Buying on Alibaba and selling on Amazon has become one of the most preferred methods of doing business on Amazon because of the convenience and profit factor. Alibaba, the e-commerce giant from China, has become a highly desirable sourcing option for merchants from around the world.
The platform provides sellers with an extensive database to quickly select manufacturers and suppliers that meet their needs. Its main function is to connect buyers with manufacturers and wholesalers.
If you are a seller pondering how to sell Alibaba products on Amazon, in this piece we will help you register with Alibaba and understand how to search for products from Alibaba to sell on Amazon.
What is Alibaba?
Alibaba is a trading platform where various companies or individual sellers buy goods in bulk for resale.
Alibaba is a large-scale e-commerce platform for businesses. It connects retailers and brands with suppliers and manufacturers of a huge range of goods.
Even if you don’t have a well-known brand in the capital, Alibaba can help you get high-quality goods at incredibly low prices by connecting you to suppliers all over the world. You can register and get goods from Alibaba whether you’re the firm’s CEO or you run your own business on Amazon.
And it’s about registration that we’ll talk about below.
How to create a free Alibaba account?
Registering on the platform is quite easy. Let’s figure it out together and do it step by step:
Step 1: sign in or join for free
First, go to the main page of Alibaba.com.
Click on the ‘sign in’ or ‘join for free’ button.
Step 2: Start the registration process
The registration process itself takes only 5 minutes. The most important thing is to enter personal data.
After you go to the registration, you will open this page:
- Country/region;
- Trade role: buyer, seller, both;
- Email address;
- Login Password;
- Password confirmation;
- Company name;
- Full name;
- Phone number;
- Verification button.
Confirm the information and move on.
Step 3: Verify the information
After that, a window will open in which you will need to enter a verification code, which you will receive in the mail. Click on the ‘submit’ button.
Step 4: Registration complete
That’s all. The basic registration process is over.
How do I buy products on Alibaba and sell them on Amazon?
Alibaba allows sellers to get rid of middlemen, whether you are looking for products at affordable prices or the right manufacturers for your products. Through the site, you can connect with wholesalers and manufacturers directly.
Analysis of products for sale on Amazon
The whole selling process begins with finding the right product. Many companies offer tools to help you analyze a product before you buy it. Your research should focus on finding products that have good potential to generate a lot of sales. The product must be obtained at low prices with the prospect of selling it at a price that will make you a profit.
Use Amazon’s top-seller listings and analyze competitors’ products to get more product information. Also, focus on product niches that are not too saturated to avoid running into many other sellers. Especially if you are a first-time seller, you should try to find a gap in the marketplace so that you can more easily break through and start making a profit.
What’s the best product for Amazon?
If you’re still having trouble determining what products you want to sell, we have a couple of recommendations for you.
Criteria for finding an item for sale on Amazon:
- no brand mark;
- have no registered trademark;
- no listing creator in sellers;
- have no major FBA sellers or Amazon;
- made-in-China product;
- there are no inscriptions (logo, branding, etc.) on the item;
- when you check the product on Keepa, you will not see big spikes in sales;
- no less than 2 and no more than 5 sellers;
- product listing is no more than 2 months old;
- the size of the item is up to a “shoebox”;
- the listing does not say “made in the US” anywhere;
- BSR up to 100,000
Methods of searching for goods:
- delve into categories/subcategories;
- analyze competitors’ products;
- research products through apps.
We’ll talk more about finding products for sale in the next article!
For now, let’s get back to the topic of buying products through Alibaba.
How do I shop at Alibaba?
Once we have decided what products we are going to sell, we go to Alibaba.com and start searching for manufacturers and suppliers.
First, decide what price range you want to set for your products. Then start searching for offers, so that you can narrow down the suppliers that fit into your price range.
Alibaba will provide you with similar product categories and manufacturers. You can click on any of them and more information about the product will appear: certificates, pictures of the manufacturing process, the length of time the manufacturer has been associated with Alibaba, etc.
One can also search not by product but by the supplier if you are looking for a more specialized, experienced manufacturer.
You can now begin to receive product offers and samples.
Contact sellers using the “Chat now” option to get more information about product quality.
Ask for samples, as they are important for evaluating product quality. Make a short list of all the suppliers you want to contact and request samples from them.
Once you have the samples and have made the decision to buy the product, you need to start negotiating prices and MOQs (minimum order quantity), as there are different prices listed accordingly.
Negotiating is an important part of finding suppliers on Amazon, and you must not compromise on quality, as is often the case.
When you find the right suppliers, make sure you check all the necessary details, such as whether they have the necessary shipping permits, and trade insurance, and most importantly, they must be familiar with all the requirements of the Amazon FBA.
Once you have all the information you need about the manufacturer/supplier, you can proceed to finalize your purchase.
Can I ship directly from Alibaba to Amazon FBA?
The next most important question that many people have is the following: Can I ship directly from Alibaba to Amazon FBA?
Yes, you can ship your orders to an Amazon FBA warehouse. You must also take into account the shipping cost from Alibaba to Amazon FBA. In your Amazon Seller Central account, you need to update all the information on the ‘Manage Inventory’ page.
Specify your order quantity and do everything necessary regarding the product and shipping labels. Account for customs duties and then simply ship your items directly to the Amazon warehouse.
How do I pay Alibaba suppliers?
Also, there are many payment methods on Alibaba. You can also make payments outside of Alibaba, depending on the terms your supplier agrees to.
BUT! Keep in mind that there are also bogus vendors on the platform, so paying outside the platform is an even greater risk, as it will be harder to hold someone accountable. It will also be considered illegal to make payments through other portals that don’t fall into the international transaction category.
Here are some of the popular payment options Alibaba offers:
Wire transfer
Meanwhile, this method is the fastest, but it entails a high level of risk, especially if all payment is made before the production process begins. That is why it is best to pay part of the amount at the beginning and the rest after receiving the shipment.
Letter of credit
This type of payment is suitable for those who deal with large volumes of orders, usually over $20,000. It is the most efficient way to purchase products of agreed-upon quality. To clarify, it also guarantees payment to the supplier because of the documents associated with this payment method, which consist of clearly stated conditions.
Escrow
Here is the interesting part, Escrow is Alibaba’s secure payment service. This is the lowest-risk payment method. It holds the buyer’s payment until they receive and approve the order, which will be delivered according to the proper standards. This method works to the advantage of both buyers and manufacturers. It ensures buyers’ satisfaction with the products’ condition and guarantees suppliers’ payment security.
Moreover, if product quality or delivery is unsatisfactory for any reason, suppliers will not receive payment from the buyer until an inspection has been performed.
PayPal
PayPal is another low-risk payment method, especially for international transactions. It offers users reliable payment protection, is not difficult to use, and has no delays in transferring payments.
The only limitation is that it does not provide equal convenience to vendors because of high tax rates and other difficulties associated with withdrawals, but you can count on PayPal to help you get your money back if there are any problems.
Final thoughts
In a nutshell, all of the factors, risks, and information presented above are intended to give you a clearer picture of purchasing goods from Alibaba for sale on Amazon FBA.
As an Amazon seller, you need to keep an eye on the quality of the products you purchase and not compromise on them while ensuring a good profit. With all of these points in mind, you’ll be better prepared to conduct your business on Amazon.
Have an amazing selling week, guys!
Yours, Amaz.Markets
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