Buying From Alibaba: Best Sourcing Guide

Hey! Are you tired of reading multiple blogs that talk about buying from Alibaba? (P.S. Most of them are probably outdated or outright misleading). 

The good news is you don’t have to read hundreds of reviews on how to buy from Alibaba.

Just one is enough…

At Leeline Sourcing, we’ve been sourcing from Alibaba for the past 10 years. Dealt with thousands of suppliers. And sourced TOP-SELLING items for our customers worldwide.

This guide will cover detailed steps on how to buy from Alibaba. Tips for avoiding scams. Why most products are cheap. And how to dropship like a PRO on the global marketplace.

Let’s dive in…

What Is Alibaba?

Alibaba is a GIANT B2B marketplace in China. With over 200,000 suppliers and 200 million product listings.

200. Million. Product Listings. That’s TWICE the entire population of Germany! 

Okay, Sharline, so should I buy from Alibaba?

Yes, Alibaba is a solid wholesale directory filled with reliable suppliers. Offering AFFORDABLE prices than in any other eCommerce platform out there.

I’ll choose Alibaba any day for these three reasons:

• Direct contact with manufacturers. No need to work with ‘hungry’ middlemen again. That way, you save on product costs.
• Design custom products. Like I said, you are working with manufacturers. So, you give them detailed designs. They bring them to life EXACTLY how you want.
• There are no branded products (the GUCCIs you’ve seen are fake). This is PERFECT for eCommerce entrepreneurs. You buy and brand products. Then, sell on your own online store. 

Now, to the million-dollar question…

Suggested reading: Alibaba vs Aliexpress

Suggested reading: Made In China VS Alibaba

Suggested reading: 1688 vs Taobao

Is Alibaba Safe And Legit?

Yes, 100%.

As a product sourcing EXPERT. Here are a few things I like about the GIANT wholesale marketplace:

1. Alibaba Trade Assurance Program

This is like a safety net that protects buyers in the event of unforeseen circumstances. These include product or shipping issues.

I’ve written an entire article talking about Alibaba’s Trade Assurance Policy.

This policy guarantees your money back in case you receive counterfeit products. Or no delivery at all!

NOTE: The refund is given within 30 days. 

2. Vetted Suppliers

Alibaba has partnered with third-party verification consultants. To THOROUGHLY test, inspect, and certify products from Alibaba suppliers.

These suppliers get ‘verified supplier’ badges. Also, you download their assessment reports and watch verified videos.

Don’t buy into the fear sold by ‘anonymous’ buyers on how Alibaba is a scam. Your money is SAFE. Provided you trade the RIGHT way (more on this in the coming sections).

Expert Tip: Not all suppliers go through the formal vetting process. So, it’s good practice to check for the ‘verified supplier’ tags and certifications. That way, you avoid low-quality products. Or worse: Losing your money!

May Lu, Sourcing Specialist

Steps Of Buying From Alibaba 

Here’s my blueprint for buying SAFELY on Alibaba:

Step 1) Create a Buyer Account

Fire up your browser and head over to Alibaba.com. Click on the ‘Sign Up’ button on the top-right of the page.

You’ll be redirected to a new page where you fill in the CORRECT details. Including country, full name, phone number, and password.

Oh, and don’t forget to click on the buyer icon as your trade role. 

That’s it. You are in!!

Step 2) Find Products

If you are just an impulse buyer, then you can just play around with the website. See what you can spend your money on.

But I’m assuming you want to source the BEST SELLING products for your online business. You can’t afford to miss it.

One way to do this is to trust your gut feeling and find products by yourself.

Say you run an ‘iPhone screen protector’ business.

Open Alibaba and type ‘iPhone Screen Protectors’ on the search bar.

You get thousands of search results in seconds.

Quick Tip: Use the Filter section to narrow down your search. Click on the ‘Alibaba Guaranteed’. ‘Trade Assurance’. And ‘verified suppliers’ tags. That way, you get results from TRUSTED suppliers.

Otis Woo, China Sourcing Agent

The huge downside is that you might experience communication barriers from Chinese suppliers. Hidden costs that feast on your profit margins. And sleepless nights.

A good sourcing partner can help you avoid all these.

Well, you are in luck because that’s what we specialize in at Leeline Sourcing.

We offer top-level product sourcing services to our customers. That GUARANTEES quality. Thousands of product sales. And, of course, 10X PROFIT MARGINS.

Our experts don’t just stop at finding your next winning product. They do RIGOROUS quality inspections, order fulfillment, and shipment. Better than doing it alone!

Step 3) Choosing the RIGHT supplier

Allow me to refresh your mind…

Alibaba assigns three different badges to their TRUSTED sellers:

Gold Suppliers #1: Alibaba sellers that pay membership fees. And are verified as LEGIT suppliers.

Trade Assurance Supplier #2: Only accept payments through Alibaba’s platform. Hence, your money is protected from scams.

Verified Supplier #3: Certified by third-party institutions as CREDIBLE sellers.

Keep that in mind, as it will save you from lots of scammers on the platform.

Let’s go with our previous example of an ‘iPhone screen protector’ store. Here are the search results:

You can see the ‘verified supplier’ badge. Number of reviews. And years of experience.

Good job, Alibaba👏👏.

Remember to use the supplier filters to narrow down the results.

What’s left is to compare different supplier’s wholesale prices. To find the ones that fit your budget.

Did I mention that we’ve been sourcing from Alibaba for the last 10 years? Thus, we’ve built a RELIABLE supplier network – offering PREMIUM products.

We go a step further to conduct factory audits and quality inspections. Ensure your suppliers meet industry standards.

We are your eyes on the ground. So, you can rest assured that you are getting the BEST. In turn, grow your online stores TREMENDOUSLY.

Expert Tip: Work ONLY with Alibaba’s Verified Suppliers. 9/10 times, they have a good track record. And won’t screw you over!

Jordan D, Head of Cross-border E-commerce

Step 4) Understand the Supplier’s Minimum Order Quantities

This is SUPER SIMPLE!

Just click on the product you like. And check the MOQ on the product page.

Here’s an example:

We can see that the MOQ for this supplier is 36. That is, you can not order less than 36 pieces of the water bottle from the supplier.

So, you can spend at least $100, excluding shipping fees, to order the above product.

Expert Tip: Understanding Alibaba MOQ is crucial. You’ll pick a supplier with favorable MOQs. And can negotiate lower MOQs if you are just starting out in eCommerce.

Fiza urooj, Sourcing Specialist

Step 5) Cut a Deal With Suppliers

This is a bit tricky. Especially if you are new to the eCommerce business.

Trust me, some suppliers can have a field day with you. Charge crazy prices if they sense you are uninformed. Or desperate. If you don’t know what to say, just don’t contact suppliers.

Here’s a professional template I use when inquiring about the supplier’s products:

Subject: I am interested in [ Product Name]

Dear XXX supplier, I have found your products on Alibaba and would like to order from you. Before doing that, I have some inquiries regarding the products. It would be great if you answered all the questions and guided us about your product samples.

I am looking for your reply ASAP!

Your XXX.

Also, you need DETAILED questions to ask your potential suppliers. I’m talking of things like:

• The certifications they have to back up their product’s quality
• Materials used to build their products
• If they offer free samples
• Shipping methods used

Remember…

The best product price won’t make you money if the quality is trash (can I say that?)

That’s just facts. I don’t want to sound like a shill, but you need to partner with an inspection service company.

Contact your supplier and plan for the inspection 7 days before the shipping date.

Leeline Sourcing is the only partner you can trust with your inspection needs.

We’ll visit your supplier’s factory. Test the performance, durability, and quality of the product. Analyze the production capacity. Advise APPROPRIATELY if you should place a bulk order or not.

Expert Tip: Maintain polite yet concise communication with potential suppliers. Also, stay on Alibaba’s messaging system to track ALL communications. 

David Zhan, Senior Merchandiser

Step 6) Request a Quote (RFQ)

Alibaba RFQ is simply a document you use to invite multiple suppliers. To submit price quotes and terms for the products you want.

I like this approach because it saves you time in finding multiple manufacturers. Or suppliers. Since they all get to send their bids. And you pick one with favorable terms, competitive prices, and solid track records.

And the best part?

Alibaba’s smart assistant will generate a detailed product requirement. Just give it the product title and watch it do the magic. Pretty dope!

But if you want to create an original RFQ (which I recommend), here is my checklist:

Be open to engaging with potential suppliers. Settle for the BEST instead of the CHEAPEST.

Step 7) Choose Your Payment Method

Once you add items to your cart…

It’s time to choose a SUITABLE payment method.

Unlike 1688, Alibaba has multiple payment methods. From PayPal Bank Transfer to Western Union.

Just like every other platform out there. Each method has its pros and cons.

I’ll shed light on the common payment methods on Alibaba. So you can make the RIGHT decision.

1. Western Union

My favorite.

They are SUPER FAST and RELIABLE. Their transaction fees are also realistic. Can you imagine you only pay $18 for a transfer worth $1000? Not bad!

Just ensure the payment is protected in escrow. Only release once you get your products.

2. Paypal

This is also a favorable payment method on Alibaba. It protects buyers from fraudsters. Just that it has crazy transaction fees and currency conversion rates.

3. T/T Upfront Bank Wire Transfer

Most suppliers like this method. Prolly because it means they receive payment before the production starts. I find this a high-risk method. Plus, the transaction is much higher ($20 – $80 per transaction).

4. Alibaba Trade Assurance

This is yet another SAFE method to transfer payments on Alibaba.

Once you open a Chinese bank account. Transfer funds to Alibaba. They are ONLY released once you confirm the order has arrived.

Expert Tip: Always read the terms and conditions of each transaction method. That way, you avoid transaction delays or unnecessary charges.

Maria Fernanda Sanchez, Marketing & Technology Manger

Step 8) Deciding on the RIGHT shipping method.

A very CRUCIAL step.

When it comes to shipping, there are two main things to consider:

• Delivery time – varies depending on the speed. Air freight takes SHORTER than sea freight.
• Shipping costs – this includes other Alibaba shipping costs. Such as shipping insurance, custom bonds, port charges, etc

I advise all our clients to take this into keen consideration. Before setting on a particular shipping cost.

I know this can be very confusing…

That’s where Leeline Sourcing comes to your refuge. We are ranked as the BEST China Freight Forwarder in the region. Boasting thousands of SAFE deliveries over the last decade.

We offer Air Freight (2 – 5 business days). Sea Freight (15 – 40 working days). Railway Freight (15  – 40 working days). And Express shipping which takes between 1 – 3 business days.

You also get freight consolidation that further lowers your shipping costs. That, coupled with our 1-month free warehouse package, saves you more money. So you can reinvest back into your business. 

Tips For Buying From Alibaba Safely

Here are a few tips to keep you safe when buying from Alibaba:

1. Check Supplier Badges

Alibaba has made it EASIER for you to spot legit suppliers. You just need to check the badges from the product page.

Here’s an example of a verified pro supplier:

The badge shows that the supplier is satisfied by TOP inspection authorities. And they sell licensed products that are HIGH QUALITY.

Verified Alibaba suppliers MUST pass these checks:

• Product performance and capabilities
• Sales History
• Certifications
• Quality management processes
• Tax compliance
• After-sales services

…and that’s not an exhaustive list. 

That’s how you know you are dealing with REPUTABLE suppliers.

You can also see they have 9 years of experience. And dozens of positive reviews.

Quick Tip: Use the filter option to get verified suppliers in seconds. Just tap on ‘Trade Assurance,’ ‘Verified Supplier,’ and ‘Verified Supplier Pro.’ EASY PEASY.

Also, there are Gold Suppliers on the Alibaba platform. They pay hefty prices to be verified as RELIABLE suppliers. And have a STELLAR reputation from their previous business dealings.

2. Evaluate Supplier Prices

In the world of online business (I’m talking about eCommerce). Greed is what kills most businesses.

Here’s what I mean…

You find a supplier selling water bottles at $2.80 per piece. His MOQ is 30 pieces. Keep in mind this supplier has tons of positive reviews. Maybe even a Verified PRO supplier.

Almost instantly, you stumble upon a supplier offering $1.30 per piece. Zero MOQ. Here, the supplier has no reviews, but the deal is too sweet.

If you were like me when I was new to eCommerce. Of course, you’ll choose the second one.

You order a hundred pieces of the products, and BAM, the supplier, blocks you!

Just walk away when the offer is too good!

3. Use Verified Payment Methods

Another scam hot spot!

Never accept to pay suppliers outside the Alibaba Platform. Just stick to the common payment methods such as Trade Transfer, PayPal, etc.

With Leeline Sourcing, you never worry about such scams.

We deal DIRECTLY with Alibaba suppliers. That means we work with suppliers on your behalf. So, you are dealing with it. That way, there’s no way you can lose!

4. Analyze Previous Buyer Reviews and Ratings

I’ve been preaching this on ALL my guides on buying from online marketplaces.

Take at least 10 minutes on each supplier’s profile. Even when there are gold suppliers. (who knows, maybe they decided to go Bankman-fried on their last 10 customers😅).

Even Gold Suppliers get mixed reviews from their customers. That’s why you should scrutinize EVERY supplier. Whether Verified, trade assurance, or gold suppliers.

Scrutinize what their buyers are saying about their product’s quality. Response times. Overall delivery.

5. Ask For Samples – you can never go wrong with this!

Will you buy a car before testing it? Or, will you purchase a home without visiting it?

While these examples are a bit far-fetched. The same should apply to eCommerce dealings.

I don’t understand why any seller in their right senses. Will spend $10,000+ on a product they’ve not seen (or tested). That’s insane! 

See, even Alibaba gives you an option to order samples from the product page:

I’d rather spend that $10 (varies depending on the product) to test the product performance. Supplier’s response time and mode of operation before placing a bulk purchase.

You can ignore this and place that bulk order. Just don’t go ranting on seller platforms about how you’ve been scammed!

But sometimes, you don’t want to end up buying samples from multiple suppliers. And finding out they are ALL fake.

So, to save you from the hassle. Leeline Sourcing helps you request Alibaba Samples from suppliers we TRUST. So, you save money and time from juggling between different supplier samples.

6. Never Buy Brand-name Products

This is what happens when you decide to buy an Adidas sneakers for $15/piece on Alibaba:

Or a PlayStation 5 for 10 dollars:

With good marketing and fake pictures, you can sell these items in your store. But you’ll have 100% refunds and returns. And HORRIBLE reviews.

I mean nobody wants to rock a ‘nikkee’ to a mall or to a concert.

I advise you to stay away from suppliers offering Louis Vuitton, Nike, or Gucci products. They are complete scum bags. And you’ll lose your hard-earned cash.

Pros And Cons Of Choosing Alibaba  

Pros

• Affordable. Alibaba has lower prices than most platforms operating in or outside Asia. You get wholesale prices as low as $1 per piece.
• Huge product catalog. Alibaba has millions of products spread across different categories. Thus, you source all products under one roof.
• Easy to find quality suppliers. Thanks to Alibaba’s partnership with third-party inspection companies. You EASILY spot HIGH-QUALITY suppliers based on their tags.
• You can customize your products. Just talk to your supplier and tell them your branding needs. That way, you are able to build your own personal brand.

What I Don’t Like

• High minimum order quantities. You can get a supplier with a MOQ of up to 100 pieces. This makes it HARD to order. Especially for new eCommerce sellers or dropshippers.
• Sometimes, quality is not guaranteed. If you don’t partner with a sourcing agent. Suppliers can mess you up. You need eyes at the supplier’s factory to ensure everything is up to par.
• Shipping directly from Alibaba is crazy. Most suppliers use ships to deliver products, which can take months. Agents (e.g., Leeline Sourcing) eliminate this drawback. Since they have their own shipping partners, including air freight and railway freights.

How does Alibaba work?

Alibaba is primarily a wholesale marketplace where buyers make large orders. For relatively lower prices compared to giants like Amazon.

Why Alibaba?

It’s EASIER to communicate with manufacturers. Thus eliminating middlemen and lowering product prices.

Also, you order custom products and add branding. Establish yourself as an authority in the eCom space.

I’ve been sourcing from Alibaba for the past decade. Here’s a quick rundown on how it operates:

1. Create a buyer account and start funding products and suppliers.

2. Select your order quantity and customize your product specifications. These include size, colors, etc

3. Hit up the supplier and negotiate favorable prices and shipping options

4. Order samples 

4. Complete payment and wait for your order to arrive

5. Come back and make a bulk purchase if the sample is TOP NOTCH

SIMPLE – don’t try to complicate it!

Expert Tip: Don’t be afraid to negotiate prices. Just be aware of the current market price. That way, you avoid underpaying or overpaying for any product. Also, it keeps you away from scammers offering EXTREMELY low prices.

Lian Zhao, Founder of Xeng Tech

Why Are Products On Alibaba So Cheap?

It’s very common to see items going for as low as $1 per piece. 

I know this might seem suspicious. But there’s no reason to panic. Here’s the real reason why Alibaba is so cheap:

• Lower production costs

Most of the supplier/ manufacturer’s factories are located in China. Hence, there is an abundance of labor. That, coupled with the overall low wages, decreases the production costs. And, in turn, the product costs.

• Deal with manufacturers

I’ve already said this two times in this article. Most manufacturers operate on Alibaba. That way, there are no middlemen or suppliers looking to make profits. So, you can get the original prices of the items – quoted by manufacturers.

• Bulk purchases from customers

I was yapping about how most manufacturers have HIGH MOQs.

This helps them in quoting lower prices. Since they don’t have to sell one item at a time. Which is often expensive and labor-intensive.

Just don’t fall into the trap of UNIMAGINABLE low prices. Say, a King Size bed going for $20!!Expert Tip: “Quality is key. You can’t build a reputation on cheap, unreliable products.” – Gary Vaynerchuk, American businessman.

How To Open A Dispute If You’re Not Satisfied With The Products?

I once received a product from my supplier that had quality issues. The first thing I did was open a dispute for such items. Do this if you want assurance of a partial or full refund. 

You can find the option Apply for Refund and fill out the form to create the dispute on the order details page.

How To Avoid Alibaba Scams Successfully?

First things first, let’s go through the common types of scams on Alibaba:

Payment scams

I’ve been a victim of this.

The suppliers asked me to send money directly to their bank account. I was new to the game. And that’s the last time I heard from the supplier.

My Advice: Stick to the payments provided on the Alibaba platform. Again. don’t listen to the BS suppliers asking for payment through Bitcoin or other Crypto.

Pricing scams

Allow me to reiterate…

CRAZY low prices are a red flag. 

My Advice: Go for the supplier with GREAT reputation and verified badges.

Shipment scams

Avoid suppliers who don’t provide tracking numbers. They tend to have WACK shipping processes. And goods can arrive months later.

My Advice: Partner with a freight forwarder from China. For example, Leeline Sourcing. We have air, sea, and railway shipping options that guarantee FAST shipping. Plus, you get tracking numbers to monitor your package’s movements.

How To Dropship From Alibaba?

Alibaba dropshipping is very EASY.

I’ll give you a gross oversimplification of the entire process:

1. Pick a niche and find a winning product. This is a very CRUCIAL step. You can use tools like Jungle Scout, Google Trends, and Social Media. Alternatively, you employ a dropshipping agent to source guaranteed selling items.

2. Find products on Alibaba. Self-explanatory. Just type in the product keywords on the search bar to find products.

3. Pick and contact a LEGIT supplier. Check out for verification tags on the supplier’s profile page. Check their ratings and policies. And shoot them a message with your requirements. Negotiate prices and close a deal.

4. Ask for a sample. Self-explanatory.

5. Place orders and ship DIRECTLY to your customers.

Expert Tip: Dropshipping is a VERY competitive space. So, you need to stay on top of market trends to gain a competitive edge. And enjoy PROFITABLE sales.

Yoyo XU, Supply Chain Manager

Suggested reading: Best Dropshipping Agent In China

Suggested reading: AliExpress Dropshipping

Suggested reading: Best 20 China Online Shopping Sites to Buy Wholesale

How To Find Alibaba Private Label Suppliers?

If you have product ideas, you can create custom products to build your own brand. Private label suppliers allow you to get IP rights of the custom product and label inventory with the company’s logo and details for your private label business. From experience, some suppliers even provide custom packaging to resonate with your brand identity. 

To uncover the Alibaba private label sellers, you can insert the product name and try the filter of Supplier Type. Alternatively, you can message sellers directly to negotiate prices or customize your products. You will get all the vendors who allow private label products and sell them on your own website.

Suggested reading: Best 30 Sourcing Websites

Suggested reading: Best China Products To Import

Suggested reading: China Import Agent

People Also Ask About Buying From Alibaba

What’s Next

The emergence of Alibaba has made importing from overseas countries as easy as online shopping. Alibaba can be a great place to source products to sell online for your eCommerce store. But not all suppliers on Alibaba are genuine, some may be sold low quality products. What you need is to trade safely to prevent fraudulent activities.

If you have experience regarding shopping on Alibaba, that is great. In other cases, you can learn how to deal with trading companies on Alibaba.

LeeLine sourcing has years of experience and facilitates a safe buying experience on Alibaba. Hit us a call right away!