Alibaba Freight Forwarders Guide: How to find the right one?
Mehdi Chibani
Founder & CEO at KabyLabs | Investor | Polyglot (English, French, Spanish, Amazigh, Arabic) | Passionate about Tech, Politics, Economics & Travel | Empowering Professionals to Succeed.
The Alibaba forwarding system is an easy way to get your goods shipped in no time. However, you need to take steps to minimize problems in the process.
Companies need to manage their shipments for the purpose of managing their global operations. Therefore, a freight forwarder is called in to help them since imports come from various places in the world. Freight forwarders such as Alibaba's are used to simplify logistics.
This improves the speed of the business while contributing to the efficiency of the supply chain. This allows entrepreneurs to focus on the important details rather than their shipments. Freight forwarders provide real-time information on the progress of the shipment. They also assist in the negotiation process with the supplier.?
What is an Alibaba freight forwarder?
Alibaba is by far the largest e-commerce company in terms of numbers, larger than eBay and Amazon. It connects buyers from all over the world with suppliers, especially those in Asia. In addition, it has a comprehensive directory that makes it easy to locate suppliers in all areas.
Like other companies, Alibaba also has freight forwarders that help with shipping goods. This allows customers to ship their goods without any problems. One thing to note is that the freight forwarder does not move the goods but helps manage the logistics network. Therefore, Alibaba freight forwarders help the buyer to make the right decisions for the logistics.
What does an Alibaba freight forwarder do?
Alibaba freight forwarder has similar functions. He helps to simplify the overall logistics process. They also manage the various elements of international transportation. In addition, they help ensure the compliance of international shipments.
Apart from that, Alibaba Freight Forwarder helps to regulate imports and exports in compliance with international regulations. He helps to make the shipping process economical, negotiating the price and choosing the fastest route.?
Advantages and disadvantages of choosing an Alibaba freight forwarder:
There are several advantages and disadvantages of choosing an Alibaba freight forwarder. Here are some of them:
Advantages
Cost-effectiveness: One of the main advantages of using an Alibaba freight forwarder is that it guarantees profitability. The overall costs of the shipping process are significantly reduced. This is beneficial, especially for small businesses that need to manage their budget for shipping costs.?
Larger companies can benefit by using their help to find efficient suppliers. In addition, they can also benefit from getting their customized products approved and shipped in less time and in a less expensive manner.
Similarly, small businesses can find suppliers who will provide them with the products they need in minimal quantities. The biggest risk for buyers is payment. However, a freight forwarder will help negotiate a viable price and ensure product quality accordingly.?
The process is fast: A normal shipment can take months to arrive. However, with Alibaba's transit system agents, your shipment can arrive sooner. These agents research the most optimal route for the shipment.
They also coordinate with suppliers to ensure the delivery of quality products on time. The process becomes efficient and secure for buyers. The platform facilitates coordination between users and suppliers. It ensures seamless communication, making the process fast.?
Experience:?Another advantage of using an international freight forwarder is that they have experience in managing logistics. They know how to manage logistics documentation and compliance. In addition, they also provide a risk assessment for the shipment, thus ensuring security during customs inspections.
Risk assessment involves an evaluation of the various parameters of the transaction. Parameters such as supplier profile, payments, documentation, order processing, order manufacturing, product quality, final inspections, etc. are included in this list. All these parameters are evaluated to minimize the risk of scams and inefficient service.
Assured Security:?As we have pointed out, Alibaba freight forwarders ensure the safety of your goods. They don't guarantee total security, but they reduce the number of errors that can occur in the process. Also, you don't need to focus on your shipment once you hire a forwarder.
You can focus on other important parts of your business without worrying about logistics. A freight forwarder will be able to assist you with the entire process without you having to worry about it.
Guaranteed arrival: Once hired, Alibaba's freight forwarder guarantees the arrival of your package. They look for the most optimal route while coordinating it with the suppliers. In addition, all parameters are discussed and evaluated beforehand, saving time.?
Disadvantages
In addition to the advantages of using an Alibaba freight forwarder mentioned above, here are some disadvantages you should be wary of:
Trust issue:?As highlighted above, you are entrusting your goods and shipment to a third party. The third party is responsible for ensuring that your shipment arrives safely and on time. Even if you have already opted for freight forwarding, the fear of this situation can ruin your peace of mind. That's why it's a good idea to do a preliminary assessment to ensure the safety of the shipment.?
Insufficient data: Data deficiency can occur when assessment factors and compliance reports are not coordinated with the vendor. This is one of the leading causes of shipment delays. Loss of information, communication barriers, etc. are some of the issues related to data deficiencies that lead to delays.
In addition, a delay in shipping means that your customers will not receive the products on time. This would damage your reputation in the market. In case the delivered products are destined for your production, it would therefore minimize your production performance.?
Imagine that the Alibaba forwarder chooses the wrong Incoterm
How to find the best Alibaba freight forwarder?
Finding the right type of freight forwarder is as important as the whole process. However, you can follow these steps to find the right Alibaba freight forwarder for your business:
Know the type of freight forwarder you need
The first thing you need to do is to evaluate the type of freight forwarder you need. Freight forwarders work in different areas. They may be refrigerated goods, bulk materials, fresh produce, hazardous materials, etc.
The choice of freight forwarder will depend on:
- The type of goods you want
- Your transportation requirements
- Handling requirements (if the goods are fragile)
- Storage requirements.
With these requirements in mind, you can choose one of the following models for freight forwarding:?
Online freight forwarder: Following the evolution of digitalization, online freight forwarders operate via online platforms. These platforms are designed to meet the demands of customers. From getting quotes to booking and paying the freight forwarder, buyers can easily prepare their freight forwarder for their shipment. You can easily track the shipment online.
Consultative Freight Forwarder: Despite the advantages of an online freight forwarder, consultative freight forwarders offer a wide range of services. A consultative freight forwarder provides a complete network of shipping, storage and other details.?
A consultative freight forwarder provides comprehensive logistics services to its clients. These may include managing complex shipping processes, tracking, telephone consultation, etc. The disadvantage of this forwarder is its high cost. Its prices are higher than other types of forwarders due to the additional services it offers.
Low cost freight forwarder: If you are on a budget, then this type of forwarder is for you. The low cost forwarder allows you to compete on import and export prices. You can find several shipping methods depending on the services offered.?
Global Freight Forwarders: As the name implies, global freight forwarders operate on a global scale and have a presence in several countries. They offer a wide range of services, covering land, air and sea logistics operations. You can easily narrow down the type of services you want and coordinate with them for a seamless operation.
Evaluate local freight forwarders: While keeping in mind the type of freight forwarder you need, it is time to evaluate some of them to make a choice. You need to make sure that the one you choose is efficient, as you will be building a long-term relationship with them. Changing partners can be a good decision, but it takes a lot of work and slows down the process.
Definition of selection criteria
When selecting a freight forwarder, you need to define criteria that will help evaluate freight forwarders. This will allow you to narrow down your search to a few choices, which will help you make a good choice for Alibaba shipping options. To do this, you can define:
- The trade route through which most of your products will flow.
- The type of services you want your forwarder to cover.
- The type of transportation, storage and handling you need for your goods.
You will find many freight forwarders that will meet these requirements. In doing so, you can also narrow down the choices based on experience, compatibility ratio, reputation in the market, etc.
Evaluation
Once you have defined your criteria and selected a few freight forwarders, it is time to narrow down your choices, using your criteria. This will help you choose the one that offers the most. You can use this information to choose air, ocean and land freight forwarders as well.
Search?
Once you have found the final list of freight forwarders that meet your requirements, it is time to evaluate them personally. Researching their profiles, checking their experience, reputation and performance is a good way to ensure a good choice.
You have to do this because it is possible that your choices are not the best. That is why you need to make sure that you evaluate each choice on individual levels so that you only go for the most desirable.
In addition, there are several scammers who pose as manufacturers. They take orders from the buyer at higher rates while they are in contact with real manufacturers. During order preparation, they cut costs on materials, thus processing products with inferior quality. Once the transaction is complete, these scammers disappear from the scene, so it is essential to avoid them.
In addition to these scammers, many wholesalers also pose as suppliers. They charge high prices, just like the scammers. They also cut costs on materials during production. These wholesalers then ship the products while keeping a portion for their inventory. This creates copyright violations as these wholesalers can sell these products at a lower price from their platform.?
This is why you need to dive into the selection of manufacturers listed. This will help you avoid scammers and protect your investment. By following these procedures, you will be able to choose a reliable Alibaba freight forwarding company.?
Alibaba's Top 6 Freight Forwarders in 2024:
Foresmart Forwarding LTD
Foresmart is a freight forwarding company that assists in global cargo transportation. “For” symbolizes future foresight, and “smart” signifies wisdom. Making present decisions wisely by considering future perspectives. That is what we have always hoped for and continuously worked on.
Foresmart’s extensive network of partners, carriers, and agents spans the globe, covering China, America, Australia, Europe, and Southeast Asia.
Developed countries like the US, Canada, UK, Germany, Australia, New Zealand, etc. are our main markets. We are well-versed in customs clearance and delivery in these countries, backed by reliable long-term partnerships.
Please visit their website for more info and quotation:
?China Travel International Investment HK LTD?
China Travel International Investment HK Ltd. is an investment holding company. Its main service segment includes tourist attractions, including hotels, theme parks, travel services, etc. These services allow the company to engage in cross-border transportation services, making it a good choice for freight forwarding, especially if you want goods related to their service area.
??Jianfa Logistics Group Co. LTD?
Jianfa Logistics Group Co. Ltd is another freight forwarding company that works in the field. The company was incorporated in 2000 and has been providing competitive services since then. It has more than 200 employees in 2018. The company has been competent and has increased its performance: it has recorded an increase in net sales of more than 35%. In addition, it reported a growth in assets of 9.18% (2018).
??Jincheng International Logistics Group Co. LTD?
The company was established in 1995 and has proven its expertise in the field through its competitive services. The company is also known for its competitive freight forwarding services, which are able to respond quickly to the demands of its customers.
It also offers services in the field of air transportation and generates a turnover of approximately $1.99 million. The company provides services while managing contacts, financial data and competitor information to further its expertise.
??Zhenhua Logistics Group Co. LTD?
Founded in 1993, Zhenhua Logistics Group Co Ltd. has become one of the most famous freight forwarding companies in the world. The company has invested in multiple business enterprises. This includes China Communication Construction Company Ltd. and China International Marine Containers Co Ltd.
The company has a total of 36 subsidiaries and employs over 3,000 people through its businesses. The company operates in more than 80 countries around the world. It offers a wide range of logistics and supply chain management services to its customers with efficiency.
??Zhongtong Ocean Logistics Group Co. LTD?
Another name in the freight forwarding market is Zhongtong Ocean Logistics Group Co. Ltd. This company has been operating in this field for quite some time. Since its establishment, the company has been offering a wide range of operational services for extensive logistics management.
How much does Alibaba freight cost?
The cost of Alibaba freight depends on the supplier from whom you get the products. Before placing an order, you should contact the supplier regarding the method of calculating the cost.
It may be weight in kilograms and the supplier who sends you the products will charge you according to their price per weight. For general merchandise, shipping costs may vary by weight as explained below:
For goods from 0.5 kg to 10 kg, shipping costs range from $20 to $100.
For goods weighing 10 to 20 kg, shipping costs are between $100 and $200.
For goods weighing 21 kg to 100 kg, shipping costs are between $200 and $500.
As mentioned earlier, shipping costs depend on the average cost per weight set by the supplier. Each supplier has set different rates that have been accepted by Alibaba. Before placing an order, you should contact the supplier to know the prices as well as the minimum order quantity. This will help you to choose the supplier with the best rates.
What is the shipping time from Alibaba?
The shipping time depends on several factors. These include the following factors
- The preparation of the order
- Production time
- Shipping time.
All of these factors should be considered before placing an order, so that you can effectively deal with any delays. When working with Alibaba, you will need to take time to identify the best supplier for your ordering needs.
The process is hectic as you need to identify the supplier, get samples, confirm the samples, negotiate the price and prepare the sales contract documents. This whole process can take months.
On the other hand, you can choose a random supplier, give them the order details and send them a digital invoice. Later, when the supplier approves the invoice, you can send the money to get the order ready. However, this process is quite risky.
The shipping process can take anywhere from 15 days to 6 months, depending on the type of order you have placed. The more complex the order, the longer it will take to produce. Therefore, the shipping time will also be longer.
What is the best shipping method for Alibaba?
Choosing a shipping method is a real headache. It depends on the type of goods you order on the platform. In addition, the weight and volume of the goods, the destination country, etc. are other factors to consider.
Depending on these factors, you can consider three methods.
Courier service is ideal for lightweight items. It is faster and more economical than other methods if you are ordering an item weighing less than 100 kg.
Air freight is suitable for items weighing between 100 and 800 kg. It takes about 8 to 15 days for delivery.
Sea freight is mostly used for bulk items and takes about one month for delivery.
Therefore, the type of shipping method that is best for you depends on the type of goods you are ordering. Air freight may be expensive, but it can deliver bulk items in about 10 days.
How do I check the quality of Alibaba products?
There are scammers on Alibaba posing as suppliers. However, Alibaba itself conducts effective checks to avoid scams that can ruin its customers. To do so, there are several ways to check the quality of products.
AVOID SCAMS
The first thing to do is to order a sample that matches your product specifications. This will help you get an idea of the quality offered by the manufacturer. Also, before you even ask a supplier, you can check their profile and previous orders.
In terms of payment, Alibaba offers escrow as a payment option. This option allows you to keep your money safe because Escrow holds it until the buyer receives the goods. When the buyer signals acceptance of the delivery, Escrow then releases the payment to the supplier.
In this way, you can avoid receiving defective products from your supplier. Another method you can choose is to have your products inspected before shipping.
Yes! Alibaba is a reliable source to get products. In fact, it is the largest online store operating in terms of manufacturing. The administration of Alibaba takes many measures to protect its buyers from scams.
In addition, it implements certain security features that help protect both the buyer and the supplier in the process. This helps the platform maintain its credibility and provide real-time services to those connected to it.
In doing so, Alibaba provides its customers with instructions to search for reliable suppliers. Communication, requesting quotes, etc. are some of the parameters you can evaluate before buying goods on Alibaba.