I know many golf manufacturers who all spend millions on manufacturing goods on China and to a man they have all been out there.

    Someone posting on a forum means stuff all, go meet the people.
    I could set up a chinese company from afghanastan and offer you great prices.. you pre pay though right?
     
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    inclinesourcing

  • #38
    Hello,

    As Steve Sellers recommends, it is worth using a third party to greatly reduce the risk of this exercise.
    We are one of those third parties and you are welcome to contact us for professional assistance if you require it. If not, here are some helpful tips that address some of your concerns:
    1. Try using global sources product search site. They have a useful rating system and some factories are even audited by global sources to ensure their legitimacy.
    2. Use a quality inspector to check goods before they are shipped. Inform the supplier at the beginning that you intend to use a quality inspector and you will soon see which factories are willing to do business with you.
    3. Ensure you give the supplier a full and clear brief. Don't make any assumptions.
    4. Don't accept any payment terms which require over 50% deposit. This is the norm and you should be concerned with any factory requiring more than this before production begins.
    5. Don't pay the balance until you are happy with the quality inspection results
    6. If you are still cautious and you have a reasonably high order value (over $20k or so) then ask to pay using L/C. This is a format which is a bit admin heavy but in essense, you bank writes official documentation to their bank telling them that they will pay the full amount when certain conditions are met. Eg you can insist that you will not pay until you have received a golden sample approved it and the quality inspection has given a positive result. There is a cost of setting up an L/C but it provides a risk free payment plan for both parties. Remember that the factories are also concerned whether you will pay them!

    Good luck and maybe hear from you soon if would like help
     
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    arthurlai

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    Mar 9, 2013
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  • #39
    Fred_the_frog said:
    When I was looking for dropshippers I found I couldn't really get a good selection of a product, so I'm thinking maybe I could start a wholesale/ dropshipping business selling these products.

    I would need to buy from China but i've heard lots of horror stories. Will I be ok if I stick to alibaba.com?
    Click to expand...

    Be careful and pay more attention to the quality,not the price.

    if one quote a very very low price for you,be careful.

    And to find a good supplier is not a easy job.
     
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    yogaho

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    Mar 7, 2013
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  • #40
    As a Chinese ,I can't even say its good to sourcing from alibaba,since everything on the Internet can be edited ,photos,company profit,......
    I agree that pay for a visit to china is the best way to solute this .
    Here are some way to reduce your budget for your trip.book promotion flight tickets for double trip.got a membership in Couchsurfing.com.chinese are very friendly with foreign couch surfer .living with local ,u can not only save the money for hotels,but also u can get a tour guide for free.the host will tell u the best way to eat ,shops,even sourcing!!
    Of course u can do some thing that u can do as return,such as share their housework,and teach them your language !
     
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