Tell you How Alibaba Works and How Aliexpress Works

Discussion in 'Supplier Discussion' started by AllinPerfect, Feb 10, 2010.

  1. AllinPerfect

    AllinPerfect

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    I don't know if this thread will be consider as spam but I just found not all here understand how Alibaba system works. Just want you guys understand more and tell the honest sellers on it.

    I am a Chinese and has been work in factory and foreign trade company, and use alibaba for a long time. Just share with you guys to know more about how alibaba works.

    Alibaba: open around 2000, their way is sell membership to big factory or supplier, membership is from 60,000 - 120,000 RMB. This price is unbelievable high that only powerful suppliers can support it.

    Alibaba collect the inquiry for products from the world and send to these suppliers to let them make big deal like containers of goods. They are big deal.

    2008, since the economic crisis, they reduce their membership from least 60,000 to 19,800 RMB. That enables a lot small companies have chances to enter alibaba. So now the Golden suppliers are not very golden.

    The way are the same, alibaba collect informations send to suppliers, and they wish to make big deal with TT or bank transfer.


    Aliexpress: open in the middle of 2009, before they open, there is a big china wholesale website Dhgate...com has open for 5 years. Now Aliexpress are using the same way, offer the escow service alipay on aliexpress.

    This platform before are open only to golden supplier to list their products, but as i mentioned before, the golden suppliers like to make big deal, don't like very much the small amount deal. And so, aliexpress automatically, copy products from their original alibaba product, don't change anything, that means you will see a lot of goods from a supplier, with unbelievable shipping price. Because those are copy from aliexpress system.

    Now, Mar, 2010, aliexpress open to the personal supplier also. And these suppliers will list goods and details by them, I think you will see more clear items in short future.

    And last, tell you what they charge and from who they charge on aliexpress.

    They charge 3% handle fee from golden supplier and 5% from personal supplier.

    And they push the suppliers to offer freeshipping goods and say that a lot of foreigners (out of China) don't know how to count the price, so free shipping will be better.

    But I think, if we suppliers put shipping fee inside the price, they will charge that 3 or 5% from the total price, means finally, you pay more the handle fee for the suppliers.

    And also, the shipping system can be adjusted.

    Normally, the suppliers ship goods via EMS, DHL, UPS, TNT. And they can normally get 50% discount from the logistic agent. So, now you know what is the reasonal shipping price.

    Well, above are the informations just to share with you. I don't know if they are spam will be deleted by anthony....

    Hopes not, enjoy it.
  2. Simple Aquatics

    Simple Aquatics

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    You didnt seem to mention how the model now allows a lot of scammers to enter the market, obtain gold member status and act to de-fraud would be buyers by either not sending items at all, or sending faulty or fake items not as described.
  3. mdsltd

    mdsltd

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    Alibaba doesnt care as long as they get their money from these "Gold Members"
  4. AllinPerfect

    AllinPerfect

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    Well, seems you two have horrible story from it. I will open a new thread to tell more about the scammer on alibaba. I have stories also from Alibaba Domestic Platform.
  5. mdsltd

    mdsltd

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    I dont have any personal "horror stories" from Alibaba, but a simple look through the http://www.thewholesaleforums.co.uk/forum/bad-supplier-experiences/ suggests there are 1000's of people who have been scammed by "suppliers" (i use the word loosely) on Alibaba!
  6. Rob001

    Rob001

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    I think you find this quote they put says just that:

    "2008, since the economic crisis, they reduce their membership from least 60,000 to 19,800 RMB. That enables a lot small companies have chances to enter alibaba. So now the Golden suppliers are not very golden."

    Not so golden suppliers find it easier because its cheaper to be a Gold supplier than previously was....
  7. larry anderson

    larry anderson

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    am bought a mobile from alibaba but it not working properly am send query about it but they are not respond my mail now i buying the product from chinabuye online shop from china they giving me warranty for the products now am satisfied from chinabuye:welldone
  8. braveheart2009

    braveheart2009

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    so Amy you would rule out Alibaba completely to someone new in wholesale to get goods from china or do your due checks?
  9. Andy777

    Andy777

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    If anyone is having difficulties to separate legit suppliers from scammers on Alibaba, I would recommend to look at GlobalSources.com - they have a much better verification system in place which basically eliminates scams altogether.
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