Advice on purchasing from Alibaba to sell on eBay

[friday_club_wines]

Hi everyone

My question is actually on buying from Alibaba, I am new to Alibaba and importing.

I have found an item I would like to import into Australia to sell on eBay

The total order is around $4000, as a first timer I am understandably hesitant about transferring this amount of money into someone’s bank account in China.

I can see that this supplier has been on Alibaba for 11 years, I cant imagine they would make it this far if they were ripping people off.

Anyway, I would love the opinion of a few experience importers as to weather I should do business with this supplier.

Thanks in advance,

Michael

[digupatin]

You don't actually buy from Alibaba, they are mainly a 'middle man' connecting suppliers with buyers.

As long as the company you purchase from has a Gold rating, much like high feedback on eBay, you should be as safe as anyone else buying from China.

Don't forget you may be competing with the same suppliers selling on eBay so have a good business plan and use Google to learn more.

[imastawka]

A bit more research wouldn't go astray.

Your id hasn't sold for 6 months?

Ebay may restrict your sales to 20 listings.

And Paypal will hold your money for 21 days

Also,  importing $4000 worth of goods, I think you have to pay GST on that lot.

Depending on what you're importing, also customs fees may be charged.

Someone else may know more,  or correct me

[ausbargainbasement]

Only use Paypal or credit card payments with suppliers on Alibaba, do not use direct payment, as there are scamers on that site as well, google the supplier see if any reviews as well, tread carefully.best to try a small sample first, before making a large layout a grand is a lot to lose.

[lyndal1838]

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@imastawka wrote:

A bit more research wouldn't go astray.

Your id hasn't sold for 6 months?

Ebay may restrict your sales to 20 listings.

And Paypal will hold your money for 21 days

Also,  importing $4000 worth of goods, I think you have to pay GST on that lot.

Depending on what you're importing, also customs fees may be charged.

Someone else may know more,  or correct me

---

Customes duties, fees and GST are definitely payable on $4000 worth of goods as well as the shipping charges.

As a first time importer of commercial quantities of goods I would recommend using an agent to do the Customs clearances for you, at least for the first time.

[springyzone]

I'd be having a long, hard look at what you are planning on selling and seeing how much it goes for on ebay and exactly who on ebay is selling it.

My finding has been that you can get things cheaper on alibaba/aliexpress if you buy in bulk.

But I know of quite a few people now who shop on aliexpress as well as ebay. Unless you can undercut that site, I am not sure how well you will do. Sure, sellers there  may charge extra for smaller amounts but then again, so will you have to.

[niknah]

I tried doing this before.

Auspost costs kills this sort of business.  It's much cheaper to ship all the way from China than to send something to the next suburb via auspost.

But look for dropship people who'll do the delivery for you from China.

Watch out for resellers.  You could be talking to a reseller who's buying from the actual factory.

Your question is, can you trust them.  Offer to pay partially at first, then pay the rest when they deliver.

And ask for a sample before you order.

[rocket2retro]

To the best of my knowlege if you import more than AU$1000 you have to register as an impoter (with an associated fee). You will also be be charged GST 10% of the value of the goods plus customs fees or tax (cant remember what it was called)

.

I'm not an expert but I was astounded when I purchased someone (for myself) that was over $1000 from overseas. It added 25-30% to the cost of the item.

Customs will hold the goods until all fees are paid (and charge a daily holding fee if the monies aren't paid on time).

Secondly- be prepared that even if your research leads you to believe there will be profit to be made, the items you are buying can be bought by anyone.

People watch ebay etc to see what's selling. There is nothing stopping others buying the same items (perhaps in larger quantities and getting them for less)  You should have decided what profit margin you will be making per unit.  Any other competitors might be prepared to sell at a much lower profit margin. Some sellers are.happy to make just a few cents per item if they are high volume sellers (eg phone covers etc) 

You need to be prepared for this -either with a plan for other avenues of sale or be prepared to sell at a small profit margin (or in a worst case scenario to recoop you investment).

[lyndal1838]

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@rocket2retro wrote:

To the best of my knowlege if you import more than AU$1000 you have to register as an impoter (with an associated fee). You will also be be charged GST 10% of the value of the goods plus customs fees or tax (cant remember what it was called)

.

I'm not an expert but I was astounded when I purchased someone (for myself) that was over $1000 from overseas. It added 25-30% to the cost of the item.

Customs will hold the goods until all fees are paid (and charge a daily holding fee if the monies aren't paid on time).

---

You do not have to register as an importer just because one shipment is over $1000 but you do have to pay the Customs Fees and Duties as well as the GST on the item cost plus the shipping.

You are quite correct that these charges add a considerable amount to the cost.....sometimes as high as 40%

[glwis13]

I want to start an on line buying and selling biz, but i dont know where to start and the rules, can someone guide me? I am in Australia