How To Sell On Amazon From Alibaba — The Ultimate Guide

With the ever-growing competition, selling on Amazon from Alibaba is a great way to expand your business. Alibaba is a Chinese e-commerce platform where you can find a wide variety of products for low prices.

Selling on Amazon from Alibaba can be a profitable business venture, but it is essential to do your research and plan carefully. 

This post will discuss how to find the best products and suppliers on Alibaba and provide tips on how to avoid common pitfalls when selling on Amazon from Alibaba.

What Is Alibaba?

Alibaba.com is a Chinese business-to-business marketplace. It is operated by Alibaba, a Chinese international technology company specializing in e-commerce, retail, Internet, and technology. 

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Amazon sellers use Alibaba for product sourcing because of the low prices and simple user interface of their website. Many of the manufacturers on Alibaba are based in China, where they can produce high-quality goods at a much lower cost. If you are looking to source products from manufacturers in China, Alibaba is a great place to start. 

The variety of offered products and low prices make this platform attractive to e-commerce sellers. However, it is crucial to be aware of the risk of fraud and fake suppliers on Alibaba. That is a significant concern for many sellers who use the platform to source their products.

Note. Amazon sellers should not buy branded products on Alibaba because there is a high risk of buying counterfeit products. Counterfeit products are illegal to sell on Amazon, and sellers who are caught selling counterfeit products can have their accounts suspended or even banned. In addition, there are legal risks associated with selling counterfeit products. For example, In 2022, Amazon’s Counterfeit Crimes Unit filed lawsuits against 1,300 counterfeiters in China, the U.S., UK, and the EU.

Pros and Cons of Alibaba for Amazon

Alibaba can be an excellent resource for Amazon sellers looking for a wide range of products at low prices. However, it is vital to be aware of the risks involved and take steps to mitigate them. Here are some of the pros and cons of using Alibaba to sell on Amazon.

Alibaba pros

Wide range of products

Alibaba has a variety of products available, including many that you can’t find on Amazon. That can allow you to sell unique products your competitors are not selling.

Low prices

Alibaba products are often priced lower than products on Amazon. That can help you save money on your inventory and offer your customers lower prices.

Convenient shipping

Alibaba offers a variety of shipping options, including direct shipping to Amazon's fulfillment centers. That can save you time and hassle in the shipping process.

Alibaba cons

Fraud risk

There is a risk of fraud when dealing with suppliers on Alibaba. It is essential to do your research and only deal with reputable suppliers.

Communication challenges

Handling negotiations with suppliers on Alibaba can be a problem due to language barriers. It is important to be patient and persistent when communicating with suppliers.

Quality control

Quality control can be an issue when dealing with suppliers on Alibaba. It is important to inspect products carefully before shipping them to Amazon.

What to Sell from Alibaba?

There are many product categories you can sell from Alibaba. Some ideas include Electronics, Home décor, Pet supplies, Health and beauty products, and Food and beverage products. When choosing products to sell from Alibaba, you must do product research to see if a product is suitable for selling.

Criteria to select Alibaba to Amazon products

Demand

Make sure that the products you want to sell will be in demand. You can do this by using product research Amazon seller tools.

Competition

Research how much competition there is for the products you want to sell. If there is much competition, you may need to look for other products to sell.

Price

Make sure the products you want to sell are priced competitively. You can compare prices online or talk to other sellers.

Quality

Ensure the products you want to sell are of good quality. You can read reviews online or ask for samples from suppliers.

Shipping

Factor in shipping costs when pricing your products. You can get quotes from shipping companies online.

IP complaints and restrictions

Before you buy any products, be sure to research products. They must be profitable and shouldn’t be restricted or have any intellectual property or other complaints.

Tip. Selecting the right tools to find products for Amazon from Alibaba will save you time and money. One of the most popular product research tools is Seller Assistant App. This comprehensive browser extension integrates all the features necessary for quick and reliable deal sourcing. It helps identify product profitability, demand, competition, restrictions, IP complaints, and other essential product metrics right on the Amazon product and search pages. It also offers FBA&FBM Calculator, Quick View, Stock Checker, and Restrictions Checker features.

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Risks of Sourcing from Alibaba

There are a number of risks associated with buying from Alibaba to resell on Amazon. Below are the most widespread risks.

Scam

There are some fraudulent suppliers on Alibaba who may sell you low-quality or defective products. Also, there is a risk of payment scams. It is important to do your research and only deal with reputable suppliers vetted by Alibaba.

Counterfeit branded products

If you find a branded product on Alibaba, it is highly likely counterfeit. Selling counterfeit goods on Amazon is strictly prohibited and can result in your account being banned.

Miscommunication

Communication with suppliers on Alibaba can be difficult due to language barriers. It is important to be patient when communicating with suppliers and carefully study the quotations.

Quality issues

Quality control can be an issue when dealing with suppliers on Alibaba. Inspecting products carefully before shipping them to Amazon and ordering samples before buying a product is important. Also, you must be aware that quality standards may differ in China and other countries. That is why you must check quality compliance with the regulations in the country you sell.

Extended shipping times

Shipping times from China can be long, and there is always the risk of lost or damaged shipments.

How to Find Suppliers on Alibaba?

To Find Suppliers on Alibaba, you can follow the steps below.

Steps to find suppliers on Alibaba

Step 1. Search for the product you want to buy

To find a product, you must use a keyword search like you do on Amazon. Enter the product you are looking for into the Alibaba search bar. That will bring up a list of suppliers who sell that product.

Step 2. Refine your search results

You can refine your search results by using filters such as product type, price, country of origin, and shipping location. You can also select the suppliers vetted by Alibaba. To do so, use the “Supplier Features” filter and check the “Trade Assurance” and “Verified Supplier” boxes.

Step 3. Research supplier 

Select the offer that suits you the best from the list of results and research the supplier. Look into their company details and profile. Also, take the time to read their reviews. That will give you an idea of their reliability and the quality of their products.

Step 4. Contact supplier

Once you have researched a supplier you are interested in, contact them directly by using the «Contact Supplier» button on the product page. Ask your supplier candidates about their products, prices, and shipping conditions. Request a quote.

Step 5. Request product samples

If you are still unsure about a supplier, request product samples. That will give you a chance to see and feel the products before you place a large order.

Step 6. Order inventory and make a payment

When you ensure everything is okay with the inventory, you can order and pay for it. To make a payment, use one of the secure payment methods, like Alibaba Trade Assurance

If you use Trade Assurance, you will be able to get your money back if the supplier does not meet their obligations.

How to Pay Suppliers from Alibaba?

There are a few different ways to pay suppliers on Alibaba, as described below. The best payment method for you depends on your business goals. Just make sure this payment method is secure.

Bank transfer

That is the fastest payment method, but it is also the riskiest. It is best to pay part of the amount upfront and the rest after you receive the shipment.

Letter of credit

That is a suitable payment method for large orders. It guarantees payment to the supplier and ensures that you receive high-quality products.

Escrow

That is a low-risk payment method that protects both buyers and suppliers. The buyer's payment is held until they receive and approve the order.

PayPal

PayPal is a convenient and secure payment method. It is not as widely used in China as other payment methods, but it is still a good option.

Trade Assurance

Alibaba Trade Assurance is a payment protection program that offers refunds in case of delays, damaged goods, or other problems. It is not available for all suppliers, and it may increase the price of products.

Alibaba's US Sales Tax Exemption Program

Alibaba's US Sales Tax Exemption Program (ASTEP) helps buyers identify themselves as eligible for exemption from US sales tax.

To confirm participation in ASTEP, go to Orders > Tax Information > Add or modify tax exemption/My Alibaba > My account > Tax Information and provide the required documentation. You can enroll in the program by using this link. 

Once Alibaba confirms your eligibility, future purchases eligible for exemption will not be subject to sales tax at checkout.

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FAQ

Is it profitable to buy from Alibaba and sell on Amazon?

Yes, it can be profitable to buy from Alibaba and sell on Amazon. However, there are risks involved, such as fraud and quality control issues. It is essential to do your research and only work with reputable suppliers.

How do I find best-selling products on Alibaba?

Before you buy any products, be sure to research products. They must be profitable and shouldn’t be restricted or have any intellectual property or other complaints. You can use product research tools like Seller Assistant App to find such products.

How do you know if a product is profitable on Amazon?

To know if a product is profitable on Amazon, you need to consider the product's cost, demand, and competition. You can use product research tools like Seller Assistant App to estimate product profitability. It will show you product profit, margin, and ROI.

How to ship products from Alibaba to Amazon?

Direct shipping and freight forwarding are the two most common methods to ship products from Alibaba to Amazon. A freight forwarder is a service that can help you to ship products from Alibaba to Amazon. With direct shipping, you work directly with the supplier to ship the products to Amazon's fulfillment centers. 

Final Thoughts

In conclusion, selling on Amazon from Alibaba can be a great way to start or expand your existing business. Following the steps outlined in this post can increase your chances of success. 

Before you start selling on Amazon from Alibaba, it is essential to do your research and learn about the product and potential suppliers to make profitable riskless deals.

When selecting a product to sell on Amazon from Alibaba, you must use the right product research tools to save time and money. With Seller Assistant Аpp, you can quickly find the best products to sell on Amazon. This comprehensive product research tool can be your ultimate assistant to identify high-profit products. It also helps avoid problematic items with sales restrictions or IP complaints. It aggregates FBA&FBM Calculator, Quick View, Stock Checker, and Restrictions Checker features in one extension.