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In this article, we will cover the ins and outs of Alibaba. We will answer any question you have about Alibaba, including dropshipping and how to make money with Alibaba.
If you need to find a product online, check Alibaba. It is the number one eCommerce platform in the world. Alibaba has virtually any type of product you are looking for. This is great for potential buyers but even better for sellers.
As a potential seller, you can take advantage of all of the products that Alibaba has to offer. For buyers, the prices are extremely affordable, even after they have been marked up by the seller.
What is Alibaba?
If you’ve never heard of Alibaba, it can be a game-changer for your business. It is the number one business-to-business (B2B) platform on the globe with millions of products to choose from. Alibaba is a Chinese wholesaler, so the goods come from China.
As a business, you can use Alibaba to purchase products to sell on your own platform, or you can use the Alibaba group affiliate, AliExpress, to dropship goods directly to your customer.
Alibaba offers all buyers trade assurance, so they don’t get scammed when purchasing a product from a seller on Alibaba. It also assures buyers that the product they are receiving is true and matches the description of what they are buying. If there is an issue with the product you have purchased, Alibaba will fully refund the product.
Another great feature on Alibaba.com is the live broadcast section. There are thousands of live broadcasts available on Alibaba.com where sellers showcase the items they are selling. It is essentially a virtual trade show where you can see the product and watch the user demonstrate the product to give you a better understanding of how the product works and the different features it has.
How to Make Money with Alibaba
Alibaba has millions of products in over 40 different product categories to choose from. You can easily sift through the various categories on Alibaba.com to find products you want to sell. When you search for Alibaba products and potential suppliers, you can filter the results by checking the “Verified Supplier” and “Trade Assurance” boxes.
Verified sellers will prevent you from purchasing a product from an untrustworthy seller, and trade assurance will cover the cost of the product if there is an issue with the product or shipping.
Many sellers on Alibaba will offer to send you a sample of the product so that you know what you’re getting before you decide to place a bulk order. Also, that time to view the Alibaba pictures of products you’re interested in prior to ordering.
Another great option on Alibaba is the ability to communicate with the seller directly. You can ask questions and even negotiate prices to potentially get the product for cheaper than listed.
When you find products that you are interested in selling, go check them out on a website like Amazon to see how much they are selling for. This will help you determine how much you can sell the product for.
When you place an order for the product on Alibaba.com, you will order a bulk amount of the product (sometimes there is a minimum order quantity) and a shipping estimate will be included in the total cost. You can often negotiate the shipping cost with the seller to get a lower price than advertised, so don’t be afraid to contact the seller to try to get a better price than what is listed.
Selling on Alibaba: A Step-by-Step Guide
We understand that there’s a lot of information above to digest, so we want to simplify this for you in a step-by-step guide that’s easy to follow and understand.
Step 1: Search Products
Find the products you want to sell on Alibaba.com. We recommend sourcing products that have trade assurance from verified buyers.
Step 2: Negotiate with the Seller
Once you find products you want to purchase, talk to the seller. See if the seller will sell you the product for less than what’s advertised. Also, discuss the cost of shipping to see if they can lower their shipping cost, but don’t expect the seller to meet you halfway if you’re not willing to negotiate as well.
You may have to purchase more products to lower the shipping cost, so be willing to offer something in return for the seller lowering their prices.
Step 3: Check Retail Prices on Amazon
Once you’ve found a product you’re interested in buying, check retail websites like Amazon to see how much the product is going for. Also, check the reviews to see what buyers are saying about the product.
Step 4: List Your Product Online
You may have a website with a Shopify store already set up for you to immediately list your products for sale. This is a great way to make the most money from selling products online because you don’t have to worry about paying listing or seller fees when using this eCommerce platform.
However, if you don’t have a Shopify online store, don’t worry. You can sell your products on Amazon FBA or Etsy. Just keep in mind that some of these sites charge fees for you to list and sell your products on their website, so your profit margin may be lower as an Amazon seller versus having your own Shopify website which will affect your overall revenue growth.
Dropshipping with Alibaba
One other method for making money with Alibaba that’s worth mentioning is dropshipping. When dropshipping with Alibaba, you use their affiliate, AliExpress.
AliExpress is a business-to-consumer (B2C) platform designed to provide sellers with goods that they can ship directly to their buyers. As the seller, you are essentially the middleman between the buyer and the Alibaba supplier.
AliExpress lists the products at a retail price rather than a wholesale price. Even at a retail level, AliExpress offers prices that can’t be beaten, so this is a great option to add to your Shopify store.
Before you go, it’s important to know that Alibaba offers special payment terms like a pay later option that can help you get started if you’re a new business. If you’re ready to start an online business but weren’t sure where to begin, you should get started today with Alibaba. They have everything you need to align with your business model and begin making money with your Alibaba business.