You’ve already picked out an item to sell. You’ve found a manufacturer to make the product for you. The sample is already in your hands and you like it. Now you’re ready to set up the deal. It may sound overwhelming at first that you’re going to be dealing directly with a factory. It shouldn’t be. You aren’t the only person who these factories are doing business with. There are many individuals buying and selling stuff made in China. Chinese manufacturers are quite used to dealing with foreign buyers. This is why they hire English speakers to work with the people who find them over the internet.
Today I will show you 8 steps that you need to follow in before your buy anything from alibaba in bulk and how you can keep yourself safe or getting scammed.
Make them Sign Contract Before Placing Order:
You never want to do business without a contract. It’s the legal document that gives you rights and protects you from getting scammed. You may have talked to someone via email or Skype that seemed really nice. They may even sound like someone who’d never ever do anything bad in a million years. You still want to have a contract signed between the two of you. Just remember that it’s not because you don’t trust the individuals who you’ve been talking to. It’s just a way of protecting yourself and your business. Bad things happen to good people all the time. The way you avoid it is by being prepared.
This is an image of the contract that use and I will briefly going to talk about things that I mention in the contract that keeps me safe when I place an order via Trade Assurance. You can download a copy of the full contract here and make changes on the part which I marked red on the document.
The reason why I strongly suggest you to make the manufacturer to sign the contract because it saved me from getting scammed on my first order and I was able to get full refund for my order that I placed with alibaba.
How many days should it take to make your product?:
You want to spell this out clearly in your contract. You have to keep in mind that this entire process takes time. It will take some time for the items to be shipped to you as well. Having things done in a timely manner is very important. This is especially the case if you have your products being shipped via freights. Air Express is best, but it costs more. Some people may have their items shipped to them via freighter as a means of saving money. If you have your products sent to you this way, it’s even more important that they are produced in a timely manner.
Any Delays Must be Announced Three Days in Advance:
Sometimes delays happen. They can’t be avoided. Your contract should state that the manufacturer must give you a three days notice if the product is going to be late. This should be considered standard procedure. It will ensure that you don’t think something is up if you don’t hear anything back from them. You don’t want to be left in the dark if there is a problem completing your order in a timely manner. That’s what this is all about.
Delays of Five Days or More Should Result in a Discount:
This may sound harsh to some people. Business is business. You can’t allow someone to walk all over you. People will do that if you give them the opportunity. Lay it all down on the line. Remember, you’re not going to pay them the full amount until the items are ready to be shipped. You should have the right to not pay the full amount if the manufacturer can’t produce the item in the time agreed upon. Time is money and you have to make sure you’re not the only one losing out on the deal. This will become more important as you buy more product to keep your Amazon inventory levels up.
Make the Initial Payment and Pay the Balance after Proof the Product has been Made:
Think of your initial payment as a deposit. This is the money you give them to prove you have intent to buy. You will need to stipulate in your contract that the buyer must send you pictures of the finished product. This will prove to you that the item is in fact made. You should not pay them in full without seeing with your own eyes that the product has been in fact made. Don’t hesitate to make them prove beyond a shadow of a doubt it is your item that’s been made. There should be clear pictures showing your product. You’ll be able to tell right away if this is the product you agreed upon.
This is the final step before your products leave the factory. Don’t think that this is an inspection. It isn’t. It’s merely proof that your item has been made. After you’ve received significant proof that your purchase has been completed, you can now send them their money. This will complete your end of the transaction until the items are shipped from them. There is nothing more for you to do at this point, other than wait.
The Right to Third Party Inspections:
Most of you reading this won’t go this route. However, you still want to reserve the right to third party inspections. This is exactly what it sounds like. You would allow your items to be inspected by someone other than yourself. We’ll talk about how you can find people to do this for you.
Most people want to have the product in their hand to feel it and be sure it’s what they ordered. There are some situations where this may not be ideal. For example, if you buy huge amounts of stuff. You’re not going to be able to go through thousands of products to make sure nothing is wrong with them.
You basically have to options when it comes to hiring inspectors. You can either choose someone in China to inspect your products or people in America to do it. Your choice of who is right for you may not be what it seems at first. Just because you’re in America doesn’t exactly mean choosing an American inspector is the best thing. Let’s talk about this a little more and dig deeper into it.
Chinese inspectors have an advantage because they’re in China. If there’s a problem with your product, they’ll be able to send it back to the manufacturer more quickly. They also have the advantage of speaking the native language. Not that this is a big time advantage. But, it can be useful in a pinch. If there is a problem with your products, shipping them from the United States will take time. It will take more time than if you were to send them back from China.
There are American inspectors and you can have your products shipped directly to them. They will do everything exactly the way the Chinese inspectors do. There is no real advantage to hiring Americans to do this. It could even be said that there’s a significant disadvantage. Labor costs are more expensive in the United States and it could cost you more to go the American route. They aren’t doing anything that the Chinese can’t do. If there is a problem with the product, it will take longer for the items to be shipped back to China.
You’re In Control of the Entire Process:
At least you should be. The whole purpose of this is to lay the groundwork for you to be in control of everything. Control is the one thing you must have to be in charge of your business. Some think it’s best to have a laid back approach and allow the chips to fall where they may. This is a huge mistake and it will open the door for people to take advantage of you.
This isn’t to say that all of the manufacturers are sharks looking to pounce on people. It simply means that you’ve got to lay down the law when it comes to your own business. No one is going to stick up your best interests other than you.
Your contract should spell everything out in a very easy to read format. There should be no doubt whatsoever from the person on the other end of it. You’re trying to protect yourself and put an end to confusion in the process. No detail is too minor when it comes to your contract. The world of business today is a lot different than what it was a long time ago. Distance in itself has replaced the handshake with a contract. Handshakes are meaningless, anyway, unless there’s something to back them up.
At first you may feel that the contract is too formal or complicated. Everything should be laid out here in an easy to digest format. You’re going to want to make sure the manufacturer signs it and emails you a copy of it. This shouldn’t be a big deal for a business. Any company worth their salt will have the ability to print out the document, sign, and scan it. If they don’t, then you should take that as a red flag. Any legit business should have no problems signing a contract. Legitimate sellers do this every day and it by now means should be difficult for them. You have to question any factory’s inability to provide you with the necessary documents. A lack there of may be a sign that they are in fact not a true legitimate business.