How To Avoid Middleman When Searching Chinese Manufacturer ALIBABA For Amazon FBA

what's up guys welcome to sourcing
warriors channel when it comes down to,sourcing there's nothing more important
than finding a good supplier because,they control your product raw material
cost product quality packaging shipping,communication literally they can make or
break your business if you're ready to,buy from China especially from Alibaba
to start your Amazon FBA business please,watch this video first before you create
your first purchase order to the Chinese,suppliers why because there are a
millions of products and millions of,suppliers listed on Alibaba but not all
of them are direct manufacturers not all,of them are honest business people
there are plenty of resellers middlemen,are ready to take a cut out of your
profit and there are bad people are going,to scam your money if you're not careful
don't be scared guys in this video I'm,gonna share with you four simple to
follow steps to help you with the,Alibaba r
esearch if you follow these
steps the risk of you getting scammed is,going to be close to zero and the chance
of you finding a good direct,manufacturer is going to increase
dramatically at the end of the video I'm,gonna share with you one bonus tip
that's going to save you tons of time,when you're ready to contact the Chinese
suppliers are you ready guys let's get,started,all right guys before we hop onto
Alibaba let's quickly go through the,steps I use when I search suppliers on
Alibaba we don't have to spend days,qualifying them to make our research as
efficient as possible we need to have,some shopping guide what differentiates
rookies from the pros is that when,rookies look at a product on Alibaba
they immediately jump on price and moq,but pros won't do that
they won't waste time doing that because,right now we're shopping for suppliers
and who are shopping for quality when we,find a good supplier who can produce
good quality product we can always,negotiate price and moq let me give you
example if for example you're looking,for yoga product you type in the keyword
yoga mat on Alibaba there will be over a,hundred thousand product listings but if
you search and sword by suppliers I'll,show you when we get onto Alibaba there
will be only 980 suppliers selling these,a hundred thousand products out of the
nine hundred suppliers there are only,two hundred some suppliers that are gold
supplier assessed supplier and trade,assured supplier what that means is for
the gold supplier is a paid membership,and assessed supplier is the either
Alibaba team or a third-party company,have been to the factory audit the
company and verified their Factory do,exist their tooling their equipment do
exist and the trade assurance is a free,service offered by Alibaba if your
purchase order is not produced to the,specification you can dispute payment
through Alibaba if you look at this,matrix this pyramid this is actually Ali
Baba's supplier ranking algorithm what,we need to do is to take advantage all
the buildings screening futures Alibaba,already have on their website
to have them find the suppliers on the,top of the pyramid if I'm looking for a
yoga product my job is to find a few,suppliers out of the 287 to become my
business partners so now you know how to,sort basically sort through suppliers
let's go through the four simple steps,to qualify these suppliers step number
one find out who they are when I look at,a supplier profile I look at these four
things supplier name business type,number of years selling on Alibaba under
the company certification you might be,wondering why supplier name why what
does it matter actually in China the,company name is actually very structured
when they register the business the,business name must including four
essential element which is registration,location company name main product they
are involved in and the partnership type,for example a company in Ningbo City
wanted to called register themselves in,Ningbo want to call themself golden star
and there you moulting plastic rubber,related products and they're a limited
liability company this will be minghua,golden star plastic company however this
Ningbo company because Ningbo is a city,level registration they cannot call them
self Zhejiang golden star plastic,company because zhejiang is the province above Ningbo and definitely they cannot call,themselves china golden star plastic
company because china is the state level,company registration so on the business
type when a when a supplier list their,product on Alibaba they must disclose
themselves either as a manufacturer,where a trading company sometimes you
will see the supplier lists themselves as,manufacture and trading company what
does that mean is that,this supplier not only can produce the
product they can also export the product,directly to overseas companies not all
of the Chinese factories have an export,license therefore they have to use a
middleman which is the trading company,to sell the product to you the number of
years selling online this is obviously,very subjective I need I wanted to use
the supplier have a minimum three years,of e-commerce business experience
because their communication and their,business maturity need to be enough so
that I don't have to babysit and,mentoring them so the last one is the
company cert the company cert is,different from product cert any company
can produce any product however the,third party produced a certification but
not all the companies have the system in,place wanted to go through the steps to
get a company certification for example,ISO ISO 9000 will certify company's
quality system iso 14000 will certify,the company's environmental system so if
a company has gone through these steps,and got the ISO certification as a
company definitely is a nice-to-have so,by looking at these four elements
supplier name business type number of,years in business and company
certification you should have a just a,baseline idea of who they are now the
second step is what they do if you look,at the suppliers main product and
product categories you should be able to,figure out if this company is offering a
concentrated line of product related to,the product you wanted to buy or their
scattered and offering all kinds of,products which make them not as
efficient the more concentrated the the,company does one product the more
leverage they have on the raw material,purchase their workers skills is my
better because they do repetitive work,day in and day out and that the quality
is much more reliable and consistent and,if you're searching for the product you
need to know what are your must-haves,serves and what are your nice-haves
you can look at the suppliers product,page to see if they offer those. the step
number three is where they are where,they're located basically when you do
the detailed address check is the,address indicating they're on the 15th
floor suite 101 where room 120 obviously,if the supplier claimed themselves to be
the manufacturer you need to question,why there I just is showing an office
address the address should be the,factory address it should be two hours
away in an industrial area from the city,if they are showing an office address
you need to question that to the,supplier on the high level though this
is very important guys you need to check,if the city where the supplier is
located is outside of the five major,cost coastal provinces the reason is
because 80% of the manufacturer,activities are done in these five
coastal provinces if your supplier is,far away from coast and they're in an
inner seal and city when you are ready,to purchase the product you're gonna
have to pay a lot more money,transporting the goods from the city the
factory where the factory is located to,the port and when you are adding the the
three the number two and three products,it will be much harder for you to
consolidate this supplier with the other,suppliers so keep this in mind when you
check the supplier address finally the,step number four is your suppliers this
is obviously you can find out after you,contact the supplier but if your
suppliers English skill is so good you,might be wondering do they do this for
living is this really a supplier,factory rep or they are actually
a middleman or a trading company if you,don't trust what you have checked you
can always do these two things number,one use a surprise factory tour for
example you can call your supplier,contact and tell them that you have a
purchasing agent in China,he's happened to be near by the factory
area can he arrange a quick factory tour,for your agent or you can ask your
supplier contact or do a quick video,call hey I wanted to get an idea of what
your factory look like can you get onto,the production floor and do a quick
video call with me using these,techniques to find out if your supplier
is truly a direct manufacture if they,always find excuses you need to put a
question mark with that whether they are,the direct manufacturer now you guys you
have have a basic idea of who your,supplier is what they do where they are
at and how they conduct the business,let's hop on to Alibaba and do a
practice run and don't forget the bonus,tip on Alibaba oh yeah this is my own
reminder I'm not gonna forget the bonus,tip on Alibaba so let's hop out to
Alibaba and do a few trip,we're now on Alibaba homescreen let;s
search and practice the steps we learned,let's use yoga mat as an example yoga
mat and his own search the default sword,criteria is product as you can see here
and that's why you have over a hundred,thousand product listings returned to
your search if you sort these hundred,thousand products by suppliers you can
see that is about a thousand suppliers,offering these hundred thousand products
and if you continue to apply filters,product gold suppliers assess suppliers
and trade assured suppliers and the you,have a two hundred eighty six suppliers
you can continue to apply filters listed,on the web on the left hand side for
example if you want your supplier,absolutely to have ISO 14000
environmental standards then you can,click on this filter that will give you
twenty suppliers that meet that standard,let's use the first supplier to practice
on the supplier qualification steps if,you click on the supplier first thing I
wanted to know is was their name they,are calling themselves
Yangzhou Chenghong plastic and rubber,company Yangzhou should be their
registration location this is a city of,jiang su province this is a Jiangsu
province is one of the,five coastal provinces I gave it to you
earlier which is good chenghong is,their business name and they're involved
in plastic and rubber product their,business type now the business type they
claimed themselves to be both a,manufacturer and a trading company they
can actually produce and export the,product directly to you which is good
now if the company has any,certifications they do you have ISO 9000
cert which this gives you basic idea of,what this company is who this company is
now let's look at their product by,looking at their main products they they
listed mostly yoga product at me if you,look at the product categories you can
see everything and everything about yoga,mat roller pad brick mostly PVC product
they are very concentrated in doing yoga,product which is good their company size
is quite small but that isn't concerns,me right now because they obviously can
I support a lot of product to overseas,now look at their product qualifications
they listed out CE reach and reach,product certifications based on the
market you are exporting the product to,you can decide if these certifications
are good enough to meet your requirement,let's look at another supplier
from the list oh look at this one this,is called Pro Circle fitness training
product Suzhou company this is a very,obvious foreign company I forgot to
mention in the previous session if it's,a foreign registered company doing
business in China they will show the,business's name first and then the
product they are involved and then the,registration location in brackets let's
look at them this pro circle company,immediately they did disclose themselves
business time as a trading company,obviously they don't have any ISO cert
they don't have any factories to certify,and let's look at their product they are
saying they do generally fitness,equipment if I look at their product
categories is variety of different,things yoga rollers straps weight
fitting accessory accessories and,freeweighs these are made by the cast iron
definitely is not yoga product so if,you're looking for a yoga mat this is
not a good fit especially if they're a,trading company it's up to you if you
wanted to work with the trading company,but based on that they're not as a good
of supplier as the first one let's look,at maybe another one just to practice
this company their name is hi young hi,young should be their registration
location they are a city of a Schendel,as you can see Shandong province is one
of the coastal province which is good,and their business type is they can do
both production and exportation and they,also have ISO certs which is good and if
I look at their product,mostly resistant bands tubes is a
variety of products the company is,bigger much bigger than the first one
but I don't think this company will give,you as much of a good pricing as the
first company because they are,relatively small I
think they will be more flexible working,with you if you're customizing the
product so you get the idea using the,qualification steps to qualify these
suppliers after you contact the supplier,you can further qualify their
communication skills and double check if,they are indeed the direct manufacturers
talking about contact the supplier is,about the time to show you the bonus tip
when you're ready to contact the,suppliers the right way to do that is to
check the favorites button check each,one of them that you wanted to contact
for example if you wanted to contact the,six three four it doesn't matter we add
these suppliers to the favorite folder,now you hover over the favorites and
click on favorite supplier you can see,you have five suppliers added to your
favorite folder now what you can do is,to click on all of them and click on
contact suppliers don't click on this,individual tab but click on contacts the
suppliers because you select it all now,oh I have to enter the code which I
don't recognize the first one let's see,j9m it doesn't take Y P a a you you now
you have five suppliers in your favorite,folder you can send one RFQ to all these
five suppliers that you have selected in,your favorite folder and you paste your
beautifully drafted RFQ template and you,send the inquiry all five supplier will
receive your your your RFQ at the same,time so it's a few tons of time doing
the copy and paste each individual,supplier and on top of that
when you receive like say you receive,two of these suppliers response and the
other three didn't respond you can go,back to your favorite folder and delete
the one half respond late and select all,three that haven't respond to you and
ask sentiment reminder email hey I,haven't got your response yet please
send two sent the RFQ back to me as soon,as possible isn't it cool I think it's
very cool I save tons of time that's it,guys I hope you enjoyed this video I'm
gonna share a lot of tips and tricks and,the China buying inside in this channel
please don't forget to Like and,subscribe sourcing warriors YouTube
channel and you can also join sourcing,warriors Facebook group I post a lot of
content there,alright guys have a brilliant day I'll
see you soon

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