Is Buying Stock from China, when you cant view the product risky?

Question

Even if they are Alibaba Gold Member?

Answer 1

Yes. "Gold Member" (isn't that an Austin Powers movie?) can be loosely translated as "an advertiser that paid more for the title 'Gold Member'".

I assume you are able to view electronic images of the product? If the product is small enough, ask the vendor to FedEx a few to you. Assuming the cost of the product is relatively low, the vendor should provide the samples for free and you should pay for the shipping. If the product is large and expensive, then you may need to purchase one sample first AND pay for shipping. But in either case, beware of fraudsters who send you a sample that they simply buy from someone else. I have been sourcing from China for 7 years, and I can't tell you how many situations I've seen in which you get a sample, you tell the vendor "ok, the sample looks great, now I want to order 1,000 pcs". Then the freight comes and, inexplicably, it's the wrong color, or the wrong size, or in some way or another different from the sample you approved.

Buying from China is risky and can be a lot more costly than expected if you are not set up to do it or lack experience. You might be better off using a U.S.-based sourcing company. Nowadays most sourcing companies offer complete transparency - you know your supplier and the FOB China price. Legit sourcing companies will also extend credit (e.g. 30% down and the balance 30 days after product ships). Not to mention it is much less risky to pay a U.S.-based company than to pay a company in China. Good sourcing companies are set up to check out the supplier, inspect the quality of the products before they ship, and arrange logistics. Not to sound like a sales pitch but this is what I do for a living. Feel free to give me a call to discuss your situation in more detail: 212-847-7175. No obligation! Good luck, Hank