If you are planning on opening a merchant account through Tmall, you have to know your niche audience. Just like any other online marketplace, a business has to properly target their niche. With Alibaba, you are dealing with a worldwide market and millions of potential buyers from around the world. With a great deal of competition in most categories, you have to properly set up your ideal business strategy if you hope to earn profits.
Read these three tips from Instant Profits with Alibaba, by Issa Asad, for help with setting up your Tmall business strategy. Knowing how to get your account properly targeted will result in greater profits and a larger audience base as well.
Set up the Right Account
If you do not research you will set up the wrong account type. Sure, it doesn’t seem like a big deal, but it is. If you want to branch out and sell more products at a later date, you might not be able to. Furthermore, some account types require you pay more to Tmall and Alibaba than others. You should know these things, and which account is proper for the types of goods you sell. It will eliminate headaches, and will allow you to do more for lower costs.
Know Your Competition
You have to know who your Tmall competitors are. Regardless of the goods you sell, you have to know what else is out there, how well these merchants are doing and what the consumer pool size is. Not only will this help you determine how to set up your merchant account, but also to determine what to sell, who to sell to and how to target the right niche in order to ensure the highest profit margins are attained.
Have a Plan in Mind
It is not a low cost to set up a merchant account on Tmall. It will cost $10,000 or more, plus you will be paying a percentage of the goods sold to Tmall. For this reason, you have to have a business plan in mind. If you go in blindly, you can make far less than anticipated, or even lose money if you don’t properly set up your business. This is a business, and there is competition. Knowing who it is and how to do better than the competitors are some things you have to plan for prior to opening up a merchant account on the site.
You can earn great profits on this site. With a potential market of millions of people, there are consumers out there, but, you have to plan your site out, plan out your merchant account and know what competition is out there before you ever start selling through Tmall.