Quote: (06-30-2016 02:48 PM)Brodiaga Wrote:
Quote: (06-30-2016 01:40 PM)jamaicabound Wrote:
Quote: (10-06-2014 04:39 PM)DVY Wrote:
@TheFinalEpic- I've looked at Alibaba, but id say 50%+ of it is fraud or deceptive marketing. The "wholesaler" is either a scammer or a drop-shipper who ships from manufacturer to you at much higher markups (retail prices basically).
The easiest way to get wholesale price estimates is to go unto EBAY and check out lowest prices there, then subtract 30% and you'll get to wholesale prices. <--- Doable, but youll have to put in a good amount of work.
Master Distributor prices are generally 30% under wholesale prices. This requires huge Minimum Order Quantity and very likely a formal agreement both in Chinese and English. <--- Basically impossible for an average person to get it. Expect boots on the ground, long discussions back and forth, and a minimum order of at least 250k+, followed by a yearly commitment of recurring orders. If you fail to keep up, you'll get dropped and somebody else will come in.
Tips for ordering from unknowns- never agree to pay w/ WU or TT. If you must, use PayPal as it has fraud protection. Escrow is another option.
If you decide to go for the Alibaba route, stick to gold suppliers of at least 4-5 years. Scammers are much less likely in this group.
Very good tips here. Couple things I notice. THere are actually real manufactures on Alibaba but as you said it's also flooded with traders and resellers. You really have to search for them and know what questions to ask.
What are the questions?
Ask to see the companies business license. It will tell you, in Chinese, explicitly whether the company is a manufacturer or a trading company, if you look at the spot that says ‘Business Scope’ label (经营范围 – Jīngyíng Fànwéi).
If you have feet on the ground then you can actually have someone visit a factory. I actually have a contact with someone who I've been buying from for years. If I ever want to source a product I just contact her and she handles everything for me. She takes a markup for herself but as this is a side hustle for her it's not as if I'm dealing with a trading company taking a 30% markup or anything along those lines.