Are Gold Suppliers on Alibaba Reliable?– Case Study Included

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When choosing suppliers on Alibaba, many people will be misled by the gold suppliers on Alibaba and mistakenly think that gold suppliers are equal to good suppliers. But that’s not the case. This article will explain exactly what a gold supplier is and how to find a good supplier on Alibaba.

What Is A Gold Supplier On Alibaba?

Here is the official explanation of the gold suppliers on its website.

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That is to say, the gold supplier is a paid member of Alibaba, which has nothing to do with its own production capacity, product quality and so on. After paying a membership fee to become a gold member, Alibaba prioritizes traffic to gold suppliers, making their products more visible to consumers.

How to Become A Gold Supplier?

  1. Register on Alibaba and apply to be a gold supplier.
  2. On-site Check
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From the picture, we can see that, if we want to become a gold supplier, we need a third-party verification first. After that, we can become a gold supplier with a specialized icon just like the following one :

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Are Gold Suppliers on Alibaba Reliable?

Since Alibaba requires on-site verification before becoming a gold supplier, does this mean the gold suppliers can be trusted? No. Because from the information of gold supplier provided on Alibaba, it is not enough to verify whether this supplier is reliable.

Case Study

If we want to find a supplier for machinery, we can get the following results.

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We found that the top three are all gold suppliers, and one has even been around for 19 years. So is the first one the best machine supplier? Let’s take this company named Wenling Import & Export Co., Ltd. (温岭市进出口有限公司) as an example. When we click on the company’s information, we can see that the supplier’s information has been verified.

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It seems that this company is reliable. However, according to our investigation, the company has the following problems.

  1. Suppliers on the Official List of Dishonest Persons Subject to Enforcement.

If a company or person still refuses to pay the money it/he/she owes after courts’ enforced execution (especially when the company or person has the ability to do so), the company or person will be recorded in the Official List of Dishonest Persons Subjected to Enforcement. Both the company and its shareholders are listed as persons subject to enforcement for trust-breaking, so it is risky to cooperate with the company and it is likely to lose both money and goods. Howerver, Alibaba can’t help you check whether a company is on this list or not.

  1. Fake Certificate.

They uploaded an ISO9001 certificate on Alibaba, but we did not find relevant records of this certificate in the government database. In other words, Alibaba will not help you to verify the authenticity of the certificate provided by the supplier.

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  1. Exaggeration on the staff scale.
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It shows on Alibaba that the company has a total of more than 51 employees. However, we found that there are 48 insured employees (legally contracted employees should be insured according to law).

  1. Records of administrative penalties.

The company was punished by Beilun Customs twice because of illegal operation. In addition to the above problems, this company has other bad records. If you are interested, please contact us for more information. But this can show that Alibaba’s so-called verification of gold suppliers can only show that this is a real registered company, and can not ensure that the company is definitely credible.

Tips For Selecting Suppliers with the Information provided on Alibaba

Filter Your Suppliers Among Gold Suppliers

Though Gold Supplier does not necessarily mean that it is a good supplier, because you only need to pay Alibaba to get the title of Gold Supplier, but it is still more reliable than non-Gold Suppliers since at least these companies have bought the membership, and they are all legally registered companies.

Choose Suppliers With Trade Assurance

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Rule Out Imperfect Suppliers By Its Main Market

The company’s profile can show its main markets. Please try to select suppliers whose main markets are North America and Western Europe since those regions have stricter regulations on health and safety standards and pay more attention to quality.

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Get Product Samples If Possible

The price on Alibaba is not transparent, so you still need to contact suppliers for more detailed information like MOQ, payments and so on. After communication, please select 2 to 3 suppliers to request samples to compare the quality before placing an order. Of course, the safest way is to find a professional verification agency to do a background check for you, such as SinoInspection.

Conclusion

In a word, the gold supplier on Alibaba does not mean a qualified good supplier which can provide high-quality product, you still need to verify it carefully. If you still have questions about this topic, please contact us.

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