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| Payment Terms: | T/T,Western Union Contact Supplier |
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Contact Supplier
Begin Your Search
Buying on Alibaba and using the directory is fairly straight forward to
use and similar to other marketplaces like eBay. Browse the product
categories or do a search for the particular product you’re looking
for.
There are two common approaches to doing a search on Alibaba. You can
either search for items based on product descriptions, for example: dog
collars, which will give you thousands of results for dog collar
products. Alternatively, from the drop-down menu, you can select
“Suppliers” instead of “Products” and instead search for manufacturers
that specialize in that particular type of product.
1. Upfront TT (Bank Transfer)
Risk Level For Buyer: Risky
With a bank transfer, the supplier will receive full payment before production starts. This payment method bears a high level of risk to the buyer and generally is not recommended when dealing with an unknown supplier. There is little if any recourse to get your money back if something goes wrong.
Risk Level For Buyer: Risky
With a bank transfer, the supplier will receive full payment before production starts. This payment method bears a high level of risk to the buyer and generally is not recommended when dealing with an unknown supplier. There is little if any recourse to get your money back if something goes wrong.
2. Letter of Credit
Risk Level For Buyer: Fairly Safe
A Letter of credit is fairly safe for both parties, however a letter of credit carries some complex procedures and is generally only recommended for larger purchases ($20,000 and above).
Risk Level For Buyer: Fairly Safe
A Letter of credit is fairly safe for both parties, however a letter of credit carries some complex procedures and is generally only recommended for larger purchases ($20,000 and above).
3. Western Union
Risk Level For Buyer: Very Risky
A risky payment method for the buyer that's not recommended when it comes to paying suppliers if the payment is not protected by escrow. Western Union generally should only be used when dealing with people you know very well. There is no recourse if something goes wrong.
Risk Level For Buyer: Very Risky
A risky payment method for the buyer that's not recommended when it comes to paying suppliers if the payment is not protected by escrow. Western Union generally should only be used when dealing with people you know very well. There is no recourse if something goes wrong.
4. PayPal
Risk Level For Buyer: Fairly Safe
Paypal is a popular payment method for buyers as it presents a much lower risk, ease of use and generally pretty good buyer protection. Although it's a popular option with buyers, it's less popular with suppliers due to difficulties in withdrawing money, high tax rates and potential charge backs from less than honest buyers.
Risk Level For Buyer: Fairly Safe
Paypal is a popular payment method for buyers as it presents a much lower risk, ease of use and generally pretty good buyer protection. Although it's a popular option with buyers, it's less popular with suppliers due to difficulties in withdrawing money, high tax rates and potential charge backs from less than honest buyers.
5. Escrow
Risk Level For Buyer: Fairly Safe
When using an Escrow service, the buyer's money is held by a 3rd party and is only paid to the supplier after the buyer confirms satisfactory delivery of their order. Escrow is a fairly safe payment method for buying and selling online because Escrow protects both the buyer and supplier.
Risk Level For Buyer: Fairly Safe
When using an Escrow service, the buyer's money is held by a 3rd party and is only paid to the supplier after the buyer confirms satisfactory delivery of their order. Escrow is a fairly safe payment method for buying and selling online because Escrow protects both the buyer and supplier.
Requesting a Quote
Requesting a quote (many times referred to as a RFQ,
Request For Quote) is a relatively simple process, however, taking a
few extra minutes to plan your email can make a significant difference
in the number and quality of replies you receive.
Here are a few important questions to consider for your email:
- Minimum Order Quantities (MOQ’s) - Even if a listing has their MOQ listed, you should double check with them to make sure it’s accurate. If the MOQ’s are much higher than what you know you can afford, you'll want to ask them if they are willing to negotiate the minimums. Make sure to give them an idea of what you can afford. Keep in mind, minimum order quantity is almost always negotiable with overseas suppliers.
- Pricing For Samples - Samples are important to inspect for quality. You’re going to want to ask what their pricing is for samples right away. Some suppliers that receive a lot of sample requests and may change the full retail pricing, others will offer you samples at a discounted rate, and some may even provide you samples for free if they feel you're a serious buyer.
- Production Pricing - One of the most important questions is how much your products cost per unit will cost. Many times on Alibaba they will give you a range (Example: $2-$3 per unit), but you’ll want to know exactly how much each unit will cost you.
- Production Time - Knowing how long it will take to produce your order is an important consideration and depending your exact business, time can be critical.
- Payment Terms - Many suppliers will require new businesses to pay for the full order upfront. This is important to know since inventory is a major cost for ecommerce startups. You may also want to also ask if they provide payment terms on future orders.
Here's an example of an email template you may want to consider as a guideline when contacting overseas suppliers from Alibaba:
Hi,
My name is John and I am with XYZ Company.
I am interested in placing an order for Widget A. Before I do however, I just have several questions:
- What is your minimum order quantity?
- What is your cost per unit and at what quantity levels do you offer quantity discounts?
- What are your payment terms for new customers?
I would also like to order a sample of Widget A before placing a full
order. Can you please send me the cost for the sample including shipping
to:
John Doe
80 Spadina Ave., Floor 4
Toronto, ON, Canada
M5V2J4
80 Spadina Ave., Floor 4
Toronto, ON, Canada
M5V2J4
Thank you.
