Red alters! After you vetted a supplier & approved the quality of their sample

When you want to place an order with them, the supplier usually will have a significant change in their attitude as well terms. This happens when you are about to do your due diligence on them; after you receiving & confirming the quality of their sample.

They could be doing following things before ordering samples:

  1. Welcoming for a factory visit and inspections
  2. Happy to work through Alibaba trade assurance or any other Escrow payment system with protection for the buyer (PayPal)
  3. Not constantly changing product pricing and moq
  4. Replying fairly quickly to your messages and emails (basically interested/motivated/serious in working with your company)
  5. 20% to 30% Deposit and balance payment after an inspection

So when the supplier is not agreeing to the above terms after you confirmed their sample and price, there can be a significant risk in trying to do business with then and spending your time re-negotiating and convincing them to accept your order.

A few reasons for them to be responding in this matter could be:

  1. They want to take advantage of the situation and maybe think they can earn a little more money on the order by coming up with “magical” reasons for an increased price.
  2. They want to increase the order quantity because it could help them get better pricing from their raw material suppliers and help increase their profit on the order.
  3. They might have gotten a bigger order from a different client during this time and now are thinking of spending resources/time on your order is not worth it.
  4. They did not expect you to be so strict with you wanting to do due diligence on them before an order is placed (visit, escrow payment, inspections).
  5. They are a trading company and wish to avoid all kinds of buyer visits and inspections.
  6. Though even if a supplier does finally go on to agree to all your earlier terms this should be taken as a warning for you to be very careful in doing business with this kind of supplier in the future.

    Because often suppliers with this mentality will not support you if things get tricky during the production, post-production, inspections, shipping. It’s sometimes tempting to simply try convincing and cajoling a supplier to agree to all your terms and confirm the order but its probably best to start looking for an alternative supplier who is straight forward and keeps their word. Yes, it will be more work and time spent on finding a better & suitable supplier but worth it if you are looking to play the game long-term!

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