Importing Goods from Alibaba to Australia: A Simple Guide (Minus the Headaches)

Let's get the scariest part out of the way first: dealing with suppliers on Alibaba.
The good news? Most Alibaba suppliers are legitimate businesses genuinely wanting to sell quality products. The bad news? Not all of them.

Here are a few tips to avoid getting scammed:

• Use Verified Suppliers:

Stick with Alibaba’s 'Verified Supplier' or 'Gold Supplier' tags. These suppliers have gone through a basic verification process to prove they're legit.

• Check Transaction History:

Look at their transaction history. If you see hundreds of recent transactions with positive reviews, that’s a green flag.

• Trust your gut:

If communication feels off—like overly pushy sales tactics or broken promises—walk away. There are plenty more suppliers in the Alibaba sea.

When dealing with suppliers, pricing usually looks pretty straightforward—until you hit shipping.
Here’s what you need to know:

• EXW (Ex Works) means you handle all shipping costs and logistics right from the factory door.
• FOB (Free on Board) means the supplier gets the goods loaded onto the ship at their local port, then you're responsible from there.
• DDP (Delivered Duty Paid) means your supplier handles everything—including customs, duties, and delivery to your Aussie doorstep.

For beginners, FOB is usually the sweet spot between cost and simplicity. You can always use a sourcing agent or freight forwarder like The Sourcing Co to handle the complicated bits if you're feeling overwhelmed.

Customs can feel like a black hole of confusing rules and hidden costs. But in reality, Australia’s customs procedures are quite straightforward—provided you tick a few basic boxes:

• Pay GST (10%):

Goods imported into Australia attract a 10% GST charge. Simple maths. Plan for it.

• Check for Import Duties:

Most goods under AU$1,000 don't incur duties, but always double-check. The Australian Border Force website has clear guidelines.

• Watch out for restricted goods:

Some products need special permits—think cosmetics, food, or electronics. Check before you buy.

Skipping quality checks might save you cash upfront—but it’s almost guaranteed to cost you later. Hire a quality inspector (often via the same sourcing agent you used earlier) to do a pre-shipment inspection at your supplier’s factory.

This step might set you back a few hundred dollars, but compared to the headache of defective products or refunds—it’s a no-brainer.

This one depends on your scale. If you’re just starting out, your garage might be storage enough. If you're scaling up, consider third-party logistics (3PL) to handle storage, picking, packing, and dispatching.

Pro tip: Sort your logistics before the goods arrive. The last thing you want is a shipment sitting at the docks, accruing expensive storage fees because you weren't ready.

Every importer has their share of horror stories. But you don’t have to learn everything the hard way. Here’s what to avoid from day one:

• Going too cheap:

There’s a fine line between saving money and cutting corners. If a deal looks too good, question it. Good quality costs a little more—but it's worth it.

• Not building relationships:

Treat your suppliers well. A great supplier relationship can mean discounts, priority shipping, and even custom products down the line.

• Underestimating lead times:

Always add a buffer to your timelines. Production delays, customs holdups, and shipping snafus happen more than you’d like.

Importing isn't rocket science—but it isn't effortless either. The difference between success and failure often comes down to attention to detail and doing your homework upfront.

Keep it simple: pick reputable suppliers, get samples, understand your Incoterms, prep for customs, and don’t skimp on quality checks.

And if all else fails, consider using professionals like The Sourcing Co—let them stress about importing while you focus on selling and growing your business.