If you are a seller on Amazon, you have the awesome opportunity of buying products from Alibaba and selling them on Amazon. This method is becoming increasingly popular because it is convenient and profitable.
Alibaba is an amazing place to find products to sell, and it is especially great for sellers worldwide! The platform receives 12.7 billion orders a year from firms looking for growth; therefore, you, too, can easily find manufacturers and suppliers that fit your needs.
Alibaba’s main goal is to connect buyers with manufacturers and wholesalers. So, if you are looking for ways how to sell on Amazon from Alibaba, we have got you covered!
In this comprehensive guide, we will share all the information you need to learn about selling Alibaba on Amazon.
So…
What Exactly is Alibaba?
Alibaba is a great global platform where you can connect with suppliers and manufacturers to make custom products for your brand.
But isn’t that what Amazon, Etsy, and eBay are all about?
Technically, yes, but there is a difference! You see, unlike Amazon and other similar platforms where you buy items one at a time, Alibaba is perfect for buying in bulk to resell online or in a physical store.
That is a great opportunity because you can find quality products at really low prices, no matter the size of your business!
So, whether you are a big CEO or running your own small store, you can sign up and start sourcing products from Alibaba. Finding a manufacturer for your products has never been easier!
Why are Alibaba Products So Cheap?
While all the facts and figures about Alibaba are nothing less than amazing, there is one question that every seller thinks about at least once, “Why are Alibaba products so cheap?”
To put it simply, when you search for suppliers on Alibaba, you will see that most of them operate in China. They can make good-quality products there for a much lower cost than in the US, Canada, or any other country.
So, when you buy the products in bulk, it also lowers the cost per item. The more you buy, the cheaper each unit gets. And this is exactly what helps you make more profit!
The next big question that floats around in the sellers’ minds is…
What Products is Alibaba Good For?
Can I buy cosmetics from Alibaba?
Should I go for clothes and shoes?
Or should I get everyday household products?
If you want to create a one-of-a-kind product for your brand, Alibaba is a great place to find suppliers who can make your ideas come true! For things like custom logos or special designs, you can find legit sellers on Alibaba who can help you bring your vision to life.
However, however, however…
If you are planning on buying branded products on Alibaba for a lower price, let us warn you that you might come across unreliable sellers selling fake products. They may use big names like Adidas, Olay, or Lego and sell products that look almost like the real ones.
If you fall into the trap of buying these products and go on to resell them on Amazon, there is a high chance that you may get banned from the platform for selling counterfeit products!
So, always do your research and read reviews because it is better to be safe than sorry!
This brings us to the question…
How Authentic is Alibaba?
Alibaba is usually an authentic platform for sellers, but you should be careful. Watch out for:
- Fake products
- Payment scams
- Suppliers who send good samples but poor-quality bulk orders.
When you order from a supplier on Alibaba, it is often a big order, so make sure the company is reliable.
Like Amazon, Alibaba has many sellers competing for your business. It is important to contact several suppliers, order samples, and check them before placing a big order.
How to Avoid Alibaba Pitfalls?
If you want to buy from Alibaba and sell on Amazon but don’t want to fall trap to fake products and scams, here are some tips to consider:
Vet Suppliers
Choose Alibaba Verified & Trade Assurance providers for added security. Look for experience (years in business), positive reviews, and fast communication.
Skip Counterfeits
Selling dupes on Amazon gets you banned. Explore wholesale or arbitrage models for established brands.
Sample First
No need to get stuck with bad products! For single-unit purchases, order samples or use a supplier’s Aliexpress page. For bulk orders, consider mid-production inspections.
Payment Options to Consider on Alibaba
Alibaba is usually a safe platform for sellers, but sending a lot of money to a supplier in another country can feel risky. However, if you use Alibaba’s payment system instead of wiring money directly, your money is protected. Paying through Alibaba’s online checkout is easy. You can use:
- Credit/debit cards (like Visa, Mastercard, American Express)
- PayPal
- Apple Pay
- Google Pay
- Afterpay/Clearpay
- Bank-to-bank wire transfers with escrow protection
Alibaba has a secure payment system, so your payment and credit card information are safe. They also offer Trade Assurance, which protects your order.
What is Trade Assurance on Alibaba?
Trade Assurance works by getting your money back if the product quality is not similar to what you agreed on or if your order is late.
Here are the 4 steps on how you can secure your Alibaba transaction via Trade Assurance:
Step 1: Confirm Details & initiate Trade Assurance
Work with your supplier to create a secure order on Alibaba.com.
Step 2: Choose your Payment Method
Pay conveniently with credit card, PayPal, digital wallets, or secure bank transfers.
Step 3: Escrow Protects Your Funds
Alibaba holds your payment until you confirm receiving the order as expected.
Step 4: Dispute resolution support
If issues arise, Alibaba facilitates communication for refunds or compensation.
Alibaba to Amazon FBA: What to Sell on Amazon
Before you can find suppliers for buying from Alibaba and selling on Amazon, you need to decide what you want to sell on Amazon! If you are a beginner, it is best to choose products that are in high demand but have little competition. This will help you compete with established brands.
Product research is quite important, so spend time analyzing potential products. However, there is no need to overthink it. Many new sellers get overwhelmed by too much information and struggle with making a decision. If you have a few good ideas, just pick one and start!
However, when considering what to sell on Amazon, you should consider 3 main factors:
How Much Money you can Make?
If you want to make sure the product you are selling is making you money, here is a good rule to follow. It is called the 3X rule.
Basically, you should aim to sell your product for three times the amount you bought it for.
Here is how it works:
- One-third of the selling price covers the cost of the product
- Another third goes towards Amazon fees
- And the final third is your profit.
For instance, if you buy something for $7, you should try to sell it for $21. This way, $7 covers the fees, and you get $7 in profit.
You might want to aim for even higher profits to cover advertising costs, but this rule is a good starting point.
How Many People Want It?
Always consider the demand for a product before investing in it. It is important to know if customers are actively looking for and buying the product on Amazon.
Understanding the demand for your niche can help you feel more confident about your investment. Without proper demand, you might end up with a product that no one wants to buy!
How Many Other Sellers Are Offering the Same Thing?
Also, when selling on Amazon, keep an eye on both the demand for your products and the level of competition. Finding the right balance is key.
If the competition is really tough, it can be hard to get noticed by customers. On the other hand, if there is not much competition and a good demand, you could be a winner!
Now that you know how does Alibaba work, its payment options, and how to find the right product to sell, let us move on to the most important topic…
How to Sell on Amazon From Alibaba?
So, you have finally chosen the product you want to buy from Alibaba and sell on Amazon. It is time to hop over to Alibaba.com and begin your search for manufacturers and suppliers.
Think about the price range you would like to set for your products. Then, you can start seeking out quotes and narrowing down your search for suppliers that match your budget.
Let us have a more elaborate look at the steps on how to buy from Alibaba and sell on Amazon:
Step 1
First, create an account on Alibaba. It is free to sign up. Having an account makes it easy to talk to suppliers.
Step 2
Next, use the search bar to find the item you want to sell. Alibaba will show you similar products and manufacturers.
We will search for “Building Blocks.”
Step 3
You can also make use of the “Filters” on the left to set up preferences for your search.
Step 4
Once you find a product similar to what you want to sell, click on it to open the listing. Here, you will see more details, like certifications, pictures of how the product is made, and how long the manufacturer has been on Alibaba.
Step 5
It is time to start exploring some quotes and samples.
You can use the “Chat Now” option to have a friendly chat with sellers and find out more about their products. Don’t forget to ask for samples so you can see the quality for yourself. Once you have found some suppliers you like, feel free to request quotes using the “request for quotation” option or by reaching out to them directly.
Step 6
You can go on to negotiate prices and ask for the Minimum Order Quantity (MOQ). Keep in mind that different prices are quoted accordingly, so it is essential to negotiate. However, it is equally important to ensure that you don’t compromise on quality, which can happen quite often.
Step 7
When you find suitable suppliers, verify all the necessary details, such as whether they have the necessary shipping authorizations and trade insurance. Most importantly, they need to be familiar with the requirements of Amazon FBA Alibaba.
Step 8
Once you have all the information you need from the manufacturer or supplier, you can start making your purchases. Many people ask, “Can I ship directly from Alibaba to Amazon FBA?” The answer is yes! You can send your orders straight to an Amazon FBA warehouse.
However, remember to consider the shipping costs from Alibaba to Amazon FBA. You will need to update your Amazon Seller Central account with all the details on the “Manage Inventory” page. Also, make sure to include the order quantity and take care of the product and shipping labels.
Don’t forget about customs, and then you are all set to have your products shipped directly to the Amazon warehouse.
How to Sell Alibaba Products on Amazon?
Before you ship your products to the Amazon warehouse, it is important to have your listing ready.
If you have set up your Amazon account, it is time to create your listing. Remember to have everything in place before shipping your products from China or another country to FBA.
Here are the steps for it:
- Go to “Catalog > Add Products” in your Seller Central account.
- You will see 3 options, out of which you can choose the “I am adding a product not sold on Amazon” and choose its category.
- Next, enter your brand name, product name, UPC, images, and, obviously, the description.
Once you have provided all the necessary details, your listing will be all set to go live as soon as your inventory arrives!
Buying from Alibaba and selling on Amazon may seem like a simple and straightforward process; however, it requires proper research, knowledge, and low-key expertise.
Most new sellers may find it difficult to carry out proper product research, select the one they want to sell, and then check out the product listing on Alibaba. With so much to handle, it is a good option to go for an Amazon advertising agency that can guide you throughout the process and optimize your seller account for you.
We are talking about Impact Wolves!
Who Are We?
Impact Wolves is an Amazon PPC agency. They provide a range of services to support businesses in achieving success on Amazon, such as:
- PPC audits
- Research and ranking
- PPC management
- Listing optimization.
Plus, they also offer a 30-minute free consultation call to help you improve your Amazon listings.
To Sum It Up…
Starting your own private label business is easier than you might think! With the right tools, knowledge, and dedication, you can create your own branded product. In this guide, we have taken you through the process of how to sell on Amazon from Alibaba.
We have discussed all there is to know about Alibaba, its payment options, and its authenticity. Plus, we have also included a step-by-step tutorial on how to sell from Alibaba to Amazon.
And, if you get stuck anywhere during the process, you can reach out to Impact Wolves to guide and inspire you through your e-commerce journey.
For more details, talk to an Amazon PPC expert now and see how you can get started!
Happy selling!
