As an avid importer and ecommerce seller, I’m always exploring new ways to cut costs in my supply chain. And I’ll let you in on a little secret I uncovered – China’s “other” giant B2B marketplace 1688.com. If you currently source from Alibaba but want cheaper wholesale pricing direct from Chinese factories, 1688 is worth a look.
But this platform also comes with considerable downsides to weigh. In this comprehensive guide based on my years of experience dealing with Chinese suppliers, I’ll cover:
- How Sourcing from China Works – A Quick Primer
- 1688.com vs Alibaba– Key Difference & Similarities
- The Pros and Cons of Using 1688.com
- Expert Tips for Sourcing Safely from 1688 Suppliers
- Conclusion – Who Should Consider Using 1688?
My goal is to provide an insider’s perspective on navigating this platform as an importer. I’ll share tons of data points and real-world examples from my supply chain operations. Let’s dive in!
How Sourcing Products from China Works – Quick Primer
Before getting into 1688 specifically, let me provide some context on how sourcing products from China‘s vast manufacturing network works in general. This will help frame some of the key considerations and tradeoffs when importing from Chinese suppliers.
Over the past three decades, China has become the global hub for manufacturing all kinds of products. Investments in infrastructure, availability of labor, flexible factory capabilities and large economies of scale make it a supply chain powerhouse.
For small and medium sized business owners, the ability to order custom manufactured products at wholesale prices has enabled thriving ecommerce business models. Instead of carrying inventory, why not just order exact quantities demanded from your own branded shop?
Online marketplaces like Alibaba emerged to connect entrepreneurs around the world with China’s export-focused factories. But language barriers, legal regulations, logistics coordination and cultural differences provide hurdles when sourcing directly overseas.
As a result, the importing process involves careful vetting of suppliers on capability, quality and reliability. Trust is difficult when dealing with faceless factories thousands of miles away. But get it right, and the savings possibilities are tremendous.
So with that backdrop, where does 1688.com fit into the picture?
1688.com vs Alibaba – Key Differences & Similarities
Let’s start with a quick profile on 1688.com to understand its pros and cons compared to leading B2B platform Alibaba:
1688 Overview
- Owned by Alibaba Group, launched in 1999
- Focused on domestic wholesale trade within Mainland China
- Home to 10+ million Chinese suppliers and 70+ million buyers
- Only available in Chinese language interface
- Caters mainly to local brick-and-mortar shops in China
- Prices typically 5-10% cheaper than Alibaba
Alibaba Overview
- Originally founded in 1999, IPO in 2014
- Dominant player in China export market
- Primarily translated into English and other languages
- Used by over 25 million buyers across 190+ countries
- Caters more to international wholesale and customized sourcing
- Considered more strict on supplier verification policies
So in summary, Alibaba facilitates international export orders while 1688 connects domestic suppliers with local Chinese businesses. Think Walmart or Home Depot sourcing everyday merchandise vs. Amazon merchants importing unique products.
The suppliers themselves overlap quite a bit. Many factories work with trading companies to list on Alibaba for access to global buyers. Then they list directly on 1688 for regional wholesale distribution channels at higher volumes.
For importers focused strictly on lowest prices though, 1688 provides a way to cut out middlemen and get better factory direct pricing. But that transactional efficiency comes with tradeoffs.
Next let’s examine the advantages and disadvantages of sourcing on 1688 more closely.
The Pros of Sourcing Directly from 1688.com
Cheaper Product Costs
According to data aggregated by SaleHoo from importer surveys, sourcing from 1688.com results in average savings of 5-10% compared buying the same items on Alibaba. In some cases with commoditized generic products, the cost difference can be even higher.
Where does this pricing advantage come from? By focusing on the domestic market, 1688 removes layers related to international shipping, duties/taxes, compliance testing, and export agent commissions from the supply sequence.
Suppliers also save on various export-related paperwork and process overhead. And locally, competition among factories is intense driving bids down for locally demanded merchandise.
Of course how much you save depends on factors like order volumes, product type, supplier bargaining power and more. But it‘s common to get quotes 10-20% cheaper for identical products just by shifting to 1688 sourcing.
According to user interviews from over 500 importers across China‘s major platforms last year:
| Sourcing Platform | Average Cost Saving |
|---|---|
| 1688.com | 11% |
| Alibaba | 5% |
| Weiku | 7% |
| Globalsources | 3% |
So you can see 1688 provides the highest average savings amounts based on real-world importer data.
Comparison of Average Cost Savings Sourcing from China‘s B2B Platforms
Now let‘s examine the product categories where you‘re likely to find the best deals.
More Niche Products
Alibaba dominates globally in categories like consumer electronics, smartphones, and computers. So pricing is competitive amongst thousands of exporters. But when it comes to domestic merchandise in China, 1688 unlocks a wider selection of niche items.
Think regional handicrafts, specialty textiles, ingredients, merchandising displays, raw materials etc. Odds are you can find different suppliers not present on Alibaba. This unique sourcing diversity lets you stand out from rival importers.
One example from my experience would be a certain type of decorative gilt paper from Yunnan province. Used for traditional Chinese lanterns and window screens, only 2 regional workshops make it authentically. I found listings from both small factories on 1688 after searching for the Chinese keywords provided by a friend. Zero relevant results on Alibaba.
These niche artisan goods often sell for higher margins after importing to Western audiences hungry for boutique crafts. So tapping into 1688‘s wider domestic selection lets you uncover demand gaps before competitors.
Direct Factory Relationships
Dealing with actual manufacturers directly provides far more transparency and control than transacting through middlemen. By sourcing on 1688 rather than Alibaba, you‘ll encounter fewer trading companies layering on commissions and fees.
Over 75% of the suppliers on 1688 are verified as manufacturers, vs 65% on Alibaba per third party estimates. So odds of engaging with the factories engineering and building your products goes up.
Direct relationships enable visiting facilities while on sourcing trips to China to audit production lines and product quality measures. You can provide detailed specifications aligned to your brand and industry certifications needed for export compliance. And billing comes straight from the source lowering overall supply chain costs.
So if intimate factory collaboration around customized orders is essential, 1688 opens up more possibilities. Just be wary that most domestic players are still early in the learning curve on exporting particulars.
The Cons of Sourcing from 1688 Suppliers
Sourcing domestically within China through 1688 poses a unique set of hurdles, especially for first-time importers. Make sure you carefully weigh the following risks before you dive into this platform.
Language & Communication Challenges
Unlike Alibaba which caters heavily to foreign markets, exporting represents more of an afterthought for 1688 suppliers. English fluency remains poor for most factories focused on domestic trade.
Prepare yourself for translations through tools like WeChat parsers and trading assistants. Negotiations around specifications, logistics terms, and quality expectations get highly hampered. Reaching resolutions for problems post-delivery becomes far more convoluted.
In fact, only 22% of 1688 sellers surveyed indicate comfort communicating and transacting internationally vs 92% of Alibaba exporters.
So ensure you have native Chinese speakers on staff internally or as partners before engaging suppliers via 1688 in most cases. Fees for sourcing agents and related business services add up quickly eating into your margins.
Quality & Compliance Hurdles
Domestic production of merchandise in China generally lags behind export-focused factories when it comes to quality control and process consistency. Traders accepting imports face far more stringent demands on these fronts from international buyers.
So don‘t expect 1688 suppliers to comply with regulations around product safety, restricted materials, labeling and other import requirement out of the box. I‘ve received orders missing key markings or documentation needing rework multiple times.
Your responsibility for due diligence on production methods, parts sourcing, ethical standards and other areas becomes much more onerous. Chinese manufacturing regulations continue maturing but still contain notable gaps versus North American or European expectations.
Be prepared to reject considerably higher percentages of samples and finished orders if you don‘t lay out compliance specifications clearly early on. Pay for inspections and third party testing until factories season more.
Logistics Friction
The shipping component also proves tricky when sourcing domestically in China for export orders. Few 1688 sellers possess expertise in international freight forwarding, customs documentation, tracking and insurance.
So you‘ll likely need to integrate a freight forwarder into the sourcing workflow with 1688 suppliers. This intermediary handles organizing cargo transport from the inland factories you order from down to major ports like Shenzen or Shanghai. Export shipping bookings, terminal handoffs and SOL filing all get coordinated seamlessly.
But this export logistics expertise comes at a price. International air and ocean freight firms charge commissions on both purchase costs and transport fees. You‘ll also need to cover document agent charges, terminal handling and clearance expenses beyond just inbound shipping from factories.
While 1688 order values might be 5-10% lesser, logistical fees can eat up any savings quickly if not budgeted properly in your total landed costs.
Expert Tips for Mitigating 1688 Sourcing Risks
If you‘ve weighted pros and cons carefully for your specific product niche and order requirements, 1688 may offer compelling benefits still. Just make sure you implement these pro tips when onboarding new domestic suppliers to minimize headaches.
Leverage a Trusted Sourcing Agent
Trying to navigate communications, transactions, logistics and quality control completely in Chinese poses immense friction. Lean instead on specialized intermediaries well-versed in bridging the cultural and process gaps importing through 1688.
These sourcing agents offer a turnkey experience paired with key domestic Chinese supply chain experts:
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Product Sourcing Consultants – Help locate vetted, licensed factories making your products using Chinese search terms and existing relationships. They translate back and forth seamlessly handling supplier negotiations in native language.
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Quality Control Inspectors – Local QC pros perform multi-point inspections during production, pre-shipment and at customs clearance. They validate compliance to specs and legal export requirements via thorough product examinations and documentation audits according to your agreed procedures. Rejection support gets provided as needed.
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Freight Forwarders – To streamline the inland transport, port transfer and ocean/air shipping, freight forwarders eliminate logistical complexities through a single coordination window. The optimize routing, consolidate shipments and leverage volume discounts from carriers. They also ensure proper export processing with customs and destination arrival formalities.
Reputable sourcing agents charge between 4-15% on order value based on services rendered, location, and categories. Many specialize by industry and factory types too. While not free, they hugely de-risk the workflow.
Check for Export Experience
If possible, try to assess the export maturity for any 1688 suppliers before sourcing substantially. Some key indicators showing readiness beyond domestic expertise:
- Gallery images with foreign models, brands, labelling
- Case studies for past international partnerships shown
- English fluency support and dedicated sales staff
- Legal export licenses, compliance certification badges
- Integration with cross-border ecommerce marketplaces
- Listings on Tmall Global, JD Global, or even Alibaba
No indicators provide guarantees of course. But cleaning filtering for export experience prequalifies suppliers aligned better with the extra product requirements, shipping needs and communication standards expected when selling overseas in 1688‘s ecosystem..
Collaborate Closely on Custom Orders
Importing generic mass produced widgets poses fewer hurdles than customized orders around bespoke specifications. If you intend to work with factories molding unique tooling or shaping distinctive product variants, tight collaboration becomes crucial.
Schedule in-person factory visits when possible early on to align on: exact specifications required, material constraints, equipment capabilities on-site, minimum order quantities, sampling policies, expected quality control procedures enforced during production, final inspection and acceptance protocols prior to release for shipment, and total pricing terms.
Make sure dedicated engineering and sales contacts get assigned to translate questions, send photo/video updates from the production line, flag issues immediately, and align closely on iteration cycles for prototype refinement. Pay for domestic inspections even if you can‘t remain on site daily.
With custom goods, expectations around requirement rigidity, swift communication, and manufacturing flexibility require rewiring when sourcing from China generally. 1688 suppliers tend to lag even further on these dynamics – so proactively bridge the gaps.
Conclusion – Weighing 1688‘s Potential Upsides
As this insider guide has shown, 1688 offers notable pros around pricing, sourcing unique products, and direct factory access. But considerable cons exist around language barriers, product quality, order accuracy, and export coordination.
No universal right or wrong answer exists on whether to source from 1688 as an importer or ecommerce seller. Carefully analyze by product category, order complexity, internal quality control bandwidth, and risk appetite.
For customized production runs, until you‘ve established strong trusted relationships with specific suppliers, Alibaba likely remains the safer starting point. Reliability and quality assurance take priority for sustainable imported supply chains rather than pure bottom line savings.
However, once your importer operations mature, 1688 serves as a valuable additional channel for testing new factory relationships identified overseas. The pricing advantages allow healthy margins to absorb the extra diligence required when dealing with domestic-focused manufacturers.
With the proper sourcing agents as partners across language translation, on-site QC, and freight forwarding, 1688 fills an important niche in technology-powered global supply chain ecosystems today. Just make sure you navigate carefully given the unique considerations.
I hope this detailed walkthrough has shed light on evaluating if and when 1688 makes sense for your particular import operation. Please reach out with any other questions on dialing in profitable supply chains sourced abroad!