If you do not know about Alibaba and its mechanism of working. I am going to tell you it is a great place. A place where you can find millions of products for selling, private labeling, and branding. In this article, you will come to know about Alibaba and successfully sourcing quality products for your private label.
You are going to go through the following topics:
- What is Alibaba?
- Who is Alibaba?
- Advantages of Alibaba
- Disadvantages of Alibaba
- Making Money on Alibaba
- Sum Up
What is Alibaba?
It is China’s biggest online e-commerce company. By some measures, it is the world’s biggest commerce company. It has three websites namely Taobao, Tmall, and Alibaba.com. There are hundreds of millions of users including merchants and businesses. World’s fast-growing e-commerce market with $248 billion in transactions in the previous year. This number is more than transactions on eBay and Amazon.
It is different from other e-commerce websites like Amazon where consumers make one-off purchases; Alibaba is a place where many businesses purchase products in bulk to resell online or in a brick-and-mortar store.
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Who is Alibaba?
For me, Alibaba is Jack Ma. He is not just the founder of Alibaba but its spiritual leader. Whenever there is a requirement for something innovative, they look for Jack Ma. Jack Ma’s worth is $24 billion. Initially, he was an English teacher. In the year 1999, he co-founded one of the world’s largest e-commerce businesses. Jack Ma grew up poor in communist China, failed his university entrance exam twice, and was rejected from dozens of jobs, including one at KFC, before finding success with his third internet company.
Advantages of Alibaba
1. Large Customer Base
It has a very large customer base. A global audience and global suppliers, millions in number. The number gives you an advantage in making a lot of sales and profit. It is like having your customers all in one place without needing to move a few steps.
2. Wholesale Products
It is a place of choice to sell and buy wholesale products. There is a wide assortment of wholesale products making it the best place for suppliers and retailers. Clothing, makeup, accessories, electronics, handmade goods, and an exhaustive list of wholesale products.
3. Low Pricing
It is very famous about Alibaba. It has low prices for wholesale products. There are countless global suppliers with products with competitive rates. You can buy products at low cost and sell them at a very good price.
4. Safe and Secure
Alibaba is safe and secure. There is no scamming or defrauding. Not only safe and secure, but it is also fast and easy. There are different ways to pay or in other words, it includes wire transfer, debit cards, and credit cards. There are also Trade Assurances, a service that ensures your product is of the highest quality and your payment is secured. Meaning you do not need to worry about scamming or defrauding.
5. Communication Tools
Alibaba.com has an in-app messaging tool that makes it easy to converse with buyers and sellers. Now, buyers and sellers can communicate and interact without hassles. With Alibaba.com, you can conduct your business without any third-party integration.
Disadvantages of Alibaba
1. Vet Suppliers
Every time you look for Alibaba Verified Suppliers and Trade Assurance suppliers on the platform. The protective measures you will take will make you avoid theft and purchasing poor-quality products
2. Counterfeit Products
Any product you buy there is a cent percent chance that is counterfeit or simply fake. If you sell counterfeit or copy products on Amazon your account will be banned. However, you should be cautious about counterfeit products on Alibaba.
3. Making Money on Alibaba
Typical sellers on Alibaba.com are suppliers and manufacturers that sell their own products as well as wholesalers that sell manufactured goods in bulk. Here are some steps for sellers to make money on Alibaba.com:
- Open Your Account. To start your business online, make an account on Alibab.com. There are different packages in different places. To create an account, visit Alibaba.com and choose “Seller” as your role.
- Invest in Being a Verified Gold Supplier. Alibaba is free but it is best to invest in being a verified or gold supplier. Being a verified supplier shows prospective buyers that you are reliable and trustworthy. This makes you a better option for doing business.
- Offer Products that Sell Well. As a seller who wants to make money on Alibaba.com, it is best to sell products that will attract customers. However, research about products that sell well in the market.
- Consider Dropshipping. Dropshipping is also a retail fulfillment method. However, in this, a store does not keep the products it sells in stock. On the contrary, the items are purchased from a third party and shipped directly to the customer. Consequently, the seller does not handle the product directly. The main point of distinguishing between dropshipping and Amazon FBA is the seller does not required to stock or own an inventory. He or she purchases from a third party and sells it forward. Dropshipping works like this:
- Your customer places an order using his phone or any other device.
- Your store sends the order to the supplier automatically.
- The dropshipping supplier prepares the order and forwards it.
- The order is shipped to the customer who placed it.
5. Set up a Compelling Storefront. Set up a compelling online store so that people can find your products as well as your profile. Use high-quality graphics including short videos and pictures. You will ensure sales on Alibaba. Your profile should look compelling and your products buyable.
You should try to reach a wider audience and digital media like live streaming lets you do that and connect with the masses. Alibaba has a live streaming feature where you as a seller can display products in real-time. You can show your goods, show how your products work, and reply to inquiries from prospective customers. Also, live streaming your products or warehouse shows that you are a legitimate business owner and increases the trust of your buyers.
6. Invest in Trade Assurance. To win the trust of your consumers and make them confident in their choices invest in Trade Assurance. Trade Assurance protects buyers against fraudulent transactions and defective goods. As we told you this feature offers buyers protection, especially when products are not shipped at the right time.
7. Sell at Wholesale Prices. Sales on Alibaba are not just because of the variety of products but also because they can buy at a low cost. Ensure your price is fair and competitive. Your consumers will always look for low prices on the products they want.
8. Reach Millions Of Buyers. With Alibaba.com, you have access to millions of buyers from all over the world. That means you can extend your business and do business with those who are not in your country.
9. Take Advantage of Alibaba.com’s Digital Marketing Tools. You should never underestimate the power of promotion and marketing. To reach more consumers and to make more sales, promotion is very important. Optimizing your products by providing a good description and using specific keywords for the product will help you find customers and increase your sales. Also, Alibaba.com offers some marketing tools to boost your visibility and get insights that will help improve your marketing strategy contact alibaba.com
10. Use Social Media to Boost Brand Awareness. After promoting Alibaba, utilize social media. Social media is a fantastic way to boost brand awareness, and it’s no wonder that 73% of marketers believe that their marketing efforts on social media are highly effective. Social media marketing is the best way to spread the word among folks.
11. Answer Inquiries. There will always be inquiries and questions from your consumers They will always want to ask questions and negotiate your products’ deals, and you should respond. It is seen, that the faster you respond, the higher your chance of selling to them. Yeah, they are not just looking for the product from you They message multiple sellers, and the ones that reply faster have a greater chance of getting their products sold. Alibaba.com will notify you when you receive a new notification from a potential consumer.
12. Find Customers Through Request For Quote. There is also a way by which you can get customers to buy from you instead of waiting for their message by reaching out to them directly. You can mail them, text message them, and share your product details on WhatsApp or Telegram. Sharing details can lead them to reach your online store
13. Process Orders and Payments. Process your first order. You should ensure the order should reach you as well as the payment through payment methods. Also, use their preferred shipping method to get the products to them. Of course, you will require the address of the consumer.
There is more to it. However, starting a business on Alibaba is not hard. With the right research and resources as well as commitment, you will end up being a very successful businessperson on Alibaba in your state of Canada. We believe this article is of some help and inspiration to you.
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Mir is a British-educated Digital Marketing Expert with 10+ years of experience in the B2B, D2C, and eCommerce Industries. Having worked with 50+ startups and SMEs, he has a clear understanding of what it takes to establish growth on online platforms.
He is also the Founder of Kashmirica, a social impact brand that aims to take exclusives from Kashmir to the Global consumer. An enthusiastic cultural entrepreneur, Mir is driven by a passion to bring about a social impact.
An avid reader, he loves writing about marketing, and entrepreneurship.