[PART 4] HOW TO SHOP SAFELY ON ALIBABA

Getting in touch with Suppliers

     Now that you know how to better safeguard yourself when carrying out any transactions on the other part of the globe, so it is time to contact some Alibaba suppliers.

Your email will most likely be your primary means of communication when contacting suppliers overseas. In many instances, they will likely be making use of a translation program such as "Google Translate" to translate your mails, as well as their replies back to you, remember that computer translation is not so perfect therfore, expect some errors and possible misunderstandings. In order to make your communication with the supplier as clear as possible, make sure your emails are brief, concise, well formatted and spelling error free. This will not only help the manufacturer but will also provide you with much better replies in the end.

Tip: Whenever you intend to send emails to suppliers, it is best to number your questions so as to enable them to easily respond to each number. This will surely keep the communication clean and well arranged.

Requesting a Quote

     Requesting a quote (mostly known as "RFQ"), is a very simple procedure, however, taking an additional minutes to properly plan your emails can definitely make a difference in the numbers and quality of replies you get. Below are a couple of important questions to consider regarding your email:

★  The Minimum Order Quantities (MOQ’s): even if a listing has their particular MOQ listed, you still need to double check with the supplier in order to make sure it is accurate. In a situation whereby the MOQ’s are much higher than whatever you can afford, you should ask them if theyare willing to negotiate the minimums. Make sure to give them them an idea of what you can afford to pay. Keep in mind that minimum order quantity is almost always negotiable with  suppliers from overseas.

★  Pricing For Samples: Samples are very important in order to inspect for product quality. You are going to want to ask for their prices for product samples. Some suppliers that receive lots of sample requests may change the full retail prices, others will offer samples to you at a discounted rate, while some may even offer samples to you for free if they feel you're a serious buyer.

★  Production Pricing: one of the most important questions you should ask manufacturer is how much your products cost per unit will be. Many times on Alibaba, they will give you a price range (for example: $2-$3/unit), but you would need to know exactly how much each unit will cost you.

★  Production Time: it is always very important you know how long it will take to produce your order.

★  Payment Terms: Many suppliers will require new businesses to make full upfront payment for their order. This is so important to know since inventory is a major cost for e-commerce startups. Furthermore, you may want to also ask if they provide payment terms on future orders.
Here is an example of an email template you may want to consider to serve as a guideline when contacting overseas suppliers from Alibaba:


Hi,

My name is Tex and I am with ABC Company.

I am interested in placing an order for product Z. Before I do however, I have several questions:

What exactly is your minimum order quantity?

What is your cost per unit and at what quantity levels do you offer discounts?

 What are your payment terms for new customers?

I would also like to order some samples of product Z before placing a full order. Can you please send me the cost for the sample including shipping to:

 Tex Dave
  269 Sheffield Street, Mountainside, NJ 07092, USA.
+1 908 222 2222

Thank you.

Tex,  ABCcompany.com


From the example above,  you can see that it is short, concise and well formatted.

Negotiating

     Once you have begun conversations with several suppliers and have a good idea of each of their prices, MOQ's and payment terms, you can begin negotiating with them. As mentioned previously, the minimum order quantities are almost always negotiable, it is simply a matter of asking. Remember, a good negotiation leaves both parties happy with the outcome so push a little but not too hard.

Weighing Your Options

     Once you have narrowed it down to a select few suppliers, you would want to weigh all your options. Keep in mind that when weighing your options, you should consider more than just price, MOQ and payment terms. Make sure you factor in how well and how quickly each supplier replied to you. Your communication with your supplier can be a critical element of your business going forward so you'll want to make sure you start off on the right foot.

Conclusion

     Sourcing those trusted suppliers for your products from Alibaba might be a new and a rewarding experience. With some basic knowledge some common safeguards, it can be pretty safe. Always walk away from any offer that seems too good to be true. There’s a hundred other suppliers you will find in just a fewclicks.

Happy sourcing!