As an Amazon FBA seller, one of the challenges you’ll probably encounter is how to source products to sell to your customers. Learning how to do Amazon FBA with Alibaba is one of the best solutions to such challenges.
It’s also one of the most convenient and profit-yielding strategies you can use to source inventories for your store.
Alibaba is a global marketplace where sellers and brands can buy their products in bulk, from suppliers or manufacturers. This platform is unlike Amazon which mainly specializes in retail services. Most of the suppliers or manufacturers in Alibaba are based in China.
Sourcing products from Alibaba can be a challenging process, especially if you don’t know how it works. This article will provide you with the strategies you need to run your Amazon FBA with Alibaba. Here, you’ll learn how to:
- Create an Amazon Listing
- Find Your Ideal Product Through Research
- Find Suppliers on Alibaba
- Vet the Suppliers
- Pay the Suppliers
Let’s dig deeper!
1. Create an Amazon Listing
The first step to begin Amazon FBA on Alibaba is to create an Amazon seller account. Once you have a seller account, then you create a listing before shipping from Alibaba or another country to FBA.
To create an Amazon listing:
- Go to your seller account
- Click on inventory
- Add a product
- Click on “I’m adding a product not old on Amazon”
- Choose your product category
- Enter product information including beans name, images, product features, UPC, description and the likes
Once you fill in all the requirements, your listing is ready to be published the moments your products arrive.
2. Find Your Ideal Product Through Research
The next step to do Amazon FBA with Alibaba is find your ideal product through research. Your ideal product should have a ready market and also be able to generate a reasonable yield.
To find an ideal product:
- Go to Amazon
- Search for the products (on the bestseller list) and browse through the description and the customer reviews
- Reach out to trusted suppliers and get an idea from them, especially through their social media handles.
Additionally, keyword tools can help you here, that is, if you’re familiar with SEO. You can run keyword research to find out the product keyword people are searching for. You can also discover the products that are high in demand with low competition.
When carrying out your research, take note of the products that are not allowed in your country and avoid them. Otherwise, you face penalties.
3. Find Suppliers on Alibaba
Once you find products you wish to sell on Amazon FBA, find suppliers on Alibaba. Always look for suppliers who sell at the price range you can afford for your product.
To find and liaise with these suppliers on Alibaba, you need to open an account on the platform. It’s completely free.
- Go to the Alibaba homepage and click on the “join now ” button
- Enter your email, password, and business location
- Enter your contact information such as your name, business name, telephone number
- Hit on the create my account button
To find a supplier on the platform, you can search for them by the products. Here you search for your desired product and you’ll find the supplier’s contact on the right side of the product description. Additionally, you can type the name of the supplier on the search bar and their store will show up.
Either way, click on the supplier and go through their profile to learn more about the company.
4. Vet the Suppliers
To avoid scams or frustration, vet the supplier before settling with them. The company should at least have a website. Use Google and find out about their physical location, their website with their logo well represented, their license, and other necessary certifications.
The two best types of suppliers to work with, are the assessed suppliers and the gold suppliers. The companies under the assessed suppliers have passed through assessments by Alibaba’s third-party company.
While the suppliers under the gold star are the companies that are working with Alibaba mainly to promote their business. These companies pass through Alibaba strict checks and that’s a good sign for you.
5. Pay the Suppliers
Once you’re certain you are purchasing from a reputable Alibaba store, make payments and your goods will be shipped to your FBA.
Thankfully, Alibaba provides so many payment options through which you can pay the suppliers on the platform. Below are examples of some of these payment options:
Escrow
When you pay with Escrow, your payment will be held until you receive the goods you ordered and approve the order if it meets the required standards.
Escrow (or Alibaba Payment service) is a very secure method of payment on the platform and it benefits both the buyer and the supplier. For the buyer, it works to ensure his order is optimal enough to meet the agreed standard. On the other hand, it ensures that the supplier’s payment is secure.
PayPal
PayPal is an international online payment service that enables you to transfer money to individuals or businesses. Transfers done through PayPal are usually quick and the risk involved is minimal as the platform helps you to get your money back in the case of any challenge.
However, PayPal money transfers often come with high taxes. Also, the supplier may encounter some difficulties while making a withdrawal.
Trade Assurance
Trade assurance is a free and secure payment service offered by Alibaba.com to create trust between you and the supplier. It also covers you in the case of challenges such as delayed shipping and quality-related disputes.
This payment service is safe and reliable, and you don’t have to worry about fraud as you’re sure of a refund in the case of a mishap. However, not all suppliers accept this service, and the ones who accept it sell their products at higher prices.
Conclusion
If you’re a seller looking for a way to do Amazon FBA with Alibaba, you have to first, create an Amazon listing, then find your ideal product through research. When you’ve found your desired product, go to Alibaba and find suppliers.
Once you find a supplier with the products you need, vet the supplier to be sure you’re not about to make the wrong purchase. Once you vet and the supplier is secured, make payments and your goods will be delivered to you in no time.
