If you need a product to sell, you can probably find it on Alibaba. However, many businesses don't initially realize that they can negotiate shipping rates on Alibaba, and we believe this is an important step in sourcing products for Amazon sales.
Alibaba is the largest e-commerce site in the world owned by a Chinese company. It operates as a B2B (business-to-business) marketplace. This makes it an ideal spot for sellers in North America and Europe to find factory-made products from China. It is also a great place to find private-label products.
To negotiate shipping on Alibaba, request quotes from multiple suppliers to compare rates. You can also ask for discounts by consolidating orders or offering a higher deposit upfront to show commitment. Leverage competition between suppliers and explore options like sea freight for larger shipments.
Arguably, Alibaba has a lot to offer. Still, it can be tricky for some people to navigate. In this article, we’ll discuss how we’ve had the best success negotiating shipping on Alibaba over the years.
Shipping from Alibaba can be more expensive than other platforms. This higher cost is mainly because the orders are often for bulk products, and are large and heavy by definition. They also have to cross oceans before they reach your doorstep.
If you want to save on shipping then consider choosing sea freight instead of air freight. It may take longer for your order to arrive. However, you will pay less for shipping.
Here are the common shipping options available on Alibaba:
China Post is the most affordable but slowest way to ship small packages.
Your package is sent through government postal services in China when you use China Post. Then, it is handled by Hong Kong Post. It will be given to your local postal service once it arrives in your country. This is why shipping with China Post is inexpensive.
Express Courier is the quickest but most expensive way to ship packages.
Sellers will usually recommend using this shipping method. This is truer when you order a sample product from most Alibaba sellers. The seller gives your package to well-known shipping companies like DHL, FedEx, or UPS. They then transport your package by airplane. Then they deliver it to your home using trucks or vans.
Air Freight is your second fastest shipping option on Alibaba.
The seller gives your package to an airline company with Air Freight. Once it arrives in your country then you can either pick it up at the airport. You can also ask the seller to have it delivered to your home. This method works well for both small and large packages if you need quick delivery.
Sea Freight is the slowest but cheapest shipping option on Alibaba. It is suitable for large shipments. It is a great choice for businesses. This is because you can load products into a container and transport them by ocean ship. Well-known brands use this method to save on delivery costs because it helps them increase their profits.
Do you buy a lot of products from Alibaba sellers? You can consider asking them to ship your items using sea freight.
Many businesses don’t realize that they can negotiate shipping costs on Alibaba. We believe that this is an important step, as it can significantly reduce your costs over time.
The first step is to shop around. Ask different suppliers for quotes, and you’ll find that the shipping costs can vary from supplier to supplier.
The next step would be to combine your orders from a single supplier and ask them for a reduced rate based on the quantity of items you’ll be buying. Be sure to indicate to them that you intend to keep buying from them over time. This will make suppliers more willing to work with you, and can be helpful in planning your product bundles on Amazon. Many suppliers can pass the savings on to you for bulk or combined orders.
If you feel a supplier is charging too much for shipping then look into other companies that offer lower rates. You can then tell the supplier that you want to work with them, but that you’ve found some competitive rates elsewhere. Many suppliers will alter their shipping rates if they think that the relationship with you will continue over the long term.
Alibaba shipping negotiation can be done in different ways. Here is how to negotiate shipping on Alibaba to save more:
Here is a good way to build trust with your supplier and negotiate shipping on Alibaba. Suppliers may worry about not getting paid the full amount after they deliver your goods. You can ease their concerns by offering to pay a 60% to 70% deposit upfront.
Offering a higher deposit shows you are serious as a 50% deposit is common. It can ultimately help you get a discount in return.
Big global freight forwarders often get better shipping rates and special treatment from major air and ocean carriers because they deal with larger customers. This means they usually focus more on big clients.
The top 20 freight forwarders were asked for quotes in a recent survey. However, only seven were open to working with small businesses. If your total shipping costs are around $1 to $800 then it might be better to avoid these larger companies.
While smaller freight forwarders tend to have more time to help with smaller shipments. They are also more willing to work with smaller clients.
You can save on shipping costs by combining smaller amounts of goods into one larger shipment. This is a smart way to lower your shipping expenses on Alibaba.
Additionally, if you're planning on selling the same product for a long time, consider raising the volume of your order well over the minimum order quantity. This will allow suppliers more wiggle room to deviate from their baseline price.
Ask your suppliers to send the goods directly to the DFH warehouse. They will store and combine your shipments until you are ready to ship them. This is possible even if they come from different suppliers.
One helpful tip for negotiating with suppliers on Alibaba is to pit vendors against one another. Respectfully let suppliers know that you are also getting quotes from their competitors. Tell them you hope they can offer their best wholesale price. This approach can often help lower prices.
It may spark competition among suppliers when you do this. It will be leading to a bidding war and you will come out on top.
We mean both the cost of the product and the shipping arrangements when we talk about price negotiation. Suppliers on Alibaba should be willing to negotiate on both with the right approach.
Here are some tips to help you get better shipping prices for samples:
Using these tips can help you get the best deals on shipping on Alibaba.
That’s all for how to negotiate shipping on Alibaba. Getting your shipping organized is one of the best ways to save money on Alibaba shipping costs. You can negotiate for a better rate without losing any money when you do this.
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