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.

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

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.

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.

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.

Written by Eric Watkinson, Customer Relations Manager.

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.

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.

  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.

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.

Written by Eric Watkinson, Customer Relations Manager.

 

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.

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 service.      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

From South China Morning Post, Classified Post.

Written by Wilson Lau.

Andy Lau, who works in the dynamic and competitive online business matching sector as head of sales at Alibaba.com Hong Kong, believes he can train staff more effectively by involving team members in events where buyers and sellers meet face-to-face to discuss business.

The company's Buyer Event is a customer-only event, organised for buyers and sellers of its platform to meet face-to-face for business.

When this event took place in Hong Kong several months ago, Mr Lau took the opportunity to involve his sales team.

"The objective was to let them see for themselves the interaction between buyers and sellers and get customer feedback directly," he said.

The success of having his team participate in this event also reflected the importance of using the company's resources to enhance the effectiveness of coaching.

This was an even bigger challenge when a manager worked in a local office of a multinational corporation. To get buy-in from top management, managers needed to make the head office understand the local situation and be sensitive through constant communication, Mr Lau said.

Since he joined Alibaba.com Hong Kong as head of sales earlier this year, Mr Lau has been managing and coaching more than 30 staff members who look after all aspects of sales and related activities.

His areas of responsibility include direct sales, marketing and programme management. Previously he was at web search giant Google from 2005.

Coaching involves two-way communication that aligns management strategy with the daily work of team members. Effective coaching starts with fostering a workplace infused with candour that encourages honest feedback. In this working environment managers and team members work to achieve mutually agreed goals. Members also rely on managers to take into account their sensitivity when managers address their concerns and needs.

Another crucial element in effective coaching was the setting of aggressive but realistic short-term milestones with specific timelines, Mr Lau said. "Look for quick wins that lead to the final goal so members will be motivated along the process. It is also important to receive feedback from the team constantly."

It was not easy for managers to communicate suggestions to address weaknesses of members. It helped when managers stressed that coaching was about improving an individual's performance and taking them to the next level rather than scrutinising their performance, he added.

Mr Lau recommends that managers take a hands-off approach with team members who have been coached on specific jobs. With a timeline established for the regular review of progress, managers can ensure each step of the job is on the right track. "Be ready to provide advice and direction to further improve efficiency," he said.

Alibaba.com Hong Kong is a subsidiary of Alibaba.com which is a leading global business-to-business e-commerce enterprise. The company provides a platform connecting small- and medium-sized buyers and suppliers around the world. While the head office of Alibaba.com is based in Hangzhou in the mainland, its shares are traded on the Hong Kong stock exchange.

We've been updating our website to make buying and selling easier than ever before. Our new channel, SuperDeals, allows buyers to find products with prices and minimum quantities. No guess work, and no back and forth negotiating. Everything is upfront and clear to facilitate ordering.

See the "Top 10 Up and Coming Suppliers" who have recently listed their SuperDeals on Alibaba.com: http://www.alibaba.com/activities/superdeals/up_and_come_suppliers.html

Jack Ma recently wrote a letter to his employees about the upcoming winter season for the company and the e-commerce industry. Here in this video he talks about some of his thoughts and how Export to China will play a vital role in getting out of this winter period.

Click here for the article and video of Jack Ma, courtesy of South China Morning Post's James Moore.

*Guest post by David Wei, CEO of Alibaba.com, courtesy of Livemint.com.

The world of global sourcing is even flatter and growing smaller by the day thanks to the advent of online marketplaces.

Since the global economic downturn set in, people have been asking me about its impact on e-commerce and Alibaba.com. While it is true that some businesses have become wary and have held back from international trade, it is equally true that many others are turning to more efficient and cost-effective ways of doing business—one of which is e-commerce.

Believe it or not, e-commerce is even more important in difficult times as it is a low-cost and efficient channel to promote and source products. Buyers using e-commerce platforms for sourcing can obtain goods or services at lower-than-market prices and translate this into better value for money for their end customers. In fact, our US members, which are most hard-hit by the recession, are actually more active this year than they were last year.

Bamko Promotional Items, Inc. is one of these US members who have experienced cost savings through sourcing online. Bamko is a provider of high-quality gifts and premium items ranging from clocks to calculators, bags and hats. Using Alibaba.com, Bamko has gained exposure to numerous suppliers that they could not have found any other way, and with so many potential suppliers at its service, the company can foster competition among them, to get the best price and bring attractive products to its clients all over the world.

Thanks to e-commerce, Bamko grew from a small local US distributor with one office to an international distributor with more than 50 employees in eight offices worldwide in just three years. Its competitive product pricing and high quality has won it over 200 loyal, repeat customers including big names such as Reebok International Ltd, Pfizer Inc., Boeing Co. and Revlon Inc.

Pricing is also a crucial business factor for Paul Greenberg from Australia, who operates an online department store, DealsDirect.com.au. Guided by the slogan “Love a Bargain”, Paul strives very hard to offer exciting new products, unbeatable prices and exceptional value to DealsDirect customers. He has a dedicated team of buyers who hunt for quality products with guaranteed low prices through a diversified sourcing strategy, which includes using online marketplaces, sourcing offices and trade shows. When DealsDirect was first launched in 2004, it had only four product lines. Today, the online shopping site offers 29 shopping categories, stocks more than 4,000 products, and sells at 30-80% less than recommended retail prices.

I have also heard about one of our Indian members who turned to the Internet for low-cost sourcing. Mardia Metals and Polymers, a Chennai-based importer and trader of raw plastics, is constantly in need of new vendors to sustain its supply chain and explore more products to expand its revenue streams. The company was started by Vivek Mardia and his father early last year. Although his father had 20 years of experience in the raw plastic materials industry, he only used old-fashioned business channels such as telephone and face-to-face meetings and merely had deals with regular suppliers in Malaysia. Vivek changed all that by introducing the Internet to his business. In just over one year, the company has expanded its supplier base to other countries and discovered new plastic products to add to its portfolio. Mardia Metals is now the sole supplier of a kind of recycled plastics originated in South Korea and is identifying opportunities to become the exclusive distributor for certain European suppliers in India.

A number of vertical and horizontal online marketplaces exist today, allowing buyers in India or abroad to find any product or service they want. By leveraging the myriad of tools provided by these online marketplaces, Indian companies can reduce costs, increase their supplier selection and accelerate their sourcing cycles in order to meet the ever-growing demands of their customers. Thomas L. Friedman put forth his famous view that “the world is flat” due to globalization. I would say that the world of global sourcing is even flatter and growing smaller by the day thanks to the advent of online marketplaces.

David Wei is chief executive officer of Alibaba.com.

David Wei, CEO of Alibaba.com, recently spoke with James Moore from the South China Morning Post in a podcast about Alibaba.com's plans to go global. David Wei explains why Alibaba.com can adapt to any economic environment, talks about the new Export-to-China product, and comments on other topics like Google and the Beijing Olympics.

For the blog post and the approximately 10 minute podcast, click here.

Check out our new Logistics Solutions channel. Here you'll be able to:

1. FIND local logistics services near you

2. ASK logistics questions to our expert

3. CHECK out our useful partner services

4. BOOST inquiries with our logistics survey

Seems like more and more people are learning their lessons the hard way when buying internationally. In our Safe Trading channel, we regularly update our articles to provide our members tips and tricks to learn lessons the easier and cheaper way. With articles on safe trading basics, case studies, and members sharing their experiences, the Safe Trading channel has become an integral part of our community of traders.

Notable recent articles include:

1. How to Spot Fraud Email: http://resources.alibaba.com/article/14095/How_to_Spot_Fraud_Email.htm

2. Big Purchase Order Trap: http://resources.alibaba.com/article/286676/Fraud_Case_Study_20_Big_Purchase_Order_Trap.htm

3. How Can I Confirm That They Are Really a Nike Authorization Factory: http://resources.alibaba.com/topic/4426/How_can_I_confirm_that_they_really_are_a_Nike_authorization_factory.htm

Video interviews of our eBusiness Champions for North America have recently been posted to our website. See the 3.5 minute interview highlight clips here: http://resources.alibaba.com/topic/327004/How_I_Did_It_Alibaba_com_members_share_their_success_stories.htm

Also on Alibaba.com is the 3 minute highlight reel of the eBusiness Awards Ceremony in Chicago. View it here: http://resources.alibaba.com/topic/322999/Alibaba_com_e_Business_Champions_of_the_Year_2008_North_America.htm

PC Advisor recently wrote about the "world's cheapest laptop" and guess what?...It's located on Alibaba.com through a vendor from Taiwan. Here's the listing: http://carapelli.trustpass.alibaba.com/product/101509462/World_s_Cheapest_Laptop.html

The Impulse NPX-9000 laptop has a 7in screen and comes with the Linux OS. It has a 400MHz processor, 128MB of RAM, 1GB of flash storage and an optional wireless networking dongle. It includes office productivity software, a web browser and multimedia software. The laptop is $130.

Written by Jack Ma, Chairman of Alibaba Group and Founder of Alibaba.com

Reported by The Financial Times: http://www.ft.com/cms/s/0/bb0dd88e-59e2-11dd-90f8-000077b07658.html?nclick_check=1

*For more information of Alibaba.com's upcoming Export to China product, go to Alibaba.com: http://www.alibaba.com/activities/export_to_china/home.html

Now is the time to embrace freer trade with China

As the US election approaches and the Doha round of trade talks has resumed this week in Geneva, there is much debate about the future of global trade and the emergence of China as a trade leader. The timing of the Doha round could not be more significant, as an economic slowdown has given rise to a new wave of protectionist sentiment. Yet it is important for world leaders to resist calls for protectionism and seize the moment to lift trade barriers. Embracing freer trade - with China as an engine of global economic growth - is the best chance to jump-start economies and provide job opportunities in both developed and developing nations.

There are two factors sparking these debates. First, in any economic slump fear can easily give rise to protectionist policies on tariffs and quotas. But these restrictions can be destructive and further slow down the economy.

Second, unease about China's rise as an economic power has made people think that business and jobs are all moving to that country, but not many know that trade with China is generating employment opportunities for Europe and the US.

If one looks beyond the headlines, there is a growing trend often missed: China's role in the global market is evolving from being the top manufacturing hub and exporter to becoming a powerful global buyer. This new trend is just beginning and needs the support of world leaders, as it is only through greater economic openness that they can help lift the global economy.

Over the past two decades, trade with China has gone through big changes. Bold economic reforms as well as the country's entry into the World Trade Organisation has allowed China to supply cheaper goods to Europe and the US, and helped western companies to cut costs by moving their production lines to China.

Now we are in a new phase, where China is buying more from the global market. China's most recent trade figures indicated a continued rise in exports by 18 per cent from a year ago to $121.53bn (€77.5bn, £61bn), while imports soared 31 per cent to $100.18bn, shrinking the nation's trade surplus for the month. China ranks third in trade volume and in 10 years is expected to be the world's biggest import market.

This is not to say that China's role as the world's biggest supplier will fade away. While there is a lot of competition from cheaper alternative markets, such as India, Bangladesh and Vietnam, nothing can beat China's vast choice of products and suppliers. Over the years, Chinese suppliers have re-defined themselves beyond pricing and sharpened their advantage in terms of quick turnround, good infrastructure, speed to market and compliance with international standards. Our recent global survey of large corporate buyers from Europe and the US indicated that most of them do not plan to reduce orders from China in the near future, highlighting growing trust in suppliers from that country.

Consumers worldwide will, therefore, continue to benefit from China's ability to offer a wide choice of goods at bargain prices. At the same time, overseas sellers are already benefiting from China's growing appetite. A quick look at what they are buying from Europe and the US reveal large orders for food and beverages, home supplies, speciality goods, industrial machinery and construction materials.

Big changes in the global market will continue to be driven by small businesses, especially those using the internet. Today, there is a huge and viable global online marketplace with more than 30m registered online businesses that did not exist a little over a decade ago - and this is just the beginning. This new marketplace is levelling the playing field and enabling small businesses to compete with big companies around the world at a rapid pace. On our own websites we are beginning to see an increasing number of entrepreneurs from Europe and the US build their businesses by selling into China. With China's new role in the global economy, this marketplace will further expand and attract more buyers and sellers from China and worldwide.

As the dust settles on these trade debates, one thing is certain: China's role as top supplier, and now a leading buyer, is causing a new economic phenomenon that should be embraced rather than feared. For entrepreneurs from Europe and the US, this is their best chance to sell more to China, create more jobs and boost their economies. For world leaders, their actions on trade and protectionism can make or break this new driver of growth for the global economy.

Some new developments in and around Alibaba.com:

1. Alibaba.com opens office in Taiwan (Reported by Reuters): http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSTP1082220080724

2. Local Hangzhou government to start investment fund for growing tech sector and the "next Alibaba.com" (Reported by Forbes via Reuters): http://www.forbes.com/reuters/feeds/reuters/2008/07/24/2008-07-24T071117Z_01_SHA263634_RTRIDST_0_CHINA-CITY-FUNDS-ANALYSIS.html

Want to know what most buyers are looking for? Check out our new Trade Trends channel. We aggregrate the Top 20 Rising Demand Products, the Top 20 Hot Products, and the Top 20 Popular Product Categories. A neat feature worth mentioning is that you can "Refine by Region" and see what buyers are looking for from where you are. If you want to see what's hot in America, click here: http://www.alibaba.com/trade-trends/america.html

Want to see what's selling well on Alibaba.com? Need an idea for a new, niche product? Check out the photo galleries of our best selling products and novel ideas. Perhaps you'll see something you've never thought of and might be able to sell in the USA. Go to Alibaba.com for the photos of the products: http://info.china.alibaba.com/news/subject/v3000103-s5025702.html?head=gj

Written by: Eric Watkinson

Very often I’m contacted by buyers who comment on the difficulty in obtaining a response to an inquiry, which has been sent to an overseas supplier.  Keeping a request for a price quote brief, and to the point, is an important factor, when attempting to establish communicating with an overseas supplier. 

It is very possible that if the person who is reviewing your request cannot get a clear picture of what you’re trying to communicate, within the first three or four sentences, it is very likely that they will not take the time to read the rest of your message. 

It is also very possible that the employee who is in charged with screening inquiries, at an overseas supplier, may not be directly part of the supplier’s sales team.  If your message is rejected at this level, it will not be seen by anyone who is capable of supplying you with the requested information, and you will not receive a reply.

Also, when sending a message to an overseas supplier, it is important to remember that English is most likely a second language for the person who will be reviewing your message.  I recommend keeping your initial inquiry very brief, and perhaps consider following the below format.

Dear Sir or Madam.

We are interested in your product, model #:  XXXX.   Please provide the below information:

1. Payment terms.
2. Minimum purchase quantity.
3. Lead time.

Sincerely,

XXXXXXXX

The above message should be easily understood by anyone charged with reviewing incoming inquiries, and thus will have a much better chance of making it to the next level.  Once you have received a reply to the above inquiry, you can then consider asking the supplier for more detailed information such as technical specs, and other product information. 

Also, to help a request stand out against all the other requests, which are being sent to a supplier, a buyer may consider changing the default subject line in the message to read something similar to, “Request Price Quote – Model XXXX.”  This will help catch the eye of the person in charge of reviewing messages, and perhaps ensure that they take the time to open your message.

Check out our Alibaba Forum on "how to be a successful person." We put together the different discussions on one page and also have profiles on some of the most successful business people. Plus, we have profiles on the top young billionaires as well as on the most powerful women in the world. Go to Alibaba.com to see the full stories and the picture galleries: http://resources.alibaba.com/activities/success.html

A post by one of our members recently caught my attention. It lists the top 10 mistakes of marketing online. Check it out in our "Forums" in our "Community" section.

Here's a quick sample of the post:

Top 10 Mistakes of Marketing Online

The novelty of shopping on the Internet has worn off, and today's customers are sophisticated and discerning. Because the competition is always just a mouse-click away, you need to make sure your site is the very best it can be. Because if you do not do e-commerce right, your visitors will find someone who does. Try not to make any of these common mistakes:

1. Trying to sell the wrong product online. Not all products will sell successfully on the Internet. Inexpensive products that require a shipping charge are typically not worth selling, particularly if they can be easily purchased in most local stores. Other products, such as specialized high-end clothing, may be more difficult to sell because people prefer to try them on. Research how other e-commerce sites have fared with similar products and what tactics that have used to entice shoppers into ordering online.

2. Lack of marketing....

To read the entire post, go to Alibaba.com: http://resources.alibaba.com/topic/312363/Top_10_Mistakes_of_marketing_online.htm

We're less than 40 days away from the Beijing Olympics! For the latest news on the Beijing Olympics, go to Alibaba.com: http://news.alibaba.com/specials/olympics.html

To learn more about what's happening in China and to discover the mysteries of China, go to Alibaba.com: http://resources.alibaba.com/activities/discover_the_mysteries_of_china.html

The inaugural Alibaba.com e-Business Champion Awards Reception for North America was a huge success. Those who attended got a chance to network with University of Chicago MBA students, entrepreneurs, eBay Powersellers, trade association representatives, Alibaba.com staff and senior management, and other Alibaba.com members.

Everyone also got a chance to meet our 5 winners and hear their inspirational entrepreneurial stories. The 5 winners are: Gene Rumley of BellPerformance.net, Jane Ivanov of EveAlexander.com, Elena Neitlich of MomsOnEdge.com, Phil Weil of DecoBreeze.com, and Brandon Dupsky of OnFair.com.

Prizes were given away to 5 lucky attendees, including a Canon Powershot digital camera, a Garmin GPS, 2 Apple store gift certificates for $300 each, and a Playstation 3 (40GB).

Check out the Flickr photo album of the event: http://www.flickr.com/photos/25276791@N07/sets/72157605811627550/

Congratulations to our Grand Award finalists, Gene Rumley and Brandon Dupsky, who are eligible to win a chance to participate in the Alifest Grand Awards Ceremony in Hangzhou, China on August 2nd and 3rd. Vote for them online at Alibaba.com: http://resources.alibaba.com/promotion/alifest/vote.htm

Our European team also had a great event in London. For the full summary and photos, go to Alibaba.com: http://resources.alibaba.com/topic/311043/Alibaba_com_holds_first_EMEA_e_Business_Champions_Award_in_2008.htm

We had some fantastic events in Chicago, including our e-Business Champion Awards Reception as well as our Arabian Nights with Alibaba.com party. We had the chance to meet with a lot of our members and eBay powersellers to get some great feedback on how Alibaba.com can help buyers and sellers in America.

Ina Steiner attended our e-Business Champion Awards Reception and wrote about our event on her blog, AuctionBytes. (http://www.auctionbytes.com/cab/abn/y08/m06/i19/s03) She also got a chance to interview our VP of Global Sales, Arthur Chang. Check out the podcast here: http://podcast.auctionbytes.com/cgi-bin/podcast/pod.pl?eBay_Live_2008

Skip McGrath attended our Arabian Nights with Alibaba.com party and wrote a blog post about his experience as well as the love-hate saga between eBay and Alibaba.com. It's a great read and gives some background of the history between eBay and Alibaba.com. (http://blog.skipmcgrath.com/public/item/207285)

Our photo gallery for the events will be coming soon...

"Alibaba.com has proven to be the best resource for quick and e_ective sourcing of factory contacts for a myriad of product types."

Phil Weil, DecoBreeze.com, Alibaba.com member since 2005

DecoBreeze.com

Before Phil Weil decided to go into the fan business, he went to Alibaba.com to find the right manufacturers. Three years later, he's still there.

VITAL STATS: Phil Weil, Co-Owner and Vice President of Decobreeze.com and Global Product Resources in San Diego, California; Alibaba.com member since 2005

COMPANY: Manufacturer and distributor of decorative, home décor products, including fans and heaters

NUMBER OF EMPLOYEES: 7

PROJECTED 2008 SALES: Approximately $6 million online and retail

TIPS FOR BUSINESS SUCCESS

"Be tenacious. Be bold. Don't be afraid to dream those dreams. Alibaba.com is a perfect example of a tool that takes us mere mortals and transforms us into superheroes by the click of the mouse," says Phil.

FIRST STEP: START AT ALIBABA.COM

During the planning stages of Deco- Breeze.com, Phil started at Alibaba.com to find his sourcing partners. “We utilized Alibaba.com to search out and contact factories capable of producing a new collection of portable fans we wanted to create for the marketplace," notes Phil. "Alibaba.com enabled us to quickly locate and pre-qualify potential factory candidates by region, size and type of product produced. This process was very easy and the site was amazingly simple to navigate. Plus, the database of potential factory resources was quite vast." Phil describes, "Our story is in its simplicity. We went to the site, found our product category, found our region where we needed to produce, created our candidate listing from the comprehensive store fronts, and five months later we debuted a 50-style product collection. Two-and-a-half years later, we have shipped almost a half a million fan units."

SECOND STEP: GROW AT ALIBABA.COM

After a successful launch of his first collection of fans, Phil needed to grow his business by adapting to his customers' specific needs. Much of his new business has been generated through his ability to custom develop new items for his retailers and distributors. "We are constantly developing new products and Alibaba.com has proven to be the best resource for quick and effective sourcing of factory contacts for a myriad of product types," says Phil. Currently, DecoBreeze features a broad range of styles from taller floor-standing

models to tabletop and desktop sizes. Designs range from colored metallic and rattan weaves to resin and wood sculpted bases that incorporate traditional to tropical themes. As their marketing campaign for these fans says, "Feeling COOL has never looked so HOT!"

"With Alibaba.com, I was able to develop new supplier relationships globally, creating direct relationships with first-tier manufacturers."

Brandon Dupsky, OnFair.com, Alibaba.com member since 2006

OnFair.com

Increased competition and low profit margins drove Brandon Dupsky to Alibaba.com's international suppliers directory. He found more than bargains.

VITAL STATS: Brandon Dupsky, Owner and CEO of OnFair.com in Lincoln, Nebraska; Alibaba.com member since 2006

COMPANY: Online retailer across many marketplaces specializing in consumer electronics and surplus inventory

NUMBER OF EMPLOYEES: 1

PROJECTED 2008 REVENUE: Approximately $1 million online

CUTTING COSTS & PRICES

Brandon sources directly from manufacturers in order to give the savings back to the consumers. As his site's tagline says, "deals so low, it's funny!" On his website, there are closeout specials on numerous items including consumer electronics, toys, tools, sporting goods and even car parts. "My previous company, Sell2All grew into one of the largest sellers on eBay in 2004. At that time, we sourced most of our merchandise domestically in the US. With increased competition globally, our supply channels were no longer competitive, ultimately driving the company out of business," explains Brandon. "With the use of Alibaba, I was able to develop new supplier relationships globally, creating direct relationships with first-tier manufacturers. These relationships offer a more competitive and profitable supply channel for my new website, OnFair.com."

STAYING COMPETITIVE

Brandon has used the power of technology and e-business to take his business global. He has created relationships with international suppliers and buyers and maintained those relationships so it is a win-win situation for both sides. "In addition to buying wholesale, I have drop ship relationships in Hong Kong that will deliver directly to my customers around the world,"  explains Brandon. Without having to pay for extra warehousing and shipping expenses by drop shipping, he's able to save on costs and remain competitive in the e-business industry. For Brandon, the secret's in the relationship. "The best relationships you can build are the personal ones where you know your supplier very well. You can call them anytime to discuss topics and you can work together to build additional value for both parties," says Brandon.  "Find a niche that interests you and then find the best suppliers for those products, but keep in mind that it will take some effort to find the really good suppliers. These relationships become your competitive advantage over time."

For the full story on Brandon's success with Alibaba.com and OnFair.com, go to Alibaba.com.

"Alibaba.com gave us access to a worldwide base of qualified leads through the internet, saving our company valuable time."

Gene Rumley, BellPeformance.net, Alibaba.com member since 2006

BellPerformance.net

Faced with the challenge of creating new leads via international markets, Gene Rumley turned to Alibaba.com and hasn't looked back since.

VITAL STATS: Gene Rumley, International Marketing Manager for Bell Performance, Inc. in Lake Mary, Florida; Alibaba.com member since 2006

COMPANY: Manufacturer of fuel and oil treatment products for cars, trucks, boats, and industrial use for power plants; specialize in private labeling for other companies

NUMBER OF EMPLOYEES: 17

PROJECTED 2008 SALES: Undisclosed

HISTORY

R.J. Bell developed the first fuel additive in 1909 when Henry Ford began massproducing

the Model T. Bell Performance's comprehensive product line has faithfully served consumers and businesses for nearly 100 years.

SMART TRADING WITH

TRUSTPASS

Bell Performance was originally a company with all of its buyers from the domestic market in the US. In the course of its development, Gene looked beyond American boundaries with the help of Alibaba.com. "Alibaba.com gave us access to a worldwide base of qualified leads through the internet, saving our company valuable time."  Gene adds, “We could also focus on TrustPass members, which eliminated the time and energy working through non-qualified leads. Alibaba.com provides an endless source of leads to keep us growing and going." As a Trust- Pass member with third-party verification and authentication, Gene has been able to market his company and his products as reliable and trustworthy. "We have received genuine, qualified leads from over 30 countries through Alibaba," notes Gene. "Another amazing and interesting aspect of working with Alibaba.com is that we have received leads from right here in the US, where we are located. This shows the power and impact of the web and having an effective presence on

Alibaba."

FROM SELLER TO BUYER

Alibaba.com is a two-way street where sellers can be buyers and buyers can be sellers. After getting really high quotes from domestic translation service providers, Gene turned to Alibaba.com to help him find a cheaper, more effective solution. “We were pleasantly surprised when we found a translation service quickly through Alibaba. We had 12-14 technical pages in Chinese that needed to be accurately and quickly translated into English for a pending international account. We received quotes locally here in the US from $1,800 to $2,600. Through our search with Alibaba.com's TrustPass members, we were able to find a translation service that translated for many Fortune 500 companies and the cost was only $700," says Gene. Learning from this successful experience, Gene has recently come to Alibaba.com again as a buyer. This time, it has been for a personal project in which he is duplicating DVDs for his efforts to fight poverty in India. Gene comments, "I have also used Alibaba.com personally to search out a DVD duplication service that I am now in contact with in Taiwan. I have the utmost confidence in doing such searches using Alibaba.com's TrustPass members."

For the full story on Gene's success as a TrustPass supplier on Alibaba.com, go to Alibaba.com.

"Alibaba.com has allowed us the opportunity to search the globe for affordable, efficient and very reliable manufacturers."

Elena Neitlich, MomsOnEdge.com, Alibaba.com member since 2005

MomsOnEdge.com

After tons of sleepless nights due to putting her son back to sleep, Elena Neitlich decided to create her own solution.

VITAL STATS: Elena Neitlich, Co-Founder and CEO of MomsOnEdge.com in Osprey, Florida; Alibaba.com member since 2005

COMPANY: Children's behavioral products and parenting tools including games and toys; recently launched a new line of handmade luxury spa products for moms as well as an Etiquette Trainer Certification program for moms looking for part-time work

NUMBER OF EMPLOYEES: 2

PROJECTED 2008 SALES: Approximately $200K online

MOMPRENEUR BUSINESS MODEL

This new business model for mom entrepreneurs includes "flexible meetings, working when motherhood allows, supporting one another, and rapidly learning about product design and manufacturing," Elena describes. "We have had to learn quickly how to deal with designers, manufacturers, reps and retail store owners. Managing our time has been tough because we are both very committed to being stay-at-home moms. We have had to figure out creative times to work, be it in the morning, during nap time or late at night after the kids are asleep."

PARENTING PROBLEMS, SOLVED

"I can't believe it, he's up again." Elena whispered into the phone to a close friend. "Andrew (my husband) is putting Noah back to bed for the umpteenth time this evening." "I hear you," she said, "I put the twins to bed over an hour ago and they still aren't asleep." "We've got to

think of something to train these kids to go to bed and stay in bed." The next day Elena Neitlich and Cari Whiddon created a prototype for their first ingenious product, The Good Night Stoplight, and Moms on Edge, LLC was born. "Moms on Edge designs, manufactures and sells exclusive children's products for peace, quiet and good behavior. The company fills an untapped niche in the children's market: parenting tools that reduce stress and improve family time by using games, toys and techniques children immediately respond well to. Our timeout mat, The Original Naughty Spot, has become wildly popular with parents of small children and was featured on the TODAY show," Elena explains.

SOURCING GLOBALLY, SELLING DOMESTICALLY

Elena had to consider many quality issues. On top of that, because she was working on a bootstrap budget with her partner, she had to buy her products at suitable price points. "Because we are small, we needed manufacturers willing to make small amounts of goods. Alibaba.com has allowed us the opportunity to search the globe for affordable, efficient, and very reliable manufacturers," Elena explains. "Our products are used by children so it is extremely important that they are made exactly to our specifications, highly durable and safe. The packaging must be strong so that our products can be opened and closed again and again. We insist on good communication, honest estimates, staying within budget and quick responses to requests. We were able to find quality suppliers at Alibaba.com."

For the full story on Elena's success as a mompreneur, go to Alibaba.com.

Written by: Eric Watkinson

In many circles, the question, “Can you supply me with authentic products,” may actually be interpreted as, “Can you supply me with counterfeit, or knockoff products?”

For more accurate clarification, a prospective buyer may consider asking the supplier if they are an authorized supplier, for the particular product being offered, within the buyer’s local market.  If the supplier is evasive, or will not directly answer the question, the buyer should consider breaking off negotiations, and begin the process of selecting another supplier. 

However, if the supplier states that they are in fact an authorized supplier, the buyer should consider asking for verifiable documentation, which will corroborate the supplier’s status as an authorized supplier. 

One of the many perils a buyer may encounter after failing to properly verify a supplier’s ability to supply authentic product includes; having the buyer’s product seized by Customs, while the product is in the process of being imported into the buyer’s country.

Also, when considering an off-shore supplier for consumer electronics, the buyer should consider that products offered by such a supplier may fall into one of three below possible categories:

• White Market:  Legally produced product, intended for sale within the buyers local market.

• Grey Market:  Products which may have been produced for intended sale in developing regions of the world, but generally not intended for sale within most Western countries.  Also, the term grey market may be used to describe OEM components products which are produced for the purpose of being bundled with a package for final sale. 

• Black Market:  The term black market covers a wide range of issues including knock off, or counterfeit products which have been produced without the consent of the copyright holder.

In addition to the above areas of concern, a prospective buyer should also consider the possibility of incompatible technologies, when purchasing consumer electronics from an off-shore supplier.  For example: a mobile phone purchased from a supplier in Mainland Asia may not completely compatible with carriers located in within North America, a video game console purchased off-shore may not be able to games purchased in the local market, and a television set purchased in one part of the world may not be able to receive signals in another part of the world.

Steve Jobs, CEO of Apple, announced yesterday that a new 3G iPhone will be released on July 1st. The new iPhone will be cheaper and faster. It will increase browsing speed and will have a built-in GPS feature. The 8 GB phone will be priced at $199, as Apple attempts to take the iPhone mainstream. They have sold over 6 million to date and look to surpass their goal of 10 million iPhones by the end of this year. For more information on the new 3G Apple iPhone, visit Alibaba.com News.

We mentioned in a post a couple of months ago that Alibaba.com has become one of the Top 10 search engines in the world. Now, to increase the convenience of searches, we've developed an open search toolbar that can be easily installed on IE, Firefox, and the Google toolbar. You'll be able to find the products you're looking for quicker and more efficiently with this new tool. Get it here.

Written by: Eric Watkinson

Recently there has been a lot of news regarding the phenomena known as “phishing emails.”

Anyone who does business on the Internet today has undoubtedly, at one time or another, received an official looking email, which appears to come from a legitimate online community asking the reader to supply sensitive information.  The source of such emails are usually scammers, who are attempting to lure an unsuspecting reader into providing some type of sensitive information, so that the scammer can then use this information for criminal activity.

Below are a few useful guidelines to help tell the difference between a phishing email, and a legitimate email from an online community.

• Phishing emails almost always contain a generic greeting, and are not addressed directly to the receiver of the email.  Most phishing emails begin with a greeting such as, “Dear Alibaba User,” and do not contain unique greetings such as, “Dear Mr. Watkinson.”  In most cases, the scammer does not know who the phishing email is being sent to, so a generic greeting is used in the hopes that he reader will not notice the message is not addressed to them personally.

• Most phishing emails contain horrendous grammar and punctuation errors.  Even a very casual reader should be able to identify the numerous typos found with a typical phishing email.  On occasion, phishing emails are often written in all capital letters, with only periods used as punctuation. 

• The general tone of most phishing emails is usually very demanding, and very harsh.  Phishing emails usually threaten all sorts of dire consequences, which will happen immediately, if the reader does comply and submit the requested information instantly.

• Phishing emails often demand that the reader supply sensitive information such as login information, personal identification information, and or bank card information.  This is exactly the type of information that most online communities will never ask you to verify via email, if at all.

If you suspect that you have received a phishing email, the best thing to do is avoid clicking any links found within the email, and most certainly do not reply to the email, even with fake information.  It may be tempting to give the scammers a dose of their own medicine, by replying to their phishing email with useless junk information.  However, replying to the phishing email will let the scammers know that your email address is valid, and that email is being opened at your inbox, and thus trigger other problems down the road.

Have you been hooked by phishing scams? Click here to share your experience and learn more about other people's experiences.

*Photo courtesy of beancounterblog.com.

As we quickly approach our e-Business Champion Contest event in Chicago in June, as well as eBay Live, I've been collecting a lot of success stories from our members. The one common theme in all of these stories seems to be the ability to use Alibaba.com to reach global businesses that they wouldn't have been able to reach without the help of the website. With the power of the internet, business has no geographic boundaries anymore. For example, a business located in a rural town in Florida can now source from and sell to companies located in China and India without ever laying a foot in those countries.

Samuel Palmisano, CEO of IBM, recently wrote in the Financial Times about his view on how the "global consumer gives small companies a big reach." "In the past, if you were a small businessperson, you were a local businessperson. You served a local market, had local suppliers and drew from a local workforce. You maintained a local storefront and strong local relationships," he explains. "Of course, this local-to-local model will always be with us, but it is now being complemented by something novel. Many small businesses have figured out that the potential buyers of their products and services are not just their neighbours. They can now also reach out to the fast-growing 'global middle class' – which, according to the World Bank, will include 1.2bn people in developing countries by the year 2030. That is 15 per cent of the world’s population, up from 400m today." For the full article, click here.

No longer are we limited to the resources within our physical reaches. Going global has never been easier for businesses.

*Photo courtesy of www.wisebread.com.

Alibaba.com recently announced a strategic partnership with InfoMedia in India. India, similar to China, is a country with a lot of resources and talent, but is still considered a third-world country. A lot of other people and other companies are making signicant investments into these countries in order to help their development. FDI, a member of the World Bank Group, helps to provide information regarding foreign direct investment. They recently released some great articles on the situation in India as well as China. These pdf downloads can be found below:

1) "India's Political Risk Insurance Industry": http://www.pri-center.com/documents/south_south/India.pdf

2) "The Business of Investment Insurance in China": http://www.pri-center.com/documents/south_south/china07.pdf

3) "South-South FDI and Political Risk Insurance: Challenges and Opportunities":
http://www.pri-center.com/documents/south_south/report.pdf

Written by: Eric Watkinson

The type of membership being used by an unknown-supplier is an important issue for a buyer to take into consideration, while in the process of evaluating a potential business transaction.   Alibaba.com has two basic types of memberships, free-memberships, and paid-memberships.

Alibaba.com's free-memberships are available to virtually anyone, with internet access, who would like to become a member of Alibaba.com.  Free-memberships are generally intended to benefit small to mid-size buyer operations, and also perhaps small start-up companies, who are looking to gain a niche on the Internet.

Alibaba.com does not charge any fees to its free-members, and because of this, Alibaba.com does not authenticate, or verify, the business information provided by its free-members.  A buyer who is considering a transaction with an unknown-supplier, who is also a free-member, should conduct their own due diligence, before agreeing to conduct business. 

The buyer may consider asking the unknown-supplier (free-member) to supply a copy of a phone bill, (which is invoiced to the supplier's business, and not to a private individual) banking information regarding the supplier's commercial bank account, and also perhaps telephone references from other buyers, with whom the supplier has conducted business.  The above requested information cannot guarantee a supplier's business practices, however it may help to filter the vast majority of suppliers who do not a fit the buyer's needs.

Also, this is not meant to imply that a buyer should assume that all free-members are potentially high-risk propositions that should be avoided at all costs.  The vast majority of free-members are well behaved members, who represent small business, and sole-proprietorships.  However, it is the buyer's responsibility to investigate the free-member, and decide on their own, if the free-member is a suitable partner, or not.

Alibaba.com offers two types of paid memberships, Gold Suppliers who are located exclusively within Mainland China, and also TrustPass members who are located throughout the rest of the world, with the exception of Mainland China. 

The TrustPass logo, which is displayed within a paid member's profile, indicates that a paid member has passed an authentication and verification background check, conducted by a third party credit agency.  The authentication and verification background check confirms that the paid member is a legally registered business, and that the person listed as the contact person is authorized to act on behalf of the paid member.

Although the TrustPass logo indicates a paid member has passed the authentication and verification background check, this is not meant to imply that Alibaba.com guarantees the business practices for these members, as a paid membership is not intended as an endorsement or an assurance of reliability. 

However, when a buyer has realistic expectations, and opts to use sound judgment when conducting business, sourcing product from paid members can he beneficial, and advantageous to a buyer, working for an established business, or for a sole-proprietor who is managing a small startup business.

 

Written by: Eric Watkinson

When evaluating an unknown supplier on Alibaba.com, it is very important to closely observer the supplier’s conduct, and demeanor, while negotiations are occurring.  By paying careful attention to a supplier’s behavior, a buyer can often times predict a supplier’s true intentions, and more than likely avoid becoming involved in possible scammer activity.

Below are several warning signs that a buyer should watch out for when conducting negotiations, with an unknown supplier.

• An extremely urgent need on the part of the supplier to have payment sent immediately.
• A willingness on the part of the supplier to unexpectedly offer huge discounts, or free product, as an incentive to encourage the buyer to send payment.
• The supplier’s telephone goes straight to voice-mail, even during local business hours, and does not include a company greeting.
• Unusually casual use of familiarity during negotiations. Example: Using religious beliefs as a means to gain buyer’s confidence.
• Inability to provide detailed answers, or answer questions regarding technical specs, warranty information, or documented proof that they are an authorized supplier.
• Email communication containing unusually bad grammar, and unprofessional writing technique. (As though the supplier is completely unconcerned with the reputation of their business, and is only concerned with closing one particular sell.)
• Supplier acts offended when the buyer asks about using forms of payment other than Western Union, Money Gram, or wire-transfer to a personal bank account.

While a salesperson working for a legitimate supplier may occasionally use aggressive tactics to close a deal, a possible-scammer will often become unexpectedly shrill, and unrelenting, when they believe that a business deal is about to slip from their fingers. 

In short, while a legitimate salesperson is usually more than willing to allow a buyer time to “think things over,” the possible scammer will behave as though their very life depends on this one particular business transaction.  Possible-scammers have been known to make statements such as, “If I don’t close this deal, I will lose my job.  Please, we are very poor, and my family will starve if I lose my job.”  Needless to say, this is something that you will likely never hear coming from the mouth of a legitimate salesperson.

Once a buyer has learned to recognize the above warning signs of poor business behavior, it should then be relatively easy to identify a possible-scammer, and in the process, avoid becoming an unwitting victim to their schemes.

*For more information on safe trading practices, visit our forum.

Written by: Eric Watkinson

Payment terms are a very important issue to take into consideration, when considering doing business with an unknown supplier.

Many suppliers found on buying and selling sites such as Alibaba.com, often request payment via Western Union, Money Gram, or wire-transfer to a personal bank account.  However, this can create a set of circumstances in which an unsuspecting buyer is placed in at-risk situation.

If a buyer opts to use one of the above unsecured forms of payments, and then later encounters a problem with their supplier, there is virtually nothing that can be done to compel an unwilling supplier to refund the buyer’s money, or compel the supplier to address an issue with a shipment of bad product. 

Also, the above methods of payments are often preferred by possible scammers for the following reasons; virtually no paper trail is created during the payment process (with the exception of bank wire-transfer to personal account), firms offering the above types of money-transfer services are unable to assist the buyer in recovering their money from an unscrupulous supplier, and in most cases payment is received almost immediately after it has been sent.  In some cases the buyer may have a narrow window of opportunity to reverse their payment, providing that they do so before the other party has actually received the transfer.  Once the money has been received by the other party, it is then in their hands, and is virtually beyond recovery.

This does not mean that a buyer should automatically assume that every supplier who accepts the above forms of payment is potentially dishonest.  However, the above payment methods are generally intended to be used by individuals, who are sending money to someone whom they are very familiar with.  They are generally not intended to be used by a buyer, who is doing business with an unfamiliar supplier.

Perhaps a reasonable alternative to the above payment methods would be to use a method such as, an irrevocable letter of credit, bank wire-transfer to a commercial bank account, or an escrow service.  Also, a good rule of thumb may be to make sure that payment is being sent to an actual business, and not to a private individual. 

However, there may be instances in which it is relatively safe to send payment to a private individual, provided that certain conditions have been met before hand.  If a buyer and seller have successfully completed several transactions, if the buyer has taken the time to thoroughly verify the supplier’s business, or the supplier is a sole-proprietorship, then it maybe considered within reason to make payment directly to an individual, as opposed to the supplier company.  However, it is the buyer’s decision to send payment under these conditions, or not.  It is not the supplier’s right to solely dictate payment terms to the buyer.

Remember, it is the buyer’s responsibility to look out for their own interest, and to use a form a payment in which possible risks are shared by both parties, and not by the buyer alone.

*For more information on the risks involved in various payment methods on e-commerce sites, click here to our Safe Trading Forum.

*Photo courtesy of www.ecommercetimes.com.

David Wang, our Trade Show Manager who recently posted his experience about trade shows, was interviewed at the Home & Housewares Show in Chicago in the middle of March 2008. He compared Alibaba.com to an "online dating service for companies." It's a great comparison as we help match buyers with suitable suppliers all across the world. Buyers can search via category, country, Gold Suppliers, TrustPass suppliers, and even to the most detailed characteristic about the products they are looking for.

For the quick 2-minute interview, click here. He'll guide you through the easy search process on Alibaba.com and be sure to notice his very orange Alibaba.com China-man suit!

*Photo courtesy of www.chipchick.com.

Written by: Jimmy Lau

Like many of you suppliers, merchants, and entreprenuers out there, I also had my own mental picture of what Alibaba.com's platform was prior to joining the company. A lot of my assumptions were based on random tidbits I found online, along with a personal quick overview of the site itself. Since joining Alibaba, I have personally come to realize that most of these myths were exactly that - just myths. While it did take some digging and education on the site, it was certainly worthwhile to find out the facts behind the fiction, and it is my pleasure to present this to all of you in an easy, light reading summary:

Top 10 myths about Alibaba.com:

1) Myth: You can't find any verified or prequalified suppliers on Alibaba.com.
Truth: You can filter your search to display only results for Gold Suppliers and TrustPass Suppliers. Click on the link to learn more about the verification processes for Gold Suppliers and TrustPass Suppliers.

2) Myth: Alibaba doesn't do anything to help merchants to identify fraudulent suppliers.
Truth: There is actually a safe trading forum that is completely dedicated to educating users how to stay away from fraudulent suppliers. In addition, we maintain an updated blacklist of suppliers to stay away from. We've also partnered with Piers Global intelligence solutions and AIG's liability insurance to give you that added security blanket.

3) Myth: Alibaba is a B2B site, focused on helping SME's. That's obviously not me.
Truth: Believe it or not, it is you! Alibaba.com is perfect for anyone who sell's merchandise (online or offline) and is looking to expand their revenues by either finding better sourcing options or finding new buyers by selling globally.

4) Myth: Alibaba does not cater to beginners who need some initial handholding and training.
Truth: We have an extensive beginners and help section for those of you who'd like a little handholding. We also have a handy customer service number for you to call and a live help chat should you want some extra advice. We're also busy developing a starter kit for you.

5) Myth: Besides looking for suppliers, there really isn't any other reason to visit Alibaba.
Truth: There are tons of other reasons to check out Alibaba.com. We're a great resource to use if you're interested in Trade Shows, best practice guides, hot products, currency exchange rates, 3rd party solution providers, and even fun trivia games and promotions where you can win oodles of great prizes.

6) Myth: You can only find suppliers from China on Alibaba.
Truth: Alibaba is a truly global platform, where you can find suppliers from all over the world - not just China. Try filtering your search results by country to see where else you can find suppliers.

7) Myth: Alibaba is only for merchants looking to source products, and not for merchants looking to sell products.
Truth: There is a substantial growing demand for US products worldwide, and many overseas merchants are using Alibaba insearch of US merchants who can supply them with these products. If you don't believe me, check out the number of overseas merchants looking for products. Remember, it's free to list products or set up a storefront on Alibaba.com.

8) Myth: It costs money to use Alibaba.com.
Truth: It is free to use Alibaba.com.

9) Myth: It is pointless to use Alibaba.com if you can't speak another language.
Truth: If a supplier or buyer is listing products or wanted product ads on Alibaba.com, its safe to assume they can speak English. You can also look for online translation using Babblefish or Google Translater. If you'd like personalized translation help, check out our list of 3rd party solution providers.

10) Myth: Suppliers only supply the products they listed.
Truth: There are lots of suppliers who can customize their products per your request and needs. Simply ask them if they can do it for you. Remember to be extra specific with your product requirements. Better yet, post a wanted listing and tell suppliers EXACTLY what you want.

Let us know what your myths are. We'd love to uncover whether they are fact or fiction.

*Jimmy brings a lot of great online experience to Alibaba.com. On AliBlog, he'll be writing about anything and everything Web 2.0, Alibaba, and e-commerce. Stay tuned for more of Jimmy's posts on AliBlog.