Alibaba.com is the world's leading B2B e-commerce marketplace based in China.
The platform allows you to target customers in over 190 countries and regions and sell items in more than 40 major product categories.
However, Alibaba can be confusing and intimidating for new sellers.
We were sellers on Alibaba with our PVA products for a while. You can read about it on the page Alibaba prodaja - pogled inside.
Keep reading to find out everything you need to know about how to sell on Alibaba.
How do I decide what to sell on Alibaba?
Alibaba is an online marketplace for global import and export companies that sell products in large quantities.
You can sell products in a wide range of categories:
Consumer Electronics
Home Appliances
Clothing
Fashion Details
Packaging & Printing
Beauty & Personal Care
Home & Kitchen
Machines
Vehicles
Accessories
Sports & Entertainment
Watches, Jewelry & Eyewear
Lights & Lighting
Furniture
Garden Supplies
Pet Products
Health & Medicine
Office & School Supplies
Tools & Hardware
Accessories & Telecommunications
Toys & Hobbies
Baby
Gifts & Crafts
Luggage, Bags & Suitcases
How to find products for sale?
There are a few simple steps you can take to help you decide what to sell on Alibaba:
Market research
Browse through a range of categories to find out which products are popular and why. Will you be able to offer similar products at the same (or better) price?
Check customer requirements
You can review customer product requests on Alibaba to gauge the level of demand for different product categories.
Sign up for email notifications
You can also subscribe to Alibaba's trade alert system, which sends the latest customer requests to your email.
How much does it cost to sell on Alibaba?
Alibaba does not charge:
Selling Commissions
Transaction Fees
Sellers can sign up for Alibaba as a Free Supplier or Gold Supplier. Free suppliers can publish up to 50 products through the platform and find potential customers.
If you sign up as a Gold Supplier, you can choose from three membership packages: Basic, Standard or Premium.
Is selling on Alibaba worth it?
Although it is possible to make money on Alibaba, there is no guarantee of success. Not only will you have to compete with a wide range of other suppliers, many of whom are based in China and can offer products at bargain prices, but you will also have to consider Alibaba's membership fee and other costs.
But while it is not certain that you will make money money on Alibaba, there are a few simple things you can do to increase your chances of success:
Get started with a free membership
Before signing up as a Gold Supplier, please register for a free membership to try out Alibaba's features.
This allows you to get a feel for how the platform works and the level of customer demand for your products before paying for any membership.
Partnership with a Chinese manufacturer
Many products sold through Alibaba are manufactured on demand, so joining forces with a Chinese manufacturer could help increase profit margins and fulfill orders faster.
Market research
Explore how other suppliers sell and price similar products on Alibaba. This will help you understand how to attract your target customer and how to price your products.
Look for customers
Be proactive about generating new business. Instead of waiting for customers to come to you, review the latest customer requests and provide prices to potential customers.
How do I start selling on Alibaba?
You can register on Alibaba's supplier list by following the steps below.
Step 1: Go to Alibaba
's seller home page
Visit the Alibaba seller home page and scroll down the page until you reach section showing the three membership plan options.
Compare plans and when you know which one you want, click on the appropriate login link - for example, "Standard Plan". The displayed prices are valid for the beginning of 2020.
2. step: Creating an account
Select the "Join Free" tab and then:
Specify your country
Specify if you are a supplier, customer or both
Enter your name
Enter your company name
Provide your phone number and email address
Write your password
Then you can enter the code you received and click "Create my account".
3. step: Check your email
Check the email message from Alibaba. Click the link in this message to verify your email address.
4. step: Enter your payment information
Select the membership plan you want to sign up for, then enter your payment information.
You can pay by credit card, debit card or bank transfer.
5. step: Authentication and verification
The final step is to complete the authentication and verification process by:
Providing some personal information, including your name, job title and email address.
Providing company information, including company name, registered address, proof of registration and website URL.
Verifying your phone number.
Providing business tax details.
How do I determine the price of my products?
There are several factors you need to consider when pricing on Alibaba:
Your expenses.
Think about how much it costs you to source/produce, store and ship your products. What constitutes an acceptable profit margin above total production costs?
What customers are willing to pay.
Explore the marketplace to find out what other Alibaba customers are paying for similar products.
Use this information, along with testing your own pricing strategies, to determine a reasonable price for customers.
Ultimately, hopefully, you will be able to find a price that works for both you and your customers.
What types of payments does Alibaba accept?
Alibaba accepts various payment methods:
Credit Card
Debit Card
Telegraphic Transfer
PayPal
Online Bank Payment (USD and EUR only)
Western Union (USD only)
Ticket (USD only)
Pay Later - Pay Later (USD only)
How do international customers pay?
When a customer pays you in a foreign currency, it's important to find an economical way to convert those funds into your currency.
Although you can let your bank handle the currency conversion for you, you know that this means paying high transaction fees and accepting an exchange rate that is well below the mid-market rate.
This is why many companies choose to open online seller account.
These multi-currency accounts allow you to quickly receive payments in the customer's local currency, as well as access a better exchange rate when converting currencies.
How to organize delivery of products from Alibaba?
When entering into a sales contract with a customer, you will need to specify shipping costs and delivery times.
Since Alibaba allows users to buy in bulk, depending on the size of the order, you may need to consider using a special international freight service.
There are many international freight forwarders to choose from, so compare the prices of several to find the most reliable and the most cost-effective option.
For international orders, you will also need to choose between:
Delivery by air. This is a faster and more reliable option, but also more expensive.
Delivery by sea. Ocean shipping is slower, but much more cost-effective for large, heavy shipments.
And finally, if you need to ship products from China, Alibaba offers its own logistics service, Alibaba Logistics.
There are two options available:
Alibaba.com Parcels ships from China to countries around the world.
Alibaba.com Air Express ships from China to the US.
How do I market my products on Alibaba?
Alibaba offers a number of tools you can use to market your products to customers, including:
- Keyword advertising to make your products more visible in search results.
- My Keywords tool to evaluate your keyword performance and optimize your product listing.
- Online promotional campaigns for new suppliers.
- Offers discounts and coupons to customers.
- Promotion of your most important products through product showcases.
- Creating your own online store.
Alibaba price list for business promotion, beginning of 2020.
What to pay attention to when working with Alibaba
Make sure you are aware of these risks and drawbacks before you start selling on Alibaba:
Competition
Alibaba is based in China, a country known for the production and sale of cheap consumer goods.
In some cases it is simply not possible for your company will compete with the prices offered by other suppliers.
Alibaba Fees
The cheapest paid membership on Alibaba (as of this writing) costs $1,399 per year, so it's important to be sure the platform is the right choice for your business before signing up.
Not suitable for all sellers
According to Alibaba, the businesses that have the most success on this B2B platform typically:
Sell 10 or more products
Have 2 or more employees
Make annual revenue of $500,000 or more
Have previous experience in export
How does Alibaba work?
Alibaba does not get involved in the buying and selling process. After receiving the order from the customer, you will need to get in touch with the customer to agree the order details and payment details.
Export and customs requirements.
Alibaba can help your business connect with customers around the world, so YOU need to know the rules and regulations you will need to export your goods overseas.
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Alibaba can be a confusing platform for new sellers to navigate.
You have a lot of information to consider, and it will take some time to navigate the site and find all the details you need to start selling.
If you want more information on this topic, see 7 steps to become a seller on Alibaba:
https://seller.alibaba.com/training.htm
