When it comes to selling products through Amazon, you should look for a source of products that are not only affordable, but also good quality.
Why don’t you try buying products from Alibaba and selling on Amazon? Alibaba is known as one of the largest online retailers. They have access to a large number of suppliers and manufacturers, and they could give you the help you need.
You may even already know what products you should sell, however, you should have a good source for the products you sell. This article is a complete guide that will help you buy the right products through Alibaba for your Amazon business.
Can I Buy From Alibaba and Sell on Amazon?
Before we start on the actual business, let’s answer one important query. Can you actually buy from Alibaba and sell the merchandise through Amazon? The answer is a resounding yes!
What is Alibaba?
It is a company that is based in China, and is one or if not the biggest online commerce company in the world.
It is predominantly a wholesale marketplace wherein buyers could buy quality products in large quantities. It has hundreds of millions of users and provides products and services to a multitude of merchants and companies.
Why You Can Buy From Alibaba?
First time users may wonder whether the company is worth working with. You may also wonder if Alibaba has a wide selection of products and manufacturers to choose from. This is an understandable concern for many users, because you are going to invest money in Alibaba.
On this matter, you should rest easy. The Alibaba company is a legitimate company that has partnerships with countless manufacturers throughout all of China.
These partnerships give Alibaba a diversity of products. Whatever product you could think of, Alibaba will be able to get it for you.
Aside from the quality of Alibaba’s products, you are also guaranteed trade assurance. You will also want full transparency when you deal with any company. Alibaba has over 305 million users worldwide, and the number grows every day. The company will not have been able to gain so many users if their business practices are not effective and efficient.
Aside from the quality of ther products and the legitimacy of their products, Alibaba also boasts easy payment methods. These payment methods are:
- Credit card
- Apple pay
- Google pay
- Wire transfer
- Western Union
With these payment methods, you can be assured that your payments are received by the company in a swift and safe manner. Overall, these features make Alibaba a perfect source of products for small business owners.
How to Buy From Alibaba and Sell on Amazon
There are five steps to buy from Alibaba and sell on Amazon. Read on to learn more.
Step 1: Register an Account on Alibaba
If you want to purchase products from Alibaba, it is important that you register an account through Alibaba. By registering through Alibaba, you will be able to purchase products and pay for them in a more streamlined manner.
You could register either through a computer or through the Alibaba App. Here are the steps on how to register through the computer.
- Go to the Alibaba Login page. Click Join Free. This will allow you to register your account
- Enter your email address
- Tick the agreement section and then the next tab. This will trigger a confirmation email to be sent to your account’s mailbox
- Upon getting the email, just fill in all the blanks. Please be reminded that if you do not have a business, you could just fill in the company name with your name
Step 2: Search for a Product and Set Up a Supplier List
Now that you have registered for an account, you can now start searching for products and set up your very own supplier list.
This is very important because there are so many products on Alibaba. If you don’t know how to effectively search efficiently, you won’t get the best suppliers.
How to search for a product on Alibaba
1) Search Keywords
This is the most obvious and easiest method. When you use the search keywords page, you will have two options to choose from.
These are the products and the manufacturers tabs. Choose one, and type your keywords.
2) Conduct image searches
Alibaba also has an image search feature. To use this feature, click the camera icon on the search bar.
If you have an image of the product that you are searching for, you could upload it. You will also have the option to take a photo.
After up upload the image, a wise selectionn of product images will appear. Choose the images that are similar to the image that you uploaded.
3) Post an RFQ
You also have the option to post an RFQ ( Request for Quote) to Alibaba. By posting an RFQ, you will get access to quotes for your requests. You could close deals with one click and gain access to more suppliers.
4) Check out browse categories
If you have the time and patience you could also browse through various product categories. There are two options that you could use.
If you are using the app, you should tap the search bar and then then tap the browse categories tab. If you are using a laptop, you should tap the My markets menu and then open the All categories menu.
Aside from knowing how to look for products through Alibaba, you should also know how to choose the right supplier for your products. There are a lot of suppliers out there, so you should choose your suppliers carefully.
How to Set Up Your Supplier List
1) Check Response Rate
There are response time and on-time delivery rate on Alibaba. Please ensure that the response time is less than 12 hours and the on-time delivery rate is higher than 90%.
2) Check for bad reviews
You should also check the comment section for any bad reviews. Remember that you want only the best reviewed products. If the supplier has a lot of bad reviews, then you should not use the supplier.
3) Make sure the supplier is Alibaba verified
Alibaba takes steps to verify the time the supplier was established and its location as well. If a supplier has been verified by Alibaba, that means it is authentic.
4) Make sure the supplier is a manufacturer
If you are going to work with supplier, you should make sure that it is a manufacturer and not juts a trader. This is because manufacturers often offer better pricing and could deliver larger orders.
Step 3: Place an Sample Order for Two or Three Suppliers
The best way to ensure that the products you buy are good quality, is to buy sample orders from two or three suppliers. This will allow you to compare the samples and choose which ones are the best.
This will show you whether your perspective suppliers are worth working with. You should also take these key factors into account when you do ask for a sample.
1) Production cycle
When working with a supplier, it is important that you take the production cycle into account. You should check your supplier how long it takes for them to manufacture their products. Remember that you will be selling their merchandise wholesale, so the faster they could make the products the better.
2) Payment details
It is important that you ask your potential suppliers about their payment details. Remember that once you hire a supplier, you will be paying them for bulk orders. You should ask them how much you will be paying per unit and if they are offering any discounts.
You should also check if the supplier offers any customizing options. If you are going to buy products in bulk, you should at least have the option to have the same products customized according to your needs.
4) Professionalism of sales staff
When it comes to hiring a supplier, it is very important that their staff is as professional as possible. If their staff lacks professionalism, you’ll have a hard time working with them in the long run. By conversing with your supplier’s staff, you’ll at least get a hint if they are worth working with or not.
5) Does the supplier provide samples?
Aside from asking potential suppliers these key questions, it is very important that you request samples from them. By asking for samples you will be able to find out the following.
- You’ll be able to actually see the product. That you’ll be able to check the workmanship and the durability of the product.
- You will be able to check out the supplier’s packaging. This will allow you to check if their packaging is safe and aesthetic as well.
- You will also be able to check how long the shipping time is. That way, you could choose the fastest suppliers possible.
Step 4: Start an Order and List Your Product on Amazon
After getting a sample from your potential product supplier, you should decide if their products are good enough. If the samples are up to your standards then it is time to start an order with Alibaba suppliers.
However, before you start ordering your products, you should know about these sales tax.
- US sales tax
This is a type of tax for any product that has been sold via an online e-commerce platform. Just as long as the product is delivered inside US territory, it will be liable for the US sales tax.
This kind of tax is indirect in nature and applies to all commercial activities that involve the production and distribution of goods and services.
The GST or Goods and Services Tax is a destination based tax, and deals with the consumption of goods and services. This is levied from various stages from the manufacturer to the retailer who will ultimately sell the goods.
Now that you know about these key details, and placed an order, it is now time to list your products on Amazon.
Here are the key steps to follow.
- Log into Amazon seller central
- Click the Inventory tab, then the add a product tab
- Determine the category of your product
- Create a new listing detail page for your product: title, images, variations, bullet points, featured offer, other offers, description
Step 5: Shipping Your Product to Amazon FBA
If you are going to sell products through Amazon, it is very important that you choose a reliable Amazon FBA freight forwarder. Remember that you want your products to reach your clients speedily, and without getting damaged.
Here are the key advantages of choosing reliable Amazon forwarder:
1) Affordable shipping costs
When it comes to using freight forwarders, a key advantage is their affordability. Due to the large number of freight forwarders, they must keep their prices competitive. Some freight forwarders even offer lower prices by making special arrangements with other companies, and deciding which products could be transported at the same time.
2) Efficient control over shipping operations
If you choose to transport through Amazon FBA, you will have efficient control over your shipping operations. Remember that Freight forwarders usually specialize in one service area such as transportation or market mode. This enables you to choose how many services the freight forwarder should handle. They could also choose the best routes and which transports are the fastest.
3) Intimate knowledge of customs
A key challenge that all transportation companies face is customs. Remember that each country has its own rules and regulations when it comes to importing and importing.
They usually have specific paperwork, tariff payments, and taxes that change on a regular basis. If a transport company does not know the proper customs regulations, its products could get confiscated. Luckily, Amazon freight forwarders have intimate knowledge of customs rules and regulations.
By having your products delivered through Amazon FBA, you are assured that your products will not be confiscated because of customs issues.
4) Various special services
During the transportation process, there will be times when paperwork and documentation are needed for shipping and loading. By using Amazon FBA freight forwarder, you can be assured of special services that will handle this specific paperwork and documentation.
Risks of Using Alibaba to Sell on Amazon
Even though Alibaba is a very trustworthy company, there are still some risks that you will have to take into account. This is common for anyone buying from an online retailer.
The most common risks of selling through Amazon from Alibaba are the following:
1) Bad quality goods
This is a common risk for buying from Alibaba. Even if Alibaba is a trustworthy company, you should remember that they deal with millions of suppliers and manufacturers. They cannot really check all the products that their suppliers are producing. It is really up to you to ask for samples from potential suppliers and manufacturers.
2) Counterfeit goods
Luxury brands are always a key target for counterfeiters. If you are going to buy branded items from Alibaba, you should be very wary. If you are caught selling counterfeit goods through your Amazon account, you may get banned.
3) Damaged goods
When it comes to buying goods from suppliers, it is very important that you check for any damage to your products. Remember that you will be buying these products in bulk, and if a good number of your products are damaged, then you won’t be Ble to sell them, and you will inevitably lose money in the long run.
4) Faulty delivery services
Aside from damaged goods, you should also make sure that the supplier has efficient delivery services. If your supplier has a slow delivery service, then it will also affect the efficiency of your Amazon selling business.
How to Avoid Risk of Using Alibaba
In order to overcome these risks, you should take the necessary steps.
These steps will ensure that the products you buy from Alibaba are legitimate and of the best quality. They will also ensure that:
1) Purchase sample products first
If you want to ensure that your products are as legitimate as possible, it is always a good idea to buy some sample products first. This will allow you to check if the products you are buying are good quality.
You should check the material, the construction and the condition of the product. Buying sample products may seem costly, however, this is more cost-efficient than buying sub-par products in bulk.
2) Check for counterfeit goods
When it comes to selling through Amazon, it is important that you never sell counterfeit goods. If you are caught selling counterfeit goods through Amazon, there is a very big chance that your account will get banned. In order to overcome the threat of counterfeit goods, you should always check your products thoroughly.
3) Check if your suppliers are Alibaba verified
If you want to ensure that your products are of the best quality, it is important to check if your suppliers are Alibaba verified. Alibaba always takes the necessary protective measures to ensure that you will avoid theft and purchasing sub-par products.
Now that you know the key benefits of buying from Alibaba and selling the products on Amazon, you can now get started on sourcing from Alibaba.
Please understand that there are still some risks in sourcing from Alibaba. There will always be things beyond your control. What’s important is that you know these risks, and take the necessary steps to avoid them.
If you have any questions on buying from Alibaba and selling on Amazon, you can contact our professional team to help you.