Using PayPal to Settle Shipper/ Seller Agreements
Alibaba is the brainchild of Zhenyu Group. Zhenyu Group holds a majority stake in Alibaba and also acts as a minority shareholder. Alibaba.com APK for Android – Download
The primary aim of Alibaba is to penetrate China’s massive online shopping market and take advantage of its enormous online consumer base. T
his plan is in place to counterbalance local online shopping sites like Amazon and eBay with a more global site. This international move is part of an ongoing strategy by Alibaba to penetrate the U.S. internet market.
If successful, it would mean big business for Zhenyu Group.
Because of the size of China’s consumer market, there is an enormous potential for companies like Alibaba to make serious money selling consumer products.
Some western companies have tried and failed at this task because they do not have the expertise in sourcing their own raw materials and developing and marketing their product.
In contrast, domestic companies rely on foreign suppliers to provide their consumer products. That is why international suppliers are such an important part of the business plan for any Chinese company looking to penetrate the American market.
In order to build an efficient supply chain and avoid sourcing problems,
Most companies hire third-party vendors and integrators who act as a middleman and therefore benefit from increased pricing and reduced risk.
One way that companies build a strong supply chain is through the recruitment and training of additional suppliers.
By forming an alliance or an albatross with another supplier, a company cuts its risk and increases its ability to focus on building the supply chain instead of focusing on building its own resources.
To form an alliance, two companies need to sign a licensing agreement.
One of the primary reasons that companies enter into licensing agreements is to limit the liability that they take if their supplier fails to deliver the promised service or product.
In addition to licensing fees, companies usually pay a portion of the manufacturer’s profits and pay an exit fee to the supplier that agrees to continue working with them.
Albeit more complicated than simply hiring another supplier, an association between two companies strengthens the relationship between the two companies.
Alibaba.com APK for Android – Download
As a result, Alibaba has grown into one of the largest outsourcing hubs in the world, providing a vital link between China and the United States.
While many entrepreneurs believe that the primary value of using PayPal to source goods from Alibaba, there are other benefits as well. Using a third-party provider relieves marketers of having to deal with payment processing and shipping.
Furthermore, suppliers in the Alibaba supplier database have access to thousands of suppliers from different countries and regions, which significantly reduce the amount of time that marketers have to spend searching for suppliers.
In addition, because all transactions are conducted through PayPal,
Marketers do not have to worry about dealing with overseas currency exchange rates and issues.
With this efficient online sourcing model, sellers can easily obtain products from vendors located anywhere in the world and enjoy all of the benefits that come along with using a major internet business, such as PayPal.
However, sellers also need to be aware that the terms and conditions of these types of transactions are slightly different depending on the supplier or market place.
Pay attention to the payment terms and any taxes that might be applicable, as well as the payment procedures and gateway policies of the particular site.
When a business is prepared and understands all of these elements, it will be easier for them to accept payments from numerous buyers and generate more revenue.