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Purchasing / Sourcing guide for all beginners

Purchasing / Sourcing guide for all beginners

Before we get started, here are the two websites where 90-95% of our clients do their sourcing:

  1. www.alibaba.com – This is for wholesale / bulk purchases
  2. www.aliexpress.com – This is for retail / small quantity purchases

There are other online websites but let’s just discuss about these two which are commonly used.

Both websites are very useful if you’re shopping around for the lowest price of that certain item you’re looking for and ultimately where to purchase it. The first step we often want to figure out if we want to sell something is to find the best source with the lowest possible price for an item. Second is, how to get those items we’ll be purchasing here in the Philippines.

Let us now go to Aliexpress to get an idea of the retail price of our sample item. Our goal here is to get the lowest possible price so in order for us to do so, we look for the lowest price a retail / single quantity is being sold for.

***click image for a larger view***

Aliexpress

 

Now we know that in single quantities the item is sold for $7.50, obviously it should be lower if we’ll be buying wholesale. Normally before we go on negotiating for the wholesale price, we should always have an idea first on how much an item is sold in retail quantity, this way we would know if it is really worth buying that item in huge quantities. I mean, why oblige yourself in buying a hundred or thousands of pieces of that certain item when the price is almost similar to retail? Of course we expect a price way lower if we purchase in wholesale.

Since we already know of the retail price, it’s time we move on and find a wholesale supplier of this item via Alibaba.

***click image for a larger view***

Alibaba

Buying in wholesale has its pros and cons. If you buy wholesale, it is good for you as the purchase price is way lower than buying it in small quantities ergo a higher profit for you. However, with wholesale there’s always what we call a MOQ (minimum order quantity. See note above) which should be met so the low price can be given to you, which translates to a larger cash requirement.

Note that even though both websites are intended to serve their own purpose (Alibaba = wholesale / Aliexpress = retail), you can always ask suppliers from each website regarding prices for retail and wholesale quantity.

Last but not the least, always remember that everything is negotiable… 🙂

 

 

Good luck and happy shopping!

 

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Comments (3)

  • ChesterSom

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    May 17, 2018 at 4:40 pm
  • Herbertovace

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    March 21, 2018 at 10:43 pm
  • Michael balucan

    How do i engage your company if i have goods to be ship from china to philippines?

    February 17, 2017 at 1:27 pm

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