This article has been adapted from How Does Amazon FBA Work? by Tanner Rankin, Founder of the Source Approach
Fulfillment by Amazon (FBA) success is contingent on competitive pricing. With COVID-19, ecommerce sales have increased. And what's more, Business-to-Business (B2B) ecommerce sales are expected to increase by 10%. Jamin Dick, Head of North America Supply Chain at Alibaba.com, recently told FreightWaves that "[companies have undergone] 20 years of transformation over the past few months." That means more brands and retailers are getting involved, driving competition even farther. But what does this mean for FBA?
The Amazon Prime 2-day shipping badge will get you more clicks to your listing, but you still need to convert folks. Having great products and not selling is agonizing, but dominating competitors and selling through inventory is intensely gratifying.
This makes finding the right suppliers for FBA crucial. Luckily, Alibaba.com has been making this easier on brands and retailers selling on Amazon by tackling the main obstacles that small and medium-sized businesses (SMBs) face.
Floating cash to suppliers for a large enough order quantity to make your price competitive is a common challenge. Small businesses often have difficulty getting trade financing from banks, and before today, the vast majority of cross-border trade between small businesses required full payment upfront.
Alibaba.com Payment Terms allows qualified buyers to order goods and pay for them up to 60 days after they are shipped. This is one of the only online marketplaces that offers working capital opportunities for small businesses.
Cross-border logistics is complex and unstructured, especially when attempting to arrange shipments direct from overseas to Amazon fulfillment centers. Alibaba.com Freight enables on-demand ocean and air shipping for US SMBs' orders. This helps small businesses simplify bulk shipments with the ability to instantly compare, book, manage, and track ocean and air freight in real-time online. With built-in translation tools, these details become even easier.
Identifying new product offerings and suppliers has always been challenging. Alibaba.com Online Trade Shows USA are multi-day virtual events to connect US manufacturers and wholesalers with business buyers in an engaging and live online format. The digital-first events are category-specific, leveraging partnerships with key industry associations and conference organizers making them simple and accessible.
Some SMBs prioritize suppliers that manufacture in the United States. Alibaba.com opened up to American suppliers in 2019, and the US has since been the fastest growing market for new suppliers and buyers.
As a result of the transformation, gross merchandise value (GMV) on the platform has grown over 85% year over year and customers will transact tens of billions of dollars in GMV this year.
Finding the exact product you need in the state that you need it has traditionally been a challenge. Alibaba.com offers significant depth and breadth of product offerings from suppliers that are both ready to ship or customizable.
Right now, Alibaba.com is hosting Super September.
With more than 30 thousand suppliers, Super September is Alibaba.com's largest annual event. Designed to help SMBs trade and thrive, buyers can make connections with global partners in real time through live streaming opportunities.
Make the most of the attractive deals as well as added benefits and markdowns:
Super September is the best time for you to find the right suppliers for FBA. Take advantage of the exclusive discounts and the Alibaba.com services that make it easy to do business anywhere.
Product price is not the only factor you should be considering when looking for the right supplier. You should review their specific details, like business license, ownership status, and certifications for products, to ensure reliability.
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