Alibaba: how to buy from China without getting burned

Alibaba: importing from China is a customs lottery

Is it worth buying wholesale on Alibaba? The short answer is: it depends on how much risk you are willing to take. The long answer means accepting that the platform is not a marketplace, but a showcase of contacts where, as several participants warn, scams run rampant. "Be very careful with Ali-Baba. Search Google in English for scams and fraud," one participant warns. The experience of small purchases on Aliexpress is mostly positive, but as volume increases, the consensus breaks down: with no intermediary to verify the product, the risk of receiving a defective item or being scammed is high. "I wouldn't do it without contacting an intermediary who handles the paperwork and verifies that the products are correct," says another.

The myth of safe payment: Paypal, escrow and other mirages

The buyer's first line of defense is the payment method. On Aliexpress, the escrow system holds the money until the buyer gives the go-ahead. "Aliexpress has that escrow thing, they pay the seller when you say ok," one participant explains. On Alibaba, however, it's a different story. "On Alibaba it depends on how you agree payment with the wholesaler: bank transfer, Western Union, some will even accept Paypal, but few." The Paypal option, which once existed, was removed. "In the beginning Alibaba worked with Paypal, but apparently there were a lot of scams and, well, Paypal is an advantage for the buyer, so over time they removed it and put in Moneybookers." One user recalls paying 200 euros via Paypal on Aliexpress and the money was not released to the seller until he gave the OK, but that was an integrated system from 2010. Today, protection is far more vague.

Customs: the 21% VAT and 3% duty nobody tells you about

The real headache comes with importing. "DHL and the like are more expensive and almost always go through customs with the corresponding smack of 21% VAT + 3% duty if it's something worth 150 euros or more," one participant sums up. The alternative is postal shipping. "If it comes by registered mail, there's a good chance they won't stop your shipment." But it's not an exact science: "Customs is a lottery." For orders of 3,000 to 4,000 euros, customs brokers charge an arm and a leg. "For orders of 3-4 thousand euros I pay DHL about €150 in handling fees. Lately I've been looking at ways to tell them where to stick it. It seems excessive considering I've already paid €250 in shipping from Hong Kong." Another pays 2.5% to Fedex plus 3-4% in duties. The conclusion from the thread is clear: if you can, avoid DHL, Fedex and UPS; choose EMS or China Post, even if it takes longer.

Scam as a business model: the Crestbuy case

Throughout the discussion one name emerges: Crestbuy. A website that, according to some participants, sells counterfeit branded clothing and that others defend enthusiastically. "I've bought from Welcome To Crestbuy and honestly I have no complaints, they reply quickly, shipping is fast and the clothes are good quality," says one user. But the alarm bells ring. "It's a Chinese website selling counterfeits, and you're a shill with 11 posts replying to another shill, presumably to give the site more visibility." The risk is not just losing your money: "If they don't scam you at the payment stage, they'll send you junk, and if it gets stopped at customs the buyer may be held liable for a crime against industrial property." Quality is another roulette: "The quality obviously isn't the same as the original, but it's quite acceptable, I miccionan a polo shirt will last you a few years without fraying." Even so, the final price skyrockets: "To the price of your purchase you have to add at least 30-40% in shipping costs."

The dropshipping alternative and the real business

Beyond direct buying, some see a business model. "A taobao dropshipping operation in Spanish with a good offer and selection of items with a big price gap between Spain and China would be a good idea for a little business." The key lies in products you can't find in the shop across the street: "The big money is in other lines (tea, natural cosmetics, essential oils...)." And they warn of a craze that hasn't arrived yet: "A craze for Japanese things is beginning that hasn't reached Spain yet. I've been seeing some amazing shops in Shanghai: homeware, accessories, ornaments..." The opportunity exists, but it requires travelling, attending trade fairs and building personal relationships. "Alibaba is a place to make first contact with a supplier; after that you need a personal relationship, a visit, a trade fair or something of the sort."

---

The conclusion is uncomfortable: Alibaba is not Amazon. It is a digital bazaar where the buyer assumes all the risk. And as a veteran puts it, "buy from official distributors, and if it's something from China, through some importing company that swallows the hassle in case of customs or shipping problems." Or else pray that the parcel gets through as a gift.