Alibaba is a substantial online eCommerce platform that connects you directly to the suppliers so you do not have to go through mediators. The platform has a massive collection of a range of products, both small and big. No matter what it is that you are looking for, you are sure to get it on Alibaba. The best thing about using Alibaba is that it eliminates the need to go through intermediaries and helps you get the products directly from the suppliers, reducing cost.
This platform is perfect for those who are into the reselling business. Whether you have an online or physical store, you can trust Alibaba to provide the products to you are excellent rates. You can get the products in bulk and save a lot, thus increasing your profit margin.
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How does Alibaba work?
Using Alibaba and getting products from the platform is very easy. It is an excellent platform for both businesses and individuals to get products from. You can get the products at wholesale prices from the platform quite easily and directly from the manufacturers. Here’s how it works:
- You most probably already know the kind of product you want to purchase and the category it belongs to. So the first step is to determine the product category from where you want to buy.
- There are tons of categories available on Alibaba, such as Apparel, Electronics, Health & Beauty, and so on. The next step is to find the products that are displayed in these different categories to check out the ones that work for you.
- Once you find suitable suppliers, the next step is to contact them. By contacting them, you can also negotiate the prices.
- Finally, when you are happy with the product and the supplier, all that there is left to do is to place your order.
- When you receive the order, it is time to resell it on your store/platform.
Is it safe to buy from Alibaba?
Alibaba, as a platform, is very safe. However, when you decide upon a supplier, it is very important to run a verification. You need to know whether the supplier is a legitimate one or not. Although the platform is safe, you may chance upon a scammer. So, to protect yourself, you need to run a thorough check on the supplier.
You can also buy from suppliers using Alibaba Trade Insurance. This is an excellent policy that is meant to provide you with protection in case your products do not arrive. Under the insurance, your shipments are protected by Alibaba and the platform takes full liability in case of non-arrival. Alibaba also handles any disputes between sellers and buyers and also guarantees full money back in case your products do not meet your expectations and requirements as mentioned by the seller.
What are the advantages of buying from Alibaba?
There are so many advantages of buying from Alibaba. Here are a few that may entice you to give Alibaba a try -
- You can design your own custom products, giving them your touch of individuality
- You can buy the products in bulk, directly from the manufacturers
- The prices are extremely low and affordable
- The manufacturing costs are low
- You can choose from a huge number of manufacturers and suppliers
- You can shop for whatever you need right from the platform
How to pay on Alibaba?
The different methods of payment on Alibaba -
- Bank Transfer
- Escrow Method
- Alibaba Payment Links
- Alibaba Payment Terms
- Alibaba Online Transfer
Bank Transfer
This is a very easy method of payment on Alibaba. The first step definitely is to confirm the bank account details of the supplier that you are dealing with. The details that you need to confirm include the following:
- Name of the beneficiary
- Address of the beneficiary
- Bank account number
- Name of the bank
- Address of the bank
- Swift code
- Country
Using all these details, you can transfer the payment to the supplier in US dollars. As per the norms, it usually takes 2 to 4 business days for the payment to reach the supplier.
How to avoid fraud when using Bank Transfer?
The easiest way to avoid any fraud or scam while using this mode of payment is to transfer money only to the bank account that matches the company listed on Alibaba. Never transfer money to another country or other individuals/businesses that are not associated to the supplier as mentioned on alibaba. You should avoid doing this even if the details are provided to you by the supplier.
Escrow Method
This is probably the safest mode of payment that Alibaba offers. Under this method, your payment will be held by Alibaba until you receive the product and are happy with it. Alibaba will release the payment to the supplier only when you have confirmed that the products have reached you in good order.
In case you, as a buyer, reject the products, the payment is withheld by Alibaba. However, in order to receive a refund, Alibaba requires you to back up the rejection with proofs. It is always advisable to read the product description carefully. You should also not ignore the comments and reviews left by previous buyers. It is always a good idea to first order some samples before placing a bulk order.
You can make the payments under the Escrow Method using your Debit or Credit card that is issued by MasterCard or Visa.
Read also: Aliexpress payment methods
Alibaba Payment Links
Alibaba has made it possible for suppliers to create invoices directly using their account on Alibaba. Doing this generates a payment link that you can use to make your payments. The payment link takes you to the online invoice, using which you can make your payment. The link expires in 72 hours.
Benefits:
- This payment method is very safe as you can be sure that the payment you are making reaches the supplier directly. There is no chance of the payment being directed to other employees.
- Bank transfers cause you high fees. This is not the case with payment links; the transaction fee is quite low.
- There are no delays. The payment reaches the supplier instantly.
Alibaba Payment Terms
This is a payment service specifically for buyers in the US. Under this method, buyers do not need to pay the entire amount in advance. Instead, they can deposit a small fee (usually 30 percent of order value) and then pay off the remaining balance in 60 days. This is an excellent initiative for small business owners. This payment method allows them to improve their cash flow instead of parting with their capital right at the beginning.
It is quite easy to apply for this method. Everything is fulfilled online. You also do not need to go through extensive paperwork or wait for weeks before your application is approved.
Here I have listed some benefits of using this payment method:
- The application process is quick and easy. All that you need to do is fill up a two-page application form online. You do not have to wait weeks before your application is approved.
- You can fulfill your payments in up to 60 days, which is great for businesses that need to take care of their cash flow. As a buyer, you can easily decide how you want to handle the money and make the payment.
- If you pay the amount within the time frame of 60 days, the services are made completely free by Alibaba. This means that unlike other methods of payment, you do not need to pay additional fees for completing the transaction.
Alibaba Online Transfer
The online transfer is a method deviced for European buyers. This method allows you to make your payments in your domestic currency.
The countries that are accepted under this payment method include the following:
- Germany
- Spain
- Italy
- Netherlands
- Poland
- Ireland
- Finland
- Estonia
- Switzerland, and
- Belgium
Do you get a refund in case you are not satisfied with the product?
There are two conditions under which you can ask for a refund:
- The items were not shipped to you on time by the supplier
- You have received damaged goods, or the goods do not match the specifications provided on the product information
Never expect a refund if you have received the goods that do not meet your expectations, but are completely true to the specifications provided by the supplier. You cannot deem a product as not being of ‘good quality’ without additional proof that shows damage or other such issues.
How to get refund?
To get a refund, you need to go through the following process:
- Click and send photos of the damages or defects in the product
- Description of the issue
You must also always save a picture of the product description before placing your order. This works as a reference when you are trying to get a refund based on the quality of the product.
Get, set, paying!
Now that you know how the payment system on Alibaba works, you can use the best method that works for you for all your future transactions. I hope this guide helped you figure out the various ways in which Alibaba has made making payments easy and hassle-free.
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