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How to Buy from Alibaba and Sell on Amazon
How to Sell on Amazon from Alibaba
Buying products from Alibaba and selling them on Amazon is a popular approach that can lead to a profitable business. This method usually involves buying items from China and selling them under your own brand on Amazon. This article is a beginner's guide to understanding the important steps needed to succeed in this type of business.
How It Works
Buying items on Alibaba and selling them on Amazon can be effective for various sales strategies, but one of the most common ones is the Private Label business model. You can ask an Alibaba manufacturer to put your label on a product, or change the design, size, and quality. This method allows you to enhance your Amazon brand, control production, and differentiate yourself from competitors.
It’s important to note that Amazon doesn’t allow sellers to dropship directly from other platforms using other companies' brands. According to Amazon’s Dropshipping policy, you must be the seller of record, and your information must be visible on the package. If you want to resell Alibaba products without establishing your own brand, you still need to use either Fulfillment by Amazon (FBA) or first receive the batch yourself, and then ship the product to the customer.
It’s important to note that Amazon doesn’t allow sellers to dropship directly from other platforms using other companies' brands. According to Amazon’s Dropshipping policy, you must be the seller of record, and your information must be visible on the package. If you want to resell Alibaba products without establishing your own brand, you still need to use either Fulfillment by Amazon (FBA) or first receive the batch yourself, and then ship the product to the customer.
How to Sell on Amazon from Alibaba for Beginners
This guide is specifically created for those aiming to establish their own brand on Amazon using Alibaba, and makes each step easy to understand and follow. From selecting a product to listing it on Amazon, these instructions provide the essential tips to help you achieve success.
1. Choose a Product to Sell
The first step when you want to buy from Alibaba and sell on Amazon is selecting the right product. Sellers have so much stuff to choose from when trying to narrow down the best option. When analyzing Amazon, focus on these key points to help you choose a product to sell on the platform:
- High Demand: Find popular products with consistent monthly sales (over 300 units).
- Price Range: Products in the $40-70 range usually offer a good balance between affordability for customers and potential profitability for you.
- Margins: Take all costs into consideration, including your initial purchase, shipping, Amazon fees, and marketing, to help you calculate your potential margin. The ideal net profit margin should be maintained at a range of 5-10%. Any margin above 10% is considered to be excellent.
- Low Competition: Look for things with no strong competitors within a niche. For example, avoid products from extremely popular brands or those with too many reviews. Consider using various tactics to help you outsell competitors, such as improving the listing quality or offering unique products.
These are key criteria, but there are additional factors to think about when selecting products for a private label business. Analyzing these factors on your own can be difficult and time-consuming. Thankfully, there's an easier way to pick the right products to sell on Amazon, which we will discuss in the next part of this article.
Using Services for Product Research
If you prefer not to conduct your own Amazon product research, and you want to reduce the risk of selecting the wrong product or wish to save time, consider utilizing services like Sellerhook that provide an easy and customized solution. Sellerhook's experts use their extensive knowledge and AI to pick a product for you to sell on Amazon, matching your specified criteria. You'll receive a detailed report containing essential information about each product.
Ordering a report from Sellerhook involves just a few simple steps:
Ordering a report from Sellerhook involves just a few simple steps:
1. Place your order. Go to Sellerhook's website, choose how many products you want included in your report, and purchase the service. You can also receive a sample report by providing your email address, which helps you understand what to expect from the service.
2. Select your business model. Choose ‘Private Label’ as the business model.
2. Select your business model. Choose ‘Private Label’ as the business model.
3. Pick your desired product categories. Select from a variety of categories that align with your business plan, like Electronics or Kitchen & Dining.
4. Set your price range. Tell Sellerhook what price range you want for better-tailored results.
5. Provide specific criteria. You can specify further details, including your target market, product size preference, and budget for initial orders.
4. Set your price range. Tell Sellerhook what price range you want for better-tailored results.
5. Provide specific criteria. You can specify further details, including your target market, product size preference, and budget for initial orders.
6. Submit and receive your report. Once you fill out the questionnaire, in 10 business days, you’ll receive a detailed report that includes a list of potential products for a Private Label business.
Ultimately, this service can assist you with identifying product ideas that can be launched on Amazon and potentially generate profits. Now, it’s time to find a suitable supplier.
2. Find a Supplier on Alibaba
Once you settle on a product idea, the next step is to head over to Alibaba, where you'll find a wide array of suppliers. Choosing the most reliable one is crucial in order to ensure that you offer the best products and services to your customers.
In the following section, we'll explore key criteria you should consider to help you evaluate suppliers on Alibaba:
In the following section, we'll explore key criteria you should consider to help you evaluate suppliers on Alibaba:
- Reliability: Investigate each supplier's data on Alibaba. Look for Verified suppliers with a high number of transactions and a long-standing presence on the platform.
- Good Reviews: Read through customer feedback and ratings. Positive reviews are a good indicator of a supplier's reliability. Assess how quickly and effectively a supplier responds to inquiries. Good communication is key to a successful business relationship.
- Pricing: Make sure you compare prices from various suppliers for the same product and select the lowest one. Also, check the minimum order quantity (MOQ), as you need to ensure this will be affordable for you.
Analyzing suppliers can be an overwhelming task, especially for beginners. But if you order the above-mentioned Sellerhook report, you'll receive a list of verified suppliers from Alibaba with profitable offerings, specifically selected based on your budget and preferred minimum order quantity.
Contact Potential Suppliers
By using the criteria mentioned above, you can choose a few suitable suppliers, and then reach out to them for more details. Here are the key points to consider when contacting suppliers:
1. Check product quality. Verify each supplier’s certifications, adherence to quality standards, and their quality control measures.
2. Order samples. Request samples for your own personal assessment before placing an order.
3. Discuss and agree on the terms of your order. Negotiate price, production time, and payment terms. Also, confirm if they offer direct shipping to FBA.
2. Order samples. Request samples for your own personal assessment before placing an order.
3. Discuss and agree on the terms of your order. Negotiate price, production time, and payment terms. Also, confirm if they offer direct shipping to FBA.
Consider each aspect carefully to help you choose a reliable manufacturer, increasing the success and security of your business.
You can also order a Supplier Check service, in which Sellerhook will communicate directly with a supplier and obtain all of the essential information you need on prices, order minimums, products, and quality. With this service, you can skip the lengthy research and choose suppliers who have already been verified for trustworthiness, experience, and quality.
You can also order a Supplier Check service, in which Sellerhook will communicate directly with a supplier and obtain all of the essential information you need on prices, order minimums, products, and quality. With this service, you can skip the lengthy research and choose suppliers who have already been verified for trustworthiness, experience, and quality.
3. Order Your Product
After selecting your product and finding a suitable supplier on Alibaba, the next critical step is placing your order. Clear communication is key to ensuring that the products you receive meet your expectations and brand standards.
1. Outline your requirements clearly. State your product specifications, desired quantities, and branding details.
2. Place your order. Once all details are confirmed, you can place your official order with the supplier.
2. Place your order. Once all details are confirmed, you can place your official order with the supplier.
Make sure you gather data for FBA and obtain a UPC code before your order is shipped. Following these steps lays the foundation for a successful business relationship between you and your supplier.
4. Control Shipping to FBA
Once you order your products, the next phase is managing their shipment to Amazon’s Fulfillment Centers (FBA). Many suppliers offer direct shipping to FBA, but it's crucial to understand all aspects of this process.
1. Provide your supplier with all of the necessary details for shipping to Amazon FBA. This includes your FBA account information and delivery labels. Remember to discuss any additional fees, clarify details about how products should be labeled for identification within the Amazon fulfillment system, and confirm the expected delivery timeline.
2. Track your shipment. Once shipped, monitor the tracking information to keep an eye on your shipment’s progress.
2. Track your shipment. Once shipped, monitor the tracking information to keep an eye on your shipment’s progress.
Ensuring smooth shipping to Amazon FBA requires careful coordination and clear communication with your supplier, increasing the likelihood that your products arrive safely and on time.
5. List Your Products on Amazon
When a product is on its way to FBA, it's time to create a new listing, since this will be a new product that hasn't been available on Amazon before. Creating an optimized product listing is crucial to attracting and converting customers organically.
- Go to your Amazon seller account and click ‘Add a new product’.
- Enter your product information. Type in the name of the item, and the price, and set your inventory details.
- Write and optimize your product description and bullet points. Be sure to highlight the item’s key features and benefits. Use relevant keywords in your listing to improve its visibility and search ranking on Amazon. If you don’t know how to use keywords in your listing and write text properly, you can always utilize a listing creation service.
- Submit your listing. You will get a confirmation email between 15 minutes and 48 hours after your listing is submitted.
To ensure that your products stand out in the marketplace, pay attention to every detail, from your product images to the description. You can also launch advertising to help you generate more leads. And now finally, it’s time to start selling!
Conclusion
In summary, to successfully sell products sourced from Alibaba to Amazon, you need a profitable product idea, a reliable supplier, and an attractive and optimized listing. With these steps in mind and using resources like Sellerhook, you’ll be equipped to manage the process effectively, leading to a successful and profitable online business.
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