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How Does Alibaba Work? (What You Should Know in 2024)

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April 17, 2024
8 Min Read

How Does Alibaba Work? (What You Should Know in 2024)

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You’ve been looking around and the name Alibaba keeps coming up.

A lot of good things have been said about it.

But, you want to know more about what it is, how it works, and more.

If this sounds like you, you’re in luck!

This article will provide all the foundational information you need to start sourcing amazing products from Alibaba.

Let’s dive in.

What is Alibaba?

Alibaba is a business-to-business (B2B) company connecting manufacturers and wholesalers with buyers around the world. It was founded by Jack Ma in 1999.

Although the name Alibaba is often used to refer to Alibaba.com, it actually refers to the Alibaba Group Holding Limited, the company that owns Alibaba.com.

Who is the ideal Alibaba customer?

Alibaba is a B2B business. Its main customers are businesses that buy products in large quantities. Bulk orders allow sellers to lower their prices and attract more customers.

Bulk orders mean that most sellers on Alibaba have minimum order quantities (MOQs) on their products. This means you are required to buy a specific number of products at a minimum.

Although Alibaba is a B2B business, traders can sell to anyone who meets their MOQs.

Note: Although each seller has their own MOQ, you can always negotiate for better terms.

How do you use Alibaba?

You must create a free account to find and buy products on Alibaba.

How do you create an account?

Create an account on Alibaba by following the steps below:

On your favorite browser, open Alibaba.com. Click on the ‘Sign up’ button, as shown in the image above.
Fill in your information in the registration form. Remember to check the box if you agree with the Membership Agreement, Privacy Policy, and Terms of Use.
Submit the form. You will receive a verification email. Enter the verification code sent to you on the next page to finish setting up your account.

Your account is ready; you can sign in to start using it.

How do you find products on Alibaba?

Alibaba makes it easy for you to sieve through the millions of products and over 200,000 suppliers in its database; this part is easy.

There are two ways to go about it:

Search by keyword or image. Type the product name you want in the search bar on the homepage. Alternatively, search by photo if you have an image of the product.
Browse product categories. There’s a menu with the ‘All Categories’ option right below the Alibaba logo on the home page. Use it to explore all the categories available on Alibaba manually. It’s great for when you’re not looking for anything specific.

Alibaba products

Alibaba has millions of products in its database, but you probably already know this.

What you really want to know is the quality of products, prices, and how to find high-quality products.

Let’s get into that.

The quality of products sold on Alibaba

There are thousands of suppliers on Alibaba with varying product quality. This makes it difficult to generalize the quality of all products on the platform.

Some suppliers focus on selling large volumes of low-quality, inexpensive products, while others prioritize quality over price.

There’s a wide range of qualities at different price points. Ultimately, your budget, business strategy, and target audience determine the quality of the product you go for.

How do you find high-quality products on Alibaba?

Here’s what you must do to find a high-quality product.

Research your supplier thoroughly

By default, a wealth of information on suppliers is listed on Alibaba. However, this information is mainly provided by the suppliers, so you can’t rely on it 100% because it may be exaggerated.

To find reliable information, research the supplier off Alibaba.

Find reviews from past customers (maybe even reach out to the customers) on review sites. Find out if they have a physical location and where it is and request them for any necessary certifications.

Finding a good supplier on Alibaba is the key to finding a high-quality product, so please take your time with this step.

Request detailed product information

For this part, you must understand the crucial attributes of the product you’re looking for. This way, you’ll have the information to ask relevant questions, leading you to a high-quality product.

For instance, if the product you want is meant to be integrated with a larger system, you want to look out for compatibility with the existing system.

On the other hand, if you’re sourcing fabric for a high-end fashion brand, the gram per square meter (GSM) metric is critical. Therefore, you’ll know to request this information from the supplier.

Order product samples

A sample lets you interact with the product and get a feel of how it works and whether it meets your performance goals.

A key reason for ordering a sample is to minimize the risks of ordering products in bulk. For instance, if a product doesn’t meet your specifications, you can request the manufacturer or supplier to make changes before making your order.

Use third-party inspection services

If you can’t visit the supplier, third-party inspectors can represent you on the ground.

For a fee, specialized companies and individuals visit production centers and assess the quality of the physical products on your behalf.

Is Alibaba safe?

Yes, generally speaking, Alibaba is safe. It ensures the safety of transactions between buyers and sellers through the Trade Assurance program.

The Trade Assurance Program protects you from low-quality or defective products, ensuring you always get what you pay for.

Here’s a rundown of how the Trade Assurance program achieves this:

It facilitates safe and easy payments. The Trade Assurance program lets you make fast, secure, encrypted payments. It supports many major online payment methods or bank-to-bank transfers.
It provides a money-back policy for failed deliveries. If your order fails to arrive, disappears, is faulty, has incorrect items, or has other issues, you can claim and receive a full refund through the Trade Assurance program.
It guarantees reliable shipping and logistics services. The Trade Assurance program helps provide a fixed-date delivery guarantee for all your orders. In addition, it enables you to track your shipments in real-time worldwide.
It offers after-sales protection. For eligible products, the Trade Assurance program helps you get on-site installation, free part replacement, repairs, and maintenance.

As stated earlier, Alibaba is generally safe. However, practice caution when approaching and engaging suppliers to avoid getting scammed.

How do you avoid scammers on Alibaba?

Although Alibaba is safe, it’s still possible to find yourself on the receiving end of a scam, especially if you don’t transact through the Trade Assurance program.

Alibaba has millions of traders and robust security systems, but scammers often find ways to cheat their way into the system.

Here are a few ways to protect yourself from their gimmicks:

Avoid traders who ask for more information than seems necessary. If they ask for personal information like credit card details or your social security number, it’s best to avoid them.
Assess a seller’s badges before engaging them. Alibaba provides the Gold, Verified and Trade Assurance badges to help buyers identify trustworthy sellers. Although they shouldn’t be your only measure of trust, avoid sellers without these badges.
When the deal is too good. Chances are, you have a price estimate of the product you want. Thus, something is probably wrong when the price is unusually low or high. Also, if the deal feels too good to be true, it probably is.
Research suppliers. Even if a seller has a Gold badge, it’s best to research their presence off Alibaba to establish their authenticity. Legitimate businesses will have social proof, like a website, physical location, or social media pages.
Keep all communication and payments on Alibaba. Alibaba can only protect you if you transact through its platform. Don’t make payments directly to sellers unless you know and have a long-standing relationship with them.
Check ratings and read reviews. You can tell a lot about a seller’s quality of products and customer service from reviews. Read as many reviews as possible on and off Alibaba to better understand a seller before buying.
Avoid branded products. Big brands like Nike, Adidas, Marvel, and Disney have strict policies on selling their products in marketplaces. Therefore, if you find a seller of branded products, investigate their legitimacy so they don’t sell you knockoffs.
Order a sample first. If a trader on Alibaba is legit, they shouldn’t have a problem sending you a sample of your desired product. You’ll pay for it, but it’ll help you verify the quality of products and avoid getting scammed.