Back to Basics: How to Navigate the Market Bazaars

Written by Eric Watkinson, Customer Service Manager.


Just as the internet has transformed human society into a single global village, internet commerce has also altered into something resembling a market bazaar for that global village. 


Picture yourself, for a moment, walking among the dusty stalls in an ancient open air bazaar, where traders and merchants from across the known-world hawk their wares.  Many of them are shouting loudly, and aggressively, while thrusting their product in front of your face, as you walk past their stall.  This can be a very confusing, and bewildering environment to a newcomer, who is not familiar with local customs and practices.  However, to a smart-buyer, such an environment can be filled with many hidden opportunities that would go unrecognized, and perhaps unfulfilled, in the eyes of an inexperienced newcomer.


However, as the smart buyer navigates the corridors of the global bazaar market they will soon learn the basic unwritten rules of the bazaar, and will learn how to prosper in such an environment.  Below are some key points that the smart buyer might give to us as we walk along the stalls of the bazaar.


  • Always remember that you are coming in direct contact with individuals from throughout the world, whom you normally would not have access to.

  • If negotiations do not seem to be moving forward, do not invest too much emotional energy.  Simply walk away and find another party to do business with.

  • Never accept anything on face value.  Always take the time to think twice, and to ask yourself if this deal is too good to be true.

  • Remember that the other party is always looking out for their best interest, and is negotiating very hard to maximize their own profit.  You must also do the same.

  • Always conduct business in such a manner that you help honest merchants stay honest.  Remove any temptation for the other party to not hold up their end of an agreement.  (Remove any incentive to become dishonest)

  • Learn to recognize the difference between an honest merchant, and a one-time-opportunist, who happens to be just hanging around the bazaar.

Of course such knowledge may not grow over night, but if a newcomer to the bazaar of internet commerce is willing to be patient, and also have realistic expectations, then their encounters with others will become much more profitable, and worthwhile.

Sourcing for Online Sales? Think Globally.

From post on Auctiva by Brad and Debra Schepp - Dec 02, 2008  

Internationalsourcing We know that as you read this you are likely taking a brief and much-deserved break from listing, selling, processing and shipping your holiday inventory. You most likely sourced everything you're selling now eons ago, in e-commerce time, and you're way too busy to think about your next sourcing dilemma. But we're here to remind you that January is just around the corner, and the holiday rush of 2008 will pass as surely as all the holiday rushes before it. Perhaps a brief distraction to consider your next great product source is just the sauce you need for your holiday goose.

Fortunately, we've spoken with sellers about where they've found international sources of products and how they've worked with those sources to create product lines that are consistent and reliable in quality and delivery. That's pretty much what anyone wants in a new product source. You want to be assured the manufacturer you're working with will provide the product you want according to your specifications, and you also want to be assured the manufacturer will do what is promised and fulfill your sourcing needs as seamlessly as possible.

That's why it's best to work with a reliable partner, especially when you're going overseas to find sources. We'll look at several companies that fit the bill.

The largest b2b marketplace

Let's start with the giant in the industry: Alibaba.com. Simply put, Alibaba.com is the largest business-to-business marketplace in the world. When you visit the Web site, you gain access to 25 million manufacturers, distributors and retailers who come together to buy and sell just about anything you can think of. You'll find everything from furniture to handbags, from solar cells to firewood. Products come from virtually every corner of the world. And, in the end, whether you purchase inventory from a supplier in Turkey or Toronto, you'll have Alibaba's guidance and support. Also, Alibaba.com is a bit of a media darling. Forbes Magazine included it in its annual "Best of the Web" roundup for seven years in a row.

But now let's see what some successful sellers have told us about international sourcing in general and working with Alibaba.com more specifically.

Jane Ivanov of Eve Alexander Maternity/Nursing Apparel says the information she gathers through Alibaba.com is unparalleled in online merchandising. "I never had the need to look elsewhere after our initial search," she notes. "We've been pleased from day one. The site is easy to navigate, and all the contacts for prospective manufacturers are well-vetted and researched."

Elena Neitlech of MomsonEdge.com agrees Alibaba.com has proven to be home base in an international arena. Working with Alibaba.com, Neitlech has built a Web-based business right from her kitchen table. She is the mother of two young children, and her inventory includes products she's designed and identified to make parenting easier and family life more enjoyable.

Suppliers who come to Alibaba.com are eager to see their own businesses grow

"It would have been impossible to create Moms on Edge LLC without Alibaba," she says. "Manufacturing in the U.S. was cost prohibitive, so I took a deep breath and jumped in feet first. My experience with Alibaba has been nothing but positive."

Neitlech had specific design issues in mind when she started building her family-friendly product line. "Every company that I've worked with has delivered what I have asked of them," she reports. Neitlech even notes that communicating internationally has been simple. Rarely has miscommunication occurred.

"The one mistake that a manufacturer made was immediately corrected and delivered quickly to my warehouse," she says.

Invanov found some real advantages to working with the manufacturers on Alibaba.com. First is the large pool of potential suppliers who offer competitive pricing. Most interestingly, however, Invanov notes that suppliers who come to Alibaba.com are eager to see their own businesses grow. "They are willing to send samples and answer questions promptly," she says.

Due diligence

But both women say there are some pitfalls to avoid. According to Invanov:

  • Personal relationships are more difficult to build across many time zones.
  • Personally checking out a company requires a trip overseas.
  • Quality control must be in place—and there is an element of risk in receiving the order of what you expected from the samples. You never know until you get the order.

So be sure to check the manufacturer's references. Talk to current and former clients to see what their experiences were and what types of issues they may have had with the company.

Neitlech agrees that the advantages of sourcing through Alibaba outweigh the disadvantages—plus she's found a real willingness among the manufacturers she's worked with to accommodate her schedule and needs.

"I understand that I have to make accommodations when working with businesses in China, like getting up early to e-mail manufacturers, but they often stay late in their offices to accommodate me, too," she notes. "Very rarely has language been an issue, but e-mailing directions clearly and concisely and inserting diagrams and pictures clears up confusion easily. I have felt that my manufacturers want a long lasting relationship and value my business."

It takes a leap of faith to look offshore for your product sources

Other sites of interest

Of course, Alibaba.com isn't the only alternative for international sourcing. Made-in-China.com is celebrating its 10th anniversary this year. It is the online trade platform of Focus Technology Co., Ltd., a pioneer in electronic business in China. Focus's goal is to help small and medium-sized Chinese enterprises compete in international trade. Buyers and manufacturers can use Made-in-China's Web site to search for products and sourcing opportunities throughout China. Products from agricultural items through toys and transportation are available for sourcing on the site. Global suppliers and buyers use the Offer Board to promote their work. Although Made-in-China is much smaller than Alibaba.com, you'll find several interesting items available through this site.

Global Sources is another company working to link Chinese manufacturers with the rest of the world. This business-to-business media company builds trade bridges between manufacturers in China and their international customers. These are supported and facilitated in English. The company is also working on an initiative to promote trade within China. That part of the company is supported by Chinese-language media. According to the company, suppliers receive more than 36 million sales leads annually through Global Sources. The company helps more than 725,000 buyers source items. Global Sources is an established company with more than 37 years of experience in global trade. So, you can be sure that working with it means the company has helped someone like you at sometime in the past.

It takes a leap of faith to look offshore for your product sources. It's certainly isn't the purview of the newbie, although Neitlech says she was a total newbie when she started. Still, once you've cut your e-commerce teeth, you may just find some juicy deals waiting for you.

But what if you end up having to take a trip to China just to be sure your manufacturers are doing everything right? Well, that's what happened to Brandon Dupsky of the eCommerce Merchants Trade Association. Stop by his blog to see that this would not be such a bad way to start 2009 after all.

Now, back to finishing up the details of holiday 2008, and we'll see you in 2009.

Enhanced search with image matching

Image Match Searching for the right products on Alibaba.com got a whole lot easier with our new image matching tool. Instead of an intense text search result, we provide you something easier on the eyes with big product pictures. Go to Alibaba.com to learn more.

Q3 profit up 49% and $2 billion buyback authorized

Our Q3 earnings results were released earlier this week. EPS was up 57%, profit up 49%, and the company was authorized to buy HK$2 billion of its owns shares. For the full report on Q3 results, click here.

The Art of Product Descriptions

Written by Eric Watkinson, Customer Relations Manager.

Product Description

By writing a clear and concise product description, a supplier can greatly increase their chances for a buyer to contact them, and ask for a price quote on their product.  

 

Too often a supplier can be faced with the difficult choice of, running a small business, or posting products on the internet.  With a limited amount of available time on hand, suppliers may often feel as though they are in a rush when posting their product information, and as a result, their product description may suffer somewhat.  However, writing a product description need not be an arduous task, if the writer is willing to keep the below guidelines in mind. 

 

  • Features

Example: Stainless steel construction to resist corrosion and discoloring, heavy duty rollers with roller bearings for extra long life, holds up to 125 lbs, fully assembled for easy installation, and no power source required.

 

  • Functions

Example: An under the counter trash can trolley suitable for use in restaurants, hotels, hospitals, and designer homes.

 

  • Benefits

Example: Eliminates the need for use to bend and stoop when removing trash can receptacle from cabinet located below kitchen counter.

 

By including the above information within a product description, the writer can help a potential buyer quickly visualize the product, and understand its purpose.  Below is an example of what a complete product description might look like.

 

  • Trash Can Caddy eliminates the need for user to bend and stoop, when removing, and replacing, under the counter trash can receptacles.  Constructed from sturdy stainless steel material to resist corrosion and discoloration, Trash Can Caddy fits in any below counter cabinet with an opening of, 16”x28.” Simply place Trash Can Caddy inside cabinet and position the pedal mechanism outside of cabinet door.  When not in use Trash Can Caddy stays out of the way inside cabinet.  However, when access to trash receptacle is required, simply use foot activated pedal, and Trash Can Caddy will emerge from cabinet, guided along by its heavy duty rollers, which are capable of supporting up to 125 lbs.  Simply remove your foot from the pedal, and Trash Can Caddy returns to its normal position, within the cabinet.  Trash Can Caddy is suitable for use in restaurants, hotels, hospitals, and even the home.  Trash Can Caddy is essential for reducing work place injuries.  Please feel free to contact for more information.

Your product description doesn’t necessarily need to be this lengthy, but is should help the potential buyer understand the features, functions, and benefits of your product.

 

 

Want more information on product descriptions and selling secrets? Go to Alibaba.com's Seller Channel.

Major Initiatives for Buyers & Suppliers

Alibaba_h_logo_orange Two initiatives have been launched this week to make buying and supplying safer and easier. They are:

1. Quality Supplier Program: new partnership with VeriSign

2. Gold Supplier Starter Pack: new product for Chinese manufacturers for $2,900 per year

For the official press release, click here.

The Art of Company Profiles

Alibaba Help  Written by Eric Watkinson, Customer Relations Manager

 

By publishing a Company Profile on Alibaba.com, a member can greatly increase their chances of appearing within a search for suppliers on Alibaba.com, and they will also have a much better chance of appearing within a search conducted via any of the major internet search engines. 

 

Very often new members to Alibaba.com fail to realize the importance of publishing their Company Profile on Alibaba.com.  As a result, many members maybe potentially losing out on key benefits of internet commerce (due to the fact that, under these conditions their membership is not completely visible to other users on the internet).

 

When creating (or modifying) a Company Profile, a member may want to take special care when entering information into the field titled, “Detailed Company Introduction.”  The information entered into this field will be displayed as the member’s “About Us” statement on Alibaba.com, and may be potentially visible to everyone else who is using the internet. 

 

Also, the About Us statement can be a real deal breaker for potential clients, who are considering doing business with a new member of Alibaba.com.  A poorly written About Us statement may send the wrong message, and give the impression that the member in question is amateurish, unprofessional, or worse, dishonest.  Care should also be taken to not write an About Us statement that is too grandiose, or overstated.  A reader should be able to quickly, and accurately, visualize your company, and its services, based upon the information you provide within your Detailed Company Introduction. 

 

Below are two examples of About Us statements that I’ve recently come across on Alibaba.com.  In the first example, very little thought appears to have been given regarding the types of ideas, or opinions, the reader may form while reading this information.  The second example, while not perfect, appears to paint a much clearer picture of the business in question, and should help a potential client make the right decision.  (The names have been changed to protect the innocent.)

 

  • I’m a retired person living in the Sacramento area. Due to the recent downturn in the economy, my wife and I are seeking to supplement our fixed income by selling custom made dog kennels, and related products, on the internet.  My wife and I are both avid animal lovers, and willing to invest a great deal of time, and effort, into this endeavor.

  • Founded in 2007, Cage Co Inc is a small business located in the Sacramento, California area, specializing in the design and manufacture of custom dog kennels.  Our products are constructed from 100% safe non-toxic materials.  Our clientele include specialty breeders and dog lovers from all over the world.  We also cater to the dog-show industry, the entertainment industry, and private individuals. No order is too big, or too small.  Please feel free to contact us for further information.

As you can see, the first example contains too much personal history, which may turn off a potential client.  On the other hand, the second example give a quick snap shot of the member business including the year founded, business name, geographic location, product line, and clientele.  By reading an About Us statement similar to the second example, a potential client can quickly determine if there is a possible fit between their business and yours, and thereby remove any doubts about contacting you for a price quote.

 

To create or modify your Company Profile follow the steps outlined below:

 

1.  Login to your membership, and click the My Alibaba icon in the upper right hand corner.

 

2.  On the blue menu bar near top of screen, click the option titled, Company Profile.

 

3.  Enter information into each of the fields with a red asterisk next to it.

 

4.  Click the Submit icon at the bottom of the page.  Your Company Profile should be published within the next 24 hours.

Halloween business ideas and fun

Halloween Halloween's not just a time for ghosts and goblins. It's actually a great opportunity for business people to make money. On Alibaba.com, you can source the perfect Halloween costumes and toys. Check out our photo galleries here.

Come check out our special Halloween page for our Fun Halloween Quiz, our Top 10 lists, Halloween worldwide, fun Halloween products, and much more.

HAPPY HALLOWEEN!

Blacklisted companies will be banned from Alibaba.com

Blacklisted companies We've recently taken steps to blacklist companies that are engaged in fraudulent activity on Alibaba.com. Members who don't meet our trust and security standards will be banned from our marketplace. Since January 1, 2008, over 3,000 companies have been blacklisted and taken down from the marketplace. Go to Alibaba.com for more information on regarding our blacklisted companies.

How to select your product(s) to sell online

Written by Eric Watkinson, Customer Relations Manager.

 

Facebook_110x80 HK One of the very first decisions facing a new comer to internet commerce is the type of product, (or service) which they will buy and sell on the internet. 

 

Many new comers to internet commerce may be looking to score a quick killing by dealing in high demand consumer electronic products.  While it may seem reasonable to assume that a product in high demand is a good basis for any business plan, many new startup internet business fail to recognize the innate risk often associated with buying and selling consumer electronics.  (Discussed in greater detail in an earlier blog.)

 

Another possible pitfall for a small start up internet business is commodities.  Like consumer electronics, products such as; cement, urea, jet fuel, and diesel are often very problematic, and a new internet entrepreneur may become frustrated with the difficulty in closing a successful deal, due to stiff requirements on the part of other players (large deposits, letters of intent, and so on).

 

Here are a few general guidelines to keep in mind when selecting a product line for a new startup internet business.

 

  • Select an industry and product line that you are familiar with, and interested in.

(If you’re into cats, then it’s probably not a good idea to start an internet business specializing off-road racing equipment.  A product line based on custom cat toys may be more appropriate.)

 

  • While it is a good idea to select a product line you are familiar with, do not select a category that is too small of a niche, or has too much competition.

(Of course the internet may be an excellent tool to do some general market research on your product selection.  Are there any chat forums or associations dedicated to this particular interest?  Are there other online business offering similar products?)

 

  • Contact several suppliers, carefully comparing payment terms, lead time, and warranty information, before agreeing to buy.  (Don’t let anyone push you.)

 

  • If you are planning on offering drop shipping to your customers, make sure that your supplier will ship your products in timely and accurate manner. 

(Consider placing several small sample orders, before placing your business reputation at-risk with an unknown drop shipper.)

 

Recently I had the pleasure of speaking with one of our members who runs a successful small internet business.  In this particular case our member operates a website where their customers can place an order for customized product, (sorry I cannot give away their plan) while at the same time, the member uses Alibaba.com to source unfinished product for their production needs.

 

An important thing to keep in mind is that there are many viable internet business opportunities outside of consumer electronics and jet fuel, and a new comer to internet commerce should not focus too much on making a quick over night killing.

New Entrepreneur Channel on Alibaba.com

We've created a new Entrepreneur Channel on Alibaba.com to give our small and medium sized business owners the tools and information they need to grow their businesses. Highlights of the new channel are:

Big ideas 1. Entrepreneur News

2. Help Topics

3. Business Ideas

4. Women Entrepreneur

5. Business Leaders

Check out the new channel at Alibaba.com: http://news.alibaba.com/specials/entrepreneur.html

Canton Fair starts on October 15th

Canton Fair The 103rd Canton Fair starts next week on October 15th in Guangzhou, China. The Canton Fair is one of the largest import-export trade shows in the world. Due to the sheer size and popularity of the show, you'll see hotel rates shoot up to about 5x of normal rates.

We've got all the information you'll need to navigate the fair, if you'll be there. Click here for more info or go directly to the Canton Fair website.

If you cannot make it to the Canton Fair and still want to attend some niche trade shows, go to our Trade Show Channel to find all the info you need for trade shows in your part of the world.

China National Holiday - October 1st

It's the National Holiday in China today, which celebrates the formation of the People's Republic of China in 1949. All of China is on vacation this week until October 6th.

Forbidden City Highlights in modern Chinese history are:

1. 1949 - PRC established.

2. 1972 - USA President Nixon is first USA President to visit China

3. 1989 - Tiananmen Square Massacre

4. 2001 - PRC enters WTO

5. 2008 - Beijing Summer Olympics

To get more information on China and other countries, check out the Alibaba.com Country Profiles.

How to avoid phisching scams

I recently received an alert about a phisching scam from one of our USA TrustPass members. He told me about an email that was disguised as an email from Alibaba.com that asked to confirm his member ID and password. Our company policy is to never ask for a member's password as that is sensitive information to our individual members.

If you ever receive an email like this, please report it to our Customer Service Department immediately for investigation. For more information on avoiding phisching scams, go to Alibaba.com: http://resources.alibaba.com/article/231143/About_Phishing_Scam_.htm

Example of phisching email:


 

TrustPass Profile Verify !

 

**************************************
Dear Alibaba Member ,
**********************************

The all-new Alibaba.com is here.
     We worked up here at Alibaba to bring you the latest security systems to protect your business and your account. We included new hardware systems that make Alibaba better, stronger, faster. We moved our central database to a new, better location. We want to make Alibaba..com a safer place for transactions and for that we deci! ded to close all those inactive accounts.
     You received this e-mail because you need to confirm you are using your account. According to the Alibaba.com Terms of Use Agreement Alibaba reserves the right to limit, deny or create different access to the Site and its features with respect to different Users, or to change any o f the features or! introduce new features without prior notice. Also, each User hereby agrees that in no event shall Alibaba be liable to the User or any third parties for any inability to use the Site (whether due to disruption, limited access, changes to or termination of any features on the Site or otherwise), any delays, errors or omissions with respect to any communications or transmission, or any damage! (direct, indirect, consequential or otherwise) arising from t! he use o f or inability to use the Site or any of its features.
     If you ignore this email your Alibaba.com account will be deleted and you will not be able to register a new account or to sing up for the Image Hosted by ImageShack.usservice.
     Please note that this suspension does not relieve you of your agreed-upon obligation to pay any fees you ma! y owe to Alibaba. According to our site policy you will have t! o confir m that you are the real owner of the Alibaba.com account or else your account will be deleted.
 
Please complete the information and reply us back :
 
 
Member ID:

Password:

 

Gain buyer confidence. TrustPass membership gives your company something extra. Your customers know your business values credibility.
            TrustPass membership benefits include: 

Gain buyer confidence. TrustPass membership gives your company something extra. Your customers know your business values credibility.
            TrustPass membership benefits include: 
      Unrestricted access to all buyers
      Increased buyer confidence
      Your own website on Alibaba.com and other selling tools
Cherry Lee
Alibaba Trade Shows

Lee Young
 
www.Alibaba.com
Global trade starts here.

This email has been sent to: Alibaba Member
To unsubscribe from Alibaba Trade Show communications, click here.
To manage your Trade Alert preferences, click here.

Read our Privacy Policy and Terms of Use.
© 2006 Alibaba.com Corporation
The sender of this email, Alibaba.com E-Commerce Corp., can be contacted at:
c/o Alibaba.com Hong Kong Limited,
2403-05 Jubilee Centre, 18 Fenwick Street, Wanchai, Hong Kong
Attention: Legal Department




Alibaba.com ranks 5th in Asia search properties

By PR Director, Christina Splinder:

Will e-commerce marketplaces one day overtake search engines?

I was interested to see the latest comScore Asia-Pacific search rankings for July 2008. Alibaba Group websites, mainly covering the B2B and C2C marketplaces of Alibaba.com and Taobao, ranked collectively as the 5th biggest search destination in Asia-Pacific. Most people think of Alibaba.com as a website where small and medium buyers and suppliers from around the world meet and conduct business, but it’s really a place where people search and find stuff.

Search bar  


---------------------
 
Press release (latest release for July 2008 rankings + the April 2008 rankings)

comScore Releases Asia-Pacific Search Rankings for July 2008; More than 27 Billion Searches Conducted in July
17 September 2008
PR Newswire (U.S.)
 
TOKYO, Sept. 17 -- comScore, Inc. (Nasdaq: SCOR), a leader in measuring the digital world, today released its ranking of the top search properties in the Asia-Pacific region based on data from the comScore qSearch 2.0 service, revealing that Google Sites continued to lead the region with 33.5 percent of the more than 27 billion searches conducted in July. Baidu.com Inc. ranked second with 27.4 percent search share, followed by Yahoo! Sites in third with 19.7 percent share.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080115/COMSCORELOGO[http://www.newscom.com/cgi-bin/prnh/20080115/COMSCORELOGO])
"Although Google leads the Asia-Pacific search market, powerhouse Chinese search engine Baidu.com follows closely on its heels with only a 6-percent difference separating the two," said Will Hodgman, comScore executive vice president for the Asia-Pacific region. "It will be interesting to watch Google and Baidu compete for the top spot in the region and the loyalty of the growing Asian population."
Google Leads Search Market in Asia Pacific
Google Sites led the search ranking with more than 9 billion searches conducted during July, followed by Baidu.com Inc. with 7.4 billion searches and Yahoo! Sites with 5.3 billion searches. Korea's NHN Corporation captured the #4 ranking with 1.2 billion searches (4.6 percent market share), while China's Alibaba.com Corporation ranked fifth with 823 million searches (3 percent market share).

    Top 10 Asia-Pacific Search Properties
    July 2008
    Total Asia-Pacific Internet Audience*, Age 15+ - Home & Work
    Locations
    Source: comScore qSearch
                                                     Searches       Share of
    Top 10 Properties                                  (MM)         Searches
    Total Internet**                                  27,059          100.0
    Google Sites                                       9,073           33.5
    Baidu.com Inc.                                     7,406           27.4
    Yahoo! Sites                                       5,342           19.7
    NHN Corporation                                    1,239            4.6
    Alibaba.com Corporation                              823            3.0
    TENCENT Inc.                                         513            1.9
    Microsoft Sites                                      457            1.7
    Lycos Sites                                          418            1.5
    Sohu.com Inc.                                        305            1.1

    *  Excludes searches from public computers such as Internet cafes or
       access from mobile phones or PDAs.
    ** Improvements to universe estimates in certain Internet markets have
       recently been made. We caution against trending with data prior to
       July 2008.