As the world’s largest online business-to-business (B2B) marketplace, connects millions of buyers and suppliers around the globe.

Whether you’re just starting to sell on Amazon, or an owner of a multinational corporation that’s looking for reliable suppliers, you can use the Alibaba platform to find what you’re looking for.

For businesses that are looking to source their products, Alibaba is a good place to start and get an idea of what’s available. But how do you pay Alibaba suppliers?

With so many options available, it can be hard to choose.

So, in this article, I’ll break down each Alibaba payment method and share the pros and cons so that you can choose the best payment method for your circumstances.


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How to find quality products with the right Alibaba supplier?

Before you pay a supplier on Alibaba you need to find them!

When selecting a supplier on Alibaba, it’s important to do your research to ensure you’re getting a quality product from a reputable source.

Here are some tips on how to find quality products with the right supplier:

1) Check the supplier’s profile

The first step is to check the supplier’s profile. Take a look at how long they’ve been in business and how many transactions they’ve completed.

You can also see reviews from other buyers and what their experiences were like. If you see a lot of negative reviews, it’s probably best to avoid that supplier.

Additionally, you may want to verify if the seller is a trade assurance supplier as this gives you additional protection against any fraud or scam.

2) Inquire about the products

Once you’ve found a few potential Alibaba suppliers, the next step is to inquire about the products.

You can do this by sending a message through the Alibaba platform. Be sure to include as much detail as possible about what you’re looking for, such as specifications, quantities, etc.

It’s also a good idea to ask for samples so you can check the quality of the products yourself.

3) Compare prices and shipping costs

After you’ve received quotes from the suppliers, it’s time to compare prices and shipping costs.

Ensure you’re getting a good deal on the products and that the shipping costs are reasonable. Keep in mind that you’ll usually get what you pay for, so don’t go for the cheapest option if it means sacrificing quality.

Once you’ve found a supplier that you’re interested in working with, the next step is to figure out how to negotiate with them.

How to negotiate with an Alibaba supplier

Making an agreement with your Alibaba supplier covers making the necessary negotiations to get the best possible price for your product.

The key to a successful negotiation is to be prepared. This means knowing what you want, what you’re willing to compromise on, and having a clear understanding of the market conditions.

You’ll want to take into account:

  • Budget: How much are you willing to spend on this product?
  • Minimum order quantity (MOQ): What’s the least amount of product you’re willing to buy?
  • Lead time: When do you need the products to be delivered?
  • Shipping: How will the products be delivered – is it by air or by sea? How much will it cost to ship the product?
  • Warranty terms: What kind of warranty or guarantee does the supplier offer for defective or faulty items?
  • Payment method: How will you be paying the supplier and what Alibaba payment methods are accepted by the supplier?
  • Payment terms: How much will you need to pay upfront and when will the balance be due?

Once you’ve considered all of these factors, you can start negotiating with the supplier. Remember to be polite and be willing to compromise.

It’s also important to remember that the supplier is also trying to make a profit, so don’t be too aggressive in your negotiations. Try to find a middle ground that both parties are happy with.

Also note that all communications with Chinese suppliers including the negotiations as well as agreement should be done through your Alibaba account as this will be helpful later on especially if you have a payment dispute.

Once you’ve reached an agreement with the supplier and placed the Alibaba trade assurance order, the next step is to figure out how you’re going to pay them.

What to consider when choosing a payment method

There are several Alibaba payment methods available for you to choose from. Here are some things we recommend that you take into account to be able to choose the right and secure payment method:

Buyer protection

It’s important to choose a payment method that offers buyer protection in case something goes wrong with the order. One way to get buyer protection is through Alibaba trade assurance. With this, you’re covered if your products are not delivered on time, if the quality isn’t up to par, or if the supplier doesn’t follow through on their end of the agreement.


Another thing to consider is how convenient the payment method is. For example, if you’re paying by credit card, you’ll need to make sure that the supplier accepts your type of card.


The cost of the transaction is also an important factor to consider when choosing a secure payment method. For example, if you’re paying by wire transfer, you’ll need to factor in the bank fees or currency conversion fees, if there are any.

Alibaba Payment Terms

Create an agreement with the supplier about the payment terms. This can include when the payments will be made (e.g. 50% upfront and 50% after delivery), how the payments will be made (e.g. by wire transfer or credit card), and what currency the payments will be made in (e.g. USD or CNY).

Processing Time

If timing is critical, you’ll want to choose a payment method that has a shorter processing time. For example, paying by credit card will usually result in a quicker payment than paying through Western Union.


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What Alibaba payment methods are available?

The Alibaba payment process or paying your supplier is an important part of the sourcing process. Alibaba offers a few different payment methods, each with its own benefits and drawbacks.

1. T/T Payment or Wire Transfer

T/T payment also called telegraphic transfer or bank wire transfer, is the most common form of payment on Alibaba. With this method, you’ll pay the supplier directly through your bank.


The advantage of T/T payment is that it’s a secure way to pay. You can transfer funds directly from your bank account to the supplier’s, so there’s no third party involved. Additionally, it has a low transaction fee of USD 40 for international wire transfers with no limit. Plus, the exchange rate is usually favorable.


The downside of T/T payment is that it can take a minimum of 3 business days and a maximum of 7 business days for the funds to clear if you’re sending money internationally so you’ll have to plan accordingly and take into consideration holidays and weekends.


We do not recommend using a telegraphic transfer payment especially if this is the first time you’re working with the supplier due to the risks involved.

If in case you would want to push through with this payment method, it’s best to enter into a contract with a trade assurance supplier.

Also, try to arrange payment terms that you and your supplier can agree on. It can be 50% upfront or initial payment, 50% upon delivery, 20% upfront, 40% after quality inspection and 40% upon delivery, or something similar. This way, you can protect yourself in case the supplier doesn’t deliver on their end.

2. L/C Payment

L/C payment also called a letter of credit, is a type of payment that’s backed by a financial institution. With this method, you’ll open up a line of credit with your bank and the supplier will be paid through that.


The advantage of using L/C payment is that it’s a very secure way to pay. The funds are not transferred until the products have been shipped and received, so you’re not at risk of losing your money if the supplier doesn’t hold up their end of the deal.

Additionally, using the L/C payment method helps improve cash flow because you don’t have to pay for the products until they’ve been delivered.


The downside of L/C payment is that it can be expensive. There are usually fees associated with opening up a line of credit and the exchange rate may not be in your favor. Additionally, it can be a slow process since the payment has to go through your bank and the supplier’s bank.


Since the process can be slow and expensive, we only recommend using this type of payment if you have a large order and if you’re working with a new supplier.

3. PayPal

PayPal is one of the most popular online payment platforms in the world. It can be used to send and receive money from anywhere in the world. This payment process allows you to directly send money to your supplier from your bank account, a credit or debit card.


The advantage of using your PayPal account is that it’s a very secure way to pay as it offers protection to buyers.

There is very little risk of losing your money if the supplier doesn’t hold up their end of the deal because Paypal allows order cancellation and refund if you encounter an issue.

Additionally, it’s a very convenient way to pay since the funds are transferred almost instantly and most suppliers on Alibaba accept Paypal.


The downside of using PayPal is that it can be expensive if you’re paying in a currency other than US dollars. The exchange rate is not always favorable and processing fees may be relatively high.


We recommend to pay suppliers you’re working with via Paypal if they accept it and if you’re comfortable with the exchange rate. Otherwise, we suggest using one of the other payment methods on this list.

4. Alibaba Online transfer

Online transfer is a secure payment that has limited availability in certain countries in Europe. It allows you to directly transfer money from your bank account to the supplier’s bank account.


The advantage of using Alibaba online transfer is that it’s an Alibaba secure payment method where the funds are transferred directly between bank accounts. All you need is the supplier’s bank account details so you can complete the transfer.


The downside is that this payment method may take 1-2 days to complete, especially if it’s a big transaction. Additionally, you can expect transfer fees ranging from $15 to $25, depending on the amount you want to pay suppliers.


We recommend using this Alibaba payment method for small to medium orders. If you’re looking to pay a large sum of money, we suggest using L/C payment or bank wire transfer instead.

5. Debit or Credit Card

You can also use your debit or credit card to pay your supplier through Simply enter your card details on the checkout page and the funds will be transferred to the supplier’s account.


The advantage of using a debit or credit card is that it supports multi-currency, making it a very convenient way to pay.


It can be expensive as credit card companies charge a high transaction fee, which is 2.99% of the total transaction amount.

In addition to this, you can expect less desirable currency conversion fees to be charged if the supplier’s account is in a different currency than your card.


We recommend using a debit or credit card if you’re comfortable with the transaction fees involved.

6. Payment Links

Alibaba payment links allow you to pay your supplier without a third party when you choose the Alibaba payment system.


The advantage of using payment links is that it’s a very convenient way to pay and transaction will reflect on the seller’s account immediately.

Additionally, it helps save your transaction fees and get funds quicker than other payments on Alibaba.


The downside is that Alibaba payment links usually have a fixed fee of 2% – 4% for each transaction with some companies having additional transaction fees.


We recommend using Alibaba payment links if you’re ordering product samples from a supplier and you’re comfortable with the fees involved.

7. Western Union

Western Union is a global leader in money transfers and they offer an online service that allows you to send money to your supplier.


The advantage of using Western Union is that it’s a very convenient way to pay. Also, it is one of the available trade assurance payment options.


The downside is that Western Union is only available if you’re paying from the US. You can expect this to be one of the slowest payment methods with a high transaction fee that starts from $30.


We only recommend using Western Union if you’re from the US and if you’re comfortable with the transaction fees involved.

These Alibaba payment methods will help you choose the best way to pay your supplier.

Keep in mind that some methods may be more expensive than others, so be sure to compare the fees involved before making your decision.

Whichever your preferred payment method is, make sure that you’re comfortable with it and that you trust the supplier before proceeding with the transaction.

How to avoid payment fraud

When you’re looking for a supplier on Alibaba, it’s important to be aware of the potential for fraud. There are a few things that you can do to protect yourself and avoid payment fraud:

1) Do your research.

Be sure to research the supplier before you make a deal. Check their reviews and ratings to get an idea of their reputation. You can also request the supplier’s business license for verification.

2) Use a secure payment system.

A secure payment service allows you to pay your supplier without having to worry about getting scammed.

3) Get everything in writing.

Before you make a deal, be sure to get all the details in writing. This includes the price, delivery date, terms of the agreement, etc. This way, you’ll have a legal document to fall back on if there are any problems with the product or the supplier.

4) Keep your communication clear.

Be clear and concise in your communication with the supplier. This will help to avoid any misunderstandings that could lead to fraud.

5) Be cautious of red flags.

Be on the lookout for any red flags that could indicate fraud. This includes suppliers who refuse to put everything in writing, who are unwilling to meet in person, or who want you to pay using an insecure payment method.

If you’re ever in doubt, it’s better to err on the side of caution and walk away from the deal. There are plenty of legitimate suppliers on Alibaba, so there’s no need to take risks.

Avoiding payment fraud is an important part of doing business on Alibaba. By following these tips, you can protect yourself and your business from being scammed.

Additionally, the Alibaba payment platform offers trade assurance for select Alibaba payment methods so this should help you avoid being scammed.

What is Alibaba trade assurance and how can it help buyers?

Trade Assurance is a free Alibaba escrow service that helps buyers on Alibaba protect their orders from payment to delivery.

With Alibaba Trade Assurance service, buyers can choose to work with trade assurance suppliers that offer this kind of protection.

When an order is covered by Alibaba Trade Assurance, payment will be put on hold until the buyer confirms that they’ve received the product and are happy with it.

Trade assurance protects buyers in the event that products are not received on time and if the product received does not meet the agreed specifications on the contract.

Since many sellers now accept payments through trade assurance, this is a great way to reduce the risk of fraud when you order and pay on Alibaba.

So if there are any problems with the order and you have a payment dispute, Alibaba can work to resolve them.

Here’s how Alibaba’s trade assurance scheme works:

1) Place an order through trade assurance. Make sure to use the Alibaba platform in communicating with the supplier.

2) Create a contract of agreement with the trade assurance supplier.

3) Pay on Alibaba via payment methods where trade assurance applies. This includes Alibaba payment methods such as Visa and Master credit or debit card, wire transfers, Paypal, and Western Union.

4) Wait for your order and confirm delivery once received. If you have any complaints about product quality, make sure to report it 30 days from the time of receipt.

5) Alibaba performs an investigation for any payment dispute, resolves your complaint, and reimburses when appropriate.

Final Thoughts

Making Alibaba payments doesn’t have to be complicated or risky.

By being aware of the different Alibaba payment methods and taking steps to protect yourself from fraud, you can be sure that your transactions on Alibaba with Chinese suppliers are safe and smooth.  

Alibaba Trade Assurance is a great way to protect your orders on Alibaba, so be sure to look for suppliers that offer this protection and use Alibaba payment methods that are accepted for trade assurance orders.

Building an Amazon business requires you to go through lots of risks that can be managed if you are taking the right decisions.

Join us inside the Brand Builder University community as we help entrepreneurs like you to grow your business and take it to the next level.

Karizza Camus


Karizza Camus
Karizza has been part of the BBU team for several years having excelled in an operations role and now using her experience to help create content for our community. She is detail-oriented and loves to help make complex tasks clear.
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