Alibaba is an online marketplace that allows businesses and individuals to buy and sell goods, both locally and internationally. Look for the product you are interested in and a verified supplier with sufficient transaction history. Contact the supplier to negotiate unit prices, minimum order quantities, and delivery methods. Use a low-risk payment method, such as Paypal or a joint account. If you are importing goods from other countries, use a Customs Service Management Company (PPJK) to expedite the excise permit process and the obligation to pay for goods.
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Part 1 of 3: Finding Products
Step 1. Create an Alibaba account
Visit the Alibaba site and log in if you already have an account there. If not, visit the registration page and follow the on-screen instructions.
- You don't need a wholesaler's license to create an account. However, If you are selling items taken from Alibaba, please comply with local tax/business laws and regulations.
- If you are domiciled in the US, seek help obtaining a business license and tax number from the US website. Small Business Administration. For those who live in Indonesia, search for tax regulations at www.pajak.go.id or www.kemenkeu.go.id.
Step 2. Find the item to buy
There are many ways to search for a product on Alibaba. The easiest way is to enter a keyword or phrase into the search box on the main page. Select the “Products” tab, enter what you are looking for in the search box, select your country, then click the “Search” button.
Categories on the left side of the main page can also be used to search for products. Hover over a category, then click a subcategory to browse the products within it
Step 3. Filter the search results
Product and category searches can return thousands of items. This will take your time. For that, use the options on the left side of the search results page to narrow the search so that the results are more specific and fewer.
- For example, the keyword "jeans" will return 500,000 results. Therefore, check the "men's jeans" or "denim" box, then add a number of other keywords (such as the color of the jeans), so that the search results are much smaller and make it easier for you to find the product in question.
- You can also filter the search results by the supplier's country of origin. It is useful to look at domestic suppliers, which can reduce product costs and delivery times.
Step 4. Search for items by supplier
Instead of by product, use the “Suppliers” tab next to the search box. This step will display suppliers who specialize in the product you are about to purchase.
- If you have already purchased from a supplier, or know a supplier that is right for your product, also use this search tool to find it easier
- The search results page can also be filtered so that the results are based on the supplier's country of origin.
Step 5. Submit a Request for Quotation (RFQ for short)
You can also request a quote that fits your product needs, then compare it directly with several suppliers. Click “Submit RFQ” and enter your request in the space provided.
- Enter the keywords and the number of items to be purchased in the space provided. You can also include other relevant product specifications in the message body.
- Under the message body, add details of the delivery destination and the payment method you are interested in.
Step 6. Check the verification badge on the supplier profile
Once you find a supplier from a search engine or by RFQ, visit their profile page to make sure it's legit. A useful profile badge to ensure that you will use the services of a verified supplier:
- A&V Check indicates that a supplier has passed authentication and verification inspections by Alibaba and third-party verification services.
- Onsite Check ensures that Alibaba staff has inspected the locations of suppliers based in China and ensures that supplier operations are actually taking place.
- Assessed Supplier Check records that a supplier has been verified by a third party service.
Step 7. Search the internet for complaints related to suppliers
Apart from checking profile badges, you can search the internet for information about suppliers to avoid fraud. Look for comments or complaints about the supplier. You can also check on Google the information listed on the Alibaba profile.
Avoid suppliers whose email addresses don't sound businesslike, such as Gmail or Yahoo emails
Step 8. Look for suppliers who have warehouses in your country
Suppliers on Alibaba are spread across many countries. To narrow your search, look for suppliers within the country, or those with warehouses in your country. This will shorten delivery times and eliminate customs fees.
There are many suppliers who have warehouses in the US but not in your country. If you choose one of these suppliers, you will have to work with them to arrange customs clearance using Alibaba's Freight Logistics. After all, it is much better if you use PPJK services to handle excise duties on products from abroad
Part 2 of 3: Communicating with Suppliers
Step 1. Contact the supplier and fill out the message form
Click the “Contact Supplier” button then write the title and message content. The message you send must include all questions about the product you are about to purchase along with a purchase request.
Alibaba purchases are generally processed in English, but it's a good idea to write clear messages and free of grammatical errors. Suppliers may use Google Translate to translate your message. So, avoid potential errors in your messages as much as possible
Step 2. Negotiate the minimum order quantity
Existing goods usually include the price per unit and also the minimum order quantity (minimum order quantity, or MOQ). Both can be mutually agreed.
- When you contact the supplier, ask if your smaller purchase quantity can be met. For example, instead of a product MOQ of 500 units, ask if it can be reduced to 400 units.
- You can also ask for discounts on bulk purchases. Purchases in bulk generally get supplier discounts. If buying in bulk will reduce your costs and you're sure you can handle it, ask the supplier for this discount.
Step 3. Check the price listed
You also have to make sure if the price listed is FOB, or Free On Board. That is, the seller pays the costs related to transportation to the port of loading and the buyer pays the costs related to transportation from the port to the final destination.
- Ask suppliers to provide more accurate FOB for larger purchase quantities to your location.
- All prices and postage on Alibaba are calculated in US dollars. Contact the nearest bank or money exchange service to find out your currency rate, or use this site:
Step 4. Negotiate the price and payment method
You and the supplier can negotiate the currency of payment and the method of payment. If necessary, exchange your money at the bank for US dollars. The exchange rate listed at the bank is still negotiable.
Ask the supplier for a unit price discount, and reassure him that if you are given a discount, you will continue to use his services for your next purchase
Step 5. Ask for samples
When contacting suppliers, also consider asking for samples before agreeing to purchase a particular product in bulk. That way, you can check the quality of the product before buying hundreds or even thousands of units.
Ask if the supplier has product samples and sample prices (if any)
Step 6. Click the “Send” button, then check your outgoing mailbox
Don't forget to check the spelling of the body of the letter before clicking this button. Then, check the outgoing mailbox to make sure that the message has reached the supplier.
If your mail is not in the outgoing mailbox, resend your message. To avoid rewriting the message, copy and paste it in a separate document (such as Word or Google Docs) before sending
Part 3 of 3: Completing Secure Transactions
Step 1. Use a low risk payment method, such as Paypal
Low risk options should be discussed when you negotiate payment methods with suppliers. The best payment method is Paypal, or letter of credit (via bank) for purchases over 20,000 US dollars. You can also use third-party joint account services, such as Alibaba's secure payment service. This service will hold your money until the goods have been received.
- Only suppliers located in mainland China, Hong Kong and Taiwan are entitled to use their secure payment services.
- Avoid transferring money via Western Union. This service should only be used to send money to people you know well.
Step 2. Calculate and pay for the shipping cost of the product
Alibaba's Freight Logistics makes it easy for suppliers to determine and pay for shipping products overseas. You as the buyer pay the transportation costs to the supplier. Ask the supplier to log in to Alibaba and go to the Logistics page so they can give you an accurate estimate of your excise duties and taxes.
- Duties and excise taxes vary depending on the location of the supplier. Remember, you can choose a domestic supplier to avoid paying transportation costs overseas.
- You can also find out the excise cost of goods using a special calculator. Enter product information as well as country of origin and destination into the appropriate fields on the following website:
Step 3. Use PPJK services
Even though suppliers use Alibaba Logistics to handle transportation costs, you still have to use PPJK services to ensure that the excise fees you pay are appropriate and that you hold the ownership rights to the product.
- Excise fees can cost hundreds of US dollars, but these are nothing compared to excise violations that can cost thousands of dollars in fines, not to mention other penalties.
- If you live in the US, you can find PPJK using the search tool at the National Customs Brokers and Forwarders Association of America. If you live outside the US, find out this information at www.beacukai.go.id.
Step 4. Have your goods shipped from the port of destination
If your goods are shipped by sea in freight containers, you must arrange for transportation from the port to your location. Alibaba's Logistics page can help you ship products across islands using carriers such as FedEx or trains, depending on your location. If you live relatively close to the port of destination, the cheapest option is to hire a truck service or rent a truck to pick up your goods.
Step 5. File a purchase dispute if your transaction turns out to be inappropriate
After receiving the goods, check the quality thoroughly and make sure the quantity you receive is appropriate. If the number is incorrect or you can prove that the product received is of lower quality than advertised, file your complaint with the Alibaba help center.
- You are required to send photos of the goods showing the non-conformance, preliminary agreement, payment documents and any correspondence between you and the supplier.
- Research the supplier first before you agree to a transaction. This makes it easier for you to ensure that the goods to be purchased meet your standards. Make sure the supplier is verified. Remember to search the internet for complaints against suppliers, as well as comments from past buyers.
Step 6. Avoid buying branded goods on Alibaba
Branded goods sold on Alibaba are most likely counterfeit. Reselling this item risks breaking the law. You should buy branded goods directly from the relevant brand if you are going to sell them at retail.
