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Selling on Ebay. Buying from China: A case study on risk and tools to protect the buyer.

Posted: 2015-12-29

Full Question

While on eBay one day, I came across a product that was in high demand and it seemed that almost every retailer in the US was out of stock. So I had the bright idea to see if China made this product, and to see if I could import it from overseas and make some money off of it. I placed my first overseas order. $2000 down and $1000 upon shipping. Then the next day I came across you and your videos on global sourcing. Needless to say after watching your first video I got very nervous because I didn’t realize how many mistakes I had already made as a novice and was possible in hot water already. I am one of your examples of new small businesses that did not know too much before diving in head first. So the reason I am writing is because I was looking for some insight. I really hope I just happen to be one of the few that gets lucky their first time. Regardless I will be watching the rest of your videos and tutorials moving forward. Anyways, Global Sources claims that all vendors are verified and legit. The vendor I chose is called XXXX International Co; Ltd. Again they are listed on Global Sources as verified. I don't know if that is legit or not? The product I was supposed to be getting manufactured is the Christmas Laser Lights which is similar to the "Snow Shower" laser light product that seems to be the biggest hype over here in the states. If you can, and you have a few minutes can you provide me with any information you know of this company or the process related to supplier verification.


First off, let’s explain this term “verified supplier” which you will find online at and other online directories. In my personal opinion, Global Sources goes out of their way to ensure the suppliers on their website are professional. Global Sources staff even visits some of the factories. But, China is a massive market and things at the factory level can change suddenly. So just because a factory has a high ranking in the star system today, it is not a guarantee that they will be professional tomorrow. But, having said that, if the factory has high ranking with Global Sources, and if they have maintained a booth at the trade show for many years and if they advertise in the Global Sources e-magazines, then there is a much higher likelihood that they are a legit business. The Global Sources verified supplier ranking is an excellent start. But it is just the start of the process. Check out these videos to better understand the process:

Video 1: How to find suppliers in China
Video 2: How to verify and evaluate suppliers in China
Video 3: How to negotiate with Chinese suppliers
Video 4: Project Management & Quality Control
Video 5: How to protect Intellectual Property
Video 6: Learn how Global Sources can help you source with more confidence
Video 7: How to organize logistics when importing from China
Video 8: How to avoid scams when buying overseas or online
Video 9: How to return defective merchandise to China
Video 10: How to resolve a dispute with a Chinese company

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