A few weeks ago we wrote about the rise of e-commerce in China. A country that has stepped on the accelerator to become one of the world powers in e-commerce.
So much so that the founder of Alibaba, the e-commerce giant, already outsells the historic Walmart, the U.S. chain.
From this matrix arise other companies such as AliExpress, Alipay or Taobao, all destined to fill the world with products made in China. We know it is useful for the end consumer, but can we use these portals for our businesses?
The main portal, Alibaba, allows buying and selling and is the most focused on the international market. One of its satellite companies, Aliexpress, only allows you to sell products if you reside in China. As for Tabobao, it works as a platform where individuals and companies can open online stores.
What may be the interest in importing through Alibaba? Take advantage of the price difference to obtain an economic benefit. Buying large quantities of a product in China to sell it at a higher price in Spain.
How to buy on Alibaba
The first thing to understand is that Alibaba does not sell retail. Anyone who wants to buy, for example, 5 state-of-the-art phones, can do so elsewhere.
This portal serves as an intermediary for companies. One company is looking to sell in China and another is looking to buy in Spain.
Most suppliers are either wholesale exporters or direct manufacturers. You must always place a minimum order, Minimum Order Quantity.
Of course, there will be many suppliers offering the product we want, but we must be careful. A mistake in our choice can literally cost us dearly.
At MingTa Group, we always recommend filtering the suppliers so that the portal shows us the ones qualified as Gold Suppliers. These are those that have been verified by the portal; it does not mean that they are the best, but they do reduce the chances of fraud. The years of experience with this product can also serve as a reference to trust this supplier.
The seemingly most straightforward option is to open a chat with the provider of interest, but it is not efficient. It is possible to waste time talking about prices and deadlines and then decide that it doesn’t fit you. It is better to write en bloc to several suppliers that interest you and with their answers on the screen, choose the one that suits you best.
In any case, if once chosen you are asked for payment too soon or in an offshore account – or you notice other out-of-place behavior or requests – it is best to stop the process and look for another provider.
One key to buying wholesale on Alibaba is patience. Considering that only large quantities of products can be purchased and that they will often be manufactured after the order, the whole process – manufacturing, shipping, receiving, payment… – can take several months.
Selling on Alibaba is the opposite process. You must register, detail the product you want to sell and wait for it to be approved by the portal. From there, you will be able to receive purchase requests.
As you can see, it is a process that is simple at first glance, but you have to take care of all the steps to choose the right supplier, choose the right merchandise, make sure it is shipped and arrives at its destination?
A process in which MingTa Group has experience and will be happy to help you.
