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‘Trustability’ is one of the most important factors in choosing business
partners, yet it remains one of the most difficult to gauge.

While you can never be one hundred percent sure of a company’s
integrity, there are many ways you can educate yourself so if you do
ever run up against a questionable supplier, you’ll be able to spot the
signs easily.


    © 2010 - Selecting Trustworthy Suppliers - Page
This article will divulge six tips that will help ensure a positive sourcing experience for you,
whether on Alibaba.com or elsewhere.



              Search Engines Are Good For Sourcing
           Any company trying to promote their business or services today will have their
information online. If you are trying to decide whether or not to do business in a new country
or with a particular partner, the best and first thing you should always do is search for the
supplier’s information on the internet.

Punch a company name into any Internet search engine such as Google (www.google.com)
and chances are you will stumble upon a wealth of information about the company. Details
such as contact persons, emails or office addresses will provide you with a good foundation
on which to continue further research.

Once you have the company’s basic details, it’s time to move on to websites that can provide
you with more specific information such as industry association or country trade organization
websites.




              Trade Related Agency Websites
          Many bad cases attributed to untrustworthy suppliers can be traced to simple
miscommunications due to cultural, political and economical differences. To avoid these
problems, it’s a good idea to study the country in which your potential partner operates.
Many of the cultural differences to be aware of can be found at 1000ventures.

Another good place to check out is the United States Central Intelligence Agency’s Fact Book.
Many government agencies, associations and institutions related to international trade often
have websites to help foreigners adapt and address issues, so be sure to check out your own
as well as your supplier’s government websites.

Those looking to do business in China can check out the website of the General Administration
of Quality Supervision, Inspection and Quarantine of the PRC, which oversees just about
everything that has to do with international trade in China.

The website also provides up-to-date news regarding trade in the country which you may find
useful. Most importantly, all laws and regulations regarding trade with China can be found
there.

Most countries will have their own respective website, though not all are as informative and
helpful. On the bright side, they are available in English as to make it easier to use for
international traders.




© 2010 - Selecting Trustworthy Suppliers - Page 2
The following sites are in English and very informative:
    The Central People’s Government of the PRC
    Ministry of Commerce PRC
    Intellectual Property Protection in China
    Trademark Office State Administration for Industry and Commerce PRC
    State Administration for Industry & Commerce of the PRC
    U.S. Government Export Portal
    Australian Government Department of Foreign Affairs and Trade
    Australia China Business Council




              There’s A Website For Every Industry
         Whether you are a small business owner, new to trading, or sourcing for a
company, you’ll find an abundance of resources available at industry-related websites.

Some will be country-affiliated such as Australia’s Information Industry Association, while
others such as the Toy Industry Association extend past political borders. To find the industry
association appropriate for you, type in the product category you would like to search for into
a search engine along with the words “industry association”. You should get the result you’re
looking for within the first page. If not, use a more general product category and try again.




              Get Connected With Your Peers
          Online forums, chat rooms and blogs are not the most reliable sources for
information, but the information you find there will be useful in its own way. Case in point: if
you notice complaints against one of your potential suppliers, you might want to confront
them about it.

Likewise, a company that is very active on industry forums and provides useful information to
others is proof of the company’s willingness to help its customers, a clear sign of good
customer service.

Be sure to actively participate in forums by asking questions as many of your questions can
usually be answered by experienced peers who scan the forums regularly to provide
assistance.

Registration to most online forums is free, and unlike websites and publications, participating
on forums will provide you with exactly the information you’re looking for, provided you
know what question to ask.




© 2010 - Selecting Trustworthy Suppliers - Page 3
Knowing What & How To Ask A Question
           First impressions are very hard to change, and can directly affect the service and
answers you receive. That’s why when you first send an inquiry, post a question online or call a
supplier, make sure you are always friendly and courteous.

Your first correspondence should aim to be informative and transparent. A good way of
making a good first impression is to include these three points: an introduction of yourself, a
brief background of your company, what you are looking for and specific questions you want
answered.

                                                                             Details such as what you liked about a
          Chen,                                                  er at       product can help suppliers greatly in
 Dear Mr.                                               ng offic
                                              a sourci ed in Hong
                                  a nd I am               s
                       n Yang,                  mpany ba                     understanding your needs, and can also
            is Steve a toy trading co
 My name            ted,
 ABC Toys
              Limi
                                                                     low
                                                                              help them provide you with additional
                                                            6 and be
  Kong.                                           en aged                     products you may be interested in.
                                     for childr        an mar kets.
                         ces toys            Australi
              any sour            ean and
  Our comp              he Europ                                (product
              y for t                                stroller
   primaril                               our baby se of its uniqu
                                                                         e     In addition, identifying questions may
                                 ds to y
               ting   in regar h I liked becau              ions  I would
    I am wri -02212), whic
                                        have a f
                                                  ew quest                      be easy for native English speakers, but
               BB
    number:               d esign. I         duct:
    shock ab
               sorbing             that pro                                     it may sometimes prove difficult if you
                       egarding                             s utiliz
                                                                     ing
     like   to ask r                              t design                       or your partner’s native language is
                                        differen
                           odels in
                u have m                                 ications                not English.
     1. Do yo echnology?                       e certif
      the  same t           cts po   ssess th
                 ur produ                 lia?
      2. Do yo o ship to Austra rs?
                   t                       e                                     That’s why it is always a good idea to
       re quired        cept sa  mple ord
       3. D  o you ac        OQ?                     actions?
                  is the M redit card trans                                      break down questions separately into
       4. What                 c
                   u accept
        5. Do yo                                  .                               bullet points so that they can easily
                                        response
                             to your                                              be identified and answered
        I look    forward

                 y,
                                                                                   individually.
        Sincerel
                 ang
        Steven Y




               Build Lasting Relationships
           The famous Chinese philosopher Lao Tzu once said that “if you don’t trust people,
people will not trust you.” By showing too much concern and distrust for a new partner,
buyers can often times cause the opposite of what they were hoping to achieve. Instead of
furiously investigating a supplier for flaws, try placing a sample order.

Placing a sample order is not only about receiving the product. You are in effect testing the
ability of a supplier’s supply chain. If you’re looking for a way to determine a supplier’s ability,
there’s no better way to do it than to give them a try. So what’re you waiting for? Get out
there and contact a supplier on Alibaba.com right away!




© 2010 - Selecting Trustworthy Suppliers - Page 4
About Alibaba.com
Alibaba.com (HKSE: 1688.HK) is the global leader in e-commerce for small businesses and the
flagship company of Alibaba Group. Founded in 1999, Alibaba.com makes it easy for millions of
buyers and suppliers around the world to do business online.




© 2010 - Selecting Trustworthy Suppliers - Page 5

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Selecting Trustworthy Suppliers

  • 1. ‘Trustability’ is one of the most important factors in choosing business partners, yet it remains one of the most difficult to gauge. While you can never be one hundred percent sure of a company’s integrity, there are many ways you can educate yourself so if you do ever run up against a questionable supplier, you’ll be able to spot the signs easily. © 2010 - Selecting Trustworthy Suppliers - Page
  • 2. This article will divulge six tips that will help ensure a positive sourcing experience for you, whether on Alibaba.com or elsewhere. Search Engines Are Good For Sourcing Any company trying to promote their business or services today will have their information online. If you are trying to decide whether or not to do business in a new country or with a particular partner, the best and first thing you should always do is search for the supplier’s information on the internet. Punch a company name into any Internet search engine such as Google (www.google.com) and chances are you will stumble upon a wealth of information about the company. Details such as contact persons, emails or office addresses will provide you with a good foundation on which to continue further research. Once you have the company’s basic details, it’s time to move on to websites that can provide you with more specific information such as industry association or country trade organization websites. Trade Related Agency Websites Many bad cases attributed to untrustworthy suppliers can be traced to simple miscommunications due to cultural, political and economical differences. To avoid these problems, it’s a good idea to study the country in which your potential partner operates. Many of the cultural differences to be aware of can be found at 1000ventures. Another good place to check out is the United States Central Intelligence Agency’s Fact Book. Many government agencies, associations and institutions related to international trade often have websites to help foreigners adapt and address issues, so be sure to check out your own as well as your supplier’s government websites. Those looking to do business in China can check out the website of the General Administration of Quality Supervision, Inspection and Quarantine of the PRC, which oversees just about everything that has to do with international trade in China. The website also provides up-to-date news regarding trade in the country which you may find useful. Most importantly, all laws and regulations regarding trade with China can be found there. Most countries will have their own respective website, though not all are as informative and helpful. On the bright side, they are available in English as to make it easier to use for international traders. © 2010 - Selecting Trustworthy Suppliers - Page 2
  • 3. The following sites are in English and very informative:  The Central People’s Government of the PRC  Ministry of Commerce PRC  Intellectual Property Protection in China  Trademark Office State Administration for Industry and Commerce PRC  State Administration for Industry & Commerce of the PRC  U.S. Government Export Portal  Australian Government Department of Foreign Affairs and Trade  Australia China Business Council There’s A Website For Every Industry Whether you are a small business owner, new to trading, or sourcing for a company, you’ll find an abundance of resources available at industry-related websites. Some will be country-affiliated such as Australia’s Information Industry Association, while others such as the Toy Industry Association extend past political borders. To find the industry association appropriate for you, type in the product category you would like to search for into a search engine along with the words “industry association”. You should get the result you’re looking for within the first page. If not, use a more general product category and try again. Get Connected With Your Peers Online forums, chat rooms and blogs are not the most reliable sources for information, but the information you find there will be useful in its own way. Case in point: if you notice complaints against one of your potential suppliers, you might want to confront them about it. Likewise, a company that is very active on industry forums and provides useful information to others is proof of the company’s willingness to help its customers, a clear sign of good customer service. Be sure to actively participate in forums by asking questions as many of your questions can usually be answered by experienced peers who scan the forums regularly to provide assistance. Registration to most online forums is free, and unlike websites and publications, participating on forums will provide you with exactly the information you’re looking for, provided you know what question to ask. © 2010 - Selecting Trustworthy Suppliers - Page 3
  • 4. Knowing What & How To Ask A Question First impressions are very hard to change, and can directly affect the service and answers you receive. That’s why when you first send an inquiry, post a question online or call a supplier, make sure you are always friendly and courteous. Your first correspondence should aim to be informative and transparent. A good way of making a good first impression is to include these three points: an introduction of yourself, a brief background of your company, what you are looking for and specific questions you want answered. Details such as what you liked about a Chen, er at product can help suppliers greatly in Dear Mr. ng offic a sourci ed in Hong a nd I am s n Yang, mpany ba understanding your needs, and can also is Steve a toy trading co My name ted, ABC Toys Limi low help them provide you with additional 6 and be Kong. en aged products you may be interested in. for childr an mar kets. ces toys Australi any sour ean and Our comp he Europ (product y for t stroller primaril our baby se of its uniqu e In addition, identifying questions may ds to y ting in regar h I liked becau ions I would I am wri -02212), whic have a f ew quest be easy for native English speakers, but BB number: d esign. I duct: shock ab sorbing that pro it may sometimes prove difficult if you egarding s utiliz ing like to ask r t design or your partner’s native language is differen odels in u have m ications not English. 1. Do yo echnology? e certif the same t cts po ssess th ur produ lia? 2. Do yo o ship to Austra rs? t e That’s why it is always a good idea to re quired cept sa mple ord 3. D o you ac OQ? actions? is the M redit card trans break down questions separately into 4. What c u accept 5. Do yo . bullet points so that they can easily response to your be identified and answered I look forward y, individually. Sincerel ang Steven Y Build Lasting Relationships The famous Chinese philosopher Lao Tzu once said that “if you don’t trust people, people will not trust you.” By showing too much concern and distrust for a new partner, buyers can often times cause the opposite of what they were hoping to achieve. Instead of furiously investigating a supplier for flaws, try placing a sample order. Placing a sample order is not only about receiving the product. You are in effect testing the ability of a supplier’s supply chain. If you’re looking for a way to determine a supplier’s ability, there’s no better way to do it than to give them a try. So what’re you waiting for? Get out there and contact a supplier on Alibaba.com right away! © 2010 - Selecting Trustworthy Suppliers - Page 4
  • 5. About Alibaba.com Alibaba.com (HKSE: 1688.HK) is the global leader in e-commerce for small businesses and the flagship company of Alibaba Group. Founded in 1999, Alibaba.com makes it easy for millions of buyers and suppliers around the world to do business online. © 2010 - Selecting Trustworthy Suppliers - Page 5