Is Alibaba Safe and Reliable? Is Alibaba legit?

ALIBABA GROUP is expected to generate 3.99 trillion USD in sales by 2026. (A report from Statista.) Among these, the TOP one is the ALIBABA WEBSITE, where most shares of sales occur.

But one QUESTION, IS ALIBABA LEGIT?

It is LEGITIMATE. You might wonder how? No worries, I will explain all the STEPS in detail.

Our Experts at LEELINE SOURCING have helped sellers get wholesale products. When you buy from ALIBABA, we help you find a RELIABLE supplier. Smooth trading will ENSURE 100% safety. You make MORE PROFITS.

Want to know more?

Let’s explore the legitimate STATUS of Alibaba.

What is Alibaba?

Alibaba is, in fact, China’s, or to some extent, the globe’s largest online trading company. It has three leading websites that are Taobao, Alibaba.com, and Tmall.

Alibaba site contains millions of retail customers. They also treat millions of legit suppliers as well as businesses.

The business model of  Alibaba deals with more businesses. The company focuses on B2B trades. You can check Alibaba reviews for surety.

Suggested reading: How to buy from Alibaba?

Suggested reading: 1688 vs Taobao

Is Alibaba Safe and Reliable?

The short answer is yes. Alibaba is, without any doubt, safe. But the more extensive explanation is Alibaba is absolutely safe if you learn the signs to consider. It is necessary to opt for the correct merchant.

The riskiest barriers to locating the right supplier are the intermediaries and scammers.

By good luck, it is not hard to ignore these signs.  I focus on reviews and feedback from individual suppliers. It helps me to filter out bad suppliers without any cost.

Is Alibaba Legit?

So is Alibaba safe and legit? Alibaba is among the biggest e-commerce sites in China or maybe the world.

Of course, it is legitimate.  I have done many imports and sourcing from Alibaba suppliers. Always been satisfied and have not faced any major problems with it.

You might wonder how I haven’t faced a SINGLE SCAM. Believe me; it is pretty simple. Alibaba has a bunch of SAFETY OPTIONS to find reliable suppliers.

Here are many reasons why Alibaba suppliers are safe.

Alibaba Trade Assurance

Alibaba Trade Assurance gives the surety of 100% safe trading. For example, I ordered a supplier through TRADE ASSURANCE.

If a manufacturer sends me low-quality products, I can create a DISPUTE. Alibaba gives up to 100% refund.

Verified Alibaba Sellers

These are not just a group of TRADING sellers. Instead, the Alibaba team verifies the factory status of CHINESE TRADING COMPANIES.

Suppose the supplier’s company has QUALITY MANAGEMENT SYSTEM. Then they get a permit from Alibaba inspection to sell online. Moreover, such a trading company pays a FEE to Alibaba also.

A verified supplier makes ALIBABA a legitimate site.

Suggested reading: Made In China VS Alibaba

Why Is Alibaba So Cheap? 

Today I CHECKED the sneaker prices. You won’t believe it; I was just STUNNED by the prices. Prices ranged from $1.79 to $7.95. Some Alibaba suppliers have no MINIMUM ORDER QUANTITIES.

Such low prices, I think, are impossible. But LATER, I have found many reasons for such low prices.

Lower production cost

Lower production cost is due to lower labor costs. Excessive workers decrease the overall cost.

Bulk Inventory Orders

Bulk order makes the overall cost low. Therefore, you get wholesale prices.

Low-priced raw materials

China is the world’s factory. That is why raw material prices are very low.

How Does It Work?

Alibaba is an excellent website for finding QUALITY PRODUCTS. It allows the sellers to find the TOP SUPPLIERS by applying different filters on the website.

What I like the most is the ALIBABA APP. It allows:

• Communication with suppliers. Alibaba app helps in messaging the suppliers about the products.
• Get RFQs. You can get quotes from multiple suppliers. It helps CHOOSE the right price. And avoid poor-quality suppliers.
• Create Custom products. You get the custom inventory. I have got logos on MANY of the products.
• Buy Private Label inventory. They help you get private-label products for branding.
• Significant Cost Savings. Wholesale prices save significant costs.

6 Common Scams When Ordering From Alibaba

Here are all the details for ordering from Alibaba.

1. Get your payment but don’t ship your products.

Most Alibaba users fear the fraud of paying money wont. Sometimes, you’ll find your products non existent when you search the logistics.

Yet not receiving branded products such as led watches when buying from Alibaba. It is the most common fear and risk people face while shopping from Alibaba.

But, it is, in fact, impossible for such things to occur amongst Chinese vendors selling on Alibaba.  I go with third-party inspection before shipping to ensure promised products. It also filters out damaged and low-quality products. Double Win-Win for me! 

Suggested reading: Alibaba payment

2. Wholesale price to attract you but raise the market price before placing an order

When the cost is, of course, lower compared to the market place cost for your sample product catalog, please consider it. You will not be notified that your order’s verified price is unavailable.

After you have set up the sample and you are prepared to place the online orders. But, in an instant, the cost increases. To ignore this risk is not working with Alibaba sellers whose online store promotes low prices.

I always discuss prices in legal contracts to avoid any potential situation. Filing a lawsuit is easier for me if they act against their promised prices. 

 3. Lower price to attract you but ripe you off on shipping fees

So you want to learn the truth?

Indeed, there are various very low price freight agents in China who own transit buses.

Such as firms like DHL. They, in general, need longer times for transit. A Chinese supplier can obtain lower shipping costs from these agencies. The major problem is that Alibaba does not require a business license leading to scam people.

After that, report those to you at a greater rate. Do not put all your eggs into one basket, you should know that.

4. The sample is good, but send you bulk order mixed with defective and low quality products

Maybe, the sample they sent to you is in excellent condition.

But defective items often get incorporated in with the Alibaba bulk items. The look of those faulty custom products may not appear to be a huge issue.

But their performance or lifespan becomes worse over time. So you’d better prepare a written evidence or due diligence early to prevent no brainer and poor quality products. Once happened, you’ll spend more money to hire a extra layer.

5. Sell fake or intellectual property infringement products

There are many vendors on Alibaba who sell imported items at an affordable rate.

For example, DJI Drone, electronic appliances, and mobile phones. Such types of items contain intellectual right problems. They are hard to go through customs as well.

Kindly do not rely on your luck and become obsessed with the low cost products if you do not own a particular channel.

Suggested reading: How to Avoid Alibaba Scams?

6. Agree on Trade Assurance initially, but refuse before placing an order. 

At first, a particular vendor accepts payments through Trade Assurance.

But once you place your order, they may ask you to make the offline installment. Or they use the excuse of lack of installments or charge you other fees.

If this occurs, do not pay outside of Alibaba online store. This kind of operation outside risks the security you get from Alibaba Trade Assurance.

I only go with trade assurance to be safe from any potential risk. I know it’s a 3% commission of trade assurance, but it is worth every penny I pay. 

How To Buy From Alibaba Safely

1. Review the Company Profile

All the manufacturing company profiles contain all the essential information in the free Alibaba accounts of the company.

The information is confirmed and not confirmed by Alibaba. You are good for purchasing products if there is a verified mark on the gold supplier status.  I apply filters of gold suppliers or verified suppliers to only deal with them. I don’t even consider other suppliers except if they have good reviews. 

If there is not any verified mark, we suggest you own research from top to bottom about the company.

Suggested reading: Top 10 Chinese Manufacturing Companies

2. Pay with Alibaba Trade Assurance

These are the stages for paying by utilizing Trade Assurance as per Alibaba.

1. Place the order with the Trade Assurance vendor
2. Pay the vendor through the steps mentioned on Alibaba
3. Get your delivery date
4. Leave your feedback for the order and the vendor.

While you look for a vendor, the one with the Trade Assurance mark.

So place your order the same way you do with all other vendors. There is not so much to do for you since Alibaba secures your order and payment.

But remember: once you pay with your bank card, Alipay, or Paypal account, your order is secured. One other method to be sure of Alibaba is to ensure the vendor accepts safe ways of payment.

Suggested reading: Alibaba trade assurance

3. Use safe payment methods to pay on Alibaba

The legit Alibaba manufacturers and potential supplier accept the following methods of payment:

• Alipay (entirely secure)
• Paypal (most secure)
• Bank cards (completely safe)

Yes, you may also pay using bank cards. In all honestly, you are 100% secure just by ensuring the payment conditions on Alibaba are secure.

Until the items you receive. If you do not get your own products, Alibaba will give you your money security back.

Then, it will file a dispute with the vendor for your sake.  I don’t consider any request from the supplier If he tries to negotiate outside the platform. Only interact on the platform.

4. Collaborate with reputable suppliers

There are numerous types of gold suppliers provided by Alibaba. The vendors have to go through some different phases to get verified. There is not a full assurance of excellent product quality.

But when you search for vendors with the three main ratings mentioned below.

• Gold Supplier Membership. Verified Gold suppliers on Alibaba pay an expensive cost for being pre-qualified.
• Trade Assurance Supplier. Having this sign means that you can now be sure the goods are verified before shipping. 
• Assessed Alibaba Supplier search. The 3rd-party investigator has visited the supplier. 

You must be aware of vendors who ask for payment before sending you the goods.

One other method is to check quickly if the Alibaba supplier agreed is okay to operate with. You have to check if the gold supplier has a verified mark on it.

Also, make sure to check if the supplier is Gold. Check the following factors to be sure of supplier assessment.

Steer clear these two types of Chinese suppliers

• 1. Hot-selling-type trading company

These vendors are, by and large, small Alibaba trading companies in mainland China.

Once they purchase products, they upload their product images to the Alibaba website.

But they do not have stock accessible for such suppliers.

• 2. Grocery-type trading Supplier’s company 

The con of such Chinese suppliers is that they contain an assortment of products they offer—select supplier specializing in it.

Suggested reading: Alibaba gold supplier

5. Control the product quality

 While opting for Alibaba China online shopping, quality is the leading risk. If the vendor uses QMS, or Quality Management System, for example, ISO9001, that is great!

ISO compliance agreement is not having a quality check before packing and shipping the products. The vendor must inspect the raw materials along with substances before producing products. Also, they should set up an inspection station for the exact product. In the end, do a final review of the product ideas.  I suggest going with an inspection of every product. It filters out damaged products, and you also get a report of the supplier’s quality.

6. Avoid Brand Company Name Products

Last but not least, while going through vendors and expecting to get a great one for working. Search for those Alibaba agent who claim to provide original brands.

On the whole, certified goods are unavailable on Alibaba.

Hence, if you come across a vendor purporting to sell popular brands. Such as Coach, Nike, Louis Vuitton, and so on. There is an excellent chance that they are trying to scam you.

Or in turn, if you export such goods, you might be subject to lawful action. Hence, look out for vendors who purport to provide you with access to famous brands at affordable rates. The possibility is that you can end up in problems.

7. Requesting a Quote 

These are some essential queries to take into account for your e-mail address of the testing steps:

• Minimum Order Quantities (MOQ)

If you see, the minimum order is for 60 pieces. You may negotiate a smaller quantity with the supplier. Also, the vendor can export some products for free when you ask them about Minimum Order Quantities. I advise to with small quantities first. Then raise your order size gradually. 

Suggested reading: China Export Agent

• Pricing For Samples

Ensure to ask their cost for each unit if they send their samples to you because it is often greater than their overall prices.

• Production Pricing

The production line cost may vary, starting from $1 up to infinity. Get discounted prices to rely upon the large order that you have placed.

• Payment Terms 

You may need to ensure that the vendor agrees to the payment terms you are comfortable with. When they disagree, you must select suppliers who do. I make sure my trade terms are in my agreement. It helps to avoid any future issues. 

Suggested reading: Alibaba rfq

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How To Dropship From Alibaba Safely

Alibaba is a wholesale site. Most people won’t have an idea of the dropshipping aspect. But I am sure you’ll be SURPRISED if you know about Alibaba dropshipping.

You can find the verified gold suppliers with NO minimum order quantity. Select suppliers based on their TRANSACTION HISTORY. Send the customer’s address to the supplier. And get the ORDER fulfilled. 

I have saved up to 150% per PRODUCT. For example, I sold $10 apparel for $25. That is a straight 150% profit in my POCKET.

Do you want to know about dropshipping in detail?

Please read our detailed guides for dropshipping MODEL on Alibaba. And the Step-by-step process to fulfill ORDERS on time.

 How To Find Legit Alibaba Suppliers?

Buying from ALIBABA is a very risky task. It is risky until you FILTER OUT some risk factors. 

Here are some tips for selecting most suppliers.

1. Work with Verified Suppliers

A verified SUPPLIER on Alibaba has to go through the proper testing process. You must leave the NON-VERIFIED out of your search.

Alibaba inspection team VERIFIED the following statuses of the multiple suppliers.

• Basic profile: It includes the company’s business info. 
• Company overview. It includes whether the trading company is a supplier or manufacturer.
• R&D capabilities. It shows the recent approach of the company to the products and employers.
• Quality Control. How is the quality process of an Alibaba supplier?

All these factors filter out the SCAMMERS. You can avoid Alibaba scams effectively by doing a supplier assessment.

Suggested reading: How to Find the Best Manufacturers on Alibaba?

2. Check the supplier and product reviews

Checking reviewings and ratings do two things:

• Assess the SUPPLIER’s product quality.
• Help DIFFERENTIATE A potential supplier from others.

Sometimes, you often see a GOLD SUPPLIER STATUS on some trading companies. Such suppliers have to go through VERIFICATION with some background checks.

Gold suppliers are RELIABLE to some extent but not fully. Checking reviews can LAND you the BEST gold supplier in the market.

Therefore, you should check the SUPPLIER reviews.

3. Trade through Alibaba Trade Assurance

I always RECOMMEND sellers find a trade assurance supplier.

The REASON?

It is a program with 200% safety. You get full REFUNDS if Chinese suppliers send LOW-QUALITY apart. 

MOST IMPORTANTLY!

You receive refunds on late shipments as well. Don’t you think you are safe? Trade assurance protects me WHEN I PURCHASE PRODUCTS from Alibaba wholesalers.

More important than that!?

It is super easy and 100% FREE. You can apply FILTERS in your Alibaba supplier search.

4. Hire An Inspection Company

Product Inspection services are the GAME CHANGERS. Do you believe it?

No!? Let me tell you about my experience.

A month ago, I received QUALITY products from the Alibaba platform. Later, I hired the LEELINE SOURCING TEAM to inspect my branded products. My AQL was 3%. To my SURPRISE, they helped me achieve the QUALITY target.

Later on, I made tons of sales with my own PRODUCTS. There are a bunch of such stories with many sellers on Alibaba.

You should hire a third-party inspection company. They Help You GET the expected quality. And remove POOR QUALITY products.

5. Use Secure Payment Methods 

I have already mentioned the TRADE ASSURANCE. You can pay a supplier through TRADE ASSURANCE. When creating a refund request, it becomes super easy to get the MONEY back. 

A CHINESE SUPPLIER can scam EASILY. Therefore, avoid using a method of directly transferring funds to a particular supplier.

However, one of the SAFEST OPTIONS is a credit card or PayPal account.

Why?

Because a credit card company reverses the TRANSACTION. The same can do the PAYPAL.

Avoid using other PAYMENT METHODS for your eCommerce with a scam risk.

6. Scan Product Price 

Purchasing TOO EXPENSIVE products is a POISONOUS snake for your online business. 

Seeing the lowest price is SOMETHING FISHY. Avoid it!

A product has a specific production cost. Therefore, you should look at the PRICE from multiple wholesalers. If production pricing justifies the wholesale price, GREAT!

Otherwise, better RUN RUN RUN……..

You should check the cost. Contact suppliers. And get the shipping FEES. Measure all the other safety parameters. And then buy the products.

Tips For Selling Successfully And Safely On Alibaba

Do you plan on selling at ALIBABA? 

Here are some tips for safe selling on Alibaba.

• Use Alibaba for Messaging

Alibaba has a website and app. Everything is STREAMLINED AND SUPER SMOOTH.

To KEEP ALL the risks away, use Alibaba Messaging right away!

It will keep your chats private and secure. Easy trades and payments will occur. No phishing messages are received on Alibaba.

Therefore, you should USE ALIBABA APP to communicate with buyers.

• Keep your personal information away

Personal things, don’t bring!

It is 200% true here. Some retail customers don’t have an ACTUAL BUSINESS. They might try to get Personal Information from you. Later you’ll be BLACKMAILED.

Solution?

Keep it miles away, be on your way!

It is the RISK-FREE strategy you should try. Your information will be SAFE. And you’ll make more sales without risks.

• Hire a Reliable Shipping Service

Do careful research, get the BEST shipping company on the verge!

There are hundreds of shipping companies. SOME DO OFFER tracking facilities. And tracking wins your customer’s trust.

Look around. Sort out all the TOP companies. Check prices. And work with a company that offers LOWER rates than the market price.

• Don’t get paid outside of Alibaba

Many sellers make mistakes; out of ALIBABA, they try to get paid!

It is one of the biggest blunders. While paying, a scammer can extract all the INFORMATION. Your bank accounts might get hacked

• Report suspicious buyers

Poisonous things are often delicious; report a buyer that is suspicious!

Some scammers don’t act like humans(they try to be more EINSTEIN). They will give your incorrect addresses. They try to pay you more.

It is better to DOUBLE CHECK ADDRESS. Scroll the transaction history. And read reviews of other sellers on the buyer’s PROFILE.

FAQs About Is Alibaba Legit

What’s Next

How safe is Alibaba? Look, Alibaba is quite a safe platform. That’s why hundreds or even thousands of suppliers are working on this platform without a second thought.

If it weren’t safe, you wouldn’t expect such numbers of most suppliers and other buyers. Also, you can visit canton fair to get more initial outreach.

However, if safe trade is your concern, find verified suppliers. LeeLine Sourcing has more than ten years of experience dealing with Alibaba suppliers.

If you’re going to buy from Alibaba or find factories for finding suppliers, hit us a message right away!