Hi Andrew,

I’m sure you’re fully aware of a site called Alibaba.com

I’m new to all this importing stuff and wanted to ask your opinion – is Alibaba really a SCAM? As I have read that it’s full of scammers. On the other hand, I can’t believe this is true as I have seen their TV & magazine ads. Can’t believe they would allow such a scam operation to advertise in reputable magazines!

Or I’m missing something?

Thanks a lot!

Gareth (NY, US)

Hi Gareth,

Thanks for your question.

I’m glad you raised this topic as once for all I would really like to clarify all the myths about Alibaba.com, the world’s largest B2B portal.

Myth Nr.1 – Alibaba is a SCAM!

This is simply ridiculous! How can Alibaba be a scam if it’s just a website, PLATFORM for businesses to share their contacts. I’m not saying there aren’t scammers on Alibaba BUT Alibaba itself is definitely NOT a scam! Then you could say eBay is a scam as well as plenty of scams going on there.

As you already stated, Alibaba is owned by a very large, multi billion $ corporation and yes, they run TV and magazine ads, special competitions for young entrepreneurs, giving away special grants. So they’re totally legit and a serious company.

Myth Nr.2 – Everything on Alibaba is FAKE!

YES, if you try to source branded products from China you’ll get FAKES! Be it Alibaba, DHGate or Made-In-China.com – if you’re after branded goods, you’ll get fakes or get scammed! There’s no such a thing as wholesale branded goods from China, forget about it! Products like:

• DVDs, Blu Rays, Audio CDs
• Handbags & Shoes
• Hair straighteners
• Shure microphones, various brand headphones
• Clothing (Polo shirts etc.)

All of these are very popular items and Chinese know that. That’s why they produce and sell counterfeit copies, replicas and what not!  So, if you keep in your mind that you can’t get branded goods from China, you’ll be totally fine.

Myth Nr.3 – Alibaba is full of Scammers!

Again, this all comes down to products you’re trying to source. If you’re after branded:

• Camcorders & Cameras
• PCs, Laptops
• iPods, iPads, iPhones
• Pioneer DJ equipment
• etc.

FORGET ABOUT IT! You can’t get items like these from China. Scammers play on the fact that many people think this way:

Most of stuff is being manufactured in China, right? So most likely that’s the place to go to get to direct sources of popular electronics, video games, clothing etc.

But this assumption is totally wrong! While most branded stuff is being manufactured and assembled in China, it’s not being sold from there – from warehouses or something. All companies secure their factories, production is under very strict supervision so it’s not like Chinese workers can take few iPhones and no one would notice that, lol It’s a totally ridiculous assumption!

But scammers know about this mind set and they play hard on it! Usually, these scam websites are filled with all of these popular items at ridiculously low prices. Don’t be a fool – if it looks too good to be true, it IS too good to be true!

FINALLY – is Alibaba any good for business?

YES, ohh yes! It’s a great website to find manufacturers/wholesalers for anything un-branded in China and other countries. I have found my best suppliers on Alibaba and recommend using it you too. Just stay away from anything branded and you’ll soon find out that there are very, very few scams on Alibaba.com and similar sites.

Hope this helps!

Thanks,
Andrew

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