How to Buy from Alibaba and Sell on Amazon in 2023 (Step by Step Guide)
Learn from the masters and cracks the code to festive season sales success with Fynd Platform's Festive Readiness Guide
Online shopping and e-commerce have exploded in popularity in recent years. The majority of companies with an online presence use an online store or platform to carry out marketing and sales operations for e-commerce.
India is a market that is expanding and offers numerous economic opportunities. In this article, we will first peruse the Alibaba company before moving further to discuss the ways to purchase items from Alibaba and sell them on Amazon.
In the world of e-commerce, Alibaba is the most prominent name in the industry. Every business seller wants to grasp a fair idea of the know-how of buying on Alibaba and selling on Amazon.
For those of you new to the world of e-commerce, Alibaba is an astounding place for sellers to get access to millions of customized products with flexibility that can be concurrently labelled and branded as per your individual business needs and requirements.
Amazon is India’s top marketplace for online shopping, which carries a population of 7 billion people, comprising a huge market scope for sellers to ace their prospective customers. Alibaba is the source of B2B business acumen that provides branding of the products to navigate to the listings of Amazon FBA.
Any seller having no experience with the listing of products on Alibaba and Amazon will get a very crisp overview from the above-mentioned steps and guidelines. However, it is advisable to always check the authenticity of the products and Alibaba followed by a binding purchase agreement before going for bulk purchase and selling on Amazon. Let’s have a happening selling experience and learn more: Amazon Selling-Beginners Guide.
We will provide a brief snapshot of the strategies diversified sellers from all experience levels can adapt to label their Amazon business and, at the same time, source quality commodities from Alibaba. How does one begin this entire journey without the perfect instructor to lead them.
Rest assured that this article will be helpful to you as the instructor. Explore this article thoroughly to find out more!To learn more about e-commerce, follow this link. https://platform.fynd.com/blog/ecommerce-business-model-in-hindi
What is Alibaba company?
Alibaba is a multinational Chinese technology corporation with a focus on e-commerce, technology, and retail. On June 28, 1999, through web portals, the company offered business-to-business, consumer-to-consumer, and consumer-to-consumer sales services. One of the biggest online retailers in the world is Alibaba.
The firm was ranked as the fifth-largest provider of artificial intelligence. With a focus on tickets, content development, and life experiences, Alibaba established a new live entertainment business unit within its digital media and entertainment organization. To know more about the best e-commerce platforms, follow this link
Why do Amazon sellers use Alibaba?
Alibaba is a worldwide B2-B e-commerce platform that sources items from China and allows sellers to buy in bulk for their offline or online businesses. This platform is used by many Amazon sellers to source their products.
Sellers may go to Alibaba, search for the category of goods they want to sell, and find hundreds of appropriate suppliers. This makes it easy for them to choose a manufacturer for the products they require.
When selling on a worldwide platform like Amazon, sellers want to ensure they have a sufficient supply of the products they are offering, especially if they are in high demand. However, they must first invest a large sum of money to obtain those products, while also considering the high potential for loss. As a result, Amazon sellers frequently use Alibaba as a platform to purchase the products they need at a low cost and in bulk, saving them a few dollars.
This activity of purchasing and reselling is being handled through an online website rather than in person, which may concern some sellers; no one wants to be scammed. Amazon's payment processing offers a reliable payment system for all purchases, ensuring the safety of all parties.
In addition, Alibaba also includes an order protection service known as Trade Assurance, which will refund your funds if the quality of the product differs from something you and the source negotiated, or if your item was not dispatched on time.
Numerous Products are Available.
Alibaba is a platform that is used by millions of resellers and manufacturers worldwide. There are so many manufacturers providing a variation of the same product that there is never a scarcity of the range of products sellers can purchase.
Amazon is a huge market, so sellers worry about suffering a shortage, but when using this platform, they do not need to worry about it and can even discover unique products conveniently.
Amazon assists with handling customers.
If any problem occurs, the sellers won't have to worry about buyers' contact at odd hours. Amazon sellers that use FBA or fulfilment by Amazon are not expected to manage shipment issues. They are, nevertheless, in charge of client complaints.
Amazon maintains the products.
The Amazon seller can have the products transported directly from the source to their Amazon warehouse. Sellers might also ship the products in bulk to Amazon's warehouse, where Amazon would retain them and complete an order by packing and shipping it whenever the product sells.
As a result, sellers no longer have to worry about the shipping process, allowing them more time to engage in other aspects of their company and establish their business more speedily.
Connect with the Manufacturer Directly
Alibaba allows sellers to contact the manufacturer directly, allowing them to bargain on their terms without worrying about not receiving the best deal or product. It's also a great option for acquiring store brand items since they can buy straight from the manufacturer and even design their own.
Is it Safe to Source Products from Alibaba for Amazon FBA?
One of the biggest e-commerce sites is Alibaba, which provides business-to-business (B2B), customer-to-customer (C2C), and business-to-customer (B2C) transactions (B2C). Customers of Alibaba can purchase anything in bulk and resell it on Amazon. Both platforms are authentic and legitimate. You can depend on them. You must first understand what Amazon FBA is to respond to the question.
Since Amazon launched its FBA services in 2006, they have helped retailers and other small businesses expand quickly. Shipping, returns, refunds, warehousing, picking, and packing are all handled by Amazon FBA. Amazon FBA is the provider of each of these services. The straightforward conclusion is "you sell Amazon ships."
Purchasing goods from Alibaba for Amazon FBA is secure. Alibaba primarily offers Chinese-made goods for sale. You can choose your product first, and then the best manufacturers.
Alibaba also provides customization, through which you can create your brand. It will request your logo, add it to the product, and then the product belongs to you.
Avoid branded products at all costs to avoid ruining your day. Although purchasing goods from Alibaba is secure, remember to be wary of manufacturers who portray their goods as being of high quality in product descriptions and images but then deliver them to customers in a way that leaves a negative impression. Alibaba provides a very secure payment portal for all of your transactions, allowing you to relax knowing that your credit card information is safe.
On Alibaba or Amazon, you will always find enormous products when searching for any product. It's crucial to choose the products that will grow your company and not those that will force you to close your doors.
Start by investigating the needs and financial stability of your customers. However, if you wish to build your eCommerce website for your business, you can visit the Fynd Platform.
How to buy from Alibaba and sell on Amazon.
These days, a huge number of Amazon sellers use Alibaba as a marketplace to purchase goods. The trend is primarily due to Alibaba's trustworthiness and user-friendliness.
Another factor, you could surmise, is the reasonable cost of the company's products. All kinds of inquiries are made about Alibaba, but what about actual manufacturers? They don't own Alibaba, so when you shop there, there are a few things you should keep in mind.
It is advised that you request a sample before confirming your order. Examine the samples in-depth, just as you would, if you were a customer, this will increase your confidence in the product's quality. You should find a different supplier if there are any problems or defects.
Everyone strives to increase sales of their goods. To entice customers, the seller sends high-quality samples. However, when your order is confirmed based on the sample's quality, you will learn more about the actual quality of the products. So, bear that in mind.
You must use Alibaba to find suppliers after conducting market research. On Alibaba, perform a product search. You'll receive a lot of goods. You can control the search results by using filters to fit your needs. But use caution to achieve better business results. As a result, check the boxes next to "trade assurance" and "verified suppliers". Your company will be more secure.
You should monitor customer feedback to have more certainty about the quality of the products. You should look into customer reviews and information provided by the manufacturer, such as the number of transactions, the average response time, the percentage of on-time deliveries, and many other factors.When you are pleased with the supplier's online information, you can speak with the supplier directly.
You can discuss delivery dates, wholesale costs, the calibre of the goods, any discounts offered on sizable purchases, and many other aspects of what you do in a physical store, then have your supplier send your goods to Amazon FBA.
Between buyers and suppliers, Alibaba's trade assurance acts as a middle layer to safeguard the payment. To contact the supplier, use the "my Alibaba" section's Alibaba trade centre.
A contract will then be presented. Keep in mind that the contract is only applicable to the products. Any warranties or replacements between buyers and suppliers are not covered.
Make the payment once the contract has been verified. This "trade assurance" reassures customers that their orders will be shipped on time and will match their specifications exactly.
The quality control partners of Alibaba can assist you if your shipped product has any flaws by helping you check the product's quality. A quality inspection can be scheduled whenever you like.
Keep in mind that your product's specifications need to be more precise so that any minor adjustments can be noticed. Because products may be ordered, you should use the appropriate technical terms when describing the properties. Keep in touch with your order specifications because products may be ordered from other nations, so use the technical terms necessary to describe the properties.
Every business begins with excellent planning and no profit. Positive thinking necessitates taking chances. The virtual world is more integrated and complex than the real world, but with the right direction, you can achieve success.
Every business follows a straightforward formula: "take more and do thorough pre-planning before launching your product or business." The more you assess a supplier's standing and product caliber, the better your chances are of running a profitable business.
What Products to Sell on Amazon From Alibaba?
Amazon sells a record-breaking 400 million unique products. The entire trade becomes profitable if the sellers conduct thorough product research before investing heavily in them. The products that you can sell on Amazon are based on the following parameters:
Check out the Amazon Best Sellers List
This Amazon Best Seller List needs to be used for product research purposes to determine the base of the competitors and market areas to be improved or penetrated by the sellers. This link provides an overview of the top sellers in the domains of Amazon Launchpad, daily commodities, as well as diverse categories of items.
Check Out the Sourcing Costs and Shipping Feasibility
If the sellers want a detailed picture of the sourcing costs and the shipping to locations or Amazon FBA inventory warehouse, then this can be checked out at How Alibaba Sourcing Works to dive in for more details on the shipping price and cost.
Analyze the competitor brands to get more information
When Amazon has a base of millions of sellers as a platform to carry out the e-commerce business, it is crucial to carry out competitor analysis by diving into the Amazon platform and looking for the targeted products.
Choose a product market that is not that saturated and has high demand in the market.
It is crucial to select a product that is unique and not saturated in the marketplace to generate good revenue on the Amazon platform.
Products that are minuscule, light-weight, and have a good background
The shipping costs of products depend on the size and volume of the product, hence it is wise to select a product initially that is low in weight and volume for listing on Amazon FBA.
Products that are simpler to manufacture.
The demands for the products on the e-marketplace are ever increasing and it is indispensable to make a smarter choice in the selection of the products with a simpler manufacturing process to pitch a bulk order to the suppliers as and when required.
Products that are not seasonal
The products that are placed on a bulk-order basis tend to be lost if kept for a longer period during the off-seasonal sales. Hence, it is advisable to list the products that are to be sold all over the year.
How to Buy from Alibaba?
Alibaba is a global business hub functioning on a B2B model that strives to reduce the gap between brands and sellers and provides the perfect conditions to run a private Amazon FBA business of your own. Once you have decided on the products for selling on Amazon, you need to find suppliers of the requisite products.
Sign up for a new account in the Alibaba Portal for free.
Conduct a keyword search for the product of your choice on the Alibaba search tab. There will be different filters based on the certifications, supplier type, and product type, and you need to customize your search accordingly. Filter out the requirements on the left-hand side of the Alibaba portal and select the products that ace your interest.
The listed products on the Alibaba platform will provide you with broader information about the product and the supplier. The Company Profile is visible at the bottom of the search navigation panel and it provides an overview of the company profile, revenue generated, staff, quality assessment, and production processes.
Contacting suppliers via various contact information can provide you with an advantage in conducting a comparative analysis of prices and product quality offerings. It is advisable to connect at least 5 to 9 suppliers before placing a bulk order based on the quality of the samples you have received.
Once you have covered all the stages of selecting a product, contacting the supplier, bargaining price, and checking sample quality, you are off to place your requisite order on Alibaba.
The seller needs to send a PO (Purchase Order Agreement) to the supplier stating the order quantity, pricing details, and legal obligations. Once the invoice is generated by the supplier, through trade assurance, you can place the order through NEFT/Online Banking/Inter Bank secured transfer channels.
Eligibility Criteria for Buying and Selling on Amazon
Before starting with the selling process online from Alibaba to Amazon, you need to ensure that you have an Amazon Account in place along with a listing. Let's study this further to learn more: In the Seller Center, navigate to Inventory Option and click on "Add a Product."
Now, enter your desired product information using UPC, images, product description, features, brand name, etc. After you have uploaded all the above details, your listing will be ready to go live and kickoff. Further information can be found at Amazon Seller Central
Apart from this, the core requirements for doing business on Amazon are having:
- Business email address
- Amazon Account
- Tax Details of the seller
- Number & Internationally Chargeable Credit Card;
- Government ID Proof (ID Verification protects sellers and customers)
- A specific bank account where Amazon can transfer the proceeds of the sale.
How to Contact Suppliers on Alibaba?
Before contacting a supplier on Alibaba, you should be clear about the purpose of why you need to contact a supplier. There could be various reasons, like you want to grow some passive income by buying customized products for private-label brands or you want to give some customized or not customized products to your family or friends, etc.
Whatever the reason is, you always want to buy the product from a trustworthy supplier. If it is for a business, then you might want a supplier for the long run. If the supplier is not a middle man and makes the product by themselves, you can save plenty of money on a large number of orders.
It will also be beneficial in the long run if you contact a good supplier. So, finding and communicating with a supplier on Alibaba is way easier than you think. Follow these steps to contact good suppliers on Alibaba.
Go to their website, Alibaba.com, and then Sign in for free with your valid email address to carry out the process smoothly without any interruption.
On their website, above the search button or on the left of the web page, there is an option to select suppliers. Select the supplier button and do not go for the product option. Then select the category you need to buy or make a deal with the supplier.
Select "paid sample" instead of "ready to ship" products if you are trying to buy the product for a private label brand. just like before. Every time you select or tick any option on the Alibaba web page, the page will be reloaded by the Alibaba web page.
To ensure that the suppliers are trustworthy, first, you must search for the main keyword on the Alibaba website, and then two boxes will appear. Then select or tick the two boxes that are written as "Trade Assurance" and "Verified Supplier."
So basically, Trade Assurance means it will assure you that the product will be manufactured as per the contract and delivered as required so that the seller will not be able to fraud you with products shortly. Here, Alibaba works as an intermediary escrow holder.
"Verified Supplier" means a supplier that is a confirmed verified supplier by Alibaba’s third-party working operators, as they (supplier) have to submit their respective documents, which helps them to be verified by Alibaba, and they are more trustworthy than non-verified suppliers on Alibaba.
After all the steps are completed, the reloaded page will include the products that you may want to buy. Then, from the list on Alibaba, select the products that pique your interest. After clicking the product, there will be an option to order now, contact the supplier, chat with us, etc. To contact the supplier, click the option to contact the supplier.
After clicking the contact supplier, the process is almost similar to email. Now talk to the supplier and explain the type of product you want to buy from them.
What are the payment methods when we buy from Alibaba to sell on Amazon?
One of the foundational elements of your Amazon sales should be product sourcing from Alibaba. This is because doing so results in high profits for sellers due to the extremely low cost of goods in the Chinese market as well as other markets around the world.
Bank Transfer or Online Networking
Although this approach is the quickest, it has a significant level of risk, particularly when the entire payment is given before the production process begins. Therefore, it is better to pay a portion of the total up front and the remaining balance once you have received your cargo.
You must confirm that you have the supplier's name, home and bank addresses, bank identification number, etc. in your possession. There are processing delays with this kind of payment, which is a drawback.
A Letter of Credit
If you operate with huge order numbers, often with high amounts, this is an appropriate payment method. It is the most efficient way to purchase goods that meet the required standards of quality. Due to the documentation included in this method of payment, which includes clearly defined terms, it also assures payment to the supplier. The foundation of a letter of credit is assurance and trust.
It is the built-in payment method of Alibaba. Escrow is a low-risk form of payment that is now known as the Alibaba Secure Payment service. In this, the buyer's payment is withheld until he gets the order and certifies that it was provided by acceptable criteria.
This approach benefits both consumers and sellers since it ensures that both parties will be satisfied with the way that the items are presented and that suppliers will receive timely payments. This type of payment option may be prefered by someone who frequently uses the Alibaba website.
One of the greatest payment methods, particularly for international transactions, is PayPal. It offers your transaction excellent security and low risk. It is simple to use; there are no payment transfer delays; and the main drawback is that suppliers, who are subject to high tax rates, are not afforded the same simplicity. The one issue is connected to the money withdrawal as well. PayPal has a user-friendly interface and futures that anybody can use.
Alibaba Trade Insurance is another payment option that guarantees to protect customers. It only applies if you pay using Alibaba.com's secure payment gateway rather than another channel. This option covers any losses you might suffer in the event of a delivery time delay, damaged or incorrect goods, etc. It guarantees refunds and shields customers from scammers.
All suppliers are unwilling to join in Trade Assurance and those that do charge more for their goods as a result of using this policy method, which is one of its faults with it. Trade insurance offers a money-back guarantee from certified providers if the quality and timeliness of your order are not up to par. Another high-quality alternative to consider is the gold supply.
Suppliers that choose not to participate in the Trade Assurance programme must also go through a series of verification steps. Each supplier receives a badge based on the amount of verification they complete, and customers can check it on product listings to choose reliable ones.
These are all the payment options we can adopt while making transactions from Alibaba as per our convenience. If you want a company like Alibaba, then you must learn how to create a website. To create your website, use the Fynd platform:
Learn from the masters and cracks the code to festive season sales success with Fynd Platform's Festive Readiness Guide
How safe is buying from Alibaba?
If you're purchasing items for your Amazon business, the cost will probably be fairly high. Because of this, you should ensure that whomever you do business with is reliable and won't exploit you. Among the world's largest retailers, Alibaba is at the top. They are a well-known business that is traded on the New York Stock Exchange.
You must exercise caution since even if the company is trustworthy, that does not guarantee that every vendor there is. Fortunately, Alibaba has its Trade Assurance program, which offers a money-back guarantee if you don't get your goods or your order doesn't live up to your expectations. Therefore, the easiest method to keep secure on the platform is to only transact with participating sellers.
Do you need to pay taxes when you buy from Alibaba?
When you buy stuff from Alibaba, you won't need to pay sales tax, but since you'll be importing goods from another nation, you will need to pay import charges. Depending on what you're purchasing, these fees change. On the website, simply duty, you can calculate an estimate of your import duties.
What is the difference between Alibaba and Amazon?
The audience is where Alibaba and Amazon diverge. While Amazon caters to people, Alibaba caters to businesses. Amazon does have a business-to-business (B2B) marketplace named Amazon Business, but this market is more well-known for its consumer-focused products.
Which is better: Amazon or Alibaba?
You can notice how drastically different the costs are for Alibaba and Amazon when you compare them. Alibaba places greater emphasis on a yearly fee, whereas Amazon bases its fees on the kind of goods that are sold.
As you sell more on Amazon, the fees can accumulate over time and increase your overall cost. To list your products on Alibaba, however, you must pay a one-time, substantial charge. In the end, you'll need to balance the expenses with the number of items you may sell in the marketplace.
Alibaba and Amazon: Which is best for business?
There is no obvious solution. Your target audience is one of many elements that will influence your platform choice, but it is also one of the most important ones. You should concentrate your efforts on the platform where you have the greatest chance of reaching your target market, whether they are specific customers or other enterprises, like Amazon and Alibaba. You should also think about how much money you're willing to spend on each market and how much of your target audience you can reach.
What kinds of products is Alibaba good for?
Use Alibaba to produce your private-label goods that are exclusive to your business. Alibaba is a terrific place to find suppliers who can help you realize your ideas if you have your unique logo and/or design specifications for a product. AVOID using Alibaba to purchase branded items.
Alibaba has a lot of reliable suppliers, but some of them also try to sell knockoffs of well-known brands like Adidas or Nike. Some things could seem alluring to sell, but you shouldn't go down this path. You will be permanently barred from selling on Amazon if you violate their anti-counterfeiting policy, which forbids the sale of counterfeit items.