I am a member of LinkedIn, a social networking site, which has recently added more networking functionality such as the Answers section, where industry experts can respond to questions posed by the LinkedIn community.

I recently responded to the following question from Massimiliano Bevilacqua, Senior Consultant at IBM Global Business Services:

Importing goods from China … online with Alibaba.com or similar
is it safe to import goods from China using such website for establishing contacts with suppliers? Somebody had/has experience, can give good advices/best practices? How to deal with frauds, defect products, or worse with products not shipped at all? Which risks should I consider?? Thanks a lot your answers!

My response, which was selected as the ‘Best Answer’, was and is for all persons new to sourcing:

While the world is a much smaller place, global merchandise trade remains a complex and tricky business. A few comments below:

Sourcing websites - Don’t forget that these are designed to provide marketing channels for suppliers/exporters and aggregate product/supplier content for buyers/importers online. Read the User Agreements closely as they clearly state that you are essentially using the site at your own risk so be careful!

Never rely solely on any ratings systems provided by these sites. Always conduct your own due diligence.

Trade shows - The absolute best place to meet suppliers and learn more about the industry, manufacturing process, products, export issues, etc. The exhibitors can teach you many things and are willing to do so if they believe you are a serious buyer and potential customer.

Like finding the right supplier, it is not easy selecting the right trade show to attend. Do your homework, ask other importers you know which shows they attend and also look for UFI approved events (UFI.org).

Quality Assurance - There are companies that specialize in factory audits and product testing - use their expertise. Bureau Veritas is a good place to start.

Shipment - Selection depends on the product and quantity. If by air, then speak to FEDEX, DHL, etc. to understand not only shipping costs but also import taxes. If by sea, look for a shipping company that can also help you manage the taxes. Its also a good idea to speak to your local customs office.

Payment - Never send cash! Talk to your bank about Letters of Credit and Escrow. There are systems to protect your money so use them!

Patience - Take your time, look at alternatives and start small. If something looks too good to be true, it is.

There are many other facets to this industry but this is a good place to start. Good luck!

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