What kind of margin are Alibaba resellers making?

[kirkland]

New to 1688 but at least on first inspection, it seems the Alibaba / 1688 spread seems to be fairly arbitraged out for the stuff I sell. Maybe $1 markup per item (4-5$ range). For an order size of 100-300 thats about a $100-300 spread. Its certainly something, but its not the discount Id imagine for going direct to source.

Are there deeper discounts to be had? Or are the alibaba reseller margins so thin due to effectively being a dropshipping model

From what I understand, the best discounts are to be had by visiting a factory and establishing a relationship in person. Someone please shed some light

[agent006140]

There are also agents outside/inside the factory who dispose overruns,rejects,slightly damaged,returns ,out of production or shall be say stolen goods !

[rsot]

Originally Posted by kirkland

From what I understand, the best discounts are to be had by visiting a factory and establishing a relationship in person. Someone please shed some light

That's somewhat correct - I know of 2 ppl who did this and built their business from there. I'm fairly sure there are others

[agent006140]

It depends on volume and the factory itself,some can be shut down by the govt for violation-eg too much pollution,discharging chemicals .
It could also fold for not being able to pay its bills,thats why buying from middle man gives you some protection,altho you have to pay for such.
sometimes,you can find what you want to resell in your local wholesale district.for the same or lower price taking into consideration your freight and customs duty .and the wait time.

[ebaystealth1974]

Originally Posted by kirkland

What kind of margin are Alibaba resellers making?

From 1% to 1000%. Really just depends on the category and market saturation.

[Gotya108]

It depends on what you are selling, the platform you are selling on, supplier and shipping agent. For most small products if you are not at a +50% profit after shipping then you need to look for a different supplier or your agent is gouging you. Right now shipping agents for small basic products are more then likely using Yunexpress. You can check the rates yourself to see how much of a service charge they are adding on top of the rate. A good shipping agent should be getting a discounted rate, if you are paying the price on their website plus a service charge... Find a better agent. If your net is $1 and you find an agent who can save you $1 on shipping then you just doubled your profit.

As someone else also said some categories are saturated and if you are using Ebay or Amazon and dropshipping those products then you are competing with the factory who´s also supplying you since its certain they are also listing on those platforms. If you can´t find an actual manufacturer and ship a large volume (LCL/FCL) of products to the USA so you can off buyers faster shipping and better service your margins will be razor thin.

[rsot]

Originally Posted by Gotya108

As someone else also said some categories are saturated and if you are using Ebay or Amazon and dropshipping those products then you are competing with the factory who´s also supplying you since its certain they are also listing on those platforms. If you can´t find an actual manufacturer and ship a large volume (LCL/FCL) of products to the USA so you can off buyers faster shipping and better service your margins will be razor thin.

Razor thin indeed

[agent006140]

go to your local wholesale district and look around.
if the Chinese manufacturer churns out large volume,they are already in your local market

[rsot]

Originally Posted by agent006140

go to your local wholesale district and look around.
if the Chinese manufacturer churns out large volume,they are already in your local market

what's your local wholesale district areawise?

[agent006140]

In most major cities,there are wholesale districts and/or merchandise marts, with marts,you may have to join to enter one,with wholesale district,you just have to go there and visit any of the store.
Retail stores would also sell wholesale,usually 20% discount.
There are also trade shows ,where you get to meet with wholesaler,manufacturers from all over the world.
East Coast like NYC,you see more European vendors ,on West coast,more SE Asians.
There are also overseas trade shows,China,Japan,germany,switzerland,Saudi/
I am sure there are some in your country