Do you wonder how to dropship Shopify products with Alibaba in 2021 It’s probably not a good idea. You should think twice before you vote for the wrong idea.
Alibaba’s low prices and dropshipping-friendly stores make it one of the most powerful platforms to help you grow your dropshipping business.
If you find yourself nodding your head in a ‘no’, and shouting at the article about dropshipping with Alibaba so difficult, you can read the entire thing to reevaluate your beliefs.
Why is Alibaba good for Shopify dropshippers?
Ready to Ship
Ready to Ship products are ready-to-ship products. You can buy products at fixed prices and pay shipping costs. These products can be shipped within 15 days from the ‘Order Date.
Alibaba Trade Show
Trade shows allow buyers and sellers to have one-to-one conversations and negotiate before purchasing. It allows sellers to showcase their products. It also allows sellers to demonstrate their products.
The pandemic is not conducive to in-person events so Alibaba decided to host a Virtual Trade Show. The unique feature of this trade show is its invitation-only format. It is targeted at US manufacturers. You can find more information about this virtual trade fair.
Alibaba Personal Protective Equipment
Alibaba had established high-quality mask suppliers under which retailers could source PPE from one location. Alibaba worked closely with the relevant authorities around the world during Covid-19. This made it possible for retailers to source PPE from one destination and bulk order PPE at times when supply was low or high demand.
Alibaba Offers Services
Trade Assurance
Trade Assurance ensures that dropshippers are protected. Alibaba will either provide a satisfactory product or a refund if you discover that your shipment data or product quality is different from what you agreed on.
These are a few benefits of Alibaba Trade Assurance
- Secure Payment
- Buyer Protection
- Unmatched Customer Support
Pay Later
Pay Later is an efficient feature that allows for you to take up toIf you need quick cash, you can get $150,000 credit. You can repay this feature in six months.
Notice:It has been discontinued at the moment, but may be reintroduced by the end this quarter.
These steps are required to sign up for Pay Later.
- Fill in the basic details about your business.
- Connect your bank and business accounts. They need to have something they can trust.
- Please provide your personal information.
- Wait for Alibaba to verify your identity and then wait for Alibaba’s eligibility test.
- Credit is available if you are eligible to pay later.
Terms of Payment: Net-60
Alibaba’s new payment terms are the best way to do business with dropshippers. This payment option is only available to dropshippers. Offers to qualified US businesses
Qualified businesses can place orders on Alibaba with participating suppliers and receive invoices. Dropshippers have 60 days to repay the remainder.
The contract terms with the supplier will determine the upfront deposit. In general, 30% of the order value would be considered the market average.
Important to remember that Alibaba Payment Terms is an invitation only program available to US-based registered companies with a tax ID (i.e. EIN – Employer identification Number).
Alibaba offers many selling options
Global
Global seller platforms allow both small and large businesses to reach a wider customer base. You can choose between a basic plan and a premium plan. The premium plan is not recommended unless you have very high sales revenues.
Partner Program
The Partner Program invites you to work with Alibaba’s businesses. This can be done in two simple ways:
- Be a Lead Affiliate
The lead affiliate functions in the same way as other affiliate programs. This allows you to attract new customers and you are commissioned for it. Register to become a lead affiliate
- Reseller for Sales
You can register with 5 other people to create a new income stream.
How to Choose a Good Product From Alibaba for Dropshipping
The foundations of dropshipping are essential. Let’s now learn the basics of dropshipping.
Please note that there are many products you can choose from. Don’t let this confuse you. You can choose the right product by doing thorough research and analysing your target audience.
Start searching
Alibaba offers two options for bulk buying: Supplier search and product search. The first is for searching directly for the product. The second is used to find a supplier. Let me show you an example to make it clearer.
Product Search:
You will find a variety of products from different suppliers in the search results.
After we’ve found some great products, it is time to find a good supplier. Let’s use the Supplier Search as our second search method.
Source Search:
These search results will show you the various suppliers that offer the product category that you are looking for.
You will now ask me: “What’s the benefit to using these search options?”
I will tell you, a “product” search allows you to identify which products are most in demand. The supplier search’ on the other hand will help you identify the most trustworthy sellers in the product category that you are searching for.
This article is not affiliated with any sellers or retailers listed on Alibaba. Illustrations are intended for educational purposes only.
Check out the Alibaba Product Page for Some Tips
Price per unit and FOB (Free on Board)
On the product description page, you can easily identify the unit price.
You might have learned in school that a unit is the cost of an item. It doesn’t matter if you already know this, I just said it because some people don’t know.
Pro tip: FOB is not complicated. It simply means that the seller will cover all shipping and packing costs to your address.
Minimum Order Quantity (MOQ).
The minimum order quantity is easy to understand. This simply means that you must order a minimum quantity of products in order to be eligible for a purchase.
If you ask me to ship just one pen from China to Australia I will lash out. This is why suppliers require a minimum order quantity.
Alibaba offers payment options
Alibaba offers many payment options. These are the most well-known:
- Bank Transfer (Upfront)
- Letter of credit
- Western Union
- PayPal
- Escrow Agreement
When selecting your suppliers, there are some things to be aware of
“Self-help” is the best form of help.
This is not an inspiring article. This is my point: Until you stop falling for scams yourself, no one can help you mate.
This is possible by playing fair. How do you play fair?
Follow me to learn how to play fair.
Look for verified suppliers and trade assurance options
When you make your final product purchase, ensure you have ticked Trade Assurance and Verified supplier categories in the search bar.
This is particularly important when you are purchasing high-risk, high-budget products.
Get in touch with the supplier
Alibaba chat is a great way to get in touch with suppliers. If that fails, or you are unsure of how to connect with a supplier, you can book a chat over Skype.
A heads-up: Customer service can be slow. You may need to wait for several hours or even a whole day. The maximum time it takes to get a response is between 24-48 hours.
Ask for samples
If you have never requested a sample, there is no reason to cry about low-quality supplies. Avoid the pain and heartbreak that can come with incorrect orders or low-quality shipments.
When finalizing a supplier, be aware of these precautions
Let’s cut to the chase: Here are some important precautions you should take. If you follow the listed precautions, almost 99% of the times you won’t get scammed. The remaining 1% is your luck. I can only wish you better luck. It’s business, you know. There’s always a little loss, even if there is profit.Look for unbelievable low prices from new sellers:
This is a red flag that shouts “NO” to your face. Fraudulent suppliers will offer unbelievable prices, then demand payments via untraceable means like wire transfer. If you come across such sellers, I recommend pressing alt + F4. Yes, you can start again. You can close everything.
Pay me Quickly, Pay Me More
Suppliers are just as careful as you when it comes to fraud. It’s fine if they ask for payment options. However, they are not doing this for free. Don’t ignore their persistent insistence on paying a large sum upfront without Trade Assurance.
Unreachable phone number:
Call the supplier at the provided number. To add security, verify if they have fax numbers. Send them an invoice and ask for confirmation via fax. You should not beat small suppliers for not having a facsimile number.
No business email:
This could be subjective. It could be a red flag if a supplier boasts that they are part of a large company but doesn’t have a business address. Be cautious if the supplier’s company name matches their personal name.
Shopify – Be a Global Seller. Dropship Alibaba Products.
Alibaba’s paid plans can help you grow your business and increase your sales if your goal is to sell products. This plan allows you to quickly build your eCommerce presence.
Alibaba Paid Plan Features
Interface for Custom Store
You can make your store stand out with your own design. It’s not necessary to be a programmer or have technical knowledge.
Advertising Tools
Alibaba’s paid plans come with advertising credits, which you can use to promote your products more effectively.
Analyze the Data for Your Store
A detailed report will be provided on how your store is performing. You will receive a dashboard that provides information about click volume, store visits and product exposure. It also includes average cost, spend, average price, and other features.
Enhanced Customer Support
You will be a global seller on Alibaba and receive priority customer support. You will also have a dedicated manager if you choose the Premium package. If you are just starting out, the Premium package is not necessary. Don’t be seduced by the ‘Premium’ package.
What is the cost of Alibaba?
It’s possible to dropship Alibaba products to Shopify if you have a small or medium-sized business. The features are similar, so it’s not difficult to switch between them. Trust me, the basic plan is sufficient!
The premium plan is recommended for high-volume sales people who require dedicated support.
How to integrate Alibaba with Shopify for Dropshipping
Do you want to dropship Alibaba products easily on Shopify? Importify can help you import products from Alibaba to Shopify. This is how it works.
Step 1: Click on Alibaba.com from the Home screen.
Step 2: Click on the product that you want to sell, and then click on it again for more information.
Step 3: Click the red color “add” button on the left side of the product page.
Step 4: You will see all editable details for your product. You can edit the title and description of your product, as well as the images that you want to display on your Shopify product pages.
Step 5: Scroll down to see the options for changing the pricing and variants as well as adding organization details. While some people do not provide organization details, I recommend that you fill it in as this will help build credibility.
Step 6: After you are done, click on the “Add to Shopify” button.
To see the product, you can either check your Shopify import lists or click on the view button in this image. Click on the edit button to make further changes to the product.
Here you are! You have successfully added the product to your Shopify import list.
Shopify: The Pros and Cons Of Dropshipping Alibaba Products
Before making an important decision, we weigh the pros and cons. We can also learn how to dropship Alibaba products through Shopify. Let’s look at the advantages and drawbacks of each.
Shopify: Benefits of Dropshipping Alibaba Products
- Very low manufacturing costs. This is a great way to market your store.
- Navigation seamless in web stores
- There are a lot of products available to choose from
- Event like “Virtual Trade” offers numerous networking opportunities
- With the help of Importify, you can easily integrate
Drawbacks to Dropshipping Alibaba Products from Shopify
- Slow and poor customer service
- Language barriers can be difficult to overcome
- Shipping and waiting times are longer
Is Dropshipping Alibaba Products on Shopify a Good Idea?
Based on my personal experience and analysis, Alibaba is a great option to take your Shopify dropshipping efforts to the next level. It all depends on how well you manage risks and maximize profits.
Shopify allows you to use Alibaba in the best way possible. You can also get buyer protection. This will help you reduce risk.
What can you do now that the risk has been reduced? My top tip would be to not take Alibaba’s features as a given.
