4 Types of Scams You Need To Know Before Buying From Alibaba

You may also check this video out for more information on Alibaba to Philippines Shipping.

The whole world has seen unprecedented growth of online businesses this pandemic, on the other hand, this also meant eCommerce owners had to reimagine how they handle their businesses. From fulfilling their orders, getting stocks from Alibaba, importing them here to the Philippines, and even protecting themselves from different online scams, this is not anymore a concern only for online buyers, but also a great challenge for online sellers, given the sophistication of online scams in this digital age, it’s extremely crucial for importers to be aware of different types of scams in Alibaba and how to avoid them to stay ahead of the competition. 

We are not saying don't buy from Alibaba, but more on buy with caution, notice red flags, and immediately know when something doesn’t feel right. 

Alibaba.com being one of the largest and most popular wholesale platforms to get stocks from, with its high volume trades happening every day, just like any other online platforms, scammers are present. That’s why we’re here to guide you through various scams on Alibaba and how to protect yourself from 

these:

1. Posted product photos differ from actual item 

• The photos on Alibaba supplier’s page don't always match what the customers get. It’s a common thing among Alibaba suppliers to use the same photos when posting their products, however, more often than not product quality often differs per supplier. So we can’t stress enough how important it is to always get actual photos, actual videos, from Alibaba suppliers when buying. This is especially important for expensive products since for expensive products you are shelling out more money. 

• Remember to read Alibaba supplier’s product descriptions thoroughly, especially with products that have complex features given that, the more complex the feature of the product is, the more variations that product usually has. They often have simpler versions, this is typically seen in machinery, although not limited to this type of product. And since different variations are offered, there are usually price differences depending on the variations you will be buying, so it’s also important to ask your suppliers what are the differences between Product A and Product B, and what led to its price difference is because Product A has more features than Product B, etc. Double-check and always do your research. 

     2. Good quality samples, poor quality finished product

• A common mistake Alibaba buyers do is they get product samples once then they immediately place a bulk order right after getting samples. We highly advise you to start with multiple small orders first before buying in bulk. First, because supplier might give you, superb samples, but bad quality after you buy in bulk. So, to ensure that the supplier’s product quality consistently meets your standard, order multiple small orders first, before buying in bulk, although for other importers this might take a long time to accomplish since from buying from Alibaba suppliers to shipping it to the Philippines, it might take around 35 days or more, however, we largely believe that this investment is very much needed to avoid encountering quality issues and of course, avoid your hard-earned money from getting wasted. Choosing a good supplier takes time, so invest the time needed to test their products first before going all in. 

• Furthermore, one way to prevent getting short on stocks due to quality issues, it’s best to diversify your supplier, get samples from different suppliers. It's one of the most important rules, especially for first-time importers, since this will give you an idea of which supplier provides what standard of product at what cost. Take the time to check their products out. Takes months to filter which supplier you want to do business with, but it will be worth it. 

3. Supplier letting you pay them outside Alibaba 

• This is a red flag every importer should watch out for. For first-time suppliers, you should not pay them outside the Alibaba platform, once you pay them outside the Alibaba platform you will not be eligible for Alibaba Trade Assurance. Have always heard of Alibaba Trade Assurance but am not sure what it is? Alibaba Trade Assurance is an escrow service that acts as a third party, wherein they will not release your payment to Alibaba sellers until you have received the goods and you’re satisfied with the transaction. When you’re not satisfied with it, you can file a dispute inside the Alibaba platform, and provide chat proofs, payment proofs, contracts, etc, that can help you win the case. 30 days after delivery of the goods, you can still file for a refund, Alibaba will help you investigate, and give your money back (not all the time, case per case basis). Your online order and communication records are the basis of refund resolution, so it’s also advisable to chat inside the platform. 

• If you didn’t pay inside the Alibaba platform, you can’t have these privileges, and even reporting to the platform customer service they would most likely not be able to help you out since paying outside the platform, they won’t be able to hold the payment anymore. So, you must look for Trade Assurance Badge suppliers, and pay suppliers inside the Alibaba platform, despite Alibaba suppliers giving you a lower rate if you pay outside, you should not give in, except if you have been working with them for a long time already. On the other side of the coin, we have clients who have been working with their supplier for years now and would avail of our RMB Payment assistance service, wherein you can pay your Alibaba suppliers outside the Alibaba platform. Why? First, you will not be charged 2.99% transaction fees inside Alibaba. Second, suppliers are usually willing to give discounts when goods are paid in their local currency - RMB/CNY. Third, real-time reflection of payments, hassle-free conversion of your PHP to RMB/CNY. This RMB Payment Assistance service is only suitable for importers who have been working with the same supplier for a long period and trust their supplier. If you’re a new importer, it’s best to still pay inside Alibaba platforms to have peace of mind, knowing that Alibaba will help you out when you encounter order issues or supplier issues.

  4. Alibaba seller doesn’t ship your goods on the date agreed upon

• This one is the most minor case among the above-mentioned scenarios since Alibaba provides Trade Assurance buyers a full refund when an order is canceled due to late shipments of Alibaba sellers (this is why it’s extremely important to only buy from trade assurance sellers). However, there are still consequences faced by importers when goods aren’t delivered on time. First, late deliveries decrease customers retention rates. Second, a bad reputation for the brand. Third, experience a drop in sales. Delays in shipments can be caused by a lot of factors, can be for uncontrollable reasons like weather, force majeure, etc. There’s only so much you can do when the order is already late. So as an importer, control what you can control. First, always check your inventory, update your shop inventory every week. If an inventory is not yet on hand, then don’t put it on your online shop as on hand yet, wait for goods to arrive, since you don’t want your shop to receive penalty points due to high non-fulfillment rates. Second, always overestimate how long shipping will take. Third, always ask your freight forwarder for updates, constant communication is extremely crucial to ensure timely delivery. 

Final Thoughts

As an importer, you have to take the steps necessary to research suppliers you want to do business with. Getting stocks from Alibaba is cheaper compared to other platforms, but always educate yourself and do your research so we can minimize scams as much as possible.
 

If you have any questions, EZ Sourcing Group is here to help you get started on your importation journey! Message us here for any importation-related questions you might have. Register your account with us now, and grow your business with us.