Alibaba Dropshipping – Practical Guide: How to Buy on Alibaba and Sell on Amazon

Alibaba marketplace is a Chinese online platform that offers vast products and sourcing options for different types of businesses. Knowing that it’s a giant online platform with the lowest market price, sellers contemplate importing goods from China and selling them on Amazon. 

Alibaba marketplace creates good opportunities for entrepreneurs all over the world. China has been on top of manufacturing and distributing goods, while Alibaba, a Chinese e-commerce company, is the best option for retailers who want an excellent profit margin. Alibaba has a vast portfolio of products. Most online platforms source products from Alibaba and sell them in their stores.

Alibaba creates an excellent opportunity for trading

As a giant Chinese e-commerce platform, Alibaba marketplace caters to buyers and sellers all over the world. They are also considered the best online suppliers who can offer the best prices for e-commerce sellers. Alibaba’s market has successfully created a better place for online entrepreneurs and provides consumers with the best and affordable products to purchase.

How to safely outsource products from Alibaba?

Finding a legit and right supplier is the key to success in any online market. When buying on Alibaba marketplace, you are aware of the risk of buying online. Since we can not eliminate fraudulent transactions, we need to be careful when transacting online.

First, we should know how to find legit suppliers and identify sharks online. It is essential to maintain safe transactions anywhere. Thousands of suppliers prefer Alibaba as their e-commerce platform for years and continue using the source for their businesses. Alibaba is offering a Trade and Assurance program, insuring shoppers from fraud. Trade and assurance program provides a money-back guarantee that keeps the buyers safe from suspicious transactions.  

DDP and its role in the process

DDP – is what we call the delivered duty paid. It is the easiest way to ship your products to the Amazon marketplace in the US. Alibaba, which will happen to be your merchant, would do everything – from packing and settling everything on customs to reaching the Amazon warehouse safely. You need to know lots of processes when you are planning to be an Amazon seller. 

Since there are different suppliers to choose from in Alibaba marketplace, it’s better to keep the ones with a proven track record on sales. You can check on their buyers’ feedback left on the feedback section if you want to know their reputation online and how well they play their role being suppliers on Amazon. 

Since China is the biggest supplier of items globally, you can see many sellers and manufacturers presently selling on Alibaba and shipping from China to all Amazon’s warehouses for many years. The online industry has successfully climbed on top as the most accessible way to earn during a pandemic. We don’t know how long we will stay in this, but the best thing the pandemic taught us is the resiliency in doing business online.

To understand product sourcing in China even further, you can read this blog: Understanding Product Sourcing from China: All You Need to Know.

Risks associated with buying on Alibaba

Trickster online works as alligators waiting for a victim. The presence of fraudulent transactions is why some people are hesitant to use online platforms for buying and selling. As a seller who needs to process orders for supplies from China, you need to know what should be on your checklist when purchasing on Alibaba marketplace to sell on your online store on Amazon.

• Quality of products

Expectation versus reality is a common thing when purchasing a product for selling. Buyers are expecting the best quality of the product they ordered online. Creating an apparent demand on specifications of the products such as design, size, colour, dimensions, and material while you are in negotiation with your supplier will help you in your expectations and have the chance to replace the features that you want to change. If you are in doubt, always do a third-party inspection by checking the feedback section to guarantee good quality before paying your suppliers.

• Payment Fraud

Dishonest sellers will do their best to lure their victims. They can break into account security and loot from your bank accounts. If you happen to encounter this, you should contact your bank personnel and report this malicious act.

How to buy on Alibaba and sell on Amazon?

• Research the right product for your store

This is the longest yet most essential part of the process. The quality of your product will create a significant impact on the outcome of your business. It is always a wise idea to pick a product that will fill the gap in the market. Alibaba marketplace offers from generic to private label products so that you can choose whether you want your product to be customised according to your brand and design or buy the generic items at a lower price.

• Get quotes and compare

The next step is to get a quote for pricing. Getting quotes from different suppliers will give you comprehensive options to choose from. To get a quotation, you can visit the Alibaba website, click on sourcing solutions and reach your supplier for Request for Quotation. You will land on a form where you can ask the seller about the product’s detail such as description, category, quantity, sourcing type, and purpose and trade terms.

• Ask your supplier a lot of questions to ensure your safety as a buyer

There is nothing wrong with being too curious. As to your protection, you can ask your supplier if he is providing Trade Insurance for his customers. It is an assurance that will cover any product’s repair and services cost if there is a defect. Trade insurance will cover up any losses in a chance that your supplier will send you a wrong and defective item. 

If you plan to buy from Alibaba marketplace and sell on Amazon, you should ask experienced sellers on Alibaba about their process of doing it. It is essential to ask your supplier everything that is included in the process not to lose a lot of your investment.

• Negotiate pricing

Don’t be afraid to negotiate with your supplier about their pricing. Chinese businesspeople are very open to negotiations, and they value their business partners. If you are good at bargaining, you will have a great chance to get the best deal. 

There are lots of platforms that you could use to help you in seeking products online. One of the tools which sellers widely use on the Amazon marketplace is the Jungle Scout. This app is beneficial for start-up business owners to get the best offer from suppliers possibly.

Usually, business owners are curious when it comes to expenses. They should learn to compute all the costs of the whole sorting and shipping process.

• Get a product sample

Getting a product sample before jumping to bulk buying will allow the seller to change and redesign the item they want to sell. It is the best decision that sellers should make before posting it on the Amazon marketplace.

Warning shot – ensure products do not infringe on any intellectual property rights

Alibaba marketplace is a free market operating online and accepting suppliers wanting to sell their items. China is known for copying almost a hundred per cent of branded items and selling them at a lower price. 

Sellers should take care of their Amazon accounts. To ensure that they are selling an item that is not owned and registered in any patents, they need to do proper research to get a genuine product supplier.  

Alibaba marketplace is not a hundred per cent reliable platform. It can just open your door to a lot of resellers and manufacturers in China. We know that it is illegal to sell fake branded items on Amazon, and it may suspend a seller’s account. To avoid account suspension, a seller should see that everything on the listings is original and none of it contains a false description of the item. 

Selling customised items on the Amazon marketplace would be great. The term private labelled items as what they call on Amazon may cost higher than generic items on Alibaba.

Frequently Asked Questions

How can I buy from Alibaba and sell it on Amazon?

Search on Alibaba the product that you want to sell on Amazon marketplace. Check if the product is with intellectual rights and infringement to ensure the safety of your Amazon account. Negotiate on pricing and work out your profit margin. Order a product sample and ship it directly to you. Checking the actual item will allow you to change some specs of the product, especially on material used, colour, size, and dimensions. If you are satisfied with the item, you can negotiate again for bulk order, place an order, and sell it on Amazon.

Is it safe to order on Amazon? 

All online marketing platforms have their own risk. To get out of the trouble of being scammed, always check customer’s feedback and ask for a secure payment method if you wish to purchase from them.

Is it legal to import products from Alibaba to sell on Amazon?

Yes, it is legal. You should be careful about items with patents and registered under intellectual property rights.

Conclusion

Alibaba is a great and well-known Chinese platform to source both generic and private label products. It is essential to do proper due diligence before signing with any specific supplier. Ordering product samples, discussing safety and pricing information in time would be a great asset to starting a successful business on Amazon.