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Profit from the Source
Alibaba.com is the largest B2B marketplace that connects buyers and sellers without fees or middlemen. Companies of all sizes, including retailers, distributors, wholesalers, and manufacturers, can use the site to locate new business partners and increase their margins by getting products directly from the source.
Read on to find out how three savvy entrepreneurs have successfully used Alibaba.com to grow their companies.
Dain Hodson, Vice President of Operations, NLU Products
Company Headquarters: Draper, UT Web site: nluproducts.com
"Alibaba.com was able to help us find the right product at the right price, making us more competitive."
Getting Started: Back in 2002, just as the PDA market was beginning to take off, April and Kirk Feller started NLU Products out of their home office. The idea: easy-to-use screen protectors, customized to fit almost any PDA.
Finding the Right Supplier: After realizing that some of the materials needed for NLU’s BodyGuardz line were not available domestically, vice president of operations Dain Hodson turned to Alibaba.com to fi nd international suppliers. “Alibaba.com allowed us to review multiple vendors in one place and compare their offerings with confi dence,” Hodson recalls. Once he located three to four potential suppliers, he was able to review samples, negotiate pricing, and receive orders within in a one-month time frame.
Building Relationships: Because Hodson was unable to make factory visits during the sourcing process, he relied heavily on Alibaba.com’s Gold Supplier certifi cation. “We’ve worked with companies from Hong Kong, Taiwan, South Korea, and China and have built great relationships with each one,” he says.
Today: NLU now has 40 employees and three product lines—ScreenGuardz, BodyGuardz, and TatSkinz—all of which are sold worldwide through resellers, distributors, and NLU’s Web sites.
Valerie Johnson, Founder and CEO, Big Feet Pajama Co.
Company Headquarters: Las Vegas, NV Web site: bigfeetpjs.com
Starting Anew: With little experience in the textile industry, Valerie Johnson left her corporate job in 2005 to pursue an entrepreneurial venture. With a unique idea and $50,000, she started Big Feet Pajama Co. in her Las Vegas basement.
From Concept to Reality: “Through Alibaba.com, I was able to fi nd a manufacturer who helped me see my vision through, from prototype to salable product,” Johnson recalls. To locate suppliers that could produce quality footed pajamas in adult sizes, Valerie simply posted an ad on Alibaba.com’s marketplace. She quickly received almost 100 responses, which she narrowed down to three before making factory visits. “I chose the factory that I felt most comfortable with; it was not the least expensive, but I felt confi dent in the quality and effi ciency of its operation, as well as how it treated its employees,” says Johnson.
Today: Now in its fourth year, Big Feet Pajama Co. earns more than $1 million annually and employs up to 10 people during the holiday season.
Mary and Gregg Pembleton, Cofounders of Answers in Motion
Company Headquarters: Maple Shade, NJ Web site: thumball.com
An Interactive Idea: Mary, a speech pathologist, and Gregg, a product developer, started Answers in Motion—a company dedicated to stimulating communication through innovative products. Its patented Thumball™ transforms a simple toy into an engaging tool for education and entertainment.
The Sourcing Process: The Pembletons turned to Alibaba.com to explore sourcing options for their young idea. “Alibaba.com allowed us to easily compare suppliers and select the right one for our needs,” Mary explains. Within six months, Answers in Motion was able to get the Thumball to market.
Trusted Advice: The Pembletons recommend properly researching manufacturers by either sending a reputable inspector to their facilities or making a personal visit.
Today: A growing success, Answers in Motion offers 18 Thumball designs, with six more in active development. With distribution deals developing in Australia, the U.K., the Netherlands, and India, the couple plans to explore new suppliers through Alibaba.com to streamline the shipping process
Becoming a Well-Informed User
Know Your Supplier Before Trading With Them
1. Check the company profi le on Alibaba.com and link to the supplier’s corporate Web site.
2. Look for the Gold Supplier or TrustPass icons. These suppliers have been verifi ed by a third party.
3. Contact a supplier directly to request additional information, such as a license, pricing, or referrals.
4. Use Alibaba.com’s “Safe Trading Forum” to receive feedback from other members.
5. Inspect the supplier’s on-site facilities in person.
6. Investigate a company through search engines.
