sell

How to Sell and Succeed on Alibaba.com

good afternoon everyone and welcome to

our webinar how to sell and succeed on

Alibaba calm this live webinar is

designed for small and medium-sized

businesses looking for ways to grow

their business we're going to provide an

overview of Alibaba comm which is one of

the world's largest b2b platforms and

outline how it helps sellers target are

10 million active business buyers just a

few housekeeping items before we get

started all of you all the attendees are

a mute if you have a question during the

presentation you can submit it in the

question box within GoToWebinar and we

will answer these questions at the end

of the presentation if you have a

technical question you can also put it

into chat and we will answer it via chat

the webinar will be recorded and we will

email out everyone the recording of the

email of the recording of the webinar

excuse me and it will also be available

for viewing on shipstation comm let me

introduce our speakers today we have

Jonah Mandel who is the head of customer

growth for Alibaba comm North America

and Krish Iyer who's from shipstation

he's the director of strategic

partnerships and then I'll just do a

quick overview of the agenda we're gonna

be showing you a piece of chip station

the efficient domestic and international

fulfillment solution we're gonna be

providing an overview of the b2b market

opportunity Jonah is going to provide an

overview of how you can start selling on

Alibaba comm and then we'll have some

Q&A at the end so Chris why don't you

start wonderful thank you and thank you

to our attendees for being on the call

and joining us over the lunch hour first

off what we want to say is a shipstation

we are very excited about our

partnership with Alibaba as the world's

law

just b2b platform for selling and the

b2b environment and the business the

mission here of course is to grow

business business transactions for us

merchants and make global b2b easier

what's the case

for selling online particularly in

multiple channels I think we all know

from our personal lives that searches we

go to market places now and consumers

purchase from merchants on marketplaces

particularly ones they trust and the

proofs in the pudding for sellers out

there as you add channels you see a

major uptick in the orders you simply

put your product is more visible to more

people well we feel on the ship station

side and certainly our friends at

Alibaba as well that shipping should not

be an afterthought to you as a merchant

it is an extension of your brand your

customer experience and can give you a

competitive advantage now how does ship

station work ship station works as the

tool to import manage and ultimately

ship your online orders from multiple

channels and marketplaces receive your

orders manage them inside ship station

print your shipping labels and automate

that process and emails and improve your

customer experience and use of course

powerful industry tools you see some of

the names that are on the screen here

whether that's tools and platforms in

the warehouse management space order

management EDI Europe ease helping to

organize the data and processes to

create a better shipment flow and

ultimately a better experience for your

customer on customizing that workflow to

fit your

NEADS and finally shipstation

one integration and more than 40 plus

global carriers certainly around the

globe here it's not just the US anymore

certainly a lot of buyers and a lot of

new channels that are opening up

globally and with that I want to turn

this over to my good friend Kate to talk

about our first poll here so we wanted

to pull the audience to get an idea of

the level of adoption of b2b sales so

please everyone let us know on

have you considered selling b2b are you

thinking of getting started or you

haven't considered it but are interested

in learning and that's why you're

attending the webinar today so we'll

give everyone about 30 seconds to answer

the poll

[Applause]

all right the results are in and it

looks like the majority of attendees

today are not selling b2b but are

interested in getting started so I think

that's a great segue into the next part

of our presentation where joan is going

to provide an overview of the b2b

e-commerce opportunity yeah great so I

think it's it's interesting to see that

a lot of businesses you know today are

selling b2c and one important note so

myself my team the Alibaba Sales Account

management customer support team which

is all based out of New York we speak

with hundreds of US businesses on a

daily basis and a common misconception

that we hear so moving on to the the

next slide there we go a common

misconception that we hear is that

ecommerce is is just for

direct-to-consumer businesses in reality

the b2b market is actually six times

greater than the b2c market and a few

stats that I do want to share with the

audience today the in the US market

alone in 2018 the b2b market actually

eclipsed one trillion dollars and 60

percent of US manufacturers so us many

60% of US manufacturers do not have a

dedicated ecommerce channel so I spend

the better part of the last two years as

I touched on before speaking with

businesses on a daily basis really

trying to better understand their

strategy and how ecommerce plays a role

in their revenue goals you know pretty

much every day I like to hear from

customers they had no idea ecommerce was

used for business the business trade the

common belief is that ecommerce is

strictly for b2c businesses great and

the next point that I want to make here

as well so speaking with US businesses

on a daily basis Alibaba

it's very much a buzzword here in the

States a lot of business owners have no

idea you know how can we help

what is Alibaba actually do you know we

often hear Alibaba is the Amazon of

China Alibaba is Chacma we even

sometimes hear Alibaba is is taking over

the world so I want to clarify for the

audience really what we do and how we

help US businesses so for today's

presentation we're gonna focus on

Alibaba calm Alibaba calm is actually

one of many business units that sits

under Alibaba Group our mission and

Alibaba Group is to make it easy to do

business anywhere and we do this by

giving Stellar's the sellers and buyers

the tools necessary to really expand

their business globally whether it be

sourcing or selling great so that leads

to our next poll question so we're

wondering of our audience today what

percentage of your business is global

are you doing zero percent of your

business globally less than a quarter

between 1/4 and 3/4 or is 75% of your

business global so we'll give everyone

about 30 seconds to answer this so it's

interesting

Alibaba com is a global platform with

buyers from around 190 countries and

regions so Jonah will talk a little bit

more about how users of the platform can

target those buyers from around the

world yeah normally our calls with US

sellers and businesses really kick off

people hear Alibaba they automatically

think international expanding their

sales all over the globe in reality

about 30 percent of our and we'll go

over this a little bit later in the

presentation and more in greater detail

but about 30 roughly 30% of our business

buyers are actually us-based

businesses also the results are in it

looks like the majority of folks are

doing a quarter or less of their

business globally okay so that's that's

interesting looks like the adoption

level of going

isn't super high so we'll talk a little

bit more about the platform and how we

help reach global buyers great so

everyone in the audience is probably

thinking those were some great

high-level stat but how can I leave AMA

actually help me in my business so I

want to dig in a bit on some of our

platform features prior to doing that

you know keep in mind alibaba.com our

platform has been around for for 20

years we just had our twentieth

anniversary in September until about six

months ago a lot of our our tools and in

platform features were not necessarily

optimized for US businesses so my team

which is based here on New York we

completely revamped the platform we now

provide local account management sales

and support I do want to dig in into a

few of the platform features listed in

front of you I'm not going to go over

all of them but a few that really stand

out to us businesses that we speak with

one of which is the RFQ dashboard so

this is the request for quote dashboard

essentially what we've heard from global

businesses global sellers they want to

be more proactive in actually reaching

out to prospective business buyers

rather than waiting for inquiries to

come in so the request for quote

dashboard allows sellers on our platform

to actually see a database of buyer

quote requests so if you are a u.s.

buyer you can actually post your

requirement saying hey I'm interested in

buying a thousand red iPhone cases that

have my logo on the back if you are a

seller in the RFQ dashboard any RFQ that

is applicable to you and your business

you have the ability to proactively

reach out to business buyers so that's

one platform feature that I want to

highlight the next is trade assurance so

trade assurance is actually protection

payment protection for both buyer and

seller that lives on alibaba.com so when

doing business with a global buyer

oftentimes you're not going to have the

opportunity to meet them face to face or

really build that trust that that

face-to-face interaction helps foster

what

trade assurance this is a totally free

service to buyers and sellers on the

platform what trade assurance does is

essentially allows the parties to

transact on Alibaba and all of the terms

of the contract are reviewed by both

buyer and seller if there's any issue in

the transaction process

Alibaba will step in review the terms of

the deal that were agreed upon between

the buyer and seller and they will

determine who was at fault and the

really important point here if you are a

first-time Alibaba comm buyer and you

want to place a transaction with a

seller trade assurance helps new buyers

not only trust this not only trust

alibaba.com but also trust placing an

order through an international seller

exposure for your products is is key so

I really want to touch on our search

marketing solutions and one important

note is by setting up to be a seller on

our platform you're actually assigned an

account manager an account manager at

various businesses can mean many

different things

our Account Managers which are based out

of New York our search marketing experts

so they understand the Alibaba comm

platform and really how to optimize the

the traffic that is coming in to your

Alibaba storefront so we actually see

that sellers that adopt our search

marketing solutions on average receive

86% were unique visitors which leads to

64% more clicks and results in 25% more

enquiries inquiries are essentially

order requests that live on Alibaba calm

with our keyword advertising comparable

to to Google with with search engine

optimization you will link individual

keywords to every SKU when buyers come

to alibaba.com and search for specific

keywords like wholesale iPhone cases if

you is if you list the word iPhone Inc

iPhone case and you connect it to one of

your SKUs you will appear in search so

the dashboard displayed in front of you

allows you to actively manage all of

your keyword advertising campaigns

everything from daily cost cost per

click and duration of promotion and the

really important point here you know as

a small medium-sized business owner

oftentimes you're not going to have the

time to log in to you every ecommerce

platform that you're selling on to track

your different advertising campaigns

with Alibaba you can set it and forget

it so essentially what I mean by

set-and-forget is you can actually set a

daily weekly or monthly budget that you

want to spend on a specific campaign and

rest assured that your spend will not go

above that allotted amount so buyer

demand this question is asked on on

every call with us sellers they want to

know a little bit more about who our

buyers are on Alibaba comm so it's

important to note that we are not a

category specific platform we have

individuals selling high-end sports cars

like Ferraris we have individuals

selling iPhone cases and as you see on

the left-hand side of the screen are our

top categories are actually food and

beverage agriculture and beauty and

personal care hold on one moment sorry

about that mm-hmm and I touched on this

also earlier in the presentation the

common misconception is that both buyers

and sellers in Alibaba kaam are all

global in reality the number one market

in terms of our buyer distribution on

Alibaba comm is actually us-based

businesses that are signing on to our

platform to find both domestic and

international supply every business

owner that signs on to Alibaba comm

wants to target or penetrate a specific

market with buyer targeting you actually

have the ability to target specific

buyers that are coming in from specific

locations the way we're able to do this

is through not only our our buyer

verification process but when a buyer

comes in we actually track the IP

address and where that buyer is located

so you can set up your skews your

Alibaba storefront and target specific

buyers that are coming in from specific

countries so here's an example of a

storefront on Alibaba comm Hiawatha log

home so what we actually do step number

one in the process is we will actually

build you an online storefront this is

your storefront to tell global buyers a

little bit more about your brand your

products and why they should purchase

from you so our graphic design team

actually goes to work and builds you out

a beautiful customized Alibaba

storefront to attract global buyers on

your end all you need to do is send us

copy contain SKUs and images and we

build the website on your behalf and

here's another example of a seller on

Alibaba calm so totally products they've

been on the platform for a couple years

here they are actually a health

supplements provider based out of Fort

Lauderdale Florida

in the past year in Alibaba comm they've

actually seen 1.7 million dollars in

annual sales a 50 percent increase in in

head count that's internal headcount

just to fulfill the number of orders

that are coming through on Alibaba comm

and it's important to note that that

Daniel who is the CEO of totally

products

actually signed up for our platform you

know three four years ago before our

platform was optimized for us-based

sellers so you know he put a lot of work

into making this profile a success a lot

of the tools and tricks that we've

recently implemented are based on his

feedback so Daniel and totally products

have actually used Alibaba comm to grow

their business and they have achieved

1.7 million dollars in annual sales one

last important note on totally products

whenever they release new products they

actually use Alibaba comm to test the

market so what they'll do is if they

have a a product and they want to test

the market in specific region it will

actually use Alibaba and our geo

targeting feature that I talked about in

a previous slide to test various

products in different markets before

they launch advertising campaigns in

those specific markets so in addition to

all the marketing services that we

discussed there are a lot of promotions

and opportunities throughout the year

one of which that we just finished is

actually 11:11 this occurs every year on

November on November 11th and we

actually achieved over 40 billion

dollars worth of revenue on Alibaba duck

I'm sorry not on Alibaba com 40 billion

dollars of revenue flowed through all of

our Alibaba Group platforms we see a

massive spike in traffic that comes to

Alibaba comm during this promotion

double 11 a few other promotions that we

offer that are specific to Alibaba comm

one of which is super September that we

just wrapped up and one that's coming up

here in a few months called March Expo

and essentially what these promotions

Intel we actually provide discounts to

buyers on the platform and these

discounts are are pulled out of the

Alibaba pocket not necessarily out of

the sellers pocket so an example of a

promotion that we might offer a buyer is

free shipping on an order free

inspection of your products these are

all promotions that we advertise across

various social platforms to drive more

traffic to Alibaba calm

so about eight months ago we actually

administered a survey of all of our top

buyers so these are buyers that on

average spend over five hundred thousand

dollars a year on alibaba.com and to our

surprise the number one request was our

top buyers are demanding more us supply

they're coming to alibaba.com

they're finding global supply but the

number one request was more was the

ability to work with us-based sellers so

in front of you here is actually what we

call our our US pavilion page where we

actually highlight US suppliers on our

platform you'll see a few food and

beverage examples in front of you here

this is actually a page that we're going

to highlight throughout the March Expo

promotion and finally selling your

products domestically is hard enough

selling your products internationally

can be even more difficult we want

everyone to be aware that we're here to

help we have a us-based sales support

and account management team that is here

24 hours a day 7 days a week to really

ensure that our us-based sellers are

finding success on our platform and

because of our partnership with

shipstation customers actually receive

$250 off membership services so

definitely please reach out to me

directly I'm going to play my contact

information here like I said our sales

support account management team we are

here 24 hours a day 7 days a week to

ensure that our sellers are finding

success on alibaba.com great thanks

Jonah I see we have a few questions that

have come in okay this one is for Krish

what are some of the best practices

selling and shipping globally sure

certainly shipping and selling globally

I think the first thing is quite simply

to know whether or not your product has

an audience on and whether

or not it's something that people

globally will take to a lot of times in

electronics although the demand may be

there on issues like the electrical

current plugs things like that can

sometimes be a factor so really knowing

what the market is for your product

internationally is certainly very

important number one number two

starting out with selling your product

globally in like-minded markets I'm

probably not the best idea to start

selling your product in Russia Brazil or

India countries that are known for very

onerous regulations but with countries

that have similar like-minded tastes

like Canada the UK Australia and and of

course some other ones in Western Europe

so I'd say that those two things are

first are first and second and then I'd

say finally third on finding markets

that are high what we call de minimis

meaning an amount that can be brought in

a country that'll allow an importation

for a high amount traditionally on

Australia was known for a high de

minimis of about $1,000 or about $900 us

that since changed just a little bit but

there are plenty of other markets

certainly in Europe the UK other ones

where they allow a high de minimis and

relatively easy importation of goods and

similar buying habits in the u.s. got it

looks like this is a question for Jonah

what is the cost for a seller membership

on alibaba.com yes so today we have two

different membership packages premium

and basic so the premium package is four

thousand one hundred ninety nine dollars

what the premium package includes is our

graphic design team will build you an

Alibaba storefront that is the the

website that was displayed in the

presentation that also includes

two thousand dollars worth of

advertising credit so also displayed in

the presentation we went through some of

the advertising campaign

and search marketing solutions we

actually put $2,000 into your account

for you to spend on any further

advertising that you might be interested

in doing on Alibaba comm that also

includes an account manager which is

based out of New York and they work with

you on training you on all of the search

marketing tools that live on our

platform so that's the premium package

three bullet points under premium $41.99

includes two thousand dollars worth of

ad credits and an account manager the

basic package is two thousand three

hundred ninety nine dollars the primary

difference between the two is the basic

package does not receive an account

manager they have a local email and in

chat support and with the basic package

they receive $500 worth of ad credits to

spend on further advertising sort of a

follow up to that is the membership fee

per month yes so we we do not offer

monthly pricing it is an annual an

annual payment of either four thousand

one hundred ninety nine dollars or two

thousand three hundred ninety nine

dollars no matter what package you go

with year two the price drops to one

thousand three hundred ninety nine

dollars and both packages do include the

build out of your Alibaba website and a

one last follow-up question on pricing

there is no cost for buyers to shop on

the platform correct there is no cost

for buyers on Alibaba com

okay here's a question I think this

one's for Jonah as well how can US

sellers compete with the cheaper

manufacturers in China yes it's

expensive yes so you know historically

buyers would come to Alibaba calm to

find you know less expensive less

expensive products from China based on

the survey that we administered you know

eight months ago there's growing demand

in Alibaba calm for us supply I mean we

we dug a little bit deeper into why

these buyers want to purchase from us

suppliers and really the noteworthy

sponses that we received was they want

faster turnaround time so small business

owners that are purchasing through

Alibaba from Chinese based suppliers on

average are waiting you know 45 to 50

days for their products to arrive so

that's one another is quality control

specifically in you know food and

beverage agriculture health wellness and

beauty any on body in body product these

buyers are more comfortable buying from

us-based sellers and last but not least

there there's a large percentage of

orders that flow through Alibaba comm

that have some form of customization

these buyers want to negotiate or

explain the the product specs and what

they need in a prototype to someone who

speaks their native language so those

are a few reasons why our top buyers

want to purchase from us-based sellers

on Alibaba comm I think we have time for

one last question I think this one is

probably for Krrish many of our products

are considered hazardous because they

contain alcohol how do you handle hazmat

for international destinations for

international destinations

that's generally something that's

carrier specific so of what I'd

encourage is the specific policy that

the carrier themselves has as far as

hazmat would be the ones that you you

would have to look up and then see what

our supporting documentation based on

the carrier themselves is as a rule the

USPS typically does not handle hazardous

materials so you are typically having to

be inclined to work with direct

integrators like a FedEx and UPS got it

great so I think we're closing in on

1:30 so we'll we'll wrap it up here but

on behalf of the team thank you everyone

for attending and spending your lunch

hour or your afternoon with us

and we'll be sending out the recording

of the webinar for everyone and as well

as hosting it on shipstation comm thank

you thank you

Thanks

you