A BEGINNERS GUIDE TO BUYING PRODUCTS FROM ALIBABA

Shaan Yusuf | @ecommvp | www.ecommercemvp.com

–Jack MaAlibaba Founder and CEO

“I want to change history, do something important in my life, and influence individuals like we have with millions of small

businesses on Alibaba. Then they love and respect you because you made their life important.”

OVERVIEW

• Alibaba connects buyers to sellers.

• Alibaba is the world’s largest B2B (business to business) eCommerce site.

• Amazon + eBay combined don’t sell as much as Alibaba.

• Most sellers/suppliers are based in mainland China but other countries including the United States are well represented on Alibaba

WHY ALIBABA?

• Anyone individuals or businesses can buy products directly from manufacturers through Alibaba.

• Almost every tangible product in the world is available for purchase on Alibaba.

HOW ALIBABA WORKS

Search for product

Contact

Minimum order requiredOften referred to as MOQ (minimum order Quantity)This number is not written in stone and can be ignored

Price per unitThe price shown here is based on large orders NOTthe MOQ. In this example, $49 is probably for 10 unitsnot 1.

THE RIGHT WAY TO SOURCE PRODUCTS

Speak with at least 3 suppliers

Request a Product Catalogue

Negotiate

Get Quote

Suppliers will fight for your business. regardless of the size of the order.

All suppliers have a catalogue with their completeinventory along with more accurate pricing

Request a quote for a small minimum order.Ignore the MOQ. Most suppliers will do small ordersincluding single units

Cut the quote in 1/2 and use thatas the starting point for negotiations.Increase the size of the order to keepthe price/unit low

Make PaymentUse Alibaba escrow to make payment or offer to pay by PayPal for a discounted price.

RISK• Payment

• Safe: Alibaba’s has an integrated payment platform that holds payment in escrow. After products are received and approved, payment is released to the supplier.

• Risk: In exchange for using PP, suppliers will offer discounts. Use at your own risk.

• Quality• Products aren’t always as nice as their pictures. Ask for detailed photos prior to

shipping. Even then, it’s unlikely all products will be free of defects.

• Refunds• what’s a refund?

• I’ll sue….• which court, what jurisdiction?

• Shipping and Duty• Imported products are subject to duty. • use http://www.dutycalculator.com/ to estimate possible duty charges• Most products from Asia are shipped by DHL.

Beware of excessive shipping charges.

Thanks

Learn how to start your own eCommerce business on a budget

www.ecommercemvp.com

Shaan Yusuf | @ecommvp | www.ecommercemvp.com