Make Money With Alibaba Now Tutorial! Alibaba!

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If you've made up your mind about who your overseas source is for products you're selling online, then it's probably Alibaba that you're doing business with. According to the numbers, Alibaba is the biggest eCommerce company worldwide. That means bigger than even Amazon and eBay put together.

So what is Alibaba? It's basically a very comprehensive directory connecting buyers and suppliers (mainly Asian suppliers) all across the world. They have literally millions of products to choose from and tons of suppliers ready to fill your orders.

Start Your Search

Purchasing items on Alibaba using their directory is pretty well self-explanatory. It is not so much different from a marketplace like eBay. You can browse through the categories of performing a more 'item-specific' search to find what you want.

You have 2 options when performing a search on Alibaba. One is to utilize the product descriptions for your search, like with 'dog collars'. That will bring up lots of results in the dog collar category.

The second option is to utilize their drop-down menu and search for suppliers rather than for products. That way you can find the manufacturers who specialize in whatever type of products you're looking for.

How to Use the Product Pages

Before you begin searching around on Alibaba you should know a few things about those product pages. As our former example was 'dog collar' we'll keep that as our example here as well.

Unit Price

This will be one of the first pieces of information you'll want to have. Price is always a good place to start. We can see that this listing has a price of $2 - $3 USD FOB. The 'FOB' is the abbreviation of 'Free on Board', which means that the seller is also going to pay the costs associated with getting this product to the marine port (For Asian products this is the cheapest way to go) and you (as the buyer) will pay costs associated with the actual transporting of your goods across the ocean blue to its final destination.

MOQ (Minimum Order Quantity)

The next source of information you'll need is the MOQ, or 'minimum order quantity'. This is the smallest number of items this particular manufacturer is willing to sell on one order. The thing to remember about MOQs is they're not chiseled in stone and are usually negotiable. The MOQ in our 'dog collar' example is 200 units. When we multiply that using the high-end side of the price, which was $3.00 we are looking at an overall figure of around $600 plus the shipping if we choose to go with this supplier. This is a good thing to know going in so you have a starting place for your negotiations.

Payment Options

Once you understand how the MOQ and pricing work, you'll probably need to know how to make payment to a supplier. There are pros and cons to the methods of payment available, so it would be your decision to choose the one that works best for you.

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