Doing Amazon FBA with Alibaba is something you should consider if you really want to make a fortune online.
You simply buy goods or products—at best deals, in bulk—directly from Alibaba and resell them through Amazon FBA.
The thing about Amazon FBA with Alibaba is that it gives you better control over prices and less risk with respect to production and ads. You also leverage existing customers who already know the brand.
Sounds amazing right? Don’t worry: More tips are coming.
This article covers everything you must know to do Amazon FBA with Alibaba—even with zero knowledge.
To do Amazon FBA with Alibaba:
- Familiarize Yourself with Amazon FBA and Alibaba
- Choose a Niche to Sell On
- Create an Amazon Professional Seller Account
- Download the Amazon Seller App
- Join the Amazon FBA Program
- Obtain a Business License and Permit
- Create an Account with Alibaba
- List Your Commodities on Amazon
- Choose Products and Set Your Price
- Promote Your Business
Let’s get granular here!
1. Familiarize Yourself with Amazon FBA and Alibaba
To do Amazon FBA with Alibaba, familiarize yourself with the business model.
With FBA (Fulfillment By Amazon), you send products to Amazon fulfillment centers, they store and ship products to your customers.
All you have to do is pay certain charges such as handling fees, shipping fees, and any other charges along the way.
Just make sure you understand Amazon’s requirements and guidelines.
On the other hand, Alibaba is a mega Chinese ecommerce platform that connects buyers with suppliers—most comfortably via the wholesale model.
Besides, you buy products on Alibaba at huge discounts when you purchase in large quantities. This is why products on Alibaba come with MOQs (Minimum Order Quantities).
2. Choose a Niche to Sell On
To do Amazon FBA with Alibaba like a pro, choose a niche to sell on. This helps you identify your target audience.
Sam Walton (founder, Retailers Walmart and Sam’s Club) says something interesting about this: “If everybody is doing it one way, there’s a good chance you can find your niche by going exactly in the opposite direction.”
Don’t follow the crowd. That’s important because you definitely don’t want to get drowned in the competition.
Studies show that niche-specific brands perform better than those with generic products. Do your research on various niches and hinge on one.
Nothing complicated here: Just consider the products to sell and whom to sell to. Also, decide which market you want to target.
One last thing, analyze market trends to position your brand at the sweetest spot.
3. Create an Amazon Professional Seller Account
To do Amazon FBA with Alibaba, create an Amazon Professional Seller Account.
That way, you are able to sign up for an Amazon FBA program.
With Amazon Professional Seller Account, you can list up to 40 items with no commission charges on sales. The plan only takes a $39.99 monthly fee for a subscription.
To sign up for an Amazon Professional Seller Account, go to Amazon Central and click the “Sign Up” button. Provide necessary credentials such as email, password, etc., and fill out the registration form.
Make sure you verify your email once you’re done with the registration process.
4. Download the Amazon Seller App
To do Amazon FBA with Alibaba, download the Amazon Seller app where you get to manage your online business on the go.
With the Amazon seller app, you save yourself a lot of time by having easy access to sales, listings, managing inventory, and product prices remotely. You also stay on the wheel in keeping up with customer reviews and needs.
Go to Apple Store for IOS users— or the Play Store for Android users—, search for, and download the Amazon Seller App.
Log in to your Amazon professional account details to get access to the app. It’s pretty easy.
5. Join the Amazon FBA Program
To do Amazon FBA with Alibaba like an expert, join the Amazon FBA program.
That’s important because you definitely need Amazon to pick, pack, and ship your orders to customers on your behalf.
Once you’re in the FBA program, package your products and send them to Amazon’s fulfillment centers.
Before sending your products to Amazon’s fulfillment centers, you need to set your inventory to FBA, create and label your shipment, and track your shipment.
To sign up for the Amazon FBA program, go to the Amazon FBA website and click on “Get Started.” Select “Add FBA to your account” and create a product list.
NB: If you are new to Amazon, you’ll have to rather click on “Sign Up.” That’s the best place to start for newcomers.
6. Obtain a Business License and Permit
To do Amazon FBA with Alibaba, acquire business licenses and permits so as to keep your compliance with state and federal business rules.
First off, find out the necessary license(s) your business needs. You can either enquire from the Small Business Administration office, Secretary of State office, or Department of Revenue.
Get your Tax Identification Number and Social Security Number handy (if applicable). You’ll need them to obtain your business license.
Keep an eye on the requirements of each license. Bear in mind that the requirements depend on your type and place of business.
Last but not least, create your business structure and name, as this is one of the basic requirements for getting your license. Seek help from accountants, tax advisors, and FBA consultants if need be.
7. Create an Account with Alibaba
To do Amazon FBA with Alibaba, create a seller account on Alibaba.
This is important because that’s where you purchase your products and send them to Amazon’s fulfillment centers.
It’s quite simple: Just sign up for an Alibaba seller account by clicking “Sign Up” and filling out the form.
Lunch your business profile, design your store, and place your products accordingly. Don’t forget to use every available resource to your advantage.
8. List Your Commodities on Amazon
To do Amazon FBA with Alibaba, list your commodities on Amazon. Again, start with a few products to familiarize yourself with the business metrics before further diversifying.
Package your products and ship them to Amazon’s warehouse to get things set for delivery.
Remember to ungate yourself each time you encounter restrictions on particular brands. Keep your product receipts safe—you’d need them to ungate certain product categories.
9. Choose Products and Set Your Price
To sell on Amazon FBA via Alibaba, choose products to sell.
Again, stick to your niche and choose products around it. You can choose from these categories—toys, pet items, accessories, clothing, food, electronics, and office accessories—depending on your target market.
Choose products that have a Best Seller Rank (BSR) of 200,000, at least, and a minimum of %30 ROI. Such products are reliable to sell.
Decide on the units you want to purchase. Preferably, start with a small set of goods to test the waters.
Set your product price using the “cost-plus” pricing strategy. Simply add up all costs involved in bringing your product to market, and set your price slightly above those expenses.
Make sure you check the product’s profit potential. Use the Amazon profit calculator app, and input your buying price, selling price, and shipping cost to the Amazon warehouse. The app calculates everything, including your potential profit.
10. Promote Your Business
To do Amazon FBA like a maven, promote your business so you can reach a wider audience and increase sales.
You want people to know about your business. After all, you’re in business to make a profit, right? So get the word out.
Leverage Amazon’s Pay-Per-Click to promote your business as a sponsored brand, sponsored product, or display ads.
Use your social media platforms, email marketing, and Google ads to drive traffic to your online store. Don’t neglect the power of influencer marketing and YouTube ads to spread the word about your business.
Recap
Doing Amazon FBA with Alibaba is something you should consider if you really want to make a fortune online. Familiarize yourself with Amazon FBA, and Alibaba and choose a niche to sell on.
Create an Amazon Professional Seller account and download the Amazon seller app for ease of transaction.
Join the Amazon FBA program, obtain a business license, and permit so you show your compliance with state laws.
Create an account with Alibaba and list your commodities on Amazon so shoppers can find and make purchases.
Finally, choose the right products to sell, set your price and promote your business to start making some cash.
