These are not the only B2B sourcing sites that I teach my students to avoid. Most of the well-known sites present the same problems for newbies wanting to source products overseas.
Here are a few reasons why:
1. They all have very similar, but highly deficient verification systems.
2. They all use rating badges or flags that give completely worthless indications of a supplier’s reliability, trustworthiness, capabilities and service quality.
3. They all accept listings from traders and wholesalers masquerading as manufacturers.
4. Many of them do not ban suppliers from listing big brands, counterfeits or knockoffs.
Now I will explain some of these points in more detail:
1. Verification. The verification process used by almost all the popular sourcing sites involves a visit to their premises and a look at their business registration certificate. Result? They prove that the business actually exists! The premises may be a rent-for-a-day office, and the operators of the business may have another 3, or even 10 business names they will use one by one when that inspected one gets caught out scamming people.
2. Rating badges. Gold Supplier, Gold Star, Premium Member etc. etc. These status symbols are all bought ― they are not earned. Result? The business actually exists and they have also spent money to make people believe that they are more trustworthy, reliable, capable etc., than others without those badges. I would never rely on status symbols such as Gold Supplier, but there are some other ratings that are achieved also by spending money, but they result in a genuine rating. One example is on Alibaba where you will find a few who display a blue circle with a red tick. I would have no qualms about buying from one of those, provided they also accept payment via escrow, but you need to read the audit report to see if they are actually manufacturers.
3. Manufacturers? The vast majority of suppliers listed on the popular sites identify themselves as manufacturers. Most of them are not. They can be very convincing. They may have a website that shows their factory, complete with production machinery. They may say they are willing to modify products to suit you, or make new products for you, but serious research is needed to work out if they are genuine manufacturers. If they are wholesalers or traders in disguise, you are throwing away a lot of money if you buy through them. They will never be able to give you the low prices that you can get from genuine manufacturers.
4. Counterfeits or Big Brands. If B2B sites allow vendors to offer products that infringe intellectual property rights, that shows how little they care about or control the integrity of the suppliers they list. Selling big brand items or counterfeits can look like a very fast lane to take, but it can be a fast lane to financial ruin and in some cases prison. At the very least it can result in your name and address being flagged by Customs and every subsequent shipment to you being delayed for thorough inspection.
If you have questions on other subjects relating to sourcing or importing, please go to my AMA thread
Sharing my lifetime experience in export/import. Product sourcing specialist. That is where I will from time to time post general information posts that I believe will help many.
Here are a few reasons why:
1. They all have very similar, but highly deficient verification systems.
2. They all use rating badges or flags that give completely worthless indications of a supplier’s reliability, trustworthiness, capabilities and service quality.
3. They all accept listings from traders and wholesalers masquerading as manufacturers.
4. Many of them do not ban suppliers from listing big brands, counterfeits or knockoffs.
Now I will explain some of these points in more detail:
1. Verification. The verification process used by almost all the popular sourcing sites involves a visit to their premises and a look at their business registration certificate. Result? They prove that the business actually exists! The premises may be a rent-for-a-day office, and the operators of the business may have another 3, or even 10 business names they will use one by one when that inspected one gets caught out scamming people.
2. Rating badges. Gold Supplier, Gold Star, Premium Member etc. etc. These status symbols are all bought ― they are not earned. Result? The business actually exists and they have also spent money to make people believe that they are more trustworthy, reliable, capable etc., than others without those badges. I would never rely on status symbols such as Gold Supplier, but there are some other ratings that are achieved also by spending money, but they result in a genuine rating. One example is on Alibaba where you will find a few who display a blue circle with a red tick. I would have no qualms about buying from one of those, provided they also accept payment via escrow, but you need to read the audit report to see if they are actually manufacturers.
3. Manufacturers? The vast majority of suppliers listed on the popular sites identify themselves as manufacturers. Most of them are not. They can be very convincing. They may have a website that shows their factory, complete with production machinery. They may say they are willing to modify products to suit you, or make new products for you, but serious research is needed to work out if they are genuine manufacturers. If they are wholesalers or traders in disguise, you are throwing away a lot of money if you buy through them. They will never be able to give you the low prices that you can get from genuine manufacturers.
4. Counterfeits or Big Brands. If B2B sites allow vendors to offer products that infringe intellectual property rights, that shows how little they care about or control the integrity of the suppliers they list. Selling big brand items or counterfeits can look like a very fast lane to take, but it can be a fast lane to financial ruin and in some cases prison. At the very least it can result in your name and address being flagged by Customs and every subsequent shipment to you being delayed for thorough inspection.
If you have questions on other subjects relating to sourcing or importing, please go to my AMA thread
Sharing my lifetime experience in export/import. Product sourcing specialist. That is where I will from time to time post general information posts that I believe will help many.
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