How can you possibly make any money buying from Alibaba.com?

by 103 replies
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I was looking at something on Alibaba.com today, in response to an email they sent me. Something caught my eye and I wanted to check it out. so I went to Google to see how the prices matched up. The first item I saw was the exact item I was looking at, with the link to Alibaba.com.

So how in the world could I possibly compete with the same items, and make any profits? I don't have the money to import in large quantities to get any lower price, and even if I did, the discount wouldn't be enough to make it worth while, IMHO.
#ecommerce sites, wholesaling & drop shipping #alibabacom #buying #make #money #possibly
  • One more thing. Are there any better international trade sites you would recommend that are better than Alibaba.com?
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    • globalsources.com and made-in-china.com are some well-known B2B platforms, similar to Alibaba
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  • Outside of speaking Mandarin or flying over to China and finding an interpreter to help arrange deals, I would think that the middlemen will take a cut that often leaves you with little profit. This is the case with most, if not all, dropshippers.

    Sourcing direct is THE best way to get an unusual product and have a great price. It's possible that you could find some exporters that are only in the business to make the initial arrangement, hopefully at a flat fee.

    Personally, I think it would be awesome to fly to China and elsewhere to handle international trade. I hope you do that and tell us how it went. I'd be your biggest fan!
  • In answer to your first question Tim, you are looking at the wrong sourcing platform if you want to make money safely.

    Also, you are not finding real manufacturers if you are looking at suppliers on Alibaba, most of whom claim to be manufacturers but are not. They are traders, and traders can never give you genuine ex factory prices because those are the prices they have to pay before they add their margin when they quote you.

    As for the huge quantities you refer to, the MOQs quoted by suppliers are there to deter small fry and newbies. It is possible to buy small quantities direct from the manufacturer if you use the right approach. Never tell them you are new to importing. Never tell them you are a sole trader.

    In answer to your second question, yes there are some excellent safe sourcing sites. Have a look at on this forum
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    • Alibaba is used by virtually EVERY company to source product/components. In-fact its the primary source for companies who know what theyre doing. The problem with Alibaba is that it's function is misleading. You need to look at an Alibaba post as an introduction.

      Dont worry about manufacturers / traders. The only thing you need to concern yourself with is what you want, what you want to pay (be mindful of shipping) and your order quantities.

      The difference between you and the pros is their ability to communicate with the Chinese and most importantly, their ability to negotiate. They can often tell when you dont know what you're doing and they WILL take advantage of you if they can.

      @TimPears
      Ive sourced components for 100,000s of units and my team depends heavily on Alibaba for product development. If it was that easy, everyone would do it though. That is not to say that these resources cant be tremendous assets, you just need to invest time into understanding them for what they are. You also need to get curb the get rich quick attitude and not let a few posts in a thread discourage you. 10,000 hours homie, 10,000 hours
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    • While I've never dealt in import/export, I would agree with this statement. Telling someone you're new to the game, regardless of what game it may be, opens the door for maltreatment or a loss of respect. It would also position yourself as someone who's not a person to do business with.

      Instead, I would try to negotiate for a smaller quantity "as a test" and leave the door open for possible larger buys down the road. Always use a bit of bravado and authority and prepare to be amazed by the results.
  • I have a factory contact in China that actually approached me directly. The important thing is to get references in the states for non-competitors.

    I've never been to China and I don't plan on going, although it probably would be pretty eye-opening. I will say this, when you see the level of quality and service coming out of China, it's no wonder so many US manufacturers are going out of business.

    I happened to import a product where I had demand already and sourced it in the states. So while it was a risk to import from China, it wasn't a huge risk because I could always dump it if need be. Once you get thru the first shipment, the rest is smooth sailing. I drop around $35-$45K per shipment and, if I want to test out a new product, I can throw it on the container very easily.
  • Making money on alibab, dhgate, echina and like b2b are extremely tough as you are dealing with middlemen and tons of counterfeit product. Orders of these natures can be seized by customs which you will be 100% liable for.
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    • I have had this happen. Is the way around this to have a customs agent/ customs clearance broker?

      I want to get selling something again

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    • Counterfeit is the keyword here. Also, many complain about the quality of the items. Buying in bulk from these guys is risky because it's one thing to have some items of bad quality, and a totally different thing to have most items of low quality....
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  • This is depressing, and makes a fellow want to quit. Even after reading importexport's excellent report and getting a bit excited, I just can't seem to find anything that I can make money on with limited capital. makes a fellow just want to give up.
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    • Hi Tim,

      You know that I give unlimited support for 3 months, and although it is past that time, maybe you should send me an email.

      The comment by CammyCash "Making money on alibaba, dhgate, echina and like b2b are extremely tough as you are dealing with middlemen and tons of counterfeit product. Orders of these natures can be seized by customs which you will be 100% liable for. " is absolutely true.

      Those middlemen who are almost all listed incorrectly as manufacturers will never be able to supply at the best prices. You can only get the best prices by buying direct from the real manufacturers. I teach how to buy small quantities regardless of the big Minimum Order Quantities (MOQs) they quote.

      You must be bold enough to ignore the MOQ, and in fact you never ask what it is. That is the first mistake most people make when approaching suppliers.

      If you can decide what product you want to sell, possibly using the excellent methods taught by Auctiondebteliminator, you will be able to locate the products in China at amazingly low prices. I don't teach what products to choose, but I do know how to source them, not only in China but also in many other countries.

      It is worth noting that traders and other middle men on the popular B2B sourcing platforms will often quote bigger MOQs than the real manufacturers. The main reason is that they want to make a killing on that first order, because chances are you won't place a repeat order.

      You should also be aware that "wholesalers" in China rarely carry inventory. They take your order and your money, then they contact the manufacturer whose images they have lifted, and hope they can still supply.

      Having visited China since 1978 as an exporter and then since 1987 as an importer I know how the system works there. Everything is not as it appears, but I see on this forum so many people acting as though buying from China is like buying from your local 7/11.

      I am currently drafting a post which I will probably title "Masters of Disguise" about the fact that WYSIWYG does not apply when dealing with China. Keep an eye out for it in a week or two.

      Having said that I must add that in 22 years as an importer until I retired I enjoyed the most excellent relationship with my Chinese suppliers and I obtained better quality and better service at vastly better prices than I ever did locally.

      China is a different world and it is important to know how to deal with that amazing industrial powerhouse.
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    • Hi Don't Give up You can make good $ try China vision or Buy on line Singapore one thing 2 try Find what is on top sellers on eBay just google that term or any Product say top selling xyz Gadget
      or ? up to you then pick a favorite - google xyz gadget wholesale email them make a deal to Resell
      4 them wham you are their Rep Negotiate price by saying another supplier offered lower $ use a Good formal email template free online Plenty info on You-Tube also Good Luck.
  • This is a good point, how can we compete when our wholesalers also sell online? I have in the past negotiated a lower cost per item by buying more, maybe not in the thousands but multiples of 10 or 50s. Then I sell to my local market/State. Fact is some people will never buy anything direct from China as the are worried the item will never arrive. I find people are willing to pay a bit more for it knowing they can call me if there is a problem and it is already in the country therefore they will get it in a few days. You can still make some healthy margins this way and scale up from there.
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  • Contrary to what some people have said here, we have made a ton of money using some suppliers we've found through Alibaba. As with sellers from anywhere, YOU MUST BE CAUTIOUS! Do quality checks on product samples, make sure they ship quickly, etc. Also, as far as margins go, IT ALL DEPENDS ON WHAT YOU ARE LOOKING FOR. We found a lot of success in a certain couple niches and kept with it.
  • Personally from my experience I find alibaba very expensive and the main reason for this is they are not selling to the chinese but to you. For example if you went over to Hong Kong or shenzhen and walked into one of the markets to try and buy goods in Bulk you can end up paying 5-10x the amount that a Local would. This is because at the end of the day they are business men and understand that we can charge a lot more over here for the products they sell.

    It's a similar problem with aliexpress and other sites like them, they are made purely for small time retailers and wholesalers who find their prices cheap (compared to here in the UK) however the fact of the matter is they aren't.

    For instance when you look on an outlet like eBay there will be a few sellers selling an item so cheap that even if you brought in 500-1,000 units from the likes of alibaba you don't stand a chance as they are not going to give you those prices!
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    • You are quite right Nathan,

      The popular B2b sourcing sites are for people who are unaware of real prices in China. I have often visited China, and I know where to buy retail at amazing prices. Example, on my last visit to Beijing I visited a small store that I know, where they were retailing a good quality man's suit for US$38. My next stop was Birmingham, UK, where I found the absolutely identical suit on special at a big retailer for 5 times that amount. Now if a small retailer in Beijing can retail at $38, how much would an importer pay for 100, 500, or 1,000 of those suits? Just work out the profit margin.

      If you tried to buy similar items on one of the popular sourcing sites you would not find the factory, because despite advertising as manufacturers, almost all suppliers on those sites are traders. They might offer what looks like a good price, but it is nowhere near as low as you can buy direct from the manufacturer.

      By the way, I don't buy retail except for some personal items when I am there. Importing direct from the factories is what I know best.
  • Hey Timpears

    As some post have been showed to you that many manufacturer on Alibaba.com are not real manufacturers,there are just traders,To be honest,I ever worked in a trade company but always shows the customers that I worked in a manufacturers that I can give you the lowest price.So if you really wanna import cheapest and best performance products,you'd better come to China by yourself.If possible,I can help you(Don't reckon me a greedy businessman)

    Thx.
  • You wanna hear something crazy? Everyone on this site or who has ever sold physical goods online knows who Alibaba is. But "Normal people" - our customers - haven't heard of Alibaba and wouldn't know where to begin or how to buy from them. They don't "get" international shipping, duty, customs, or feel comfortable buying direct from Hong Kong or China mainland. As the global economy becomes more seamless, this may eventually change, but for now it works to our advantage.

    You don't have to have the best price if your site instills trust. The majority of buyers don't even price shop. It's second nature for guys like us, cheapskates and technically-minded as we are, to right click an image, see that the file name is probably a SKU, UPC, or part number, and type it into Google. But most buyers, they make that emotional connection with the product and decide to buy right then. Or not.
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  • Banned
    Back in the day I did all that - researched trends, bought from alibaba etc, sold on ebay. Made some good money too.

    For me it was profitable and didn't really matter whether they were manufacturers or middle men. If you do your research you really can't lose.

    Probably worthwhile to visit Jim Cockrum's site for help sourcing and finding products, one of the most stellar reputations with ebay, amazon and all that jazz.
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    • means that you will not make a loss, but if you are buying at a price that is higher than you could otherwise obtain you are losing something. What you are losing is the substantial extra profit you could have made if you bought direct from the manufacturer.

      Until you have quotes from genuine manufacturers, most people cannot even hope to imagine the massive profit margins that are out there for the taking.
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  • Banned
    @ ImportExport…Your sales page for your ebook looks interesting but where are your testimonials? All you have are a a couple "testimonials" with initials at the bottom of them. If your book is being used by importers all around the world then why couldn't you put more testimonials on there?….Even video testimonials would be good or something.
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    • Thanks for your question ATL.

      I have an abundance of testimonials from satisfied (even delighted) book buyers, but I thought three would be enough. I never identify the people who write to me, and that is why I make the offer, which I have never seen on any other website, to supply proof to any relevant authority that may request it.

      Any person can trigger a request from their local fair trading authority by contacting them and claiming that the testimonials are, or appear to be, false. If my testimonilas were false, I would not invite that scrutiny and the huge amount of hard work and red tape that would go with it.

      Here is one comment in the thread Is it legal to pay for testimonials of existing users? "Lots of paid testimonials go undisclosed.. it's just the nature of marketing online" and in the thread Is buying video testimonials on fiverr.com legal? there is this comment: " Just note that in the IM niche you can see the same people doing testimonials on different products. Doesn't look so authentic to me when I see it..." and this one: "As an owner of a top micro job site, I can attest to the fact that Amazon employees email me every week asking me to take down gigs posted on my site that offer paid testimonies or reviews for Amazon..."

      I also know that there is a big industry providing feedback for a fee. Sometimes the provider of the good feedback gets to keep the goods bought by them but paid for by the seller.

      So you will understand why I don't go over the top with my genuine testimonials, and I make my unique offer to provide proof - not to readers because that would infringe the privacy of my customers, but to relevant authorities. What more can I do?
  • That depends. There are markets (I operate in one) where the factories have tons and tons and tons of "trading companies" (mostly individuals) selling their goods and they flood ali express with product listings, which show up in google shopping and google organic search. So there are certain industries where people know about Alibaba/Aliexpress and shop there, which is very unfortunate because Ali... is not a buyer protection oriented site.

    So when people are looking at very popular items, this is what they come up against. In all my time viewing these threads and getting to know people, they fall into two categories:

    people who chase hot products
    people who build lasting businesses

    sometimes the hot product chaser can build a lasting business, but more often than not they don't.
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    • Hi Malia,

      Thanks for more words of wisdom from someone who obviously knows.

      Regards,
      Walter


  • Sadly, what i have seen is that you can not make money through alibaba, if you are looking for products made in china. But if you are looking for local wholesalers or suppliers in developing countries you can find really good wholesalers, selling niche product and all profit is in niche products.
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    • Yes there is no doubt that profits are better if you can find a real niche, but you should remember that profits are made in buying at the right price.

      If you want the very best price why settle for buying from wholesalers? They buy from the manufacturers and so can you. Once you understand the way safe product sourcing works you will see that real manufacturers quote big MOQs because they don't want to be pestered by small resellers or newbies.

      Part of the way to get around that is don't let them know your are a small operator, or that you are new to importing.
  • sure, you can make money with it, but before you do anything, check all the fees that you need to pay before you purchase anything from alibaba, if you don't do that, you will end up losing money
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    • It is always essential to know your costs before you buy otherwise you could lose money as Fat Wolf says.

      I never recommend Alibaba. I recommend a couple of safe sites where you will find genuine manufacturers, not the multitude of traders calling themselves manufacturers on Alibaba and other popular sourcing sites.

      You can make big money buying from real manufacturers, and you can do it even if you can only afford to place small orders.
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  • Really the best way to utilize Alibaba is to buy in bulk. Also alot of consumers would not purchase from Alibaba as generally they will not want to buy from China

    George
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    • "Buy in bulk?" Most people think that means order the Minimum Order Quantity (MOQ), but few can afford to place such large orders.

      If you look back through this thread you will see that I teach that it is possible to place orders much smaller than the big MOQs quoted by suppliers on sourcing sites.

      There are also lots of traps for the unwary using such sourcing sites as Alibaba and the other popular sites. On Alibaba almost all of the suppliers listed as manufacturers are traders and you cannot get the best prices from them.

      After 22 years of experience in importing I only know a very small number of safe sourcing sites where what you see is what you get. People who rush in and try sourcing from Alibaba and other big sites often finish up very unhappy as the OP shows.
  • I buy goods from alibaba. The key is finding an actual manufacturer, of which there are many, and doing due diligence.

    My advice for weeding out the conmen and getting a good supplier.


    1. Do they offer escrow payment? Some advertise they do but when asked to confirm this they say 'we are still setting it up', or something like that.


    2. Will they send free samples? If no, then move on...if yes then ask for some. (Obviously they won't send a free TV etc)


    3. Will they accept a visit? This is the real deal breaker. No conman will accept a visit, obviously.


    I buy raw materials that I use to manufacture supplements within the UK and the profits are extremely good. I've also bought novelty items that have done similarly well and always had the goods sent by air freight door to door. No customs to pay as the Chinese are more than happy to state the goods are replacement, foc! samples etc.


    So I believe alibaba has its place, trade key is another similar type of site with many legitimate businesses from around the world. Many Nigerian conmen too. Buyer beware.
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    • There is no doubt there are many manufacturers listed among the thousands of suppliers listed. The problem is that they are in the tiny minority.

      It is like buying a lottery ticket trying to find a genuine manufacturer among those listings. Far better to use sites that only list as manufacturers businesses that really are manufacturers.

      I agree that conmen will not often accept payment by escrow, but that payment method does not guarantee a good supplier. I have read numerous complaints about suppliers still being paid by Alibaba's escrow system although the customers are in dispute with them.

      The way it works is that buyers must first try to settle the problem with the suppliers and then if not resolved they can lodge a dispute with Alibaba. Some suppliers have perfected the art of procrastination, giving the buyer the feeling that they are making progress, but after the short time limit for dispute lodgement passes, those suppliers no longer cooperate. Alibaba will then not accept a dispute because the time limit has expired.

      It is true that free samples are rarely offered by conmen, but often suppliers make a huge profit on the freight they always charge for samples, so they are not really giving anything for free.

      There are certainly many legitimate businesses on Alibaba, and the other popular sites including tradekey, but as Woomeister correctly states: "Many Nigerian conmen too." Conmen abound in international trade and most are not from Nigeria.

      This is why I only recommend a couple of safe sites where the verification process is thorough. It is not thorough on the popular sites that so often get mentioned on the forum. On those sites "Verified" means that they actually exist. That's all.

      .
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  • I would say you sure can, I never imported stuff using Alibaba (but I did use AliExpress, the child of Alibaba), because the offer smaller quantities for a good price.

    As of the fact they offer the item in China for the same price, that shouldn't be a concern for you because most people would rather to order from U.S. to get the item in few days against a month and going all the custom (getting 1 item could be as complicated as 1000).

    Alibaba doesn't offer small quantities. These are manufactures that trying to ship huge quantities.

    If you want to work in importing, there are a lot of things to be concerned about, I would wonder how profitable it is and you would probably want to spend sometimes researching them.

    If you would like, I own a cash back website where I do have many business owners ordering from sites like alibaba, I can provide a list of alternative sites based on popularity (let me know the niche you looking for cloth, electronics, .. etc).
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    • I apologize to those who are reading all my posts, because I have to repeat myself quite a lot because few people read an entire thread.

      AliExpress has received numerous bad reports on Ripoff Report | Scams, reviews, complaints, lawsuits and frauds. File a report, post your review. Consumers educating consumers. and so have Alibaba as well as many other popular sourcing sites. That is one reason why I never recommend them.

      If anyone has had a good experience sourcing on those sites, I am pleased for them because they have been lucky, or else, like @Woomeister they know the ropes and have avoided the problems.

      The "good price" available from suppliers on AliExpress is way too much to pay if you want to make serious profits. The same applies to the traders and wholesalers who make up the overwhelming majority of suppliers listed as traders on all the popular sourcing sites.

      To get a good price that will blow you away you need to buy from real manufacturers. One warrior recently posted that he/she bought items from a manufacturer in China for $1 and sold them for $25 after spending another $1 for packaging. Now that is what I mean when I say to get profit margins that will blow you away you must buy direct from real manufacturers.

      The myth that you have to buy huge quantities in order to buy direct from the manufacturers has been proven wrong by the hundreds of people I have taught how to buy small quantities direct. Big MOQs are only quoted by the factories to avoid being pestered by newbies, small fry, and people who have no idea about how to buy overseas.

      Another myth referred to in the quote is that importing is complicated. In training my franchisees how to import when I was running my importing business before retiring, I spent no more than 2 hours to teach them how to do it the easy way. None had any experience, and none ever had any problems with Customs over the 22 years I was running that business.

      @onegoodman wonders how profitable importing can be. It was so profitable for me that I had to expand so fast that I ran out of family members to employ and had to start franchising in order to handle the huge growth. I finished up franchising the business in 4 countries. You cannot franchise any business that does not offer good profits for franchisees.

      .
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  • I wouldn't suggest Ali. Go direct.
  • I use Alibaba and Aliexpress.com for bulk craft items, and it works wonderfully, BUT what I do is find the sellers then go directly to their websites to buy and to handle communication. I buy from China with no problems. People I used to buy supplies from purchase their stock from those places, so I went right to the source, saved a lot!
    You don't' always have to buy 100-500 pieces, if you write the owner of the store and ask for a lesser quantity, they usually help you out. They may charge you a penny more per piece, but compare to retail, you can't lose.
    Example for what I do:
    1 Pendant Tray with Glass Dome and matching chain: retail from someone on Etsy, around 1.44 each set. From China, .67cents. I prefer buying from buyers in the USA so I will buy 'local' for smaller projects, but when I need a LOT, I go to China wholesalers directly.
    Downside: Time for shipping, sometimes it can take 3-4 weeks, so plan ahead!
    Upside: Pricing & variety of items. Many stores can offer custom work as well
  • I'm looking to start importing from China. Have spent many hours trawling through DHGate and especially Alibaba. Mostly, what I'd like to import and sell are low cost consumer electronic accessories - cables, adapters, etc - and while the cost appears inexpensive, by the time I factor in shipping, customs, eBay and PayPal fees, profit margins are pretty small. I want to make a good living out of this, and I was getting to the point where I was ready to give up before even starting.

    But having read this thread, and ImportExport's posts, I feel reinvigorated. I shall be buying your book once I get home from work. I have no desire to work for someone else until retirement. Time for me to take action, and become my own boss!
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    • Electronic accessories such as cables and adapters from china will result in a lot of refunds and chargebacks from your customers because their electronics are just not as good as they should be, especially the knock-off apple cables and apple adapters.

      I prefer selling fitness workout dvds such as insanity and t25 which I get for under $20 a piece, and for me has never resulted in a refund or chargeback
  • Guys AliBaba is a great site but you must do your due diligence. I like the site not just as a buyer but as a seller who wants to get into international markets (When looking for for foreign distributors of our health products).

    Just like when using any site, a little common sense goes a long way. As far as good deals are concerned, you can find some awesome suppliers (Make ridiculously good profit) as well.

    I highly recommend AliBaba to anyone. It's not a one stop solution for importing and exporting but it's a darn good one.
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    • Hi jbthemummy,

      You have made a very important point. Due diligence is essential wherever you source products. The only time I have been scammed in the 22 years of running my importing business was by a local sales rep for a big air courier. One slip cost me thousands! The point is, do your due diligence even when buying local goods or services.

      . The biggest problem is that the vast majority of suppliers on that site falsely claim to be manufacturers. You might be lucky enough to find one that is genuine and yes, if you do

      We have it straight from the horse's mouth in a post on this thread by rookikan who wrote:

      I have been trading with China since I started exporting to that country in 1978, and began importing in 1987. I know from experience on the ground that what rookikan says is true. Even my agent who was selling the product that I exported to China always gave the impression to his Chinese customers that he was the manufacturer.

      Those ridiculously good profits you refer to are being found consistently by people who use safe sourcing sites where the site operators thoroughly check out suppliers and will only list as manufacturers those suppliers they know genuinely are manufacturers.
      .
  • I am also sourcing and purchasing products from China to export to other countries,I do not think alibaba is very important for me,but can get some imformation learning from it!
  • Places like Alibaba are not where the money is for small time buyers. It is fine if you have the money to buy in large quantity. Instead look for a trustworthy personal dropshipper from the country your product is being manufactured in. Prices will be better and service.
  • Yes,coming to China,you will get the best prices
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    • I've been quoted really good prices, but shipping in smaller quantities was another issue. Making it work without buying a container is tricky
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  • Banned
    [DELETED]
  • Hello Importexport,

    How're you doing? I'm a newbie in the import business and have very small capital to invest. I've a few concerns and need your expert advice.

    1. I'm not sure how to recognize the counterfeit products on Alibaba.

    2. Should I ignore the branded products to avoid the counterfeit products? Should I only aim at importing unbranded products from China to be on the safe side?

    3. How Do I determine my profit margin if I don't see the same product listed for sale on Amazon or Ebay? I mean how do I compare their price with Alibaba price if I don't find the same product on both the sites?

    4. How do I find out how many sellers are already selling the same products on Amazon and Ebay?


    Please help me with your expertise and experience.

    Regards
    Silki
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    • Hi Silki,

      Thanks for your questions. The answer to question 2 also answers question 1. Yes, you should avoid branded products when sourcing overseas. If you order a sample, chances are it won't be delivered anyway. Suppliers of counterfeits often just take your money and run.

      I would add that you should also avoid products that look very much like a branded product, because they will probably be seized by Customs.

      Many people make good money buying small quantities of unbranded goods and selling them on eBay, Amazon, at flea markets, shopping mall stalls etc. The big secret is to make sure you only buy from the real manufacturer, not from the traders on Alibaba and other popular sites who falsely claim to manufacturers.

      I have taught people in 36 countries how to buy small quantities at ex-factory prices. It is more than possible, many people are doing it every day, and the profits they make are staggering.

      Your questions 3 and 4 are not within my area of expertise, I suggest you look at posts by Auctiondebteliminator. He has a free offer that could be a good starting point for you.
  • I wanted to chime in and also point out that although importing is a great way to make good money, it's not the only way. Before including imported goods in my inventory, I maintained my full-time business using U.S. suppliers, arbitrage, closeout/liquidation companies and even buying from other retailers in bulk. If you have limited funds, you CAN import in smaller quantities (as has already been mentioned) but sometimes dealing with domestic inventory can be a lot easier and can also be very lucrative
  • Yes, you can make money. But you need to be extra careful purchasing from those type of sites. Most items are counterfeit.
  • Importexport how come you mention that you have been in the business for 22 years in every post? Just seems kind of sketchy to me but you are giving some good advice without actually giving away every detail.
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    • Hi BroGT,

      I only mention that important fact when it is relevant. After all if something has worked for 22 years that is a good indication that is something worth copying.

      I do give a large amount of good advice on the forum, as more than 300 thanks proves. Nobody gives away their trade secrets. Have a look at my thread If your secret B2B portals are so safe why don't you share? and you will see a lot of detailed and helpful information, together with an explanation as to why I don't post all the details on the forum.
  • Hello Walter , I have sent a message. When time allows, I appreciate your response.

    Thanks ,
    Jason
  • With my previous experiences, I can easily confirm that there are tons of counterfeit products, and that's one of the major reason people makes money..
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    • People who think they can make money that way are living dangerously. Not only is it illegal, but there are risks involved, such as:
      • Suppliers of counterfeit products are notorious for scamming. Often, buyers of counterfeits receive nothing, other times they get a product that will work for a very short time, and sometimes they even get an empty shell.
      • Customs will usually confiscate the goods on arrival. There goes your hard earned cash.
      • Depending on the quantity and value, Customs may prosecute, with the possibility of heavy fines and/or imprisonment.
      • Once you are detected importing counterfeits, your name and address will be flagged by Customs. This means every shipment ever after will be delayed while they do a thorough inspection.
      • No warranty, regardless of what the supplier might say, so you carry the cost of replacements when your customers discover how shoddy the products are.
      • There have been numerous cases of the brand owners suing and getting such big compensation payments that the illegal importer is bankrupted.
      Sorry to disappoint you Matthew Anton, but here I am again with valuable information. Unlike your 4, I only have one sales link in my signature.
  • Interesting thread. I mentally skip Importexport because his posts seem like they are going to be full of information, but all roads lead to the signature or ebook.

    Buying low and selling high, even if margins are tight will work. Whether you make more through the manufacturer, a little less wholesale, and a lot less (but still make $$) dropshipping. Just different levels of risk / investment. A buddy of mine goes to auctions, which are basically retail, but can still buy products low and resell on ebay. Point is, if you buy low enough, you can resell and make a profit, even if it's slim.

    Make sure you get quotes from multiple sources. Using alibaba / chinavasion I was given quotes that ranged from $35 to $105 for a particular product. In the end, if you look at the numbers and you'll make money; all that is left is to pull the trigger. You will get burnt, but eventually score gold, just like in any business. It's an investment, and should be treated as side money. Once you have it down to a science then you can scale up and take on larger risks and more product lines.
  • Good question , I think you can serching from aliexpress ,there you can import small batch with low price ,or you can ask an agent in China to buy for you and deliver to you.
    • [1] reply
    • Before anyone ever starts searching for products on Aliexpress, they should check them out by searching for Aliexpress on Ripoff Report | Scams, reviews, complaints, lawsuits and frauds. File a report, post your review. Consumers educating consumers. Once you read the reports there I am sure you will want to find a safe site instead.

      Using a buying agent in China to buy for you is likewise a risky move. There are a lot of things you need to know:
      • Is the agent trustworthy?
      • Does the agent buy from the supplier and resell to you, adding their profit margin?
      • Does the agent charge you a fee?
      • Does the agent receive a commission from the supplier? (Maybe as well as charging you a fee.)
      • Do you really get the best price or does the agent only buy from the supplier who gives the highest commission?
      • Does the agent have sufficient dealings with freight companies to get you the best rate?
      • Can you be sure the agent checks on the quality - or even cares?
      The safest and by far the most profitable way is to deal direct with the real manufacturers, and get them to do the hard yards for you in handling the shipping. That way you can buy small quantities at the very lowest prices and import them without the hassles.
      • [1] reply
  • I bought some counterfit stuff, not knowing it was counterfit. I bought 1 item made profit. Test the item out. Bought 2 same thing then 5, 10, then 20 items a month. I was profiting pretty good for me. But after a while I was selling stuff that was not geniune or real. So I stopped. I wish I didnt tho, cause I have to work for the man and work a regular job. I felt truely free and was able to sit around play call of duty and wait for calls. I would buy the items, wait for about a week, then put them up on a local classified website. Wait for the calls to roll in.

    That was my introduction to making money online. And since then I've always had this entrepreneurial drive. But it was scary, I had some people ask for their money back. And I gave them their money back and sold the same item the next day. But from my experience (about 1 year) You can make a shit ton of money, it's all about risk. I could'nt watch an episode of cops while I was selling good from china. I became slightly paranoid. If I could find a legal way to import good from china and not have to worry about going to jail or losing my investment I would.

    People buy counterfit items, I can attest to that. I never used ebay. ever. I would love to hear some experiences selling items from china. Cause I think thats why people are reading this thread. They want to know how they can make money legal or not.
    • [1] reply
    • Hi jjohnson,

      Man were you lucky to not get caught.

      Firstly, you were very lucky that the supplier even sent the goods to you. One of the most profitable areas for scammers is counterfeits. They very often take your money and run, only to appear on the sourcing site a few days later under a different name.

      Secondly, Customs are always on the lookout for fakes and will confiscate even a single item if it is detected. If they detect a shipment with multiples of fakes, they will not only confiscate, but will also prosecute.

      Some people have even done jail time for that offense. I also know of cases where the brand owner has sued, with the result that the importer was bankrupted.

      Now to your wish: "
  • Hi Walter, I have followed up with you via PM. My apologies for not getting back to you sooner.

    Thanks,
    Jason
  • Banned
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  • it's getting harder to source from Alibaba because lots of the suppliers are retailing on eBay as well with ridiculously low prices, impossible to compete...
    • [1] reply
    • I know that few people read more than the last one or two posts, but I suggest that even if you aren't willing to read the whole thread, you might scroll to the top of the page and work down. You will find it educational.

      At least read posts #51, 56 and 70.

      I would be happy to answer questions, but you can compete profitably if you buy direct from real manufacturers that you will not find on Alibaba and the other popular sourcing sites..
      • [1] reply
  • Good Feedback everyone.

    I mostly buy in smaller quantities from sites like Aliexpress as storing is a big issue.
    I like low investment, I'm fine with lower amount of return.
    problem is that I see more and more sellers directly selling the same goods on ebay now for $1 more or something. How do you build profit like this?

    Is branding the way to go?
    • [1] reply
    • You can buy small quantities direct from genuine manufacturers at prices that would make the prices you pay on Aliexpress look like ripoffs.

      Branding is a great way to go. I started doing that in 1987 when I first began importing from China.
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  • Hi,I am a Chinese,Show me your product name and product image,I can help you check if the price is reasonable or not.Actually it's hard for you to check real cheap items in China cause u r not Chinese.
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  • A lot of people are buying a bunch of products from Alibaba and selling them on Amazon at marked up price.
    • [1] reply
  • With a platform so big, there certainly will be some "bad guys" hanging around. But on the other hand there're also good suppliers who produce quality goods. And in fact from my experiences, some of them are manufactures of big brands. I think that's not fair to say that the whole platform is bad. That's prejudice. I just order some product samples last week and the quality is excellent. I guess people just have to do their due diligence to find a reliable supplier. Some cost will be involved certainly.
    • [1] reply
    • Some "bad guys"!!!! Did you look at the thread I linked to before you posted your reply?

      For those who can't be bothered to click on a link here is most of that thread:


  • Found this thread quite interesting especially I spent 3 years going to China and back with a joint venture business there...

    There are some important points to watch out for when trying to buy in China..many of the bigger manufacturers have agents in HK..this is usually because they handle a lot of business for the Chinese owner also, they have a good command of English.

    Few Chinese factory owners can speak English and even if they do or find a person to help with communication, there are constant misunderstandings.

    Yes, they love you to order at least a 20' container full, this way they can give you a better price for qty..however, if you do be aware that quality can vary. An example was a friend who bought garments, the factory could not make the full order and subbed out 50% to another factory..the result was 2 different garments but, the shipment was paid by deposit and balance against shipping documents, too late to change anything.

    If your buying small quantities then, you will probably end up using a local agent who gets paid by the factory owner..

    If you are starting out then don't forget shipping costs make yourself familiar with shipping terms like LC, CILC, FOB etc also check for import tariffs they will vary around the world wherever you are..

    Divide the cost of shipping, import duty, tax and local transport etc into your qty of products to get your cost per item which is your landed price..

    Keep away from fake stuff you will lose it in customs..Chinese customs check goods before issuing the factory with a shipping certificate..but, you might want to have your own agent a local for example check your shipment before it leaves the factory to ensure you get what you have paid for..

    Chinese electrical stuff is poor quality in most cases, in some products that may be rip off's will have certain technology or inferior components in them..kill your reputation fast.

    Remember small items can easily and cheaply be shipped by air at low cost per kilo..

    Visit China you will love it, Shanghai is the best city in the world!

    Thats it end of lesson lol
  • hey, bro. chill down. I am aware of that report. I lost money in alibaba stock because of that report few months back.
    just saying there're still good suppliers there. anyway, that's my personal experiences.
  • not sure if you're aware or not, SAIC eventually declared that their report doesn't have legal effects. And alibaba actually sue SAIC in May because they didn't disclose where they get the info and why the report was issued first and then taken back. I think the case is still ongoing, not following though.
    Anyway, i think these have little to do with the topic of this thread.
    • [1] reply
    • Yes I am aware that Alibaba is suing SAIC, but that is to be expected when they have such vast financial resources, and simply starting litigation is a way to to take some of the heat off.

      I do think this is very relevant to the thread topic, because so many people just see how big Alibaba is, so it must be good.

      I wrote only about the SAIC report, and didn't mention the huge number of fraud cases reported or complained about. You can find them in various places including ripoffreport.com, alibabascam.com, and on Alibaba's own community forum.

      The fact of the matter is that Alibaba work hard to give the impression that their verification and Gold Supplier system make it safe to use their platform when in reality those systems are nothing but smoke and mirrors.

      That is why so many thousands have been ripped off, and many of those ripoffs have been at the hands of Gold Suppliers.
      • [1] reply
  • I just joined this thread to share my first experience as a newbie reaching out to "manufacturers" on b2b portals: I decided to skip Alibaba for now and looking elsewhere for kinda getting a competitive advantage, or even just to find something "unique".
    So I've been browsing through Globalsources, found a nice and original product line, and contacted the "manufacturer"; I actually contacted them through their external website first-with no response- and then through their Globalsouces contact form-this time getting a QUICK response!
    They send me a very professional and organized quotations-spreadsheet, and I was very excited until I saw the ridiculously high prices those folks were asking me: anything between 2$ and 30$ (some item even more!) for regular bamboo-kitchenware accessories (salad spoons, bowls, etc.)As I said: ridiculous.
    I admit I'm a newbie and honestly I don't know yet exactly what the right prices should be, but quick back-of-the-napkin calculations told me something was wrong.
    I'll be checking out SOON Importexport's book, and get myself some education first.
    Cheers!
  • In fact ,their are many other B2B websites from China :
    such as en.ofweek.com , hktdc.com ,globalsources.com and made-in-china.com are some well-known B2B platforms, similar to Alibaba
    • [1] reply
    • I have the most respect for Global sources manufacturers.

      Why? Global Sources charges a much higher membership fee and has a more rigorous verification procedure so the Chinese manufacturers are more likely to be larger, well known and higher quality manufacturers.

      This has its own drawbacks though, less manufacturers and bigger manufacturers' means you have to be big in order to deal with them.

      Z
      • [1] reply
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  • 161

    How can you possibly make any money buying from Alibaba.com?

    I was looking at something on Alibaba.com today, in response to an email they sent me. Something caught my eye and I wanted to check it out. so I went to Google to see how the prices matched up. The first item I saw was the exact item I was looking at, with the link to Alibaba.com. So how in the world could I possibly compete with the same items, and make any profits? I don't have the money to import in large quantities to get any lower price, and even if I did, the discount wouldn't be enough to make it worth while, IMHO.