January 15, 2016 by Andrew Minalto - 14 Comments

Taobao Wholesale Orders vs Alibaba & 1688.com

taobao-part-3At the end of Part 2 in our Taobao series, which was published on Wednesday, we had finished comparing the pricing on Taobao vs our tried and trusted AliExpress, and honestly, the results were not good…

With the commission and added shipping costs, Taobao just couldn’t keep up with the low prices offered for single/small quantities. But other than samples, the vast majority of you reading this aren’t interested in single orders anyway – when I talk about importing from China I talk about bulk orders, as that’s the only way you’re going to be able to compete with other sellers ordering container loads at a time.

And that brings us to our final question about Taobao – is it worthwhile for larger orders? To get our answer we’re going to go back to the MacBook cases that we looked at it Part 2, but instead of an order of 10 pieces, we’re going to find out the price for an order of 500!

  • £1300 – Cost of Products (500 x £2.60)
  • £130 – Commission
  • £300 – Shipping

= £1730 TOTAL = £3.46 Per Piece

So again another big drop in the cost per piece compared to ordering 10 units at a time, but that really is to be expected at such quantities and any other result would have been a huge disappointment…

Does this change my overall thoughts on Taobao in any meaningful way? Well no, not really, as I’m practically certain that I could easily beat that price for a quantity of 500 using Alibaba.

In fact, I found this after literally 30 seconds of searching:

wholesale-casesIgnoring the shipping costs as that’s a courier vs freight for the Taobao example, the price per piece of $3.29 is equal to roughly £2.19, which is already 15% cheaper than Taobao! That’s for 100 pieces, I would obviously expect it to be even cheaper for 500 and once again this is without all the hassle of using a buying agent, paying commission, waiting longer for multiple shipping times etc. etc.! (more…)

January 13, 2016 by Andrew Minalto - 2 Comments

Taobao Part 2 – Price Comparison vs AliExpress

taobao-part-2Hello and welcome back!

After introducing Taobao and going over exactly what it is in Part 1, as well as finding three highly regarded buying agents to use for our experiment, it’s now time to take a look at pricing!

After all, is there any point to Taobao if it can’t beat the pricing of a site like AliExpress, where everything is in English, you can simply pay using your own credit card, and no buying agent is required?

So without further ado, let’s get to it!

Really there were three different sites that I could have used as the “competitor” to Taobao in our pricing experiment – Alibaba, AliExpress, and eBay.

I decided that from the three, AliExpress is the fairest as:

a) Taobao is geared towards single quantity orders, not wholesale, so Alibaba is out!

b) Taobao is obviously based in China, which eliminates eBay. So that means the fairest comparison for us is AliExpress.

Alright, let’s get started with product no.1:

*Please note – I am not considering the viability or profitability of these products at all – they are chosen at random in order to compare pricing, and nothing more.

Syma X5SW RC Camera Drone

As you can see from the below screenshot, this item is readily available from AliExpress for $75 including shipping which gives us a price of £50 (at 1 GBP = 1.5 USD)

symaSearching for the product on Taobao produces a number of results, some initially appearing at a much lower price! But looking further I immediately see that these are for a cheaper model than the X5SW being offered on AliExpress: (more…)

January 11, 2016 by Andrew Minalto - 11 Comments

Taobao.com – Cheapest Way to buy from China?

taobao-part-1

Taobao – I’m sure many of you have never even heard of this company, never mind bought anything via their site, but Taobao.com is a hugely important company that could change the way you import products from China, and most importantly, what price you get!

But let me back up a little bit and explain what Taobao.com actually is.

Basically, Taobao is an online marketplace where millions of sellers list their products for sale. Although you often hear people talk about it as an Alibaba alternative, really a more accurate description is – the eBay of China (seeing as the items are sold in retail quantities).

Now I know what you’re thinking – great, but what’s this got to do with importing and how can it help me!?

Well, think about it for a second. This is the eBay of China, which means it is geared towards the domestic market, and not export/international orders, like AliExpress and Alibaba.

So this is a site designed for sellers in China, the cheapest place to buy items from pretty much every country in the world. And as these are domestic prices, in theory they should be cheaper than any other alternative!

As TaobaoFocus.com puts it:

No other online or offline business can beat the prices on Taobao.com: you can always buy items from Taobao.com at lower prices than anywhere else.

A bold claim, I know, and something that we will be investigating fully in a special 3 part series of posts. Part 1 is what you are reading now, in which I will introduce Taobao and explain what it is. Part 2 will be released on Wednesday, and in that I will pit Taobao head to head with AliExpress to test its pricing. And then we’ll wrap up the series on Friday, in Part 3, where I’ll give my final conclusions and recommendations, and also introduce another surprise site! (more…)

November 24, 2015 by Andrew Minalto - 16 Comments

Alibaba GOLD Member SCAMS!

gold-supplier-scamThe blog is turning in to a bit of a scam buster site now, as today we have a post all about Alibaba Gold Supplier scams, to follow on from last week’s one on Trademark applications.

Anyone who has read my very popular post “exposing the Alibaba scam” or the follow up article I did detailing the 10 most commonly attempted scams on Alibaba will know that I always recommend that you only deal with Gold Suppliers when sourcing products on Alibaba.

In fact, it’s the very first criteria I use when I’m searching for a new supplier and want to instantly filter out a large majority of the un-safe options. The reasoning behind it is incredibly simple – it costs a lot of money to become a Gold Supplier on Alibaba and most scammers are unwilling to spend that sum, when they know their account won’t last long anyway.

So does that mean only dealing with gold suppliers on Alibaba protects you completely against scams and makes you 100% safe? No, unfortunately not! You can still get scammed by gold suppliers on Alibaba and that’s exactly what I want to talk about today.

But before we get started with the meat of today’s post – I do want to quickly point something out: the absolute vast majority of gold suppliers on Alibaba are 100% legitimate companies. Of course I can’t put an exact figure on it, but I would estimate that around 1% of your dealings with these companies will be a scam. And no matter where you’re ordering from, a 99% success rate is very impressive!

So please don’t let this article scare you away from Alibaba, as that is the opposite of my intent! Instead I want you to feel more confident so that you can use Alibaba safely to source great products at great prices.

Alright, now that’s covered, let’s get back to the topic at hand.

From my experience and knowledge, there are 5 main instances when you may be scammed by a gold supplier, and we’re going to go through them one by one so that you know what to look out for: (more…)

November 18, 2015 by Andrew Minalto - 0 Comments

Chinese Brand Products – Are They FAKES?

chinese-brandsNearly every time I mention the words “China” & “Branded Products” together, it’s a warning about how you CANNOT buy branded products from China.

You know exactly what I’m talking about – all those websites with their too good to be true “buy one get one free” deals on all the top products and brands, such as:

Electronics – Apple, Samsung, Intel, Sony etc.

fake-apple-productsClothing and Footwear – Nike, Adidas, Puma etc.

fake-nike-productsDesigner Clothing and Accessories – Armani, Gucci, Dior, Dolce & Gabbana etc.

fake-handbagsAnd many more!

Sites such as these are everywhere online, preying on newbies who don’t know any better (I still get emails every week from people who have lost a lot of money by falling for these scams).

BUT all my warnings about branded products from China have created a bit of confusion that I want to clear up today.

When I talk about buying branded products from China, I am referring to Western brands (plus some Asian electronics companies of course) – big consumer brands whose products you will find on Amazon and your local high street. (more…)

September 28, 2015 by Andrew Minalto - 22 Comments

RULES on Importing Toys to the UK from China!

importing-toys-from-chinaFollowing on from last week’s post about importing children’s clothing to the UK, today I want to cover the specific rules for importing toys.

Toys is another hugely popular niche for new online sellers, and that’s not really surprising. After all, we’ve all seen the toy sensations that just fly off the shelves; pretty much everything Frozen related in the last few years is a great example!

And that’s exactly why I wanted to bring this up, before we get to the actual point of today’s post – you cannot buy licensed toys from China!

Please don’t ignore this point! Any toys, be they plush, figures, cars etc., which feature trademarked characters or names, are illegal to buy and resell!

It doesn’t matter if it’s a different design to the doll that Disney sell in their own stores! It doesn’t matter if it doesn’t have a Disney logo visible on the label! These toys are illegal – and that’s that.

Of course this goes for all trademarked characters, not just Disney. I just used them as an example as the vast majority of toys being sold illegally are something to do with Disney.

I don’t want to delve any further in to this now, as I’ve actually covered it on this blog before. You can take a look at that post here if there’s anything you’re unsure about: Wholesale Disney Character Items from China!

Okay, now that we’ve got that point out of the way, let’s get to what today’s post is all about – importing toys from China to sell in the UK.

As an importer of toys intended for children, you must comply with the 2011 Toys (Safety) Regulations, which basically introduced the European Toy Safety Directive into UK law.

The overall requirements of this directive are that toys must: (more…)

September 23, 2015 by Andrew Minalto - 13 Comments

Importing Children’s Clothing from China!

childrens-clothing-from-chinaClothing is a niche that I receive a LOT of emails about, and it’s not hard to understand why – the margins are amazing!

It’s not uncommon to achieve 80%+ margins on clothing (selling your own brand of course – you won’t make anything near that re-selling designer brands!) which is something that most other industries can only dream of.

But really that 80% margin is only part of the story and when you delve deeper there are a lot of issues with selling clothing online, particularly designer brands.

I have actually covered this topic in the past, and outlined my reasons for staying away from this supposedly very lucrative niche. You can take a look at that post here if you missed it:

https://andrewminalto.com/designer-clothing-on-ebay/

But despite my personal reservations, today’s post is all about importing clothing to the UK, and specifically, children’s clothing.

I recently received an email from a blog reader who had big problems with a fairly large order of children’s clothing and shoes from China, and he ended up losing a lot of money sending the whole shipment back, as it didn’t conform to the necessary standards and regulations.

So to try and help you avoid any costly mistakes like that in the future, I want to cover exactly what you need to do when importing children’s clothing the UK from China.

Let’s get to it!

The first things I want to cover apply to all clothing and footwear in general, as there are safety regulations that you need to meet in order to sell imported clothes in the UK.

This should really be obvious to everyone – after all, clothing is a product for which the materials and quality are extremely important. These are items that are worn in contact with the skin for hours at a time so it’s not just a simple matter of the product merely not working if it’s badly made – the consequences can be much more severe. (more…)

September 7, 2015 by Andrew Minalto - 18 Comments

Fear of the Minimum Order Quantity on Alibaba!

minimum-order-quantityOne of the biggest problems that many people face when searching for items and suppliers on Alibaba is the MOQ (minimum order quantity). It’s not uncommon for some suppliers to list their MOQ as 500, 1000 or sometimes even higher for very cheap items.

moq-lens-mug

moq-beadsThe usual reaction from people in these situations is to simply scrap any such listings and suppliers. But you really don’t have to, at least not always!

If there’s one thing that I’ve learnt from my many years of importing and teaching others how to import from China, it’s that the MOQ is negotiable.

In most cases it can be cut in half and sometimes even more than that – I’ve seen many occasions with my 60 Day Blueprint customers when the MOQ has been lowered from 500 to 100… it’s all about negotiation!

I did actually cover this at the end of my recent post about Contacting Suppliers on Alibaba, so check that out for a good introduction:

https://andrewminalto.com/dealing-with-chinese-suppliers/

But the method I use in that contact template is only one option – the old ‘small test order progressing to larger orders later’. There are a few other tactics that you can use as well, if for some reason that one isn’t suitable or effective. (more…)

September 2, 2015 by Andrew Minalto - 17 Comments

Pre-Shipment Inspection in China – STAY SAFE!

inspection-report

I recently wrote about factory inspections and how they are an integral part of vetting any new supplier – you can read that post here if you missed it: Trip to China – £3000 vs Factory Inspection – £70.

And in that post I also mentioned pre-shipment inspections, which is what today’s article is all about, as in my opinion a pre-shipment inspection is crucial when placing a large order from China.

The first question that might come to you now is “but why do I need to do another inspection? Surely one is enough…”

Well the factory inspection and pre-shipment inspection cover two very different things.

I usually recommend doing a factory inspection after you’ve received samples from a company and before you pay any money towards a real order, and it’s basically a general audit/verification of the company – to make sure everything is 100% genuine and as they’ve presented.

Whereas a pre-shipment inspection will concentrate purely on the items you’ve ordered – making sure there are no errors and they match your specification.

A pre-shipment inspection should be done once your order is ready to be shipped, but before you pay the remaining balance, and covers things like:

  • Quality of the product
  • Quantity being shipped
  • Packaging
  • Labelling
  • Etc.!

In simple terms, I view the factory inspection as the final scam filter, but the pre-shipment inspection is all about making sure your order is perfect. After all, as I touched upon in my UK Wholesale Scams post, not being a scammer doesn’t make that company a good supplier and there are still many things that can go wrong with your actual order. (more…)

August 25, 2015 by Andrew Minalto - 10 Comments

UK Wholesale SCAMS – Smarter than EVER!

uk-wholesale-scamsI talk a lot about importing from China on this blog, and for a good reason – it really is the best way to go if you’re looking to make real profit selling online (I’m talking about 100%+ mark-ups!).

However, importing from China can be a very taunting task for new sellers, even with all my guides and help, and for some people UK wholesalers can be a viable alternative when starting out.

The main benefits to dealing UK suppliers vs ordering from overseas are:

  • Low MOQs

Shipping costs are a big consideration when placing wholesale orders, as they can drastically affect your per item cost, but when ordering from a UK based company you don’t have to deal with air or sea freight and it becomes much more viable to place low value orders.

  • Quicker

As well as shipping being cheaper, it is also much quicker. This makes stock control and planning your inventory significantly easier and it also means you can hold a bigger variety of stock as you don’t need huge volumes of each item.

  • Branded Goods are Available

Unlike with mainland China where it is impossible to buy genuine branded goods, you can source such items from official distributors and wholesalers in the UK.

Actually getting them to sell to you or being able to make any money from such items is another question entirely though!

  • Easier and Safer

Generally speaking, scams are not as common for UK based businesses as with Chinese companies.

The reason for this is of course extremely obvious – nearly everyone knows that a large proportion of the world’s most popular products are made in China and they think that means you can buy directly from the factories there. As a result Chinese websites with too good to be true pricing on Apple iPhones and Sony PlayStation 4s are very common.

But contrary to what you might have heard, though it is much less likely, you can still get scammed when ordering from UK based businesses!

And that’s really what today’s article is all about – a guide on how to properly verify UK based suppliers.

First things first, although I’ve mentioned above how you can source branded items from the UK (unlike China where these are 100% no-go items) – they are still the most popular products for scammers and their unbelievable wholesale prices and buy one get one free offers! (more…)