Supplier Sourcing and Negotiation

Now that we have selected our product, we must find a manufacturer to produce it. In this lesson, we will look at using Alibaba to source suppliers safely and negotiate favorable terms.

Sourcing on Alibaba

Alibaba is the largest marketplace for global trade. To avoid scams and find reliable suppliers, search for companies that have the following verification badges:

1. Trade Assurance: Protection service that covers your orders from payment to delivery.
2. Verified Supplier: A supplier whose company profile, capabilities, and facilities have been inspected by third-party verification companies.
3. Gold Supplier: Paid membership level showing supplier commitment.

IMPORTANT

Always pay through Alibaba's Trade Assurance platform. Never wire funds directly to a supplier's private bank account or use unverified payment methods outside of Alibaba.

Sourcing Checklist

• Contact at least 5 different suppliers with a detailed RFP.
• Order samples from your top 3 choices.
• Hire an independent inspection agency (e.g. QIMA) to inspect production runs before final payment.