There are many disadvantages of Alibaba for china sourcing, but let’s start with its history. Alibaba was started in 1999. Its purpose was to connect Chinese suppliers with global retailers. With internet users climbing in China so has many Web-businesses. In 2011 the CEO and the COO of Alibaba resigned. This came about after the uncovering of fraud by more than 2300 sellers on Alibaba. Many of these sellers were ranked as „gold suppliers“.
What is the first company that comes to mind when buying from China? You sit behind your computer and go to Alibaba not in a plane to Shenzhen. Many private people and some small businesses have done this over the years but can you really trust the suppliers on Alibaba? Do you get the right product? Are the companies listed a scam or real?
You need to see Alibaba like a telephone directory. It is an online directory which is nothing more than a listing of many supposed suppliers. Anyone can join this database for free.
Having said this we must take into account that there are several disadvantages of Alibaba.
What is a „gold supplier“ on Alibaba? It is only a presumed supplier willing to pay for a bigger and nicer advertisement. It does not endorse the integrity or the promises of the company.
The international reputation of Alibaba is not good. Many companies have filed complaints against the company. The complaints range from problems with a product, problems with service, billing, advertising and delivery complaints.
The site Alibaba competes with you in that it provides the same product to everyone – meaning also your competition. If you are a seller in Europe or U.S.A. you will want to differentiate yourself from the competition.
Among the Alibaba listings of companies there are also bad ones or even scams. Are you able to differentiate between the two? Which company is even real? Which one will do what it promises?
Due to the potential high profits when ordering from Alibaba is it worth taking the risk? For large orders certainly not.
Many or most sellers on Alibaba do not actually hold the inventory. Their supply may not match what they promise.
The site might be okay for some, but if you are serious about custom manufacturing of products you will want a reliable business partner in China. This is were an experienced China sourcing agent is the best way to go. Global Trade Specialists has over 28 years of experience in the Chinese market place. It helps customers worldwide with their manufacturing needs. From prototype, production, packaging to shipping – Global Trade Specialists is your all inclusive China sourcing agent.
If goods are imported from third countries (countries outside the EU) like china, Canada or the USA, the following costs may be incurred in addition to the goods and value of the shipment (postage):
There is no longer a 22 euro exemption limit. This means that import sales tax has to be paid for all shipments of goods from third countries (countries outside the EU). Customs duties are still only due from an amount of 150 euros.
Recently I received a package from the USA as a gift valued at about $15 without postage. With all the import tax, customs, import tariff I ended up paying here in Vienna another €16, much higher than the value of the product.
Contact us here for a free quote on your product.
Over the past few decades, China has grown as an economic powerhouse, with many international companies sourcing products from there. However, between the pandemic and rising political tensions, many UK companies are cutting ties with China, according to the Confederation of British Industry (CBI).
Whether you’re an established company or a new entrant to the market, it’s worth considering whether it’s better business to import from China, or whether the outsourcing of products has become too much of a hassle. To help you with this, we’ve listed the pros and cons of sourcing products from China.
While many businesses successfully source their products from China, it doesn’t come without its challenges. These should be carefully weighed against the positives to determine whether this would be the best strategic move for your business.
Finding and cultivating a relationship with a factory owner requires time and money. Once you’ve found several potential suppliers, you then still need to negotiate to see if they’re willing to produce your products to a standard you find acceptable. Many Chinese manufacturers only focus on million-unit orders, which can make things difficult if you're looking to have smaller volumes produced.
When you choose to source products from China, you also need to account for international lead times, as your inventory has to be packed, shipped and brought through customs before being transported to your warehouses or retail stores. This shipping can also involve significant costs, depending on your distribution network.
This can often make local suppliers much more attractive as it’s easier to get new stock delivered to you in a shorter period of time. Additionally, you won’t be incurring the costs of international shipping fees.
At Adventa, we produce a range of products locally in the UK. Our central location, coupled with our fast assembly lines and world-class packaging, make us a supplier of choice for UK-based businesses. However, we’re also able to ship products to every other continent across the globe.
It’s a known fact that “Made in China” often brings negative connotations to mind, such as poor quality and low prices. This can sometimes impact your markup and the customer’s general idea of your products.
When producing your products locally, you can take advantage of the fact that your products are ‘made in the UK’. This can be used as a unique selling point that indicates high quality and can also potentially allow you to charge a higher price, increasing your profit margin.
The issue with working in a foreign country such as China is the language barrier. Not all Chinese factory owners are proficient in English. And even if you have a translator assisting you, there’s still the possibility of their being misunderstandings.
While there are some significant drawbacks to importing from China, there are advantages that make this a lucrative business option.
One of the biggest reasons why companies choose to source their products from China is that the production cost versus output is highly favourable. Lower production costs result in lower prices for your business and customers, which could convince them to purchase your products. Lower prices also contribute to higher profit margins, which is an attractive deal for businesses. However, these lower production costs should always be considered alongside quality.
Sourcing products from China opens up the door to international expansion, as you can market your goods to the local market. Once you’re in the country and manufacturing your products there, introducing and supplying your products becomes far easier.
For decades, businesses have sought lower costs and higher profits by sourcing their products from China. However, in the wake of the pandemic and rising political tensions, many businesses have started to backpedal, choosing to manufacture locally instead.
Each business is unique and should carefully weigh the pros and cons. While importing from China can result in expansion and increased profit, it can be challenging in terms of costs, finding a supplier and more.
Here at Adventa, we are a UK-based manufacturer that specialises in supplying customisable office and decor products. Our location and extensive experience make us an ideal choice as your supplier. If you’d like to know more, please get in touch with our team.
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