How To Sell on Amazon from Alibaba in 2022
Alibaba is an excellent marketplace for sellers with varying experience levels to find millions of products you can label and private-label.
Purchasing items through Alibaba and selling them on Amazon is among the top popular procedures due to the ease of use factor and the profit margins. Many businesses depend on receiving profit-making items through Alibaba and Amazon FBA. Alibaba, the Chinese online retailer, has grown into the most sought-after supplier of goods for sellers across the world.
Are you a vendor who is thinking about how to market Alibaba merchandise on Amazon? This article addresses all your questions and concerns to help you make an informed decision about buying.
Table of Content
- 1 What is Alibaba?
- 2 Benefits of purchasing products from Alibaba
- 3 Is it safe to source products from Alibaba to Amazon FBA?
- 4 How to buy a Product on Alibaba to Sell on FBA?
- 4.1 Step 1. Sign up for an account at Alibaba
- 4.2 Step 2. Find a product and its manufacturer
- 4.3 Step 3. Shortlist suppliers
- 4.4 Step 4. Contact the Alibaba supplier.
- 4.5 Step 5. Request a sample, and quotation
- 4.6 Step 6. Discuss the prices
- 4.7 Step 7. Check the supplier’s details
- 4.8 Step 8. Find the product
- 5 Pick the Right Alibaba Vendor
- 6 What to Look for When Searching For the Best Product to Sell on Amazon
- 7 How to sell on amazon from Alibaba
What is Alibaba?
Alibaba is a massive market that connects producers and wholesalers to buyers from all over the globe.
With a myriad of components and offering a wide variety of services, They are among the most effective methods to get products for sale on Amazon.
It’s free to sign up for an account. However, you’ll need to pay through the website once you’ve discovered a manufacturer and agreed to a deal.
Benefits of purchasing products from Alibaba
There are many benefits of sourcing your goods from Alibaba’s manufacturers, for example:
- Products at a low cost
- Thousands of items to select from
- Many manufacturers are in one location
- The platform is simple and user-friendly.
- This can save you the time of days (maybe perhaps even weeks) of searching for products
- The manufacturer will typically work directly with the maker, eliminating the middleman
- Alibaba provides a trade guarantee and guarantees your refund if you don’t receive your goods
Is it safe to source products from Alibaba to Amazon FBA?
Once you have mastered the fundamentals of how to make sales via Amazon from Alibaba, It’s a good idea to be aware of some serious security issues. Alibaba is an incredibly well-known market that cuts out middlemen or, at the very least, attempts to since there are many fraudulent middlemen one could come across who are not wholesalers but rather manufacturers.
There are many methods in place to protect both manufacturers and buyers.
- Trade Assurance is one such option. This option offers a money-back guarantee with confirmed suppliers if your purchase is not up to par concerning quality and delivery time. Suppliers with gold certification are an alternative to check for in terms of high-end quality.
- Suppliers who aren’t part of Trade Assurance but don’t participate in the Trade Assurance program also have to pass through various levels of verification. Every supplier gets an emblem based on the stage of verification they’ve passed, and buyers can look it up in the product listing for reputable suppliers.
- Alibaba lets you connect with manufacturers. Use this service wisely, soliciting confirmations, business licenses, and contact information. Then, as many questions as possible about products, request samples to be provided together with factory images to verify authenticity. This allows you to make a safe purchase.
- Anti-fraud schemes are implemented to help stop innocent consumers from being fraudulently tricked, and you can always notify suppliers of problems to Aliba. They’ll handle it in the proper method.
How to buy a Product on Alibaba to Sell on FBA?
Before you begin looking at suppliers for Alibaba, it is important to choose what kind of product you intend to offer on Amazon. This will require research on the product. It can be done by hand or with the help of Amazon sellers’ tools.
Step 1. Sign up for an account at Alibaba
As with Amazon, you must establish an account with Alibaba to find and communicate with potential suppliers. Making an account on Alibaba is free.
Step 2. Find a product and its manufacturer
Utilize the search bar to find the item you’d like to sell. Alibaba will present you with results from your search, which include similar product groups and brands. Additionally, you can look up additional information about the product, such as pictures of manufacturing processes, certifications, the term used by the supplier on Alibaba, and many more.
Contrarily, you can look for the exact source instead of the products.
Step 3. Shortlist suppliers
Sort through a variety of vendors and evaluate their strengths and drawbacks. Then, list the candidates you might consider.
Step 4. Contact the Alibaba supplier.
Before you place an order, make sure that you have clarified any doubts you might have regarding the product. On Alibaba, you can post questions directly to the manufacturer. To do this, contact the seller using the contact Seller button’ or Chat Now Link.
Step 5. Request a sample, and quotation
It is recommended to always request an example before purchasing in large quantities. For example, the product might look different from the image or low-quality.
Step 6. Discuss the prices
Negotiating order prices and the MOQ (Minimum Order Quantity) is crucial because the price of goods affects profitability. Therefore, you should try to reduce prices while keeping the quality of the product high.
Step 7. Check the supplier’s details
When choosing a supplier, ensure they can provide the required transportation authorizations, trade insurance, and other authorizations. Review the policies on returns and warranties. Check if they comply with the rules that Amazon FBA requires. Get estimates of charges for express shipping.
Step 8. Find the product
Place an order, wait for it to be delivered, place a listing on Amazon and then begin selling.
Pick the Right Alibaba Vendor
This is where the real work starts. If you want to use Alibaba to sell products on Amazon, it is essential to select a seller you can be sure of in the long term to help keep your business running.
Quality products result in satisfied customers, and happy customers can lead to higher reviews! So keep an eye out for quality products that meet your specifications. The best method of determining a product’s quality is to request product samples. This allows you to feel and touch the product in person and to try it with close family and friends before making an informed decision.
Communication Do you receive immediate answers from the company or do you have to wait for days to hear the answer? It is also worth looking at the responses to your queries. Did the information be presented in a clear manner? It seems that they have a reliable method of communicating with prospective customers. You can contact a different supplier if you need to go between suppliers to get a response.
Experiential in the business When was this manufacturer or supplier established? Do they have the ability to produce a product according to your specifications? Certifications for the product might be needed. What else could they make? This information can be obtained from Alibaba’s listings for the business. Information on the company and the products they sell, certificates, quality assurance methods, and contact details are commonplace in the display areas.
Price One of the most popular reasons that retailers use to source goods from different countries is because of the cheaper cost. In terms of pricing and product choices, there is a wider choice of products to select from. Keep in mind that a lower profit margin could be due to the overpricing of products.
What to Look for When Searching For the Best Product to Sell on Amazon
What to Look For When Looking for the best product to sell on AmazonTop-selling items on Amazon have a tendency to have similar features. Below are some most important factors to consider when researching the top products to offer.
Check that the product has a minimum 10 sales per day. Then, be sure to check back in a couple of weeks to verify that the market is not seasonal. The most effective solutions are those that provide all-year-round, long-term profitability.
2. Best seller rank (BSR)
Similar to sales figures, you should keep checking the BSR to assess the demand. If the rank improves, there is an increase in demand. Ideally, it should be at least two or three similar products with BSR 5000 or higher.
3. Product Size
Another aspect to be considered when deciding on products to offer on Amazon is the physical dimensions. It is generally recommended to stay clear of huge products. Instead, you should choose products that are compact and light. It has many advantages:
Cheaper to Purchase: Smaller items are usually cheaper than larger items. This means you can get these items at a lower cost and allow you to begin your business with just a little cost.
More affordable to ship: The smaller a product is, the less shipping costs will be. So, finding smaller products is another option to reduce your initial costs, particularly if you purchase your items from a supplier outside of the United States.
Lower Costs: If you use the Amazon FBA fulfillment program or collaborate with a third-party logistics service, you’ll be required to pay for the business to store and deliver your products. Because smaller products incur fewer storage costs and shipping costs, they also result in lower fulfillment costs.
Even if you discover something larger with high potential, you’ll still have to be careful in calculating your fulfillment costs. Be aware that a large net profit margin is dependent in the same way on reducing costs as it does on selling at a premium.
5. Product Price
Although profit margin is more important than the product’s price of sale, the latter must be considered. The cost of a product is generally in line with its demand.
Less expensive items are likely to be more popular than items with higher prices. For example, a 20-dollar smartphone case is likely to generate more sales than a bed frame that costs $300.
In general, you should look for products that cost between $15 to $100. The prices should be adequate to produce regular sales but not too low that they restrict the amount of money you can earn per sale.
How to sell on amazon from Alibaba
When your items are ready to be sold on Amazon, the seller will require you to set up an account. So, if you have an Amazon account in place now, let’s start creating your account! It is necessary to prepare your listing before sending it directly to China or an additional nation to FBA.
- On Seller Central, go to Inventory> Add a new product.
- Select “I’m adding a product not sold on Amazon,” then select your category.
- Input the details of your product, such as its UPC as well as the brand name, images, characteristics description, and so on.
NOTE: if you do not have a UPC on your product, you may apply for a GTIN exemption to make your product available for sale.
Once you have filled in all the necessary details, Your Inventory is ready to go live when your Inventory is received!
If you’re looking for more details about selling on Amazon, Download our complete comprehensive, step-by-step guide on Selling on Amazon for novices to understand all the information you must be aware of.