Billionaire business mogul Jack Ma founded this company in 1999. Alibaba is the world’s biggest retailer with a China-based marketplace. Manufacturers offer their products in all scales for an affordable price on Alibaba. In the second quarter of 2022, the number of mobile monthly active users is reached 939 million.
One of the building blocks of your Amazon sales is product sourcing from Alibaba to Amazon FBA. It is great to opt for Alibaba for your e-commerce business because you can choose from various suppliers with different price ranges. But you need to know to build an Alibaba to Amazon FBA business; you should have a good strategy.
The FBA is a service provided by Amazon. You will pay Amazon to assist you as a seller in storage, picking, packing, and shipping. You also let Amazon handle returns and refunds. The other benefit of Amazon FBA is 24/7 Amazon customer service. All of these tasks help you to have more flexibility in your selling process.
Besides, you will have access to one of the most dynamic fulfillment networks in the world. Keep in mind that Amazon FBA may not be suitable for large dimension products or low-value items.
How to Start Alibaba to Amazon FBA?
Generally, you pay a supplier to fulfill products as a customer places an order. The typical process of Alibaba to Amazon FBA follows the below sequence:
- Product Research
You should find the low-competition products that are high-demand to sell on Amazon.
- Create an Alibaba account
- Then go to tab “Sourcing Solution”, and submit a “Request for Quotations” or a RFQ
- You will get many responses. Organize them according to the best supplier.
- Rate your suppliers and contact them.
- After that it is the time to negotiating the prices and minimum order quantity or MOO.
- As selecting your suitable supplier, check all requirements of Amazon FBA.
- Finalize your shopping after verifying all the necessary supplier information.
- If you like you can have your orders shipped to an Amazon FBA warehouse.
- Create an Amazon seller account
You can get one by registering on www.sellercentral.amazon.com as an individual or professional seller. Enter all the information on “Manage Inventory” page.
- A customer places an order
- Getting approval in your product category
For selling, specific product types need to be approved by Amazon.
- You process the payment
- Amazon ships the products
Read More: How to Resell Products on Amazon?
Is Alibaba to Amazon FBA Legal?
One of the most common and accessible ways to sell on Amazon is buying products from Alibaba and selling them on Amazon FBA. So reselling products from Alibaba to Amazon FBA is legal. Basically, one of the building blocks of your Amazon sales is sourcing from Alibaba to Amazon FBA.
Therefore, it is important to follow the Amazon rules so that your reselling will be legal and comply with the policy. In addition, it is good to mention that Amazon has some of the fastest shipping times on the market.
Read More: Is Retail Arbitrage Legal?
What Are the Risks of Alibaba to Amazon FBA?
Alibaba is a famous sourcing option in the market. Despite this, some risks involved in reselling products from Alibaba to Amazon FBA, such as scamming, fraudsters, and payment frauds. The saturated market is the next most significant challenge you need to deal with in Alibaba to Amazon FBA. Besides, as you don’t hold the products physically, you will lose quality control.
Therefore, it is hard to ensure that everything you get to your customers will be the same as what you advertised before. So it would be best if you have excellent communication with your supplier.
How Much Can You Make from Alibaba to Amazon FBA?
Typically, about 40% of small businesses are profitable.
You should know that among Amazon sellers, about 86% of them would be successful and profitable, and mainly within the first year of their work, about 67% of them will be profitable. In general, new Amazon sellers earns between $26,000 and $810,000 yearly in revenue .
The information and risks that we explained above are meant to make sourcing products from Alibaba to Amazon FBA clear for you. To have good profit margins on your selling, you need to be wary of the quality of the products you are sourcing. You should keep all these points in mind to manage your Amazon business better.