If you want great profit margins and a convenient breakthrough in e-commerce, then this is the method you are looking for. Buying from Alibaba and selling on amazon is currently the broadest used method for all the right reasons. Read our detailed guide on “How to Sell from Alibaba to Amazon” and start making money right away.

Alibaba is a perfect place for all sellers, with a wide range of manufacturers and suppliers that can quickly fulfil their needs.

This is an excellent guide if you are unaware of what Alibaba is and how it works. In this guide, we will tell you all you need to know about Alibaba to buy and sell on Amazon successfully.

What is Alibaba? | How to sell from Alibaba to Amazon

Alibaba is one of the globe’s biggest retailers. The company has over five hundred million people using its shopping apps every month. 

If you think its scale is only limited to China, give it a second thought! It operates in more than 200 countries. Alibaba is amongst other global e-commerce giants which completely transformed the marketplace. Alibaba helps you connect with different manufacturers and suppliers around the globe who sell high-quality products at extremely affordable prices.

Far from other e-commerce websites like Amazon, where people can only make one-off purchases, Alibaba is a website where businesses can buy products in bulk to resell them online.

Moreover, SellerApp has also teamed up with Alibaba to further simplify your product sourcing process. In case you are the CEO of a gigantic company or are driving an Amazon business on your own, you can easily buy products from Alibaba.

 Which types of Products is Alibaba suitable for?

 Your whole selling process starts with finding the right product with good quality and low price.

 Alibaba is very useful if you want to buy products from it and put your own logo or label on them. SellerApp also helps you with tools related to product research.

Your product research should mainly focus on finding products with a high possibility of generating high sales. You should be able to source and sell it at such a price that will leave you with a good profit margin.

You should also keep in view the anti-counterfeiting policy of amazon. You’ll be permanently banned if you sell counterfeit goods on Amazon. Therefore, refrain from using Alibaba for branded products.

Phone cases, toys, jewellery, clothing, and many such other things can give you an excellent profit margin.

Is Alibaba a Safe Option?

Yes, majorly, Alibaba is a safe option for sellers to buy goods. But there are things you need to know while buying from Alibaba, like payment scams and counterfeits, and this is also a prevalent scam in which suppliers often send high-quality samples but send poor-quality bulk orders. 

If you are buying things to sell further, so the order will be in bulk, make sure you’re working with a genuine supplier.

Also, Alibaba has many options to ensure payment and information safety, such as:

• Alibaba offers Trade Assurance which is a money-back offer. With verified suppliers, this offer guarantees money-back if your order is unsatisfactory in any aspect, be it quality or shipping time.
• For the suppliers who don’t take part in the Trade Assurance program, there is a whole verification process of different levels for them. The badge is given to suppliers according to the verification levels they have passed.
• For buyers to get scammed, there are anti-fraud programs as well that prevent it. You can use the report option for such suppliers, and Alibaba will deal with it rightly.
• Alibaba also lets you talk with manufacturers. One should discreetly use this option to ask suppliers for their verification levels, business licences and contact information. This enables a safe buying decision.

What to sell on Amazon with a Great Profit Margin

Finding suppliers on Alibaba is not as difficult as deciding what to sell on amazon. The most important step is to do good product research. Firstly, we have to start with products that are in high demand and low in cost. This will be your best shot at competing with other established brands in your niche.

There are three things you need to consider while buying and selling products. 

1. Market Demand:

You need to determine if people are searching for and buying that product. If you rightly know the product’s demand, you will invest in it without hesitation.

2. Profitability

It is also a significant factor. You must make sure you buy and sell a product with a great profit margin. For beginners, the 3X rule works the best. Here’s an example for you to understand correctly,

If you buy a product for $10, you should sell it for approximately $30. $10 for Amazon fees, and your profit should also be $10. 

3. Competition

With a lot of competition, being ranked at the top is difficult. But if you choose something with less competition and more demand, then it’s a win-win situation for you!

 You can also use powerful tools that provide verified data to run product research on amazon.

Jungle Scout  is a tool which offers different tools you can use to find and explore products to sell on Amazon:

• Product Database
• Extension
• Opportunity finder
• Product Tracker
• Keyword scout
• Rank Tracker
• Category trends

Why do people choose Alibaba to sell on Amazon?

Most people consider Alibaba the best option to find suppliers to sell on amazon. That’s because Alibaba is very affordable and easily accessible. It gives people the option of buying in bulk. Most of the suppliers and manufacturers on Alibaba are based in China, producing good quality stuff at low prices compared to other countries.

Another reason is that Alibaba is highly accessible. It provides you with thousands of potential suppliers that can supply you with a product in bulk in a brief period. Moreover, you can talk to suppliers and discuss your concern about product quality, shipment, and everything.

Payment methods on Alibaba

There are many different methods to pay suppliers on Alibaba. Don’t take the risk of settling payments outside of Alibaba. Because there are so many scams and fake payments, paying outside is risky as you cannot hold anyone accountable for it. 

Here we will tell you some prevalent payment methods that Alibaba offers.

Letter of Credit

While dealing with orders in bulk above than $20,000, this is the best and safest method of payment. This is the most practical method to buy products that are in high demand. Without any doubt, it guarantees payment to the supplier with the aid of the entire documents and paperwork.

Bank Transfer

This is an easy but tricky method of payment. If done rightly, you can avoid all the risks. Don’t make the complete payment just at the beginning. The easy thing is to pay half part of the payment at the beginning and half at the end. 

Make sure to have all the accurate information about the supplier, his good name, address, bank code, etc. But payment through this method can also be delayed as it takes almost 2-3 days to start and process, and then the weekend comes.

PayPal 

Paypal is also a payment method with a low-risk level, specifically for global transactions. Firstly it’s easy to use, there are no delays, and it offers a fully secured payment procedure.

But on the other hand, it might not be as convenient for the one receiving payments because of high taxes and other troubles related to money withdrawal.

Trade Assurance

This is another payment method offered by Alibaba in order to save buyers and protect them from any mishap. It is not applicable through any outside means. It’s only applicable as long as you are securing payments through Alibaba. 

Trade Assurance compensations for any loss that might occur if the order is delayed or damaged.

 The only issue with Trade Assurance is that almost all the suppliers do not want to partake in it. The ones who participate in this policy have high prices only because of participating in this policy.

Escrow 

Escrow, also known as The Alibaba Secure Payment Service, is also a method with very low risks. In this payment procedure, the buyer’s payment is clutched until the buyer receives his order and approves the quality and quantity of his order. 

This payment method gives the buyer an upper hand and saves him from scams and fraud. It makes sure that the buyer is satisfied with the product’s quality.

And if the quality is unsatisfactory, then the payment will not proceed further until the buyer conducts the inspection and clears his doubts.

How to sell Alibaba products on Amazon?

The goal behind selling Alibaba products on Amazon is that you have to ensure that the item you are selling has a good demand but low competition. Or even if you want to sell something that is in great demand, make sure to find a new variant of that product.

For example, if people buy a lot of water bottles on Amazon, then you can come up with different styles of water bottles.

Use the Seller Central option to expand your reach

Amazon is a great platform to expand your reach and business as it is a widely used platform. It will be useful in both cases; 

whether you are a novice or an experienced seller of your own website.

If you are selling a product on your website, it might as well sell well on Amazon. Moreover, it will also help you expand more and gain more customers.

For instance, suppose you have your own website, and you have been selling phone covers on it with unique designs for over a year and want to know if there’s a chance to sell them through Amazon or not.

Especially, in this case, the procedure of starting is easy. 

Here’s all you have to do to start selling on Amazon:

• Create an account on Amazon Seller Central .
• Click on “Manage Your Inventory”.
• Add the items from your current inventory into their system.
• Enter your product information, including its brand name, images, description, Product features, etc.

And when they’ve been added, people will start seeing them in search results along with other items sold by other sellers.

Final Thoughts

We have told you all the factors, risks and information involved in the “How to sell from Alibaba to Amazon” guide. But hands down, this is the best method of stepping into e-commerce, as Alibaba and Amazon go along with each other very nicely.

While selling on Amazon, you cannot compromise on quality while keeping the profit margins in view.

Apply the following tips and tricks, and you will be perfectly trained to run a successful Amazon business.

Best of luck!