Nowadays, starting a business has been made easier, thanks to the internet. Through the internet, you can set up a store, manage your inventory and outsource for suppliers without having to leave the comfort of your home.
This seemed unbelievable in the past but it is now very possible. In this article, we take a look at all the steps involved in outsourcing online product suppliers from China right from the comfort of your couch.
How to make Money Online Outsourcing Products from China.
1. Finding Supplier Directory
The first step you need to take is to find a good supplier. Since you don’t want to incur the expenses of flying to China to find suppliers, you need to look for good Chinese supplier’s directory. There are many online suppliers’ directories to search for good suppliers but so far, Alibaba seems to be the best. In fact, it’s the holy grail for outsourced manufacturing.
2. Create an Alibaba Profile
After settling on Alibaba. The next step is to create an Alibaba profile. This is very easy. You will just have to answer a few questions concerning your business, and your profile will be up and running in just a few minutes.
3. Make a Buying Request
After creating your profile, it’s now time to start looking for the product you want to outsource. Alibaba has an on-site search functionality that allows buyers to type a search query and offers from different sellers are displayed instantly.
It’s up to you now to choose a product that you think can sell well and contact the seller for more information and to negotiate terms of purchase. You can also make a buying request by posting the details of the product you are looking for, including the specifications, the number of pieces you want, your price range and so on.
Posting a buying request is easy. You just navigate to the My Alibaba and choose a new buying request. You will be given a drop box to fill the required information.
4. Reviewing Quotes from Suppliers
Once you have posted your buying request, you will start getting quotes from different suppliers almost immediately. This is where the hard work begins. You will have to separate the genuine suppliers from scammers and vendors of counterfeit goods. This is not a simple job, but if you are careful enough, you will do it.
How to Choose a Supplier on Alibaba
1. Do a background check – The first thing after receiving a quote from a supplier is doing a background check. Visit their profile and check their company information. Make sure the product they are offering you is stated as one of the products they are selling on their company’s profile.
2. Check If They are Verified and their Status on Alibaba – Never deal with a company with less that five years on Alibaba and look for one with a gold rating.
3. Cross Reference – Once you have found a good supplier on Alibaba, who seems genuine, make a point of cross checking on the internet and dig more information about the given supplier.
4. Making a Purchase – After reviewing the suppliers and settling on the one who looks genuine enough, it time to negotiate the terms of payment and the price of the product. Make sure you get the best deal possible so as to get the highest possible profit. The supplier will also charge you some shipping cost that will add to the overall price of the product.
In Alibaba, you can make payment through Paypal, Payza, Western Union or even wire transfer. Depending on the size of your purchase, you may be eligible to purchase insurance that will cover you, in case of anything.
Remember that when you import goods, you will have to pay import and duty taxes. These will vary depending on your country. Also, avoid free shipping offers as your products may get lost or damaged on the way. If possible, make sure the products you are importing are insured.