How do you pay/buy from Alibaba?

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After negotiation/ setting price and terms how do you pay?
I'm new to the site and I obviously don't want them to know and take advantage of me. Is there any tips that you can give me
#alibaba #pay or buy
  • Profile picture of the author ZanyZebra
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    • Profile picture of the author Lindaxx
      Thank you so much! Did you have any problem with them not shipping the product?
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  • Profile picture of the author Importexport
    Originally Posted by Lindaxx View Post

    After negotiation/ setting price and terms how do you pay?
    I'm new to the site and I obviously don't want them to know and take advantage of me. Is there any tips that you can give me
    Hi Lindaxx,

    I can see that you are a newbie with very little knowledge of the processes involved. This puts you on shaky ground. I suggest you should learn some more about overseas sourcing before you even consider placing an order.

    The thread Sourcing Manufacturers has only 13 posts and could be helpful to you.

    Another thread New to the China Business might be even more helpful for you. It is longer, but worth reading for someone in your situation.

    Finally, whatever you do, don't pay by Western Union. If a supplier asks you to do that it would be almost certain that they are scammers. There are plenty of those hanging out on Alibaba and thousands of people have lost their money to them.

    "If you think education is expensive - consider the cost of ignorance."
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    Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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    • Profile picture of the author Lindaxx
      Thanks for the advice! I have read many of your tip it was very helpful. I have one more question. When I pay via PayPal, the seller is suppose to pay the fee. Is it right that they ask me to pay the fee for "handling"
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      • Profile picture of the author Importexport
        It is very common for vendors to ask you pay a PayPal fee. They should not, and you don't have to agree to pay it.

        If you don't agree, they might choose not to supply you. If I was in that situation, I would not deal with them.

        It is worth noting that it is rare for a genuine manufacturer to accept payment through PayPal, so you are almost certainly dealing with a trader. This means you will be paying substantially more than you would pay if you bought from a genuine manufacturer.

        "If you think education is expensive - consider the cost of ignorance."


        I advise against sourcing on Alibaba. You might like to look at my new thread:

        There you will see good reasons why.
        Signature
        Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author ZanyZebra
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        • Profile picture of the author Importexport
          After countless visits to China since 1978, I am very familiar with the Chinese way of doing business, so I can tell you what is behind suppliers asking buyers to pay some of their costs. In this case, the PayPal fee.

          It is part of the Chinese mentality. Money is of enormous importance to them and consequently every dollar counts. As ZanyZebra says, many eRetailers are glad to pay what to them is a small fee.

          There is no such thing as a small fee in the eyes of a Chinese business person. To them it all adds up. They won't shrug their shoulders like the many eRetailers and say oh well it's only a small fee. If they can add that to their sale that is simply seen for what it is - extra profit. Small? No, because many small figures add up to large figures.

          It may help readers understand this thinking when I tell you that over the years I have seen numerous quotes for small value items priced to four decimal points! They might quote something like 1,000 pcs @ US$0.0724 per pc.

          .24 of a cent! Less than 1/4 of a cent! Small, but it adds up. On the 1,000 pcs order that adds $24 to the otherwise total of $70.00. If it is for 10,000 pcs the total extra profit for them is $240.00 on what would have otherwise been a $700 order.

          But this is only academic if you want to deal with genuine manufacturers rather than the traders you will find on the major B2B sites. The reason is that very few genuine manufacturers will accept PayPal.

          "If you think education is expensive - consider the cost of ignorance."
          Signature
          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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          • Profile picture of the author JakeThePeg
            I had a good experience with Alibaba recently.

            I purchased jewelry samples on Alibaba last month, and paid via Paypal. Yes, I was asked to pay for the fees and I obliged as it seems like a reasonable request, considering that it is a small fee and the cost savings to my business are potentially huge by sourcing products from China. There were small delays to the manufacture of my samples, which made me nervous, but sure enough they arrived albeit a couple of days late.

            I was asked by another supplier to deposit via Western Union - the deal they offered me was too good to be true, so I chose to avoid it. If something sounds or feels dodgy, follow your instinct, I say.
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            • Profile picture of the author Importexport
              Originally Posted by JakeThePeg View Post

              I had a good experience with Alibaba recently.

              I purchased jewelry samples on Alibaba last month, and paid via Paypal. Yes, I was asked to pay for the fees and I obliged as it seems like a reasonable request, considering that it is a small fee and the cost savings to my business are potentially huge by sourcing products from China. There were small delays to the manufacture of my samples, which made me nervous, but sure enough they arrived albeit a couple of days late.

              I was asked by another supplier to deposit via Western Union - the deal they offered me was too good to be true, so I chose to avoid it. If something sounds or feels dodgy, follow your instinct, I say.
              I am pleased to read about your good experience, but I should tell you that if your supplier accepted PayPal, you probably paid more for the products because they were most likely not the manufacturer.

              Most of the supposed manufacturers listed on Alibaba are in fact traders, and of course they can't give you the best prices.

              Buying through Alibaba can be very risky. I suggest you have a look at the article in the link I put in Post #11.

              "If you think education is expensive - consider the cost of ignorance."
              Signature
              Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author yasurs
    Don't pay via Western Union, or you might lost your money. You'd better learn more about overseas sourcing before you buy something in alibaba.

    Good luck!
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    • Profile picture of the author Importexport
      Originally Posted by yasurs View Post

      Don't pay via Western Union, or you might lost your money. You'd better learn more about overseas sourcing before you buy something in alibaba.

      Good luck!
      If someone insists on you using Western Union they are almost certainly scammers. As for Alibaba, See post #7 about Alibaba. Check out the linked thread. Maybe then warriors will decide to avoid using Alibaba.

      "If you think education is expensive - consider the cost of ignorance."
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author ChristopherCook
    Once you have done your due diligence, you just need to pay the manufacturer directly!

    Happy sourcing!
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    • Profile picture of the author Importexport
      Originally Posted by ChristopherCook View Post

      Once you have done your due diligence, you just need to pay the manufacturer directly!

      Happy sourcing!
      This post stated the obvious without answering the OP's question.

      Buying through the Alibaba website is risky. See the thread China’s Consumer Protection Watchdog Reports On Alibaba

      Paying directly can be done by various means but the best method can depend on the amount involved. For a large amount the safest ways are Letter of Credit or escrow.

      Many of the popular B2B sites have a payment service that they used to call escrow, but for legal reasons it now is called buyer protection or secure payment. Those in-house systems are full of loopholes and give only an illusion of protection.

      For smaller amounts payment by T/T has a moderate level of safety provided the payment goes to a bank account in the name of the business, not an individual's account.

      Payment must be made before shipment. After all, would you send out the goods to a customer you know nothing about and hope they will pay you later?

      "If you think education is expensive - consider the cost of ignorance."
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author jmwang
    Yes,You don't pay Alibaba, you just need to pay the manufacturer directly
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  • Profile picture of the author bojan92
    I don't use Alibaba because the shipping is too expensive and i don't like the payment methods. So i buy on aliexpress the prices are simular to those on alibaba when you consider the shipping price per item
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    • Profile picture of the author diyrob
      I use Paypal. Use Paypal at first until you have a trusted relationship with your supplier. Paypal offers U.S. buyers a lot of fraud protection. Research. Research. Re-Research. Best of Luck.
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      • Profile picture of the author Importexport
        Originally Posted by diyrob View Post

        I use Paypal. Use Paypal at first until you have a trusted relationship with your supplier. Paypal offers U.S. buyers a lot of fraud protection. Research. Research. Re-Research. Best of Luck.
        Do you want to make maximum profits? If so, deal only with genuine manufacturers. Most of the sellers listed on Alibaba as manufacturers are actually traders. Real manufacturers rarely accept payment via PayPal, so chances are you are dealing with a trader if they do accept it.

        By the way, many people relying on PayPal protection when buying on Alibaba and Aliexpress have lost their money. If you want to know how, post a question about it on my thread: Ask Me Anything About Product Sourcing And Importing For Profit. ― Veteran Importer Here.

        I will answer any questions about safe sourcing and importing.

        "If you think education is expensive - consider the cost of ignorance."
        Signature
        Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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        • Profile picture of the author alimov
          Hey guys who can advice best things to outsource from china. in order to make good profits. i do not look for electronics, but what you guys buy and sell from alibaba? the best products which make you good profit. Can someone advice that? I already know and do business from alibaba it;s just wondering
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          • Profile picture of the author Importexport
            Originally Posted by alimov View Post

            Hey guys who can advice best things to outsource from china. in order to make good profits. i do not look for electronics, but what you guys buy and sell from alibaba? the best products which make you good profit. Can someone advice that? I already know and do business from alibaba it;s just wondering
            If you want to make good profits you don't source through Alibaba because most of the suppliers listed as manufacturers are in reality traders or wholesalers.

            They buy from the real manufacturers, add a big margin and charge you a much higher price than they paid.
            Signature
            Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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