Should You Buy From Alibaba to Sell Online?

So from where the people who are selling online for example electronics products like Mobile Phones, Memory Cards, External Hard Drives or any other products are sourcing them.

You must have seen that their selling price is less than your next door retailer or any of the big retail chains. Moreover, they also have to bear packaging and shipping costs. There is tough competition in the online marketplace so volume may not be huge to leverage economies of scale. So what’s the secret? From where to source product at such a rate which you can sell below normal retail price or even wholesale retail price and also you can pay for packaging, shipping and still give you a healthy margin. If you have discovered such a source, you have discovered a goldmine.

One of the ways is to directly source the product from its manufacturer. You know these days China is the world factory and most of the electronics products are manufactured in China, Taiwan and South East Asia. India has a free trade agreement with Thailand and ASEAN therefore duties are low. Now the question comes, how to approach and source directly from these manufacturers in China? One of the way is a website called Alibaba.

Alibaba is a B2B platform where many suppliers from above regions are registered and they have listed down their products and prices. They mention whole specification like you see on eBay and minimum order quantity. But here is the catch. Anyone can list down at Alibaba and you are not sure if it is a scam or genuine supplier. You will not believe the price at which they are offering a product. I checked an external drive which was selling online for Rs 4200 on eBay but available from a supplier in China at Rs 1400.  Too good to be true? Right? Here some points which you should take care before ordering from Alibaba

1.Order Only from Gold Members. Gold members are more trustworthy than other suppliers. Also check years since a supplier is a gold member. That is the first criteria before sourcing.

2.Even if they are Gold members check your supplier's website, certificates, workers, history, location etc.

3.Good companies have their own domain names and never use Gmail or Yahoo mail.

4.Try to Speak with the supplier or if possible visit them.

5.Before buying a huge quantity ask for samples and use them for some time. Only if you believe in the quality then go for small order. Here also do not cross your limits even if you are satisfied with the samples. Do not order in bulk. 

6.Avoid buying branded products. Apple’s iPhone, iPads or Samsung already has specific suppliers and these suppliers don't sell outside. If someone is selling these products then it is either counterfeit or they are scams and not going to ship anything.

7.Most of these suppliers mention a minimum order quantity. Don't fall into that trap. Prices and MOQ are always negotiable.

8.Use Alibaba for payments. Alibaba will release funds only when you receive the orders and satisfied with the quality and quantity otherwise you will get your money back.

Also you need to take care of India excise/custom duties before deciding on these products. Some websites to check excise duty are Central Board of Custom and Excise or Cybex. Also I will recommend checking with some import agent and doing thorough research before you place any order.