There is one very important thing that  you have to understand and that is the  B2B/Wholesale business model. To explain I’ll use a very simple example: When you purchase a product from  a store, you are engaging in B2C transaction, which is basically business  to customer transaction: The store sells your product in a single or  small quantities for a fixed price for  this example we will say that the  to a sold a product for $20, but they  still need to make a profit so obviously  if they sold you a product for $20 they  must have got it for is less lot less  actually. 

in order to get a discount the  store buys their products from their  supplier in a bulk or a wholesale this  is called b2b or business-to-business  transaction model in this example the  store will buy products in large  quantities for $10 each  meaning they buy it for $10 and send it  to you for trial which gives them $10  profit or a 100% profit margin. 

What Is Alibaba And How You Can Leverage This Site In Order To Make Money With Dropshipping?

When you use Alibaba you’re  talking or taking a role of the store, which means that you are buying products  in bulk, directly from the supplier and  re-selling them in smaller quantities to  your customers. I want to stress this – you  cannot buy a single units of products  from suppliers at Alibaba, even if they may seem as the best items to dropship. The reason why  stuff is so cheap at Alibaba is because  you are buying them from wholesale, in  large quantities. No supplier would want  to sell your products in small  quantities every one of them is  expecting that you are going to place an  order of multiple units.

Depending on  the product you could be ordering 10/15 or if it’s something like iPhone cases, you will be expected to order  hundreds if not thousands of the products  at a time. Alibaba is not a b2c site it  is a business-to-business website. Your  product or your buying products  wholesale.

Simply put if a  product is made manufactured or  assembled anywhere in the world, you can  find it and buy it on Alibaba.com. The first thing you want to do if you  haven’t already done so is to create an  account. I recommend doing this right  away, in order to start building your  profile. Even if you are not ready to buy  anything it’s a good idea to create your  account right away. To do that just go to  the top left corner here  click on the giant free barn and follow  them stringent sections 

What Is Alibaba And How You Can Leverage This Site In Order To Make Money With Dropshipping?

One thing you  will note in that is that when you are  filling in the phones you will be asked  to provide a business name. Don’t worry  if you don’t have one at a time, you can make one up for the sake of simplicity. You also get asked if you want to be a  buyer or a seller, I would also recommend using a  professional email instead of your  personal email, but it’s not a  requirement. The reason I say that is  because you will come off as being more  professional and also you will  understand in bombarded with a sea of promotional emails and discounts, which you can ignore because there are  no such thing as discounts or promotions  at Alibaba. Once you are all signed up  you’re basically ready to use the site  and start looking for products.

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