How to Buy from Alibaba and Sell on Amazon FBA in 2024

After completing the product sampling phase, the next crucial step is to finalize the contract with your supplier. This involves several key actions to ensure a secure and clear agreement:

1. Drafting the Contract: Create a formal contract that includes both your company’s and the manufacturer’s logos, along with detailed contact information for both parties. This adds a level of professionalism and clarity to the agreement.

2. Contract Terms: Clearly outline the terms of the agreement, including payment schedules, delivery timelines, and quality expectations. It’s important that both parties have a mutual understanding of these terms to avoid any future disputes.

3. Payment Structure: Adopt a safe payment strategy. Typically, a 30% upfront payment is made when the contract is signed, and the remaining 70% is paid upon completion of manufacturing. Avoid paying the full amount upfront to mitigate risk. Alibaba supplier understand this and they would demand 30% amount initially.

4. Using Alibaba Trade Assurance: For added security, make payments through Alibaba’s Trade Assurance program. This ensures that your transaction is protected and helps in building trust between you and the supplier.

5. Monitoring Manufacturing: Once the initial payment is made, stay in regular contact with the supplier to monitor the progress of your order. This helps in ensuring that the manufacturing process is on track and meets the agreed-upon standards.