How to buy profitable goods from Alibaba is also important to understand. With so many option to choose from, you need to make sure there is still margin for profit for everything you order. Once you find out a trusted seller, here’s what you can do to make sure profit margin is exist:
1. See the minimum purchase restrictions
Each Alibaba supplier offers products with different price ranges, and they do not set a fixed price, in the sense that they always show a price range, usually depending on the quantity, with a range of 50pcs, 100pcs or 1000pcs. And the average way of selling from each supplier on Alibaba is normal like that. because it focuses on B2B Business.
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For example, the product to be purchased is a hydrogel screen protector for the Samsung Galaxy Note, you need 100pcs, while for the product listing, the minimum order is 50pcs at a price of $2.29. so you can buy.
2. Send Offer
If the first point works, the 2nd step is to send an offer, back again to the first point. You need 100pcs, minimum order 50pcs, with price. $2.29. so if you buy 100pcs then the total is $ 229. Can I make an offer? can.
Suppose you want to bid with a price per unit of $ 2.0, you can – it could be, depending on your expertise in the negotiation process. The way I often use to get these offers, I always say I need 100pcs for a sample, if the product is good and the sales are good, I will buy in more quantity.
3. See Market Selling Price
Before you determine the process of bidding prices to suppliers, first look at the market prices on online sites such as amazon, usually many sellers sell these goods.
4. Shipping costs, fees and customs
Don’t be tempted by the price of pcs, you need to think about other costs too. The profits have not been deducted from shipping, fees and customs. Usually, the more items you want to buy, the more expensive the shipping costs. The average supplier there is the shipping method using DHL, ARAMEX, TNT.
• Shipping costs, and the average shipping cost for 100pcs is around $40 – 50, if the item to be purchased is a cellphone case or screen protector. Say $50, so per 1 pcs screen protector you have to add shipping fee of $0.5.
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• Fees, Alibaba applies a fee every time you make a transaction, the amount of the transaction fee is 2.9%. details like this:
o Item price $2.29 * 100 = 229
Shipping $50
Total : $279
Grand Total ( Total * 2.9% ) = $287.1
• Customs, if viewed from the total nominal value of goods, it has exceeded the maximum tax exemption limit from customs. Customs for each country is certainly different, but will apply a minimum limit on the value of imported goods which will be subject to tariffs. Customs clearance of imported goods worth over $100 may be around $70, so the total cost of acquiring goods will be $357.1
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5. Make Sure Profit Margin Buying from Alibaba
So if it is broken down, $357.1 / 100, for the purchase of capital goods, if divided evenly into each item, the capital per unit is $ 3.6, you still have a profit of about $ 3.4 per one pcs if the selling price is $ 7. Or you hit it flat, each profit can only be $2. Extra profit $ set aside for other costs such as courier fees (DHL, ARAMEX or TNT). Next: How to Avoid Getting Scammed in Alibaba
