One of the hottest trends in online retail right now is making purchases from Alibaba, and this guide will answer all of your frequently asked questions. We’ll cover every aspect of making purchases on Alibaba in this thread.
You will learn what Alibaba is, how to make purchases on Alibaba, and some procurement best practices that are relevant to businesses like dropshipping.
In order to absorb all of the simple yet nuanced information presented in this article, you’ll need to keep your internet connection active throughout the duration of the piece.
Okay, so let’s get this going.
What Is Alibaba Known for?
Alibaba is one of the most reputed and well-established names in the field of e-commerce. It is also recognized as a major online marketplace for purchasing goods and services for both individual and commercial use.
When you think of Alibaba, keep in mind that it’s not just one company but a conglomerate with international reach. It began as an e-commerce site in 1999, but the company has since expanded to serve the B2B, B2C, and C2C sectors of the online marketplace.
In addition to its namesake B2B website, Alibaba also operates a number of other e-commerce offshoots, such as AliExpress, Tmall, 1688, and Taobao.
A number of e-commerce experts, for reasons you will learn about later in this article, consider Alibaba to be the largest e-commerce platform in the world.
Alibaba is widely recognized as the most popular and widely used Chinese business-to-business (B2B) online marketplace, where sellers can reach the largest possible audience of potential buyers.
Who Is Alibaba Owner?
Alibaba is not owned by a single person. There are multiple shareholders in the Alibaba group. Alibaba’s largest shareholder is the SoftBank Group.
Other shareholders include Jack Ma and Joseph Tsai who are also the co-founders of this online e-commerce giant.
Jack Ma, who co-founded Alibaba and served as its executive chairman, receives more credit than anyone else for the company’s success.
Is Buying from Alibaba Safe?
Yes. Since its inception in 1999, Alibaba has served the global marketplace. Alibaba’s customer base has grown steadily since the company’s inception. Alibaba has become a go-to place for product sourcing for many companies.
When it comes to the security of their customers’ information, Alibaba is meticulous.
Shopping on Alibaba is a risk-free venture.
The company’s meteoric rise to the position of preeminent e-commerce platform in the world would not have been possible if its security measures were inadequate.
As an added bonus, it is a recognized legal entity. Among New York Stock Exchange participants, the company is known as BABA (NYSE).
Alibaba’s stock price has been climbing along with the NYSE. In 2016, it traded for about $74 USD, while this month, it has reached about $115 USD.
Therefore, there is no room for doubt about Alibaba’s security. This website has multiple layers of security, so you can shop here with confidence.
Is It Worth Buying from Alibaba?
Yes. You can find many Chinese wholesalers, manufacturers, and retailers on Alibaba. Manufacturers and their Original Equipment Suppliers (OEMs) are the suppliers.
Online and offline wholesale businesses, such as dropshipping and general procurement, can find paradise on Alibaba. Alibaba is used by consumers from all over the world to buy goods for their homes.
It’s a good idea to shop at Alibaba.
Comparing the prices and quality of products on Alibaba to those on other shopping websites like Amazon and eBay reveals a significant price gap, new possibilities, and a much smaller selection on other sites.
Alibaba has become the global icon of Chinese e-commerce, and China has become the world’s largest supplier of goods.
In today’s era of online shopping, Alibaba has a significant advantage over its rivals by providing international businesses with the most options.
When compared to its rivals, it offers a wider selection of products at lower prices, more shipping choices, and greater customization options.
That’s why it’s not just Chinese businesses that can become suppliers on Alibaba’s platform. Global suppliers have begun signing up with Alibaba in the hopes of snatching up a sizable share of the company’s clientele.
To succeed in business, you need to be astute enough to bring suppliers to the bargaining table, and good enough to communicate your needs clearly.
However, there will always be some customers who have negative experiences with Alibaba. Bad interactions can happen on any service. A proper understanding of how to shop on Alibaba is all that is required.
The purpose of this piece is to shed light on just that question. In this article, we will cover the dos and don’ts of shopping on Alibaba in several different ps so that by the end of the piece, you will be an expert on making smart and secure purchases from Alibaba.
Why Is Alibaba So Cheap?
For various causes, Alibaba is very reasonably priced. Buyers report that the prices of products on this platform are much more reasonable than those on competing sites, and this is due to a number of factors. The following discussion will emphasize these aspects.
Chinese Suppliers
The abundance of Chinese suppliers is a major factor in Alibaba’s low prices. You already know that the Chinese strategy for global dominance relies on selling low-priced goods, and that principle applies equally well on Alibaba.
They don’t maintain absurdly high profit margins, and the Chinese suppliers don’t either. Chinese goods are significantly less expensive than those offered by any other country, despite the fact that the Chinese still make a respectable profit from their products.
That’s why businesspeople from all over the world are plotting a course to China: to stock up on supplies. Alibaba is no different from any other online retailer in this regard.
The presence of Chinese suppliers is, therefore, the primary reason for lower prices on goods sold through Alibaba.
Selling in Bulk Quantities
Alibaba is able to offer such low prices because of its focus on bulk sales. One of the first rules of business is to always have a plan. There is a price break for purchasing a large quantity.
The concept of economies of scale becomes important at this point. Producing a small run of an item will have a higher unit cost than producing a large run of the same item.
Chinese suppliers are experts at taking advantage of this principle, which holds true everywhere.
Direct Manufacturers
The presence of direct manufacturers at Alibaba is also likely a contributing factor to the site’s low prices.
If you go straight to the source, the manufacturer, you can expect to pay much less for the product than you would at a store.
Wholesale Mantra
It’s interesting to note that there are times when a wholesaler can actually undercut the prices offered by manufacturers themselves.
This is due to the fact that wholesalers are sometimes stuck with unsold inventory and will do whatever it takes to move it. This could be due to the wholesaler’s desire to move on to another item.
Here is where the wholesaler and the buyer both come out on top, as the customer enjoys substantial benefits, most notably in terms of pricing.
This may occur if the wholesale cost of previously purchased items drops below the cost of similarly manufactured new goods.
Cheap Chinese Labour
The low cost of labor in China is another factor that keeps Chinese goods at the forefront of the global market. This also applies to purchases made on Alibaba.
Wage costs in the West are significantly higher than in most of the world. Products’ original prices are increased by this sum, leading to a subsequent price increase.
The Chinese rivals have limited influence over this aspect of the market.
Chinese Government Regulations
China is eager to expand exports and gain a larger share of the global market. This is why China has been introducing so many rules that benefit business.
It provides low-cost electricity options and other subsidies to aid in efficient manufacturing at low cost. That’s why the number of factories in China keeps growing.
Internal Competition
You can find numerous wholesalers and factories on Alibaba. As a result, all of the Alibaba suppliers foster an atmosphere of competition to increase their share of sales.
This internal competition ultimately benefits consumers through lower product prices.
Smart Shipping Facilities
Now more than ever, international shipping from China is the norm. That’s why a plethora of Chinese shipping companies have been keeping the world supplied with goods.
In the last two decades, with the advent of internet shopping, this method has become increasingly refined. Delivery times and costs have both decreased as a result of improvements in shipping options like ePacket.
Does Alibaba Dropship?
Yes. The term “dropshipping” refers to the practice of marketing another person’s products and having them shipped directly to the customer without having to pay any of the product’s wholesale price.
Many online stores rely on Alibaba as a supplier. Either they store the manufactured goods in their own warehouses and ship them to customers, or they have Alibaba ship the goods directly to the customers.
Can You Haggle on Alibaba?
Yes. You can haggle on Alibaba in terms of pricing, MOQs, and shipping, etc. Alibaba provides numerous avenues for bargaining.
Following is a rundown of methods for striking deals with Alibaba’s suppliers:
Make it clear to the seller that you’re an experienced Alibaba user.
Gather bids from various vendors and communicate to them the lowest offer received.
You should make your suppliers aware that you have the potential to become a repeat customer.
You should also inform suppliers after checking the product prices on the cheapest websites such as 1688.
Prove to them that you are a serious businessperson by acting the part.
The suppliers should know that you can also leave the order for a better option.
Inquire about getting a sample and seeing actual photos/videos of the item.
If you want to save money and time on shipping, you should probably ask for some other options.
Some strategies for bargaining on the Chinese shopping website Alibaba. Many Alibaba vendors are serious about doing business and will reduce their profit margins in order to secure a new client.
Remember, though, that the cheapest option isn’t always the best. You should also consider the supplier’s reputation, level of expertise, how they deal with shipments, and so on.
Why Is Alibaba So Successful?
In the business-to-business market, Alibaba is often considered the best e-commerce platform. The Alibaba group is unique and special because it dominates all of the major online retail categories.
We’ll list a few of the main reasons for Alibaba’s success.
Alibaba boasts the industry’s lowest prices.
The opportunity to pursue entrepreneurship, including dropshipping.
Extremely abundant in both product ideas and product customizations.
Possibility of swift transport to various locations worldwide.
It supports multiple languages and multiple business models (B2B, B2C, and C2C) across a variety of platforms.
Sales as crazy as the Singles Day sale are available every day of the year.
What Is Alibaba Singles Day?
Each year on November 11th, millions of people around the world participate in Alibaba’s Singles Day, a massive online shopping festival. It includes deep markdowns on a wide variety of products and a massive sale.
It’s commonly referred to as the Double 11 sale or 11.11 sale. The original celebration lasted for just one day, but now the festivities last for several weeks.
Similarly, some people believe that Alibaba Singles Day is intended to compete with Valentine’s Day. As opposed to celebrating couples or married people, the event is known for honoring the world’s singles.
Some have speculated that China is responding to Black Friday and Amazon Prime Day with their own sales event.
Many people from various backgrounds and locations around the world anticipate this event in the hopes of scoring great deals. A few days before Singles Day, Alibaba begins teasing the sales that will be available.
In 2021, Alibaba’s Singles Day event brought in about $84.5 billion. When compared to the previous year, that represents an increase of 8.45 percent (the slowest growth in history). In any case, growth is predicted for the coming years.
How Is Alibaba Different from Amazon?
Both Alibaba and Amazon are online shopping sites. Even though both are well-known in the world of online shopping, they are not exactly the same.
Here are the ten most important pros, cons, or differences between Alibaba and Amazon:
Alibaba is a company that is based in China, while Amazon is based in the US.
Alibaba is a group of companies that run the e-commerce brands Alibaba, AliExpress, 1688, and Taobao. Amazon, on the other hand, works in e-commerce and other fields as a single company.
The Alibaba website itself uses a business model called “B2B,” while Amazon uses both “B2C” and “B2B” models.
Alibaba offers services like the internet and technology in addition to e-commerce. Amazon, on the other hand, offers a wide range of services, such as Kindle, web and cloud services, video services, services for charities, etc.
Alibaba’s main job is to put buyers in touch with suppliers, while Amazon’s main job is to be a key supplier itself (Fulfillment By Amazon).
Alibaba has a MOQ system because it is a B2B company. Amazon, on the other hand, doesn’t have a MOQ system.
Alibaba’s shipping times aren’t as fast as Amazon Prime’s, where you can get your order within two days if you live in a certain area.
You can make changes to your orders on Alibaba, and you can also ask the supplier to make something special for you or your business. You can also use Alibaba for white label or private label dropshipping. This may not be easy to do on Amazon.
Most of Alibaba’s products can be found on Amazon, but this might not be the case with Alibaba.
Most of the time, the prices of goods on Alibaba are lower than those on Amazon.
Can You Buy Single Items from Alibaba?
Yes. In some cases, you can also buy one item at a time from Alibaba, but this is rare.
Since Alibaba is a market for business-to-business sales, there are MOQs for every product. On Alibaba, you can find products with very low MOQs, but there are also a few products with only one MOQ.
There’s one more way to order just one thing from Alibaba. To get a single item, you have to talk to the supplier and try to work something out.
You can also ask for a sample product before placing a full order, but you have to do this in a professional way.
How Do I Negotiate Shipping on Alibaba?
On Alibaba, there is only one way to talk about shipping costs. This is done by you and your supplier talking with each other.
Every product on Alibaba has a standard way of shipping it. If you want to ship something cheaply, you need to pick one of the options that are given to you.
When you start to order on Alibaba, you will most likely find the following shipping methods.
Air Freight Sea Freight Express
Getting around on land
Air Cargo and Postal Express are both more expensive, while Sea Freight is usually the least expensive option.
You can also talk to your supplier about shipping options that aren’t listed on Alibaba.
As the suppliers keep sending products to different parts of the world, they may know of other shipping options that will save you money by referring you to specific trading companies.
How Do I Avoid High Shipping Costs on Alibaba?
If you don’t want to pay a lot for shipping on Alibaba or any other platform, you would have to be willing to wait longer for your package to arrive.
Prices go up if you want fast shipping. As we said before, getting in touch with suppliers on Alibaba may also help you find cheaper ways to ship.
But there’s one problem. You shouldn’t ask your supplier for advice that takes you outside of what Alibaba can offer.
You don’t want to deal with anything that Alibaba’s Buyer Protection doesn’t cover. You should only do such things for your supplier after you’ve built up trust with them.
How Much Is Shipping on Alibaba?
Shipping costs on Alibaba depend on how much the item weighs. If your package weighs less than 10 kg, you will have to pay less than $100 to ship it.
The shipping cost goes up as the weight of your item goes up.
“Freight on Board” or “Free on Board” is one of the choices. This means that you will have to pick up your product from a certain place and take it to the right place yourself.
How Long Does Alibaba Take to Ship?
There are two parts to the answer to this question. One part tells you how long it takes for a supplier to send your order out from his warehouse. The other part tells you how long it will take for your order to get where it needs to go.
It really depends on the product you ordered for both parts. If it’s a special item and the supplier hasn’t made it yet, it will ship in a few days and take a certain number of days (usually 30 to 60 days) to get to you.
If the product is in stock at the supplier, it is usually sent out within two business days and arrives at your location within 60 days or the number of days listed on the website.
What Is the Best Shipping Method for Alibaba?
In terms of price, sea freight is the best way to ship. Even though it takes longer than other shipping methods, it is by far the most cost-effective.
Air Cargo and Express delivery are the fastest ways to ship on Alibaba, but they also cost more.
How Do I Track My Order on Alibaba?
If you place an order on Alibaba and it goes through, the seller will send you an email with tracking information to the email address you gave them when you signed up.
Through the Logistics Services tab on Alibaba’s website, you can keep track of your orders.
“Track Parcels” is one of the options. When you click that tab, information about how to track your packages will be shown there.
You can also see where your packages are by going to the Trade Assurance page on the Alibaba website.
What Is Minimum Order on Alibaba?
The minimum amount you can order from Alibaba is called “Minimum Order on Alibaba.” It is also called MOQ (Minimum Order Quantity).
This minimum order quantity (MOQ) could be measured in pieces or in other ways, like in Kilograms (KG).
As Alibaba is a B2B website, there are proper MOQs that must be met for an order to be processed. This MOQ can be anywhere from 1 to 10,000 pieces.
What Is Pay Later on Alibaba?
The minimum amount you can order from Alibaba is called “Minimum Order on Alibaba.” It is also called MOQ (Minimum Order Quantity).
This minimum order quantity (MOQ) could be measured in pieces or in other ways, like in Kilograms (KG).
As Alibaba is a B2B website, there are proper MOQs that must be met for an order to be processed. This MOQ can be anywhere from 1 to 10,000 pieces.
How Do I Pay Securely on Alibaba?
Alibaba accepts many ways to pay for your orders. All of these payment methods are thought to be safe.
These are some of the ways that you can pay on Alibaba:
Credit card/Visa MasterCard
Online Bank Transfer
Western Union
Some European countries can also use the following ways to make payments.
Trustly \sKlarna \siDeal
Does Alibaba Take PayPal?
No. Unfortunately, Alibaba does not accept PayPal right now. If the only way you can pay is through PayPal, you can ask the supplier to accept your payment through PayPal.
But you will still be going against what Alibaba wants, and because you will be paying the supplier directly instead of through the Alibaba platform, you may lose the Alibaba Buyer Protection.
How Do I Order Samples from Alibaba?
You can order samples from Alibaba, but you will need to show suppliers that you are eligible to get a sample.
You’ll have to show the seller that you’re a real businessperson and that you want to order a sample of the product before you buy it.
The cost of the samples is sometimes added to the total price of your order.
Can You Get Free Samples from Alibaba?
Yes. On Alibaba, there are a lot of items that say “Free Sample.” These samples are not, in fact, free. Most of the time, the only thing you’ll have to pay for is the shipping.
The price of the product will be added to the cost of shipping, and if you pay a certain amount, you will get a “free sample.”
How to Buy from Alibaba without a Company?
Right now, you don’t have to have a business to be able to start buying from Alibaba. Alibaba doesn’t care at all if you own a business or not.
The sellers on Alibaba are only interested in making money. They only care about getting their products sold.
How Do I Find Suppliers on Alibaba?
When you look for something in the search bar on Alibaba, you can choose to narrow your search results based on the types of suppliers on Alibaba.
On Alibaba, there are three types of suppliers:
Gold Suppliers
Gold suppliers pay Alibaba so that when a customer searches for an item on Alibaba, their search results come up high.
This shows how serious a supplier is with Alibaba and how hard they are trying to sell their products. So, you can trust these sellers because they want to make more money through Alibaba.
We will talk about more information about Gold Suppliers on Alibaba in the next section of this article.
Verified Suppliers
A verified supplier on Alibaba is one whose products, services, quality, commitment, and other things have been looked at by a third party and approved of.
These verified sellers have a check mark next to their names so that you can tell them apart from other kinds of suppliers on Alibaba.
Trade Assurance Suppliers
Trade assurance suppliers on Alibaba are the most reliable ones, and they accept payment through Alibaba’s safest payment channel.
Payments to Trade Assurance Suppliers are made through Alibaba’s own payment portal, since these suppliers have already been checked out.
Orders made through Trade Assurance Suppliers are covered by Alibaba’s order protection system, and Alibaba makes sure that orders made through this channel are properly filled and delivered on time.
Fun fact: Alibaba suppliers are marked with the number of years they have worked with Alibaba. This is a great way to figure out whether you want to choose that supplier or not.
Can I Trust Alibaba Gold Supplier?
Yes. You can trust Gold suppliers on Alibaba because they are potential suppliers who are working on becoming Verified Suppliers. But when you work with a Gold supplier, you should always make sure they are making sense.
Since we already said that Gold suppliers are paid members of Alibaba whose ads show up when people search for certain keywords on Alibaba, they may or may not be the right, experienced, and legal suppliers.
To become a Gold Supplier on Alibaba, you have to pay about $950.
You have to decide for yourself if there are scammers on Alibaba or not. A supplier could also pay Alibaba to be at the top of search results so they can scam anyone they want.
A Gold Supplier can also be paid for by a supplier who is not a professional or has little experience. Before you place an order with a supplier, you need to look into his past and have a good conversation with him.
How Do I Talk to Alibaba Suppliers?
There are three good ways to talk to people who sell on Alibaba. Here’s how to do these things:
Send Inquiry (Contact Supplier)
Sending a question to a supplier in Alibaba is the same as sending an email. If you’re interested in a supplier’s product, you can leave a message asking about it.
The provider will get back to you as soon as possible with all the answers to your questions.
This option may be called “Send Inquiry” in the app and “Contact Supplier” on the web version of Alibaba.
Chat Now (Leave Messages)
Chat Now looks like the best way to get in touch with a supplier on Alibaba, but there is a problem. Because of the different time zones, the suppliers can’t always talk to you at any time of the day.
So, when you click the Chat Now button, you may see a message that tells you when the supplier will be online and ready to talk.
On the Alibaba app and website, this option is called “Chat Now.” On the Alibaba website, it is also called “Leave Messages.”
Call the Supplier
This is probably the best and quickest way to get in touch with a supplier on Alibaba, but the time difference is still a big problem. When you click this option, you will find out when the supplier is available to take your call.
Both the app and the website for Alibaba have this option. Integration with Alibaba Messenger makes the call possible, and it’s free to use.
Is Alibaba Cheaper than AliExpress?
You should already know that Alibaba and AliExpress have different ways of running their businesses. AliExpress is B2C, while Alibaba is B2B.
Because there are so many more items in a wholesale business, the prices are always lower than in a retail business.
Since both Alibaba and AliExpress are owned and run by the same Alibaba Group, there can’t be a big difference in the price of the same product where the MOQ is one.
Is Alibaba Faster than AliExpress?
No. AliExpress is faster than Alibaba, but not by much. Alibaba sells in larger quantities, uses a “make-to-order” business model, and lets customers change the way products look.
Because of this, shipping from Alibaba may take longer than shipping from AliExpress, where most items are already ready to ship.
Do You Need a License to Buy from Alibaba?
No. To buy from Alibaba, you don’t really need any kind of license. You can start buying whatever you want as soon as you log in to your Alibaba account.
As was also said earlier in this article, suppliers on Alibaba only sell products when they mean business. So, if you want to buy from Alibaba, they won’t need any proof of your business or any other legal document or license.
Can I Buy from Alibaba and Sell on Amazon?
Yes. In fact, many dropshippers, retailers, and registered Amazon sellers sell products regularly on Amazon after buying them from Alibaba. Most of the time, Amazon sellers buy goods from Alibaba and store them in Amazon warehouses.
Amazon takes orders for these items, fills them from its warehouses, and sends the packages to the customer’s address. This method is called Amazon FBA (Fulfillment By Amazon).
But you can buy things from Alibaba and sell them on Amazon without any problem.
Does Alibaba Sell Fake Products?
Alibaba doesn’t sell fake goods on purpose. It has made a lot of changes to how it works in recent years, and it has taken off the market counterfeit and stolen goods.
But even at Alibaba, there isn’t a system that can’t go wrong. You can still get fake goods from Alibaba, but one thing is for sure.
You can contact Alibaba’s buyer protection services if a seller says a product is real but then sends you a fake one. They will explain the case and show how it makes sense.
How Much Should a Sample Cost from Alibaba?
How much a sample costs depends a lot on what it is. You can also get free samples on Alibaba. But, as we talked about earlier in this article, if you want to get a free sample from Alibaba, you have to be smart about it.
It all depends on how you and the supplier talk on Alibaba. You can ask the supplier to charge you at least a certain amount for the sample you are ordering.
Summary:
We’ve tried to cover everything in this article that has to do with buying from Alibaba. All of the questions about how to buy from Alibaba in a safe way have been answered with great care.
You should keep coming back to this article because we keep adding the most up-to-date information and answers to frequently asked questions.
If you still have questions about this subject, we’d be glad to answer them.
Leave your thoughts in the comment box and tell us what you think about this article and what else we should add to make it more complete.
