1688 Payment Method: How Do I Pay on 1688?
Managing payments and ensuring the integrity of your order is a critical step when dealing with suppliers on 1688.com. Here’s a detailed guide:
1688 offers a range of payment options; however, these options are only accessible with an account. To create an account, you must possess a government-issued ID from one of the eligible Southeast Asian countries.
If you don’t have a 1688 account, you can still manage your transactions outside the platform.
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How Do I Pay on 1688?
Currently, you cannot make direct payments on 1688, but it offers three options for pay 1688 without Alipay.
Let’s examine the advantages and disadvantages of each of these methods.
1. Communicate with 1688 Suppliers for Offline Ordering.
The first method allows you to directly contact suppliers on 1688 and make payments through bank transfers or similar methods, after which the supplier packages and ships the products to you.
This method requires the supplier to be proficient in English and capable of shipping from China to overseas destinations, as most 1688 suppliers are based in China. If you are new to dealing with suppliers, offline payments may involve some risks.
- Initiate an international wire transfer to your supplier to cover the 30% payment. Keep in mind that this transfer usually incurs fees ranging from $30 to $40 through your banking service.
- While wire transfers can be intimidating because the funds are not retrievable, remember that you still have leverage, as you haven’t released the full payment.
Here are the steps on how to pay on 1688 using a wire transfer:
- Obtain the supplier’s bank account information. You can usually find this information on the supplier’s 1688 store page.
- Contact your bank and initiate a wire transfer to the supplier’s bank account.
- Be sure to include the supplier’s name and order number in the transfer memo.
- Once the wire transfer is complete, notify the supplier.
2. Let Friends or Agents to Place Orders on 1688.
The 1688 agent can help you negotiate with 1688 suppliers and make purchases and shipments from China.
However, if you frequently order from 1688 through friends, you may need to pay some commissions.
Therefore, it is not entirely free, and you should calculate the total cost of products, service fees, and international shipping to determine if it is worthwhile.
Here are the steps on how to pay on 1688 using a buying agent:
- Find a reputable buying agent. There are many buying agents to choose from, so be sure to do your research and read reviews before selecting one.
- Contact the buying agent and provide them with a list of the items you want to purchase.
- The buying agent will provide you with a quote for their services, including the cost of the goods and their commission.
- Once you have agreed on the price, pay the buying agent using your preferred payment method.
- The buying agent will purchase the goods on your behalf and arrange for shipping.
3. Use a Third-party Payment Service.
The third method is often used by small to medium businesses that require bulk wholesale orders from 1688.
Here are the steps on how to pay on 1688 using a third-party payment service:
- Create an account with a third-party payment service such as Wise, WorldFirst, or Payoneer.
- Link your bank account to your third-party payment service account.
- Deposit funds into your third-party payment service account.
- Once you have funds in your account, you can make payments to suppliers on 1688 without Alipay.
To make a payment, simply select the third-party payment service as your payment method on 1688. You will then be redirected to the third-party payment service website to complete the payment.
What is Cross-border Pay (跨境宝)?
Cross-border Pay (跨境宝/KJB) is a service provided by 1688.com and Ant Group. It is a one-stop cross border solution for international 1688 buyers outside of mainland China.
How to use Cross-border Pay (跨境宝/KJB):
- Register for a 1688.com account
- Register for a World Account
- Top up or convert to CNH funds into your World Account
- Authorize World Account to link your payments to 1688.com via Cross-border Pay (跨境宝 /KJB)
*This payment solution is applicable to users in Singapore, Malaysia, Thailand, Vietnam, Australia, Hong Kong, Macau, Taiwan, Virgin Island British only.
Points to Note for 1688 Payment Method
Request a Proforma Invoice (P.I.):
- Start by determining the total cost of your order, then request a proforma invoice (P.I.) from your supplier or 1688 agent. This document serves as a price quote and outlines the quantity, product details, and purchase terms.
The 30/70 Deal:
- Propose the “30/70 deal” to your supplier. Under this arrangement, you pay 30% of the total cost upfront and the remaining 70% upon completion.
1688 Product Inspection:
- After your supplier completes the manufacturing process, it’s advisable to hire a product inspection company in China. You can seek recommendations from your private members’ community for reputable inspection companies.
- Provide your product inspector with the same detailed specifications you shared with your supplier. Any terms stated in your contract with the supplier are enforceable during inspection.
- For instance, if your product is advertised as a leak-proof water bottle, ensure the inspector tests it for leaks. Similarly, if durability is a feature, have the inspector drop the product from shoulder height. Be thorough in checking moving parts and potential points of failure.
- Expect the product inspector to document the inspection extensively, including dozens of photos and possibly videos. Inspection reports can be quite comprehensive, often spanning 25 pages.
- This inspection process typically costs between $200 to $500, a small price to pay compared to the potential loss from a batch of faulty products. Learn from past mistakes; don’t skip this vital step.
Negotiate Fixes if Needed:
- If the product inspection reveals issues that require correction, approach your supplier. Maintain a firm yet courteous stance. Remember, you hold leverage since 70% of the payment remains pending.
Request a Commercial Invoice:
- Ask your supplier for a commercial invoice, distinct from the proforma invoice. This invoice serves as international proof of your purchase and contains more detailed information than a proforma invoice.
- The responsibility for creating the commercial invoice rests with the exporter, i.e., your supplier.
- This document is valuable in case of audits by the Internal Revenue Service (IRS). You can use it to substantiate your business expenses, particularly when claiming tax write-offs. Additionally, Amazon may request a commercial invoice if issues arise regarding product authenticity or if you seek entry into a gated product category or programs like Brand Transparency.
- The optimal time to request a commercial invoice is just before making the final 70% payment.
Translation and Payment:
- Your supplier will provide the commercial invoice in Chinese. Translate it using Google Translate or similar tools to have both Chinese and English versions.
- In the end, proceed to wire the remaining 70% of the funds to your supplier. Request a tracking number from your supplier or freight forwarder to monitor the shipment’s progress from China to Amazon’s fulfillment center(s).
Currently, you cannot make direct payments on 1688, but it offers three options for ordering from the platform.
- The first is to communicate with 1688 suppliers for offline ordering.
- The second is to enlist the help of friends or agents to place orders on 1688 and have them shipped to you.
- The third option is to register a Hong Kong company and apply to make payments in US dollars through that account.
Now, you can choose the most suitable 1688 payment method according to your own needs.