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Purchases from Alibaba and Amazon FBA Sales in 2023

The ease and profit margins have made purchasing items from Alibaba and selling them on Amazon one of the most popular practices. The Chin...

Amazon FBA

The ease and profit margins have made purchasing items from Alibaba and selling them on Amazon one of the most popular practices. The Chinese e-commerce behemoth Alibaba has developed into one of the most sought-after options for product procurement for merchants worldwide.


Alibaba gives retailers access to a sizable database that allows them to quickly find manufacturers and suppliers who meet their requirements. Its main purpose is to connect buyers with wholesalers and producers.


This post is intended to answer all of your questions and worries if you're a seller wondering how to sell Alibaba products on Amazon so that you can make wise purchasing decisions.


Table of content

Introduction of Alibaba

How can I purchase goods from Alibaba and sell them on Amazon?

How are Alibaba vendors paid?

Risks of using Alibaba for sourcing and how to prevent them

Last Thoughts


Introduction of Alibaba

One of the foundational elements of your Amazon sales is sourcing products from Alibaba for Amazon FBA. Due to the incredibly low costs of goods in the Chinese market as well as other markets throughout the world, it involves large profits for sellers.

Even if you have great product ideas, moving your Amazon FBA business ahead without a product sourcing strategy in place can be quite challenging. Alibaba can help in this situation because you can select from a wide choice of vendors with varying pricing points. However, you should exercise caution because merchants who utilize Alibaba for product sourcing frequently express serious concerns about fraudsters and false suppliers.

As you read this post, your worry will also be addressed.


How can I purchase goods from Alibaba and sell them on Amazon?


Alibaba makes it easier to cut out the middlemen while looking for reasonably priced goods or the best producers for your items. Direct communication with manufacturers and wholesalers is made simple.


Product analysis

Find the correct product first, and then start the selling process. You should concentrate your search for products with strong potential for high-volume sales. You ought to be able to purchase it for a reasonable price and resell it for a sum that gives you a healthy profit.


For more information, look at comparable items and the Amazon Best Seller lists. To avoid competing against numerous other merchants, concentrate on product niches that are not oversaturated. You should look for a gap in the market, especially if you are a new seller, so it will be simpler for you to enter and begin making money.

Recommended: Beginner's Guide to Amazon pl: Exploring Reviews and Finding the Best Products

Visit Alibaba

Amazon FBA

Once you have chosen the goods you will sell, you can go to and begin looking for suppliers and manufacturers. Make a choice on the price range you wish to offer for your goods. Once you have estimates in hand, you may focus your search for providers who fall within your pricing range.


1. Create an account on Alibaba first. There are no costs or fees associated with doing so. You may simply communicate with prospective vendors by opening an account.


The next step is to use the search bar to find the precise item you want to sell. You can find manufacturers and product categories on Alibaba that are similar. You can click on any of them to see more details about the goods, including any certificates, pictures of the production process, how long the manufacturer has been affiliated with Alibaba, etc.


If you're looking for a more specialized, knowledgeable producer, you can alternatively conduct your search by looking for providers rather than items.


2. You can now go about getting estimates and examples. If you want more details regarding the caliber of the product, get in touch with the vendors via the "Chat Now" option. Request samples because they let you evaluate the quality of the goods.  Make a short list of all the providers you want to speak with, then either manually contact the suppliers or request quotes from them using the "request for quotation" option.


3. The rates and the MOQ (Minimum Order Quantity) can then be negotiated since there are various prices stated in accordance. In order to source from Amazon and avoid compromising on quality, which happens frequently, negotiation is a crucial step.


Amazon FBA Sales

4. When you locate potential suppliers, be sure to confirm all pertinent information, including whether they possess the required trade insurance, shipping authorizations, and, most significantly, an understanding of Amazon FBA regulations.


5. You can proceed to complete your purchases once you have all the essential manufacturer/supplier information. "Can I ship directly from Alibaba to Amazon FBA?" is the second most crucial query that many people have. Yes, you can have your orders delivered to an FBA warehouse run by Amazon. Costs of delivery from Alibaba to Amazon FBA must also be considered. All of the data on the 'Manage Inventory' page needs to be changed in your Amazon Seller Central account. Mention the order amount and complete the necessary product and shipping label preparations. Consider customs as well, and then have your goods delivered straight to the Amazon warehouse.


How are Alibaba vendors paid?


On Alibaba, you can pay vendors using a variety of payment options. Alternatively, if your supplier agrees to the requirements, you can also collect payments outside of Alibaba. Paying outside the platform is riskier because it will be harder to hold people accountable because there are many bogus providers, so be aware of this. Making payments through other sites that do not qualify as international transactions will likewise be considered prohibited.


These are a few of the well-liked payment methods that Alibaba provides.


(TT) Bank Transfer

Although this approach is the quickest, it has a significant level of risk, particularly when the entire payment is given before the production process begins. Therefore, it is better to pay a portion of the total up front and the remaining balance once you have received your cargo. You must confirm that you have the supplier's name, home and bank addresses, bank identification number, etc. in your possession. The drawback of this method of payment is that there are processing delays (often 3 days to begin the process as well as delays due to holidays) and a remote possibility that you will be refunded your money in the event of any issues.


Trade Assurance

Another payment choice that seeks to safeguard customers is Alibaba Trade Insurance. It is only valid if you pay through's secure payment platform, not through any other external channels. This option makes up for any losses you might suffer from incorrect or damaged products, extended shipment times, etc. Buyers are shielded from fraudsters, and refunds are guaranteed. The issues with Trade Assurance include that not all suppliers are willing to take part in it, and those who do, charge more for their goods as a result of using this policy method.



Another low-risk payment option is PayPal, particularly for overseas transactions. It is well renowned for providing consumers with safe payment protection, being simple to use, and having no delays in the processing of money. The only drawback is that providers don't enjoy the same level of convenience due to high tax rates and other challenges with money withdrawal, but you can rely on PayPal to help you get your money back if something goes wrong.



Escrow is a low-risk payment option; it is currently known as the Alibaba Secure Payment service. In this, the buyer's payment is withheld until he receives the order and certifies that it was provided in accordance with acceptable criteria. This approach benefits both consumers and producers since it ensures that both parties will be satisfied with the way that the items are presented and that suppliers will receive timely payments.



The suppliers will not be paid by the buyer until an examination is completed if the product quality or delivery is subpar for any reason.


Letter of Credit

If you deal in large order quantities, usually above $20,000, then this is a good payment method for you. It is the most efficient technique to purchase goods that meet the required standards of quality. Due to the documentation included in this method of payment, which include clearly defined terms, it also assures payment to the supplier.


Is it secure to source goods for Amazon FBA using Alibaba?


You should be aware of several serious safety risks now that you are familiar with the fundamentals of selling on Amazon from Alibaba. Because there are many fraudulent middlemen that are actually resellers rather than manufacturers, Alibaba is a well-known marketplace that aims to cut out the middlemen.


Many measures are in place to protect both consumers and manufacturers.


1. One of these options is Trade Assurance. This option offers a money-back guarantee from certified providers in the event that the quality and timeliness of your order are not up to par. Another high-quality alternative to consider is gold suppliers.


2. Suppliers that choose not to participate in the Trade Assurance program must also go through a series of verification steps. Each supplier receives a badge based on the amount of verification they successfully complete, and customers can check it on product listings to choose reliable ones.


3. You may engage with manufacturers on Alibaba, so make the most of this opportunity by requesting business licenses, verifications, and contact details. Ask as many questions as you can about the products, and ask for samples and factory photos to determine their genuineness. All of information empowers you to make wise purchasing choices.


4. You can always report supplier issues to Aliba, and they'll handle it the appropriate way. Anti-fraud measures are in place to prevent innocent purchasers from being duped.


Risks of using Alibaba for sourcing and how to prevent them


Alibaba is a trustworthy alternative for sourcing, but there are still some hazards, mostly related to fraudsters, con artists, and payment fraud. Be on the lookout for products with subpar quality.


1. Select Gold suppliers because they are reputable, trustworthy, and have a history of success on Alibaba. If you choose different providers, you'll need to evaluate them by getting detailed answers to inquiries about their offerings and the reliability of their company.


2. Different countries have different requirements for product quality. If you don't ask for samples and don't test the product, you can get something that is very different from what you anticipated in terms of appearance and feel.


3. If you don't cross-verify your manufacturer's bank details with what is offered on Alibaba, you can end up paying a hacker because online transactions are more vulnerable to being hacked.


4. Due to the language barrier, there is always a chance of miscommunication when speaking with manufacturers from other countries, so caution must be taken to ensure that your messages are understood.


5.Pay attention to how the quotations are presented. A real professional manufacturer can be distinguished from a phony one by examining how exact their quotations are and by examining how they respond to particular inquiries. A boost would be if they could provide references or client testimonials. But if any of these things strike you as weird, back off because it might be a con artist.



Last Thoughts

The aforementioned elements, dangers, and details are aimed to offer you a clearer understanding of sourcing goods from Alibaba to sell on Amazon FBA. As an Amazon seller, you must be careful about the product quality you source, not scrimp on it, and guarantee decent profit margins. You are better prepared to manage your Amazon business if you bear all of these things in mind.



Happy marketing!


 Read More:

The Ultimate Beginner's Guide to Amazon FBA Wholesale:

Mastering Your Amazon PPC Campaign:

The Ultimate Guide on How to Run a Successful PPC Campaign

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