Learning how to sell on Amazon from Alibaba is an excellent way to set up or expand your Amazon business.
While Alibaba is ideal for buying in bulk or ordering personalized products, it does have issues.
Don’t worry because I can help you.
I wrote this article to teach you everything about selling on Amazon from Alibaba, including how to manage some of the most difficult issues when ordering from Alibaba like how to find verified suppliers, negotiations, payment methods, and where to ship your products.
I’ll also discuss the different ways you can search for products.
Let’s start.
Everything You Need To Know About Alibaba
Alibaba is an online marketplace for businesses to buy from other businesses. It’s an eCommerce platform that connects sellers with manufacturers, producers, or suppliers.
The platform differs from other ecommerce websites because products often come with a minimum order quantity (except for some equipment and machinery).
Alibaba is for bulk orders from online resellers or brick-and-mortar stores.
The platform makes it easy for businesses to contact supplier stores. It offers trade assurance, sample purchases (to allow you to assess product quality), and flexible shipping costs for bulk orders.
Some Alibaba suppliers let you create your own brand by providing a customized option that costs extra. You can have branded products from these suppliers by adding your brand name, logo, and other details.
The Alibaba secure-=payment service protects buyers through EEscrow, holding off payments to your Alibaba supplier until they fulfill your order.
Alibaba for Amazon Sellers
Amazon sellers use Alibaba because they get profitable product ideas. Businesses can make a significant margin by buying in bulk and selling directly to customers.
Alibaba is also a secure way of buying products since the platform has measures to maintain product quality. It also offers a trade assurance program to ensure you don’t fall victim to scams.
If you have an Amazon seller account and know which products you want to sell, research Alibaba to find the products you need.
Aside from trade assurance, suppliers on Alibaba are easy to pay through the platform’s many payment options.
What Products Can You Find on Alibaba?
Alibaba is ideal for private-label goods. However, there are still counterfeit products on the site.
I recommend you only sell products that don’t violate copyrights, trademarks, or patents.
Selling knockoffs can result in losing your Amazon FBA business and facing legal issues.
If you’re selling directly to customers, I recommend selling Alibaba products under your brand or removing all markings to classify them as generic. Doing so will help you avoid brand and patent issues.
What You Should Know Before Buying on Alibaba and Selling on Amazon
You should know some things before selling quality products from Alibaba on Amazon.
Deciding What To Sell on Amazon
Ideally, you’d want to sell these products.
Products you’re knowledgeable about
Products with good profit margins
Products with low competition
Understand what you’re selling before you start purchasing products. It’s hard to sell or market items you know little about.
Having sufficient knowledge is crucial if you want to sell a private-label product with your logo.
You should also watch your margins. When buying from Alibaba and selling on Amazon, research your potential profit and determine if it’s realistic or worth it.
To find good product ideas, verify the demand for your items. You could know a lot about a product with good margins, but there’s no point in selling if nobody buys it.
Understanding the Legalities of Selling Alibaba Products on Amazon
You can sell Alibaba products on Amazon, provided they aren’t counterfeit. If you try to sell fakes, Amazon will immediately ban your Amazon seller profile.
Alibaba doesn’t always vet products to see if they are fakes or counterfeits. You must vet the suppliers you want to buy from and ensure your products don’t violate any laws.
If you want to sell the same product as another store but with your branding, determine if the other store has a patent.
Finding Products on Alibaba
To find products on Alibaba, search according to categories or keywords. You can also specify if you’re looking for products or manufacturers.
The best way to look for products is to search by category. Look for one that matches your ideal product and select items from reputable suppliers.
Another thing you can do is search using images by uploading an image of a similar product you want to buy.
How To Sell on Amazon From Alibaba
You can buy from Alibaba to sell on Amazon after determining the products you want to sell.
How To Buy From Alibaba and Sell on Amazon (FBA Warehouse)
Here’s how to start selling in no time.
Create an account on Alibaba.
Create a free account.
The more thorough you are, the easier it’ll be for sellers.
Sellers also vet buyers, especially those asking for discounts, so make your account professional.
Search for items.
Determine what items you want to sell on Amazon and search for them on Alibaba.
Contact the seller.
Contact the seller and ask essential questions to understand the product and the seller’s terms.
Most sellers are open to price negotiation, so don’t hesitate to ask for better deals.
Verify the details.
Aside from quality control, you should also verify the seller or manufacturer. To ensure it’s a reputable company, look at its success rate and stats and whether it has been in business for a long time.
Going for newer companies offering better deals is riskier than companies with years of experience selling on Alibaba.
Ask if they ship directly to the Amazon FBA warehouse.
Ask sellers if they can ship to your Amazon FBA warehouse.Ensure your Amazon Seller Central account will get an update. You can see information on your Manage Inventory page.
Discuss payment terms.
Find out if your supplier accepts PayPal or only accepts bank transfer payments. The Alibaba trade assurance only covers payments within the platform.
If you’re making a private deal with a seller and want to pay outside the platform, Alibaba can’t protect you if you fall victim to a scam.
Some sellers are also open to Escrow, decreasing the likelihood of payment transaction fraud.
Ensure you get the correct manufacturer’s bank details if they are in another language.
Get the estimated express shipping costs.
If you ship by sea or air freight, getting the correct details and estimated costs of sending the order is critical.
If placing bulk orders, ensure your items are protected during shipping. Always factor in your shipping expenses when selling on Amazon.
Get the necessary shipping authorizations.
You can ask the seller if you still need customs clearance for your items. Some products require clearances, while others can ship directly to your location or the Amazon FBA warehouse.
Track your order.
Delivering your products may take a long time, especially if you’re buying from overseas suppliers. Always ask your suppliers for tracking information.
Double-check your delivery.
Record the process of checking your delivery. While you might not have bought from fake suppliers, there’s always a risk of damage.
You can check your products to see if they arrived safely or if you need to request a refund and return them.
Is Alibaba Safe for Amazon Sellers?
Like any business, Alibaba has risks.
Consider these steps before you engage in a business-to-business transaction with any supplier on the platform.
How To Look for Gold Suppliers (Vetted)
The key to successful selling on Amazon by buying on Alibaba is looking for the right suppliers. Vetting your supplier is critical.
Here’s how to vet suppliers.
1 – Enter the product you’re looking for in the search bar.
2 – Select Trade Assurance and Verified Supplier under Supplier features on the left side.
3 – To research a company, hover over the CN Supplier and click More verified information.
4 – You can see which company verified the supplier.
5 – Once you scroll down, you can find everything you need about the company, including certifications, which are good indicators of legitimacy.
6 – Aside from years of performance, look at buyer interaction and transaction history. The higher the number of transactions and total amount, the more likely the supplier is legitimate.
7 – If you have further questions or want other forms of proof, you can always message the supplier.
Buying From Alibaba To Sell on Amazon: Pros and Cons
Like other platforms, Alibaba isn’t perfect if you want to sell on Amazon.
Learn the advantages and disadvantages to properly assess whether Alibaba is the best place to buy products to sell online.
Pros
Wide Selection
Alibaba has a wide range of products. It lets you access hundreds of thousands of products in different categories, including equipment and machinery for industrial businesses.
Lower Costs
You buy directly from the supplier, letting you avoid intermediaries who mark up the products.
Convenience
You have access to suppliers overseas.
Payment Options
Alibaba supports Escrow services, which provide additional assurance when buying products. The supplier only gets paid once you receive and verify your order (this depends on your terms).
Logistical Access
You don’t need to arrange your logistics with Alibaba. The platform already provides you with options for how to ship your products.
Cons
Language Barrier
Not all sellers on Alibaba are fluent in English, increasing the risk of miscommunication. You may need a translator to help ensure both parties understand the negotiations.
Shipping Time
Since most sellers ship overseas, expect long shipping times from a few days to several weeks. You can arrange for air travel, but this often costs more.
Quality Control
Not all products on Alibaba are high quality. Some sellers make the mistake of not buying a sample product before purchasing it in bulk.
Brand Protection
Alibaba doesn’t provide exclusivity to ensure you’re the only one selling a certain product. There’s no stopping the competition from doing exactly what you are and changing the logo.
Limited Support
Avoid dealing with businesses that don’t reply to avoid struggling to contact them after placing your order.
Buying From Alibaba and Selling on Amazon: Risk Management
There are some things you can do to help minimize the risk of dealing with a bad provider or even getting scammed. Here are some tips you can follow for extra security.
Verify Legal or Trade Documents.
Even if businesses display legal documents on Alibaba, verifying them with the appropriate agencies or bodies is crucial.
Use Escrow.
Although less convenient than other payment methods, Escrow is the best way to avoid scams.
Build Relationships with Suppliers.
Consistently ordering from a supplier builds trust.
Test the supplier before committing.
Don’t order in bulk immediately. Try ordering a sample or the minimum order requirement to determine if the product meets your standards.
Verify prices and quantities.
Always verify the price and quantities since prices can change during negotiation.
How To Sell Alibaba Products on Amazon (Additional Info)
Here are other things you must know about buying from Alibaba and selling on Amazon.
Where To Buy Products To Sell on Amazon FBA
Alibaba is one of many places you can buy products to sell on Amazon through FBA. You can contact manufacturers directly or use Alibaba competitors like IndiaMART, Kompass, or 1688.com.
How To Connect Alibaba to Amazon
You cannot directly connect Alibaba to Amazon. However, you can have Alibaba ship directly to the Amazon FBA warehouse.
How To Dropship From Alibaba to Amazon
You need to find suppliers open to dropshipping on Alibaba. Contact the supplier directly and ask if the option is available.
How To Ship From Alibaba to Amazon
You can direct the seller on Alibaba to ship to your nearest Amazon FBA warehouse.
Frequently Asked Questions (FAQs)
What Are the Best Products To Buy on Alibaba and Sell on Amazon?
The best products are those you know about and products with high margins, significant demand, and little competition.
Can You Sell Alibaba Products on Amazon?
Yes. You can buy in bulk or dropship from Alibaba to Amazon.
What Is Alibaba to Amazon FBA?
Alibaba to Amazon FBA means ordering directly from Alibiba and shipping the order to an Amazon FBA warehouse.
What Is Alibaba Dropshipping: Amazon Edition?
It refers to receiving orders on Amazon and dropshipping from Alibaba.
How Does Shipping from Alibaba to Amazon FBA Work?
You must contact a supplier, request delivery to your nearest Amazon FBA warehouse, and send orders through Amazon whenever a customer buys from you.
Is Alibaba Safe To Buy from?
Yes. However, you must practice due diligence.
Buy from a verified seller and always authenticate their legal documents. You can also ask for a referral.
The Bottom Line
I hope my guide made it easier for you to understand how to sell on Amazon from Alibaba.
Some Alibaba suppliers are flexible, meaning you can enter a dropshipping arrangement where you only pay them when you receive an order yourself. This is an excellent way to bypass the lack of capital or worry about unsold products when you buy in bulk.
If buying in bulk isn’t for you, consider learning how to start a dropshipping business.
