Alibaba isn’t the first place Amazon sellers think of to source their products, but it should be. This gigantic online retailer can be your next major place for sourcing products that you can sell online. But what is Alibaba, how does reselling work, and what are the potential risks? Read on for a primer on getting the most out of Alibaba-to-Amazon reselling.
What is Alibaba?
Where most of the world has Amazon, China has Alibaba. It is a marketplace that rivals Amazon in size and scope and is the go-to online retailer for most of China. In fact, it’s easily Amazon’s biggest competitor, even as it is relatively unknown in North America.
Alibaba has the distinct advantage of extremely competitive pricing, even compared to Amazon. They are also a fantastic resource for private label products that you can easily source from Alibaba and then sell on Amazon. It’s one of the more unique ways to up your profits and presence on Amazon without investing a lot of time into hunting for sellers.
Reselling products from Alibaba on Amazon is often simply called “Alibaba-to-Amazon,” and it’s gaining popularity for sellers. Sourcing products from Alibaba is fairly straightforward and similar to working with other suppliers. Here’s a breakdown of what to do when trying Alibaba-to-Amazon.
First, research products. Do so by looking into unique products that will set you apart or finding great deals on products that can help you stay price competitive on the Amazon marketplace. If you already know the products you want, that’s great! If not, be prepared to spend a significant amount of time researching what to buy. It’s important because picking what products to sell can be the difference between profit and bankruptcy.
Next, request your quotes. Before you commit to anything, be sure to source multiple quotes for similar products. Compare every level of pricing and timing to see what you can get and when. Alibaba makes this part easy, letting you hit the RFQ (Request for Quotation) button to quickly set you up with quotes.
After you decide on your quotes, it’s time to negotiate. You can often talk down suppliers to even better deals, giving you an edge without a lot of extra effort.
Once you’ve negotiated a price and time that works for you, get a sample. This can help you avoid potential issues with quality and help you avoid potential scams. After the sample is to your liking, then it’s time to buy and bulk and start reselling!
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