Alibaba connects buyers with suppliers. This short slide deck provides a brief overview of how Alibaba works and how ANYONE can use the platform to source products. Using Alibaba is not all that different from Amazon, but there are a few things you should know like what certain acronyms mean, how to negotiate with suppliers and how to mitigate risk. Alibaba is a great way to order products from China or anywhere else in the world, but you need to be prepared and understand the rules.

1. A BEGINNERS GUIDETO BUYING PRODUCTS FROM
ALIBABA
ShaanYusuf | @ecommvp | www.ecommercemvp.com

2. –Jack Ma
Alibaba 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.”

3. 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

4. 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.

5. HOW ALIBABA WORKS
Search for product
Contact
Minimum order required
Often referred to as MOQ (minimum order Quantity)
This number is not written in stone and can be ignored
Price per unit
The price shown here is based on large orders NOT
the MOQ. In this example, $49 is probably for 10 units
not 1.

6. THE RIGHT WAYTO 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 complete
inventory along with more accurate pricing
Request a quote for a small minimum order.
Ignore the MOQ. Most suppliers will do small orders
including single units
Cut the quote in 1/2 and use that
as the starting point for negotiations.
Increase the size of the order to keep
the price/unit low
Make Payment
Use Alibaba escrow to make payment
or offer to pay by PayPal for a
discounted price.

7. 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.

8. Thanks
Learn how to start your own
eCommerce business on a budget
www.ecommercemvp.com
ShaanYusuf | @ecommvp | www.ecommercemvp.com