Generally, when you are just starting out and ordering small quantities like 20-50 pieces, you’ll probably want to look for or negotiate with suppliers to either accept PayPal or some type of escrow service to give you the highest level of protection. Escrow fees range from 4-11% so this can be rather expensive for both parties. You can read about common payment methods on Alibaba on the Alibaba Safe Buying page. If you are using Alibaba you can use their Escrow service for example. When using an escrow service, the buyer’s money is held by a third party and is only paid to the supplier after the buyer confirms satisfactory delivery of their order.Įscrow is a fairly safe payment method for buying and selling online because it protects both the buyer and supplier. In this example I could safe up to 76€!! Sending money to China you can safe up to 200€ (depending on the amount you send). I definitely recommend you check out WISE. Below you’ll see an example sending 1000EUR to the UK. In some cases the money can arrive as fast as 5 minutes. It is fast and cheap if you use a payment service provider like WISE if you are sending money outside of Alibaba. Telegraphic Transfer is my preferred method of payment. So it is important you clarify this part BEFORE placing the the order and sending money. Usually every supplier will agree to give you an internal inspection report. that shows your order is made according to your requirements. This report should include pictures during and after production of the product, packaging,labels, cartons etc. If you can’t afford or do not want to have an inspection (for example because the total order value is so low it wouldn’t be economical) then I recommend to have the supplier self-inspect and send you an internal inspection report. However you can protect at least the initial 30% of the money (deposit) by having an inspection and releasing the rest of the money ONLY after the order is to your satisfaction (passed shipment inspection). You can request a re-call of the funds trough your bank but the other side still has to sign and agree the re-call when they are notified of it. There is little that can be done to get your money back if something goes wrong. This payment method bears a medium level of risk to the buyer and generally is not recommended when dealing with a completely unknown supplier. 70% will be paid upon inspection and shipment release. Very important: if you agree to this payment, NEVER pay more than 30% upfront. With a bank transfer, the supplier will receive payment before production starts. TT (TELEGRAPHIC BANK TRANSFER OR WIRE TRANSFER) TT (TELEGRAPHIC BANK TRANSFER OR WIRE TRANSFER).So let’s dive right into the best and safest way to pay your Chinese suppliers on Alibaba.ĭisclaimer: Some of the products may contain an affiliate link and we may make a commission if you click on it at no additional costs to you. TT (Telegraphic Bank Transfer) or also called Wire TransferĪt the bottom of this post I will also answer some frequently asked questions like refunds and protection.There are several ways to pay suppliers on Alibaba which I will list here briefly and then describe in detail below: Many retailers actually work on a T/T basis 60-90 days AFTER shipment, allowing them to sell goods already while they haven’t even paid for them yet. That is the ideal situation for you as a buyer but not many suppliers will agree to this term. If you have an established business relationship you could ask that the next order should be paid 100% on delivery (T/T). The supplier can always say no, but if he agrees this gives you financial liquidity. The rest is paid after or immediately before shipment. In the beginnings you will most likely (and should) work with a 30% deposit or down payment on your order. The longer you work with a supplier the easier it will be to deal with payments. Today there are several ways to pay suppliers in China and thanks to many payment service providers things have gotten a lot cheaper over the years and each have their pros and cons for both the buyer and the seller. There are several forms of payments but we also want to look at the safest way to pay your Chinese suppliers. I often get asked what is the best way to pay your Chinese suppliers on Alibaba.
0 Comments
Leave a Reply. |