A frequently asked question among newcomers to Amazon selling is, “What’s the best source and sell to Amazon?” A seasoned merchant would probably point you toward Alibaba to Amazon FBA.
Alibaba is renowned for its straightforward interface and attractively low pricing, making it a favored choice for a wide array of sellers, from beginners to the more experienced, seeking to discover and purchase a vast selection of items for private label and branding.
In this guide, we aim to cover the ins and outs of Alibaba, providing you with a solid foundation to effectively source high-quality merchandise for your Amazon FBA private label enterprise.
Alibaba stands out as a premier global B2B e-commerce platform, linking sellers and brands directly with an extensive network of manufacturers and suppliers across a myriad of product categories. It’s the go-to destination for those aiming to tailor-make products under their brand.
In contrast to conventional e-commerce platforms like Amazon, which cater to consumer retail purchases, Alibaba serves as a marketplace for businesses to acquire goods in bulk, intending to resell them either online or through physical stores.
By facilitating connections with various suppliers worldwide, Alibaba offers access to a vast array of quality products at exceptionally competitive prices, accommodating even those without major brand recognition. Whether you’re at the helm of a sizable corporation or spearheading an Amazon FBA venture solo, Alibaba empowers you to effortlessly source and customize products, simplifying the process of finding the right manufacturer for your brand.
Why Alibaba Is So Cheap?
Alibaba is renowned for connecting buyers with manufacturers, primarily based in China, where production costs are notably lower compared to countries like the United States or Canada. This allows businesses to access quality goods at significantly lower prices.
Moreover, purchasing products in bulk from Alibaba manufacturer can further reduce the cost per unit. As the quantity ordered increases, manufacturers often offer discounts, enabling sellers to enhance their profit margins.
What Types Of Products Is Alibaba Good For?
If you’re aiming to develop a private label product tailored to your brand, Alibaba is the perfect platform. With your unique logo and design specifications, connects you with Alibaba manufacturer capable of transforming your concepts into tangible products.
Alibaba’s vast network of manufacturers and suppliers offers an extensive range of products, making it an ideal platform for sellers looking to diversify their offerings. Whether you’re in the market for electronics, clothing, home goods, or virtually any other product category, Alibaba manufacturer has you covered.
One of the key advantages of sourcing products from Alibaba manufacturer is the ability to access competitive pricing. Due to lower labor and production costs in countries like China, Alibaba manufacturer on can offer products at significantly lower prices compared to those available domestically. This cost advantage enables sellers to maximize their profit margins and remain competitive in the marketplace.
DO NOT Purchase Branded Products On Alibaba
While Alibaba offers access to numerous reputable suppliers, it’s essential to be cautious of counterfeit products, especially those mimicking big brands like Disney or Nike. Despite the temptation, it’s crucial to avoid selling such items.
Amazon strictly prohibits the sale of counterfeit goods, and failure to adhere to their anti-counterfeiting policy can result in permanent suspension from the platform. Therefore, it’s best to prioritize sourcing authentic products from trusted suppliers to ensure compliance and maintain a positive reputation as an Amazon seller.
Is Alibaba Legit?
Using Alibaba as a seller is generally safe, but it’s crucial to stay vigilant about potential risks like counterfeits, payment scams, and inconsistent product quality.
Since orders on Alibaba manufacturer often involve large quantities, ensuring the legitimacy of the Alibaba manufacturer is paramount.
Similar to Amazon, Alibaba is populated with sellers vying for your business. Therefore, it’s wise to contact multiple suppliers, request samples, and assess their reliability before committing to a large order.
Here are some tips to minimize risks when using Alibaba:
Vet suppliers thoroughly. Look for Alibaba Verified Suppliers and Trade Assurance suppliers, which offer protective measures against theft and subpar products. Prioritize suppliers with a proven track record, positive reviews, and prompt response times.
Beware of counterfeit products. If you encounter branded items on Alibaba, they’re likely counterfeit. Selling counterfeit goods on Amazon can lead to account suspension, so opt for wholesale or arbitrage models instead.
Prioritize sample purchases. Always order samples before making bulk purchases to gauge product quality. Avoid the headache of receiving subpar products in bulk by conducting inspections during the manufacturing process.
Additionally, some suppliers list their products on AliExpress, where you can order single items as samples.
This serves as a convenient way to assess product quality before placing larger orders.
Alibaba Payment Methods
Sending a large sum of money to an overseas Alibaba manufacturer can indeed feel risky for some. However, when you make a purchase through Alibaba’s payment system, you can rest assured that your investment is protected.
Alibaba’s online checkout offers various payment options, including
- credit/debit cards (Visa, Mastercard, American Express)
- PayPal
- Apple Pay
- Google Pay
- Afterpay/Clearpay
- bank-to-bank wire transfers with escrow protection. Moreover, Alibaba supports over 20 currencies for your convenience.
To further ensure security, Alibaba provides a secure payment portal for all transactions, safeguarding your payment and credit card information. Additionally, they offer Trade Assurance, an order protection service that guarantees refunds if the product quality differs from what was agreed upon or if the order is not shipped on time.
Here’s how Trade Assurance works:
- Reach an agreement with your Alibaba manufacturer and initiate a Trade Assurance order.
- Make payment through Alibaba.com using your preferred online payment method.
- Your payment is held in escrow until the order is received and confirmed.
- If any issues arise with the order, Alibaba assists in reaching a resolution with Alibaba manufacturer, which may include refunds or compensation for order discrepancies.
By utilizing Alibaba’s payment system and Trade Assurance service, you can ensure the safety and security of your transactions.
How To Decide What Alibaba Products To Sell On Amazon?
Before diving into finding suppliers on Alibaba, it’s crucial to nail down what you want to sell on Amazon! Especially for new sellers, focusing on products with high demand and low competition is key.
This strategy boosts your chances of competing effectively with established brands in your niche.
Product research plays a pivotal role in your journey as an Amazon seller, so take the time to thoroughly analyze the products you’re interested in. However, don’t fall into the trap of “analysis paralysis.”
Many aspiring sellers get bogged down by excessive information, leading to decision paralysis. If you have a couple of promising ideas, just pick one and take the plunge!
When evaluating products to sell on Amazon, consider three main factors: profitability, demand, and competition.
- Profitability is crucial. You should be able to source the product for significantly less than what you intend to sell on Amazon. A helpful guideline for new sellers is the 3X rule: one-third of the sale covers product costs, one-third goes towards Amazon fees, and one-third is your profit. For instance, if you are buying from Alibaba manufacturer an item for $10, aim to sell it for $30, with $10 covering fees and $10 as profit. It’s wise to aim for higher profitability to accommodate advertising costs, but this rule serves as a minimum benchmark.
- Assess demand. Are customers actively searching for and purchasing this product on Amazon? Understanding the demand for your niche instills confidence in investing in a particular product. Without sufficient demand, you risk being stuck with inventory that no one wants to buy.
- Analyze the competition. While demand may exist, what’s the competitive landscape like? Balancing demand and competition is crucial for successful Amazon sales. Excessive competition makes it challenging to rank well and attract customers. Conversely, low competition with decent demand signals a potential winning product!
So, how do you go about finding a winning product to sell on Amazon? The most effective method for conducting product research on Amazon is leveraging powerful tools supported by reliable data.
Jungle Scout: Jungle Scout offers a suite of tools designed to help Amazon sellers find profitable products, conduct product research, and track sales performance.
Helium 10: Helium 10 provides a range of tools for Amazon sellers, including product research, keyword research, and listing optimization features.
AMZScout: AMZScout offers product research tools, including a product database, niche explorer, and sales estimator, to help sellers find profitable products on Amazon.
Viral Launch: Viral Launch provides product research and market intelligence tools to help sellers identify high-demand products and optimize their Amazon listings.
Keepa: Keepa is a price tracking tool that provides historical pricing data and sales rank history for Amazon products, helping sellers analyze market trends and identify profitable opportunities.
SellerApp: SellerApp offers product research, keyword research, and listing optimization tools to help Amazon sellers identify profitable products and optimize their listings for maximum visibility and sales.
These tools can be invaluable resources for Amazon sellers looking to find profitable products and grow their businesses on the platform.
How To Buy From Alibaba?
Now that we’ve covered the basics of Alibaba, let’s dive into the step-by-step process of purchasing products from the platform.
Finding suppliers on Alibaba
Once you’ve identified the product you want to sell on Amazon, it’s time to find suppliers for it! Searching for Alibaba manufacturer is similar to searching for products on Amazon. Just conduct a keyword search and see what results come up.
let’s dive into an example of a product search on Alibaba. We’ll use the search term “women clothing.”
Just like on Amazon, the results on Alibaba are organized based on your keyword search. Now, before we delve into the current results, let’s explore the filters available on the left-hand side of the page.
You’ll notice various filters to refine your search, including Alibaba manufacturer type, product type, price, Alibaba manufacturer country, and certifications. While many associate Alibaba manufacturer primarily with Chinese suppliers, it’s important to note that suppliers come from various countries. The Supplier Country/Region filter allows you to select from a range of countries to source your desired product.
Among the filters, one of the most crucial to consider is “Supplier Types.” I recommend selecting “Trade Assurance” and “Verified Supplier” to add an extra layer of security and ensure you’re dealing with reputable and professional suppliers.
Once you’ve selected these two filters, the search results may have shifted slightly, but now you can feel more assured when considering suppliers within the results.
Review the results and make note of the products that catch your eye. While pricing information may be available, it may not always be accurate at this stage. The price per unit will vary depending on the product specifications and the quantity ordered, so you’ll need to reach out to the Alibaba manufacturer to obtain accurate pricing for a product.
Evaluating Suppliers
Now, let’s examine a listing for one of the “women clothing.” Upon navigating to the listing, you’ll discover more details about the product and the Alibaba manufacturer.
Above the product images, you’ll notice the name of the Alibaba manufacturer, which is hyperlinked to their company profile. This section provides valuable insights into the supplier’s company, including their sales, number of employees, quality control measures, product offerings, and manufacturing processes.
Contact Suppliers On Alibaba
Before you finalize any decisions, it’s essential to reach out to multiple suppliers for your chosen product to find the best fit for your business. Here’s what to keep in mind when contacting suppliers on Alibaba:
Product Quality: Happy customers are the key to success! Look for suppliers offering high-quality products that meet your standards. Ordering product samples from each potential supplier allows you to assess the quality firsthand and make an informed decision.
Communication: Prompt and clear communication is crucial. Pay attention to how quickly suppliers respond to your inquiries and assess the clarity and thoroughness of their responses. A well-organized system for communication with buyers is a good indicator of professionalism.
Industry Experience: Explore the supplier’s background and experience. Check how long they’ve been in business, their ability to customize products to your specifications, and any relevant certifications. You can usually find this information on their Alibaba profile or storefront.
Price: While sourcing products overseas often offers cost advantages, be cautious of unusually low prices, which may signal poor quality. Conversely, excessively high prices can eat into your profit margins. Aim for a balance between quality and cost-effectiveness.
Once you’re ready to contact suppliers on Alibaba, consider these tips:
Cast a Wide Net: Reach out to at least 5-10 suppliers to compare offerings and assess their suitability for your needs.
Be Detailed: Clearly outline your product specifications and requirements in your initial communication. Bullet points can help convey information efficiently.
Be Polite and Respectful: Introduce yourself and your company professionally, even if you’re not a registered business entity. Building a good rapport from the outset can lead to smoother transactions.
Ask Questions: Inquire about pricing, minimum order quantities, lead times, sample costs, and any other pertinent details. Clear communication ensures both parties are on the same page.
Be Clear: Keep your messages concise and easy to understand, especially if English isn’t the supplier’s first language. Many suppliers have English-speaking representatives to facilitate communication.
Do Your Research: Assess each supplier based on their responsiveness and communication style. If a supplier doesn’t meet your expectations, don’t hesitate to explore other options.
Ask about Shipping: Inquire about estimated express shipping costs to your location to factor into your overall expenses.
By following these guidelines, you can navigate the Alibaba to Amazon FBA process more effectively and establish successful partnerships with reliable suppliers.
Here’s an example of how to word your email:
Placing An Order On Alibaba
Now that you’ve received samples, selected your supplier, and finalized the pricing, it’s time to proceed with placing your order! To ensure comprehensive protection, make sure to pay through Alibaba Trade Assurance.
To streamline the process and ensure clarity, it’s advisable to send a purchase order agreement to your supplier. This document should outline details such as the quantity of units ordered, pricing, and shipping terms. In Jungle Scout’s Supplier Database, you can find purchase order samples and useful templates to facilitate communication with your supplier.
Once both parties agree on the terms, the supplier will create an order and send you an invoice. With Trade Assurance, you can make payments through various methods, including bank transfer, credit card, and other available options. This added layer of security ensures a smooth and secure transaction process.
Shipping Products From Suppliers To Amazon FBA
Next, you’ll need to get your products from your supplier to an Amazon FBA fulfillment center. For beginner sellers, it’s often feasible to coordinate shipping through your supplier, especially if your initial shipment is small enough for air freight rather than sea shipment.
Many Alibaba manufacturer are well-versed in the process of selling on Amazon and can assist you in getting your products into FBA or delivering them to your location. They’ll typically handle shipping arrangements with express carriers like FedEx or DHL, and the shipping costs are usually included in your invoice.
If your shipment exceeds 200 kg or 440 lbs, it’s advisable to engage a freight forwarding company. These companies specialize in arranging sea shipments, managing customs clearance, handling packaging, and more. Sea shipments can be complex, so partnering with a forwarder can simplify the process.
For further guidance on navigating the logistics of transporting your products from China or any other foreign country to Amazon, refer to Chapter 3 of our How to Sell on Amazon for Beginners guide.
Alibaba To Amazon FBA
Before your products make their way to Amazon’s fulfillment centers, it’s crucial to have a listing ready. Assuming you’ve already set up your Amazon account, let’s get your listing created! Having your listing prepared beforehand is essential, especially if you’re shipping directly from China or another country to FBA.
To start, head to Seller Central and navigate to Catalog > Add products. From there, you can begin the process of creating your listing.
Select the option “I’m adding a product not sold on Amazon,” and then proceed to choose your product category. This will ensure that you’re adding a new product to Amazon’s catalog that isn’t currently available on the platform.
Enter all the necessary product information, including the UPC (Universal Product Code) if you have one, brand name, images, product features, description, and any other relevant details. If you don’t have a UPC for your product, you can apply for a GTIN (Global Trade Item Number) exemption to list your product on Amazon.
Once you’ve completed all the required information, your listing will be prepared to go live as soon as your inventory arrives at Amazon’s fulfillment centers!
For further insights on how to navigate the process of selling on Amazon from Alibaba, feel free to download our comprehensive, step-by-step guide titled “How to Sell on Amazon for Beginners.” It’s packed with valuable information to help you master the ins and outs of selling on Amazon
Alibaba To Amazon FBA
Starting your own private label business doesn’t have to be daunting! With the right resources, knowledge, and dedication, you can embark on the journey of creating your own branded product.
We trust that this guide on utilizing Alibaba has provided you with valuable insights and motivation to progress further in your e-commerce endeavors. Have you tapped into Alibaba to source products previously? Feel free to share your experiences with us or ask any questions about our sourcing and procurement service!