Alibaba stands at the pinnacle of the E-commerce wave. The Alibaba online marketplace combines retail tasks and manages them into an extensive data-driven network of salespeople, retailers, service providers, and manufacturers. Though the U.S.-based internet-technology monopolies like Amazon and Facebook are more prominent, the true hidden gem of the digital world lies in the east in China — the birthplace of Alibaba.
How big is Alibaba?
Alibaba is the largest e-commerce corporation, with three principal e-commerce sites — Taobao, Tmall, and Alibaba.com – involving millions of online consumers daily. According to statistics, there are 674 million active consumers and 755 million mobile consumers, with annual revenue of 376 billion Chinese yuan (USD 54 billion). There is no doubt that Alibaba has established itself as an e-commerce giant with an astounding success story. But what is more imperative is how Alibaba has provided its users with a platform to sell their goods and commodities across Asia, allowing retailers to expand their online presence and grow their business.
How much does it cost to sell on Alibaba?
Alibaba has some excellent points in its favor as far as selling on it goes. Why?
Alibaba will not accrue any:
- Sales commissions
- Transaction fees
Sellers based in the US can register on Alibaba as a Free Supplier or a Gold Supplier. A Free Supplier is allowed to post up to 50 commodities online and source possible consumers through the Free Supplier platform.
However, as a Gold Supplier, you can choose one of the two membership packages: Basic or Premium.
Is selling on Alibaba worth it?
Anyone can sign up on Alibaba to make money; however, there are no profits assured. A new entrant will have to compete with an established range of suppliers operating from China who can sell their products at extremely competitive prices. Alibaba’s membership fees and other overheads will also have to be accounted for by new sellers. There are a few steps that you can take to improve your potential despite there is no guarantee you will end up making money.
- Avail free membership:
register on Alibaba for a free membership so you can benefit from their features. You can get a clear picture of how the online marketplace functions and the consumer’s level of demand prior to committing to an annual membership subscription.
Collaborate with a Chinese manufacturer:
To boost profit margins and cater to orders’ demand, your best bet would be to join forces with a Chinese manufacturer.
To understand how to attract potential buyers for your product, research how other sellers price their items and similar products on Alibaba.
Target and Single out potential buyers:
Generate new business and get proactive by pursuing the latest buyers and offer effective prices to potential customers.
If you’re interested in selling your merchandise on Alibaba, the SquarePeg will give you a quick run-through of how to start selling.
Steps to creating an Alibaba Seller Account
- Sign up on your Alibaba Seller Account
Firstly, as a seller, you are required to register an Alibaba account. This simplistic procedure needs a valid email address, your full name, company name, location, and business phone number. After providing your details, choose your preferred type of account: a seller account, buyer account, or a hybrid account.
- Launch Your Company Profile
After completing your Alibaba seller account and email verification you need to establish and build your company profile, i.e., your company page. This information can be viewed by potential buyers (or retailers, if you intend to become a buyer as well), so it would be helpful if you are as comprehensive as possible.
Ideally, you should mention the following information:
- Kind of firm
- Commodities you plan to sell
- Company size
- The target markets (the target buyers)
A comprehensive profile will inculcate confidence in potential partners and buyers who are interested in your specific business. By investing the time and energy into your profile, you pave the way for future clients and a booming business.
Want to attract more customers? Give them the assurance and confidence by furnishing any product test results, qualifications, or certifications you may have earned. By doing so, your product becomes more market competitive, considering safety standards and EU restrictions.
- Categorize Your Products
- List all your products
- Add detailed and accurate descriptions of your product (characteristics, color, warranty, material)
- Add pictures that display all sides of the goods
By providing this information, you enable an increased product reach and appeal to potential consumers. Also, the number of products you list plays a fundamental role as a successful Alibaba seller. If the product list only includes a few commodities (5-10 products), the page will seem blank or incomplete. Thus, the higher number of products on the list, there is higher likelihood for you to appear in the top search results, giving you more exposure and a more extensive client base.
- Be a High-Quality Correspondent
Building your business does not merely revolve around selling your goods. You should be a clear and high-quality communicator. Generating a sense of integrity and self-assurance pertaining to your brand is crucial to make the most of any Alibaba partnership. While detailed product descriptions and a fascinating company webpage can help a company thrive but it does not always help achieve the required goals.
It is imperative you connect and communicate with promising and existing buyers as a seller in an international space while preserving healthy relationships that help your business flourish. To manage communications on Alibaba, you can also install Trade Manager, their chat forum, which allows you to communicate in real-time with other Alibaba users.
- Apply for a Gold Membership
For those interested in harnessing everything Alibaba has to offer, it is free to join, and a Gold Membership can be worth considering. Presently, there are three different Gold categories: Basic, Standard, and Premium.
Members have access to their custom webpage subsequent to signing up with either Gold level. Members can avail of unlimited product postings (free memberships cap at 50), priority rankings in their search results, and the ability to quote buying requests. Furthermore, each level has access to product showcases, translating into 100 times more product views, according to Alibaba.
Preferential treatment is given to premium members and acquires the benefits of 1st ranked product placements along with 28 product showcases. In contrast, standard and basic members receive 12 and 5 product showcases along with their personalized customer service.
- Make the most of Resources on Alibaba
Business owners make the most of the tools and functionalities with a plethora of educational and training resources provided by Alibaba. Users have a wide range of information from the basics of foreign trade and industry analysis to e-commerce, which can increase profits and improve their business. Alibaba is the perfect opportunity to give your company the platform to expand your market and grasp the benefit of international sales.
We can help you set up your Alibaba seller account the right way and use the tools and resources to make the most of it. If you’re looking to start becoming a seller on Alibaba, it has plenty of advantages. However, you still need great marketing on a platform with competitive startups out there, so get on board with The SquarePeg. Let us help you get started and see how you can turn thousands into millions! Contact us now!