Amazon and Alibaba are the largest online stores in the world that can be bought and sold on these platforms. In this article, we want to introduce you to one of the best ways to make money: buying products from Alibaba and reselling them on Amazon FBA. To get more information and learn how to do Alibaba and Amazon FBA, follow the article below.
Billionaire businessman Jack Ma founded the company in 1999. Alibaba is the world’s largest retailer with a Chinese presence. Manufacturers offer their products in almost any form for cheap prices on Alibaba. In the second quarter of 2022, the number of monthly active mobile users reached 939 million.
One of the things to build your Amazon store is to source products from Alibaba to Amazon FBA. It is good to choose Alibaba for your e-commerce business because you can choose between different suppliers with different prices. But you need to know how to build Alibaba and Amazon FBA business; you should have a good plan.
Amazon Fulfillment by Amazon
FBA is a service offered by Amazon. You will pay Amazon to help you as a seller with storage, picking, packing, and shipping. You also let Amazon handle returns and refunds. Another benefit of Amazon FBA is Amazon’s 24/7 customer service. All these services help you to be more flexible in your marketing process.
In addition, you will have access to one of the most powerful distribution networks in the world. Keep in mind that Amazon FBA may not be suitable for large or low-volume products.
How to start Alibaba and Amazon FBA?
Usually, you pay the seller to fulfill the products when the customer orders. The typical process from Alibaba to Amazon FBA follows the steps below:
- Product search
You need to find low-cost competitive products that are more desirable to sell on Amazon.
- Create an Alibaba account
- Then go to the “Sourcing Solution” tab, and submit a “Request for Quotations” or RFQ.
- You will get many answers. Arrange them according to the best supplier. Research your suppliers and contact them.
- After that, it’s time to negotiate the price and the minimum quantity or MOO. When choosing your right supplier, check all Amazon FBA requirements.
- Complete your purchase after obtaining all the necessary supplier information. If you prefer, you can ship your order to an Amazon FBA warehouse.
- Create an Amazon seller account
You can get one by registering at www.sellercentral.amazon.com as a personal or professional seller. Enter all the information on the “Manage Inventory” page.
- The customer orders
- Get support in your product range
For sale, a specific product type must be approved by Amazon.
- You arrange the payment
- Amazon ships products
Is Alibaba and Amazon FBA legal?
One of the most common ways to get access to Amazon is to buy products from Alibaba and sell them on Amazon FBA. Therefore, selling through Alibaba and Amazon FBA is legal. Basically, one of your Amazon store blocks is moving from Alibaba to Amazon FBA.
Therefore, it is important to follow Amazon’s rules so that your resale is legal and ethical. Additionally, it’s worth mentioning that Amazon has some of the fastest shipping times out there.
What are the risks of Alibaba and Amazon FBA?
Alibaba is a popular choice in the market. Despite this, there are some risks in selling through Alibaba and Amazon FBA, such as scams, fraudsters, and payment fraud. A crowded market is the next challenge you face from Alibaba to Amazon FBA. Also, since you don’t hold the products, you lose control of the quality.
Therefore, it is difficult to ensure that whatever you get for your customers will be like what you advertised before. So it would be better if you have good communication with your suppliers.
How much money can you make from Alibaba and Amazon FBA?
Typically, about 40% of small businesses are profitable.
You should know that among Amazon sellers, about 86% of them will be profitable, and especially in the first year of their work, about 67% of them will useful. Typically, new Amazon sellers earn between $26,000 and $810,000 in annual revenue.
The information and risks we described above are intended to explain to you the source of products from Alibaba to Amazon FBA. In order to make a good profit on the sales side, you have to be careful about the type of products you buy. You have to keep all these things in mind to manage your Amazon business better.