As the eCommerce world expands its reach and disrupts industries, small businesses are struggling to keep up. Many have opted for business models that don’t rely on inventory or shipment logistics. One option that might be right for independent sellers is Amazon FBA (Fulfilled by Amazon).
Businesses can focus on creative product design and marketing while letting a third-party handle the shipping process, customer service, and inventory management. This article will cover the most important aspects that businesses should know before jumping into the world of selling profitable products from Alibaba.com on Amazon.
Table of Contents
Why do Amazon sellers use Alibaba.com?
How to find reliable suppliers on Alibaba.com?
How to ship from Alibaba.com to Amazon FBA?
Alibaba.com is the one-stop shop for eCommerce businesses
Why do Amazon sellers use Alibaba.com?
Alibaba.com is one of the largest online B2B marketplaces in the world, connecting more than 10 million buyers with over 200,000 suppliers from all over the globe. In 2022 alone, Alibaba.com’s marketplaces had a total of 8.32 trillion yuan (US$ 1.23 trillion) in gross merchandise volume (GMV). This sales growth demonstrates that Alibaba.com has been a great resource for wholesalers and retailers of all sizes and backgrounds to find leading suppliers and business partners. In addition to offering a wide range of products, Alibaba.com also provides access to a wide range of services, including:
- Trade Assurance: protecting against non-delivery or quality problems with products;
- Logistic services: partnering with reputable logistics providers across the globe so that business buyers can rest assured that their goods will travel safely and quickly;
- Customs clearance: simplifying customs procedures for importing and exporting goods from overseas.
With over 9.7 million sellers competing for space and thin profit margins on Amazon, it can seem like an uphill battle to be an Amazon business seller. But sourcing products from the right place can help businesses improve their chances of success. Here are a few reasons why Amazon FBA sellers source products from Alibaba.com:
Wide variety of products
With Alibaba.com, Amazon sellers will have access to more than 200,000 suppliers and over 200 million products across 41 categories, including clothing and accessories, home goods, sporting goods, health & beauty supplies, electronics, and more. That’s a lot of choices! By using this giant eCommerce platform, Amazon businesses will easily find niche products that are well-suited to their brands.
Source of inspiration
Alibaba.com is a treasure trove of ideas and inspiration when looking for new products to sell. One way to do this is by looking at “Top Ranking” items—which are ranked based on sales volume, number of orders, and customer feedback. Another good place to look for ideas is the “Trend Highlights” page. This page lists the top trending products in various categories, from trendy fashion items like leggings to practical household goods like air purifiers.
Product customization
Personalization is key to any company’s brand success. For Amazon sellers who want to stand out from the crowd, it is important to ensure that their products are unique and branded, whether with engravings, design adjustments, or simply by adding a logo to the product’s packaging. And thanks to Alibaba.com, they can choose from a wide variety of suppliers and manufacturers who offer customization services and product modifications.
Verified Suppliers
Finding the right supplier is a challenge, even for experienced sellers. Fortunately, Alibaba.com has launched the “Verified Suppliers” program to help buyers find trusted and reliable suppliers with just a click of a button. Verified Suppliers go through a rigorous inspection process, which includes independent third-party auditors checking their company profile, management system capabilities, and production processes through online and offline checks. Learn more about Verified Suppliers and how they differ from Gold Suppliers.
Secure payment
When working with suppliers on Alibaba.com, Amazon sellers have a lot of options when it comes to payment. They can choose from a range of different international payment methods, from PayPal to Alipay. Alibaba.com also offers Trade Assurance, a free escrow payment service that allows businesses to trade safely and securely. This protection system provides a full refund in case of faulty products, non-delivery, or shipment delays. However, this feature is not available when making payments through other offline channels.
How to find reliable suppliers on Alibaba.com?
Alibaba.com has an extensive directory of vendors for all kinds of products and services, but finding the right supplier can be quite challenging. With a large pool to choose from, Amazon sellers have to make sure they find the right match for their procurement needs. Fortunately, there are a few simple ways to get the ball rolling.
Conduct product research
Before businesses can even think about selling on Amazon, they need to decide what kind of products they want to sell. Profit margins will vary depending on the type of product they choose. For example, if they sell a high-demand product with little competition, there’s more room for profit than if they sell a low-demand product with lots of competition.
One way to find out which products are most profitable is by using the search bar of online marketplaces or SEO tools like Google Trends. These tools will uncover which keywords have the highest search volume and then give businesses some ideas about which types of products people might be searching for. Check out these 10 free ways to find hot and trending products without wasting time or money.
Search for potential suppliers
After deciding which profitable products to sell, it’s time to find a reliable supplier that can meet high-quality standards. By visiting Alibaba.com and typing in the product keyword or phrase into the search bar, the search results will display all sorts of suppliers that sell the desired item and their required minimum order quantities (MOQ). Alternatively, merchants can use the “Image Search” and/or “Find Similar” features to find the right products and suppliers quickly and easily.
Clicking on a company’s profile page will take business buyers to its store page where they can find all sorts of information about the supplier, including its production capacity, workforce size, and quality control procedures. When an Amazon seller has found a vendor that offers what it needs, they can click the “Contact Supplier” button to discuss details of the order and ask the supplier to ship products directly to an Amazon FBA fulfillment center.
Negotiate prices
When discussing the order details with the supplier, be sure to ask about their terms of payment and shipping times. For example, Amazon businesses can send a request for quotation (RFQ) that includes as many details as possible about the desired product, including quantities, colors, and materials. This will give potential suppliers more information about the buyer’s expectations and needs, so they can provide accurate quotes (and hopefully lower costs).
Learning how to negotiate with suppliers is the best way to get the most bang for the buck. Business buyers should not limit themselves to just discussing the cost of goods. They should also think about what happens if something goes wrong. For example, if there is a delay in shipping or an issue with the quality of the product, what will the supplier do to rectify the situation? A clear plan of action will address these issues and keep the supplier accountable if they are not up to par.
Request samples
When considering a business relationship with any supplier, requesting samples before committing is always a good idea. This is true for both big-ticket items and even smaller products like pens or paper clips. Buyers can see what the quality is like up close and personal. Are the products well-made? Do they feel like they will hold up over time? Do they have any flaws in their construction? These are all important questions that businesses can answer by getting their hands on a sample before making a purchase.
How to ship from Alibaba.com to Amazon FBA?
The process of shipping products from Alibaba.com to Amazon is very easy and intuitive. But before getting into the details, let’s first understand the business model of Amazon FBA.
What is an Amazon FBA business?
Amazon FBA is a global fulfillment network that allows businesses and independent sellers to fulfill their product orders through Amazon’s warehouses and distribution centers. This can be helpful for small- to mid-sized businesses that don’t have the resources or desire to handle shipping themselves. Amazon will handle all of the headaches related to keeping track of the inventory and making sure it gets shipped out in a timely fashion. Amazon business sellers also receive additional benefits like customer service assistance, processing of product returns, marketing tools, and more.
Three types of FBA sellers
Before selling products on Amazon, it’s important to understand the three main groups of FBA sellers and their particularities.
Private Label sellers
Private label products are a great option for third-party sellers who have a knack for branding and are looking to promote existing products under their business name. This FBA business model is the best way for eCommerce merchants that already have an established brand identity and want to expand their product offerings without having to invent new products from scratch.
Resellers
Resellers source products in bulk at a lower price and then resell them on Amazon for a profit margin. This is often called “retail arbitrage” and is one of the most popular types of FBA businesses. The beauty of being a reseller is that there’s very little barrier to entry; Amazon business sellers don’t need to make their own products or have any kind of expertise in manufacturing.
Proprietary sellers
The starting point for this FBA business model is having a product that no one else has. This is not just about branding existing products, but about creating something new from scratch like a patentable product or a unique formula. This is a highly beneficial strategy in terms of competition, as businesses won’t have to compete with sellers that are simply promoting generic products.
But is it possible to sell Alibaba.com products on Amazon?
The first question that comes to mind when starting an Amazon business model is whether or not it’s legal. The answer is a resounding “yes.” Alibaba.com has a huge network of B2B manufacturers and vendors that can supply retailers and dropshippers directly with products. It’s totally legal to resell Alibaba.com’s products on Amazon, as long as they’re in line with the target country’s laws and regulations.
How to buy products from Alibaba.com and sell them on Amazon?
The process of selling Alibaba.com products on Amazon is straightforward. First, businesses need to create a seller account on Amazon. After this, they can directly add products from Alibaba.com to their product listings on Amazon. Once added, sellers can ship the products to Amazon warehouses for storage and shipping. For more details, check this guide for step-by-step instructions on how to sell on Amazon!
Learn more: A Guide for Amazon Private Label Sellers
Alibaba.com is the one-stop shop for eCommerce businesses
With Alibaba.com’s vast range of products, there’s no limit to what merchants can sell on Amazon. This business model is a great way for eCommerce businesses of all sizes to leverage their existing brand without having to worry about inventory, shipments, or customer service. Dropshipping is another popular business model that provides entrepreneurs with a hassle-free way of selling products from Alibaba.com without worrying about inventory management. Learn more about dropshipping and why it’s time to start it now!
