How to sell on Amazon from Alibaba

To sell on Amazon from Alibaba, you first need to choose a profitable product with low competition and growing demand. Then, select a reliable Alibaba supplier with good ratings, request product samples, and ensure that the supplier can ship directly to Amazon's fulfillment centers or your warehouses to start selling.

In this article by Jordi Ordóñez, we discuss how to sell on Amazon from Alibaba and provide a step-by-step guide to ensure the success of your online sales.

How to sell on Amazon from Alibaba

The first step to selling on Amazon from Alibaba is to research which products have the highest demand and are profitable. Before jumping into purchasing, you need to ensure that the product you choose can succeed on Amazon, where the competition is fierce.

You may be interested in this Ebook: Guide to Selling on Amazon.

Researching profitable products

Before making any purchase on Alibaba, it's crucial to conduct thorough market research. Use tools like Jungle Scout, Helium 10, or AMZScout to analyze Amazon market trends and which products are selling well. Look at factors such as product ratings, sales volume, and level of competition. A product with low competition and growing demand is key to maximizing profits.

How to buy on Alibaba

Once you've selected a product, the next step is to find the right supplier on Alibaba. Remember, product quality is crucial to ensuring good reviews on Amazon, and this requires verifying the supplier. You can search for suppliers with good ratings, request product samples, and communicate directly with them to discuss details like price, delivery times, and payment terms.

Additionally, keep in mind the MOQ (Minimum Order Quantity), which is the minimum quantity a supplier is willing to sell. If you're just starting out, you might prefer to work with suppliers that have a low MOQ, so you can test the market with a small volume before making large investments.

Once you've selected a product, such as the Lectómetro Escolar for children ages 5 to 7, the next step is to find the right supplier on Alibaba.

Amazon FBA: How it works with Alibaba products

One of the most popular options for Amazon sellers is Amazon FBA (Fulfillment by Amazon). This program allows you to store your products in Amazon’s distribution centers, and they handle everything related to storage, shipping, and customer service. This saves you time and effort, allowing you to focus on growing your business.

How to use Amazon FBA with Alibaba products

The process of using Amazon FBA with Alibaba products is straightforward but requires attention to detail. First, make sure that the Alibaba supplier can ship your products directly to Amazon’s fulfillment centers. This can be a key step in reducing shipping costs and minimizing risks associated with inventory storage.

Once the products are in Amazon’s fulfillment center, they will take care of the rest: packing, shipping, and customer service. As a seller, you will only need to maintain constant control over your inventory through the Amazon platform.

Costs associated with Amazon FBA

It’s important to be aware of the costs and fees associated with Amazon FBA before making a decision. Amazon charges storage fees, order processing fees, and return service fees, among others. Therefore, it's essential to calculate FBA costs along with the price of products purchased from Alibaba to ensure you maintain a sufficient profit margin.

FAQs: Frequently asked questions about selling on Amazon with Alibaba

As you navigate the process of sourcing products from Alibaba and selling them on Amazon, you might have some questions along the way. In this section, we’ve compiled answers to the most common queries to help clarify any doubts and ensure you’re fully prepared to succeed in your online business journey.

Does Amazon accept invoices from Alibaba?

One of the most common questions is whether Amazon accepts invoices from Alibaba for selling products. The answer is yes, Amazon accepts invoices from Alibaba, as long as certain requirements are met. The invoice must be detailed, include the specific products you purchased, and be in the name of your business.

It’s important to keep all tax documents and purchase proofs from Alibaba, as Amazon may require this documentation to verify the origin of your products.

Who invoices more, Alibaba or Amazon?

Regarding invoicing between Alibaba and Amazon, it’s important to understand that both business models operate differently. Amazon generates more revenue due to its direct-to-consumer sales platform and its retail model, while Alibaba focuses more on B2B (business-to-business) transactions. However, Alibaba is a key platform for many sellers who want to source low-cost products to sell on marketplaces like Amazon. Therefore, Alibaba invoices more for B2B transactions, while Amazon generates more from direct-to-consumer sales.

What is it called to buy from China and sell on Amazon?

The business model in which you buy products from China (via Alibaba) and sell them on Amazon is generally known as “Private Label” or “Retail Arbitrage”. In Private Label, you buy products from manufacturers in China but put your own brand on them before selling them on Amazon. In Retail Arbitrage, you buy products from other sellers or stores and then sell them on Amazon, with a higher price.

What is Amazon’s Chinese competitor called?

The major Amazon competitors in China include platforms such as JD.com, Pinduoduo, and AliExpress. While Amazon focuses primarily on sales in Western markets, these platforms are designed to connect Chinese consumers with products in various categories. However, since Alibaba (owner of AliExpress) and other Chinese platforms are more focused on wholesale and bulk sales, it is common for sellers to use Alibaba to source products and then sell them on Amazon.

Alternatives to Alibaba for buying products

While Alibaba is one of the most popular platforms, there are other alternatives you might want to consider:

AliExpress: Is it a good option for selling on Amazon?

AliExpress is one of the most well-known platforms under Alibaba, but it is more oriented toward low-volume consumer purchases. While prices are competitive, the customization options and supplier negotiations are limited. If you're looking for low-cost, low-volume products to test your market, AliExpress could be a viable option, but it's recommended to use Alibaba if you plan to buy in large quantities.

If you're looking for other platforms to explore, consider Quenarras, which offers a variety of products from different categories.

If you're not familiar with the process of selling on Amazon from Alibaba, it's advisable to seek support from experts in Amazon marketing. Contact Jordi Ordóñez, with a solid strategy and the right suppliers, we can help you build a scalable and highly profitable business on Amazon.

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