Things to Consider In alibaba sell on amazon

 Things to Consider In alibaba sell on amazon

For many manufacturers, selling on Amazon and is an excellent opportunity to increase sales volume while also driving down costs due to reduced logistics and advertising expenses. So for that, let’s take a closer look at the things you should consider before diving into the alibaba sell on amazon process.

Who’s Your Target Customer?

Before you get too deep into the Amazon seller world, it’s important to identify your target customer. This will help you determine which type of seller account is best for you. If your target customer is company-managed and you want to take advantage of Amazon’s expansive marketing opportunities, then a Seller Central account may be right for you.

If, on the other hand, your target customers are predominantly small businesses or individuals and you want to focus on fulfilling orders yourself, then a Vendor Central account may be more appropriate.

How Will You Fulfill Orders?

One of the biggest questions you’ll face is how you’ll fulfill orders once they’ve been placed on Amazon. If you’re a manufacturer with an existing system for shipping and fulfillment, then Vendor Central may provide a more seamless experience.

If you’re a distributor or retailer who relies on drop-shipping from third-party suppliers, then Seller Central will likely be more suitable. These accounts provide the option to use Fulfillment by Amazon (FBA) – this means your products are stored in Amazon’s warehouses and shipped to customers when necessary.

What’s Your Marketing Plan?

Selling on Amazon is a good idea for companies with a solid marketing plan. Unlike traditional e-commerce sites, Amazon doesn’t provide the same amount of visibility for products. In order to rank higher on Amazon’s search engine results page (SERP), you need to invest in paid search ads, sponsored products and product placements.

But with an Alibaba account, you can take advantage of the global online retail store that currently has over 100 million registered customers. In turn, you can alibaba sell on amazon. What this means is that Alibaba can help you reach a global customer base with less marketing spend than required for Seller Central accounts on Amazon.

How Much Profit Are You Sacrificing?

Lastly, while many business owners are attracted to Amazon because of the potential for higher sales volume, it’s important to be realistic about the sacrifices you may be making. For most manufacturers, Amazon customers buy at or near retail prices, meaning that your margins will be lower on those sales.

Additionally, there are a number of restrictions with selling on Amazon that might not exist elsewhere. For example, some brands have restrictions in their agreements with vendors about where and how much can be sold on Amazon. If this is your situation, you’ll need to weigh the benefits of higher sales volume against the loss of profit from reduced margins.

Robert Desauza