Importing from Alibaba for Personal Use: Recommended Payment Methods & Tips to Avoid Issues
2024-10-30
- This article is for reference only as it is merely a translated version of the Japanese article below.
アリババで個人輸入!お得な決済方法・トラブルを避けるポイントをご紹介します! (Japanese version)
Alibaba is a Chinese e-commerce platform where a wide range of products can be purchased at low prices. For those considering starting to import products from China, Alibaba may already be on the radar.
However, importing from overseas comes with concerns about product quality, shipping fees, and taxes.
This article will introduce tips to prevent problems when using Alibaba for personal imports and explain the best payment methods to get more value from transactions.
Consider this as a starting guide to ensure a safe and secure import experience through Alibaba.
What is Alibaba?
Source: Alibaba.com
Alibaba is an e-commerce platform operated by China’s “Alibaba Group.”
As a B2B online marketplace, it ranks among the largest in the world, with over 1.3 billion users annually, comparable to Amazon.
A wide array of products, including clothing, electronics, industrial machinery, beauty items, and everyday goods, are sold at low prices. Additionally, the website can be set to Japanese, making it as easy to use as domestic e-commerce sites.
On the review platform Trustpilot, Alibaba has a high user rating of 4.3, indicating high satisfaction.
Steps to Purchase via Personal Import on Alibaba
Source: Alibaba.com
Here’s how to buy products on Alibaba:
Register an Account
Visit Alibaba.com, enter personal information such as name, email address, phone number, and password to create an account.
Search for Products
Enter the name of the item or related keywords in the search bar to look for products. Once the desired product is found, review photos and user reviews to check the details.
Complete the Purchase
Verify that the quantity and transaction details are correct, then click the “Confirm Order” button to proceed.
Shipping
Once payment is confirmed, the product will be shipped. Checking the shipping method, tracking code, and schedule provides peace of mind.
Receive the Product
After the product arrives, inspect it for any damage or missing items. If there are any issues, promptly contact the seller to address them.
Advantages of Personal Import via Alibaba
Low Prices
Products on Alibaba are directly provided by manufacturers, eliminating the costs of intermediaries.
Moreover, buying in bulk is even more cost-effective due to mass production. Sellers also compete with each other, allowing buyers to purchase high-quality products at reasonable prices.
Extensive Product Range
Alibaba features sellers from over 190 countries and regions, offering products across various categories.
Direct Negotiation with Sellers
Through the platform, buyers can communicate directly with sellers. It is possible to negotiate details about the product and pricing.
Disadvantages of Personal Import via Alibaba
Possible Low Product Quality
Chinese products are attractive for their affordable prices, and many have good cost performance.
However, there can be cases where low-quality items are delivered.
To minimize issues, consider the following:
Check Quality with Samples
Samples can be requested from the product page. Before making a bulk purchase, inspect the actual product first.
Purchase Items Protected by Trade Assurance
Source: Alibaba.com
Products with the Trade Assurance mark ensure protection for payment, returns, refunds, and delivery schedules. Alibaba also mediates with the seller if any issues arise, providing a secure purchasing experience.
For more details on Trade Assurance, refer to the official page.
Possible Shipping Delays
Since importing involves long-distance shipping, such as air or sea freight, it can take time.
Customs clearance, inspections, and other procedures also add to the timeframe.
Large orders or out-of-stock items may further delay the delivery.
Customs Duties and International Shipping Fees
Importing goods from overseas incurs customs duties and international shipping fees. Shipping costs vary based on the package size, weight, and distance, so accurate information may not be available on the website. Always inquire with the seller.
Additionally, customs duties differ by product category. For more information, refer to the customs tariff table (effective April 1, 2023).
Points to Avoid Troubles When Importing Individually on Alibaba
When importing products individually through Alibaba, consider the following points to avoid any issues:
Do Not Purchase Prohibited or Restricted Items
Violating import rules or regulations may result in the confiscation of goods.
Food | When importing food as an individual, it is necessary to submit a “Notification Form for Importation of Foods” based on the Food Sanitation Act. Depending on the type of food, additional documents may also be required. Reference: Japan External Trade Organization (JETRO) |
CDs, DVDs, and Books | China enforces strict censorship on exports, and media products may be modified or censored. |
Counterfeit Products | The import of counterfeit brands and imitation character goods is prohibited. |
There are other regulations as well. Once a product is selected, it is advisable to check the Customs website for “Prohibited and Restricted Items for Import and Export” to confirm whether it is a restricted item before making a purchase.
Purchase From Reliable Sellers
Scrolling through the product page will reveal shop ratings and reviews.
Source: Alibaba.com
- Is customer satisfaction high?
- Are inquiries responded to promptly?
- Does the seller have a high delivery compliance rate?
- Has the seller been in business for a long time?
- Is the workplace and factory well-organized?
Check these points and directly contact the seller to evaluate their response before proceeding.
Confirm the Return and Refund Policy
The return and refund policy for defective or damaged products can be found on the product page.
Be sure to check this information before making a purchase.
What Are the Most Cost-Effective Payment Methods for Personal Imports on Alibaba?
When making payments on overseas e-commerce sites, the main concerns are fees and security. Here, two debit cards with low fees and robust security, as well as the most cost-effective bank transfer method, are introduced.
Available Payment Methods
The main payment options available on Alibaba are as follows:
Two recommended debit cards are “Wise (MasterCard)” and “Revolut (VISA).”
First, let’s compare the fees with typical credit cards.
While standard credit cards charge around 2.4% – 3.4% in fees, Wise offers a rate of 1.18%. Revolut charges between 0% – 0.5% for weekday transactions.
Revolut | Wise | Standard credit card | |
International Service Fees | Free | Free | Approximately 1.6% to 2.2% |
Currency Exchange Fees (CNY⇒JPY) | Regular Weekday Fees: Less than 750,000 JPY: 0% to 0.5%, More than 750,000 JPY: 0.5% to 1% Weekend Fees: Over 1% | 1.18% | Approximately 0.8% to 1.2% |
Let’s introduce the features of each card.
Revolut
Source: REVOLUT TECHNOLOGIES JAPAN
The key feature of Revolut is the ability to issue “disposable virtual cards” for one-time transactions.
Many people may feel uneasy about using their cards for online shopping on foreign websites. However, with Revolut’s virtual cards, the card information disappears after each transaction. This means that even if the information is leaked, the risk of fraudulent use is minimized.
Additionally, Revolut supports refund processing, ensuring a secure shopping experience.
Revolut offers three plan options: Standard, Premium, and Metal.
The top-tier Metal plan includes a 1% cashback (up to 5,000 JPY), meaning with 200,000 JPY worth of transactions, the monthly fee of 1,980 JPY is effectively covered.
Exclusive Offer: 3 Months of Premium for Free
By signing up for Revolut Premium through this page, the usual monthly fee of 980 JPY is waived for the first three months.
This plan is recommended for those who frequently shop on international websites or want an easy way to manage foreign currencies.
By clicking the button below, you can access Revolut Premium for three months free.
\ Get 3 Months of Premium for Free – Normally 980 JPY/month!/
Wise
Wise offers several advantages, including no annual fees and low currency exchange fees.
Since it supports electronic payments, transfers can be made just with a smartphone, making it convenient for those who prefer not to carry a wallet or card. For iPhone users, it works with “Apple Pay,” and for Android users, it supports “Google Pay.”
Another key feature is its high level of security. Wise is registered as a money transfer provider with the Kanto Local Finance Bureau, meaning it meets security standards similar to banks, allowing users to open accounts with peace of mind.
Recommended Payment Method: Bank Transfer (T/T)
The most recommended payment method on Alibaba is T/T payment (bank transfer), which has lower fees.
While credit cards are common on B2C sites like Amazon or Rakuten, they may not be suitable for B2B transactions due to potential credit limits and additional fees.
Reduce expenses by using bank transfers and succeed in your import business!
Find the Best Money Transfer Service Using an International Transfer Simulator!
Did you know that when transferring money overseas, exchange rates and fees can vary depending on the service provider, even for bank transfers?
In fact, you could end up losing over 10,000 JPY on the same transfer amount, just by choosing the wrong service.
So, it’s essential to pick the most cost-effective money transfer service, right?
That’s where the “MoneySaver International Transfer Simulator” comes in handy.
It compares over 30 companies in just 5 seconds, ranking them to show the cheapest option!
Here’s a simulation example for sending 100,000 JPY from Japan to China, with the recipient receiving the funds in a bank account (as of September 5, 2023).
The top choice was Western Union, with a fee of 200 JPY and a payout of 4,906.63 Chinese yuan.
The 18th option was Mizuho Bank, which had a fee of 11,000 JPY and a payout of 4,354.21 Chinese yuan.
Based on the exchange rate on September 5, where 1 Chinese yuan was approximately 20.1 JPY, there was a difference of 10,800 JPY in fees, 11,000 JPY in payout, and a total discrepancy of about 21,800 JPY.
Losing this much every time goods are purchased from Alibaba would be a waste!
Make sure to use the “MoneySaver International Transfer Simulator” to find the most cost-effective money transfer service!
\Find the cheapest service provider in just 5 seconds!/
✅First-time use is free