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Dropshipping And Cross Border Transactions – Payment Methods

by Ingeborg

The most stressful part of sourcing products from suppliers on Alibaba is the payment process. Everyone, no matter the experience level, has some apprehension when it comes time paying for products. The concerns are what if I pay and the supplier fails to deliver or what if they did understand what I was looking for or did it understand actually.

Then I just waste all my money. I can tell you that there is no such thing as a hundred percent fail-proof method for paying suppliers. However, in all the years that have been sourcing products through Alibaba, not once has the supplier run off with my money. I’ve been scammed more times in my City and country than I have ever been scammed on Alibaba. Have there been disputes? Yes, of course, but I have never had to report theft or fraud of any kind.

When it’s time to pay your supplier, you have four options Alibaba escrow or Ali pay, PayPal, wire transfer, and Western Union, all of which SaleSource can help you with. All pay is always my first preference, but unfortunately, it’s only available for Chinese suppliers. I’ll explain how it works shortly, but basically, you use your credit card to pay suppliers like you would on any other eCommerce site. Ali pay also offers a guarantee that the products would be delivered on time and as advertised.


If you can’t usually Alipay, then the next best all mode of payment is to use PayPal. The good thing about using PayPal is that it be linked to your bank account or credit card and is safe to use.

The third option is T/T, which is another way to say bank to bank wire transfer. Wire transfers a simple and banks charge a flat fee to use the service, so it’s ideal for large soldiers the

The final option is to use Western Union, which I recommend avoiding. It should only be used as a last resort if your supplier can’t accept a leap a PayPal or your bank doesn’t allow wire transfer to certain countries.

If you wish to pay your supplier with a credit card, the best way to do it is to use Alipay when it comes to Alipay. Start by negotiating the final price of your product including shipping. Once you have agreed on all the terms simply ask your supplier for an LEP or Alabama invoice. They will send you a link, and from there, you merely put input into your credit card and follow the on-screen instructions. It’s not much different from shopping on a regular eCommerce site. The difference, however, with Alipay is that your supplier won’t receive their money right away. It’s going to sit in an escrow account.


Here’s how it works: after you make a payment using your credit card, Alibaba charges your card, but it keeps the money in their bank. Once you receive the products Alibaba, the supplier will send you an email asking you to release the funds. Once you approve it, Alibaba will then pay that your supplier the benefits of escrow and pretty obvious it’s fast, easy, and convenient. You don’t need to do anything other than a valid credit card. It also comes with a guarantee of on-time delivery and equality. But I use the term currently very loosely.

In terms of drawbacks, Alibaba charges suppliers a 5% processing fee, which inevitably is passed on to you the customer, so on a $5,000 order, you can expect that the supplier will ask you to pay the to $50 payment processing fee or they will just build that into the price of the order. The other downside of using any pace is that it’s only available to suppliers based in China. So, if you have a supplier in another country, this system is not possible to you, and finally, even though your money is held in escrow and Alibaba provides a satisfaction guarantee, getting refunds or holding on to funds in escrow is not easy. If you don’t authorize the release, the supplier will get paid, and it will be up to you to file a dispute.

How To Deal With AliExpress Suppliers?


Before talking to suppliers, you should know your product. A common mistake people make on AliExpress is that they rely too much on their suppliers for information. Remember that one of the rules of using AliExpress is to form long term relationships. You always want to give your suppliers the impression that you are a seasoned veteran. People who own businesses know their products it’s okay to ask questions, but how you ask is a reliable indicator of your level of expertise. So before talking to suppliers, I recommend research share products, learn the different names, and acronyms.

For example, if you are sourcing polo shirts, you should know all about the different available materials. Do you want a sweater that’s made out of cotton or polyester? If it’s cotton, what GSM or grams per square meter way do you want? Do you want a 5% lycra or 10%? Also, what kind of stitching do you need? You must have a working knowledge of the products that you want to buy.

If at war you and a supplier came to me and said I want a PK polish shirt made out of 70-20-10 split of court and blister and lycra and it has to be pre-shock. I am thinking this person know what is asking about, I better up providing the right answers as opposed to if you came to me and said “I’m looking for a polo shirt and ask you which material what weight and you can answer” I as a supply won’t take you very seriously.

You should have always a sense of the market price and demand of your product your supplier will no doubt code to the highest possible price when you start negotiating. If he or she senses that you don’t have much experience or don’t have a good grasp on the technicalities, they are less likely to negotiate lower prices and may even try to predict that advantage of your lack of knowledge.


Finally, be prepared, don’t rush to talk to suppliers, have your research ready, and review the essential details. Think of it as preparing for a job interview you need to know your stuff where you should also research the company you are interviewing for.

In our case, take the time to review the information on the supplier page, know who their customers are, and understand their pricing and MOQ models. If you find bisque apprentices on their page such as MOQ, be sure to note it down and bring it up when you are negotiating. Remember, you want to be a professional supplier wish to deal with people whom they trust and who they think will become a long-term client.