Using Alibaba to find a wholesaler

[Morgan]

There's a product I want to import and Google brings up about 15 listings on Alibaba. I've never used any wholesale site before are there any pointers to look out for to get a good wholesaler? Is there a feedback/ratings system (like ebay)?

Most seem to be Gold Suppliers (whatever that means). Most seem to use Escrow but I'm not sure how that works exactly? Would I have to use a credit/debit card with Escrow. Would it be safe to use Paypal to pay them or don't they accept that?

Are there better sites than Alibaba to use? I've found others on Google but Alibaba is the only one I've heard of and as it's the first time I've done this I'm slightly cautious.

Thanks.

 

[Morgan]

Also can you change the site to show prices in GBP£ rather than US$? What does FOB mean on the price? And would you recommend ordering a small sample order first? How big are sample orders expected to be?

Are there any other costs to consider that will get added on? I suppose I have to ring C&E here to see what VAT will be applied do I?

Thank you

 

[Westfield]

Also can you change the site to show prices in GBP£ rather than US$? What does FOB mean on the price? And would you recommend ordering a small sample order first? How big are sample orders expected to be?

Are there any other costs to consider that will get added on? I suppose I have to ring C&E here to see what VAT will be applied do I?

Thank you

I'd imagine in this instance FOB means delivery is included in the price (Free on board)

 

[Morgan]

Ah, OK thanks Westfield.

Anyone able to help on any of the other questions at all?

 

[Independent Trader]

pproach with caution on most products.

Google the suppliers name.

If branded goods avoid, if branded electrical avoid like the plague.

FOB means the supplier will deliver it to the nearest local TO THEM port, you will have to pay the sea freight and local UK fees including duty and VAT.

I am not saying they are all scamer but you need to do some checks, anyone who wants escrow or paypal western union etc will 9 times out 10 not be the source factory, and more than likely a bedroom seller. Electrical is possible but really need a good loacl QC and the risks and compliance issues involved would be too high for me.

Most decent suppliers will want 20-30% upfront and balance on BL. Or will accept L/C Payment.

 

[berts]

I'd imagine in this instance FOB means delivery is included in the price (Free on board)

it is unlikely that in this instance FOB will mean free shipping to the uk. Typically when importing from china the factory / trading company will quote something like FOB shanghai, which means they will ship the goods to the port in shanghai. You will then have to arrange for the goods to be shipped from shanghai to the UK, and from the uk port to your final destination.

Most factories will have minimum order quantities - MOQs. They will vary dependant on the product on the value of the product. Also the size of the factory.

I have just arrived back from china this morning (i presume this is where you are looking to import from). Due to the way their economy is developing, and the shortage of workers, a lot of lead times have got longer. Some factories that i deal with regularly are quoting an 8 month lead time for production - then theres a further 4 - 6 weeks whilst the container is shipped to the UK. A typical lead time will be around 45 days for production. If the item is a stock item, then obviously there is no lead time. Lots of factories are carrying stock at the moment, as companies go bust and leave them with stuff that they cant pay for.

Payment is typically 30% upon placing the order, if you have not dealt with the factory before - usually by bank transfer. Then the balance upon shipment.

It sounds like you may be looking to buy a smallish quantity of stuff. If this is the case it is often cheaper, and less hassle to buy from a uk importer, who imports the product by the container load. Factories wont give you their best prices, for small amounts, shipping is a hassle if you havent done it before (you need to sort out shipping agents ideally) and also lead times are generally quite long.

I am presuming that you are looking at factories or trading companies on alibaba, so hopefully this will help.

 

[Morgan]

Thank you IT and Berts.

It's non branded and not electical. Yes I see what you mean about bedroom sellers. Not thought of that. I think it's going to be tricky to find the actual factory selle/outlet though?

How does one arrange shipping from Shanghai for example if thats where they deliver to? I thought I'd just give them my address and it would arrive on my doorstep (plus customs/imports costs etc).

From reading your and IT's replys Berts it does indeed sound like a UK Importer would be the best option but how do I find one of those who imports the products? Or do I tell them what I want and they then import it for me?? It's sound less and less attractive to buy from China myself.

 

[mdsltd]

Stay away from branded/designer products & you should be ok.

 

[berts]

Thank you IT and Berts.

It's non branded and not electical. Yes I see what you mean about bedroom sellers. Not thought of that. I think it's going to be tricky to find the actual factory selle/outlet though?

How does one arrange shipping from Shanghai for example if thats where they deliver to? I thought I'd just give them my address and it would arrive on my doorstep (plus customs/imports costs etc).

From reading your and IT's replys Berts it does indeed sound like a UK Importer would be the best option but how do I find one of those who imports the products? Or do I tell them what I want and they then import it for me?? It's sound less and less attractive to buy from China myself.

what is the product or market that the product is in? May be able to point you in the right direction if its related to the industry i am in.

It will be difficult to tell if you are dealing with the factory if you do not visit them! Generally if they are advertising a wide range of products made of different materials it is unlikely they are the factory. Factories generally specialise in one sort of product, for example plastic products. If they are advertising plastic products, glass products and wooden products, it is likely they are a trading company, that just buys from factories in china and resells. This is not always a bad thing, but you probably wont be getting the best price.

 

[Independent Trader]

Do not be put off buying from China.

What sort of quantity are you looking at? If it is small door to door via Air freight is possible or what they call LCL where you pay by the cubic metre and your product is packed with other peoples in one sea freight container and debunked in the UK and delivered.

Arranging this is easy just google for a freight forwarder.

Use google to check the supplier\trading company. Have they exhibted at trade fairs in China (canton Fair etc)or even better in Europe too, that is always a good sign.

Search for Trade Fairs where your product might have been exhibited and then they normally have a list of exhibitors, cheaper than travelling around Europe and Asia visiting trade shows

I have been importing for 10 years and I still buy some stuff from traders, no shame in that, they buy the product from various factories and pack in my packaging and load the container. You will find for example that a company that has a factory that makes duvets may supply pillows and linen but the the latter is bought in from another factory, if that makes sense.

 

[billie1]

I'd imagine in this instance FOB means delivery is included in the price (Free on board)

FOB, means free on board to port where goods are being transported to in China or where they are being sent from. It does not mean free delivery to the UK.

 

[coolfogdaisyliu]

In fact, golden supplier are just paid supplier, as to the supply ability ,or factory size, or product quality ,they don't care.

 

[Leo patick]

There's a product I want to import and Google brings up about 15 listings on Alibaba. I've never used any wholesale site before are there any pointers to look out for to get a good wholesaler? Is there a feedback/ratings system (like ebay)?

Most seem to be Gold Suppliers (whatever that means). Most seem to use Escrow but I'm not sure how that works exactly? Would I have to use a credit/debit card with Escrow. Would it be safe to use Paypal to pay them or don't they accept that?

Are there better sites than Alibaba to use? I've found others on Google but Alibaba is the only one I've heard of and as it's the first time I've done this I'm slightly cautious.

Thanks.

Hi,MORGAN,

I am from china,so I know about alibaba,there are many supplier on it,you can choose what you want,for the gold suppliers,they need to pay money to alibaba,in the other hand,some of them are reliable(mainly because they will to pay for their business).

For payment,you can use paypal,I think it's most safe to you,many export company accept it,but depend on what kind products you want to buy,if the total payment is large,they need to get contact in case.

Alibaba is good to you,if you want to find more site,you can check made in china or others,EC21...

For FOB,it mean,(if I am your supplier),I send you products,no include insurance,somethime no include ship cost.

You can made a call to them.

Hope it can help you

Good luck!