Smart pricing strategy helps Vietnamese products make high profits on Alibaba

1. Overview: Why do Vietnamese businesses need a pricing strategy when selling on Alibaba

• Alibaba is the world's largest B2B e-commerce platform, where millions of global suppliers and buyers transact every day.

• For Vietnamese businesses, Alibaba Vietnam acts as a bridge to help domestic products reach the international market without needing large investments in showrooms or fairs.

• However, just "putting products on the market" is not enough - businesses need smart pricing strategies to both compete and ensure sustainable profits.

• Understanding the B2B model on Alibaba and how this e-commerce platform works is the fundamental step to devising the right pricing strategy.

2. Understand the B2B model on Alibaba and how this e-commerce platform works

• The B2B (Business to Business) model on Alibaba focuses on transactions between businesses, instead of individual consumers.

• Sellers (suppliers) can open a booth on Alibaba to introduce products, wholesale price lists, MOQ (Minimum Order Quantity) and delivery conditions.

• Buyers from many different countries will send RFQ (Request for Quotation) or contact directly to negotiate prices.

• The way Alibaba e-commerce platform operates is based on quick connection between supply and demand, optimization through internal search engine, keyword advertising (Keyword Ads) and Gold Supplier package.

• To stand out among thousands of suppliers, adopting a flexible pricing strategy becomes vital.

3. Factors to analyze before building a pricing strategy on Alibaba

• Production & logistics costs: Including raw materials, labor, packaging, shipping, storage fees and export taxes.

• Alibaba platform fee: If using a Gold Supplier account or running keyword ads, this cost also needs to be included in the selling price.

• Target market: Buyers in the US have a different willingness to pay than buyers in India or Africa.

• Level of competition: Analyze competitors in the same industry (for example, Chinese, Thai, Indian booths) to determine appropriate prices.

• Vietnamese brand value: If the product has a "unique" element (for example: natural ingredients, clear origin, export standards) - businesses can set a higher price.

4. 7 Smart pricing strategies to help Vietnamese products achieve high profits on Alibaba

Penetration Pricing Strategy

• Goal: quickly capture market share and attract new customers.

• How to do it: price 5–10% lower than competitors in the early stages to increase orders.

Note:After achieving a stable customer base, prices need to be adjusted to avoid long-term profit reduction.

Value-Based Pricing strategy

• Don't sell cheap, but sell according to the value it brings.

• Applicable when the product has a clear USP (Unique Selling Point).

Bundle Pricing Strategy

• Bundle multiple products into combos (for example, “Vietnamese seasoning set includes fish sauce – shrimp paste – ground chili”) to increase the average value per order.

• B2B customers often like to order combos to save on shipping costs.

• Helps increase revenue without increasing the price of each product.

Flexible MOQ Pricing strategy (Flexible MOQ Pricing)

Create multiple prices according to order quantity:

• 100–500 pcs: 5 USD/pcs

• 501–1000 pcs: 4.5 USD/pcs

• 1001 pcs or more: 4 USD/pcs

Seasonal pricing strategy and market trends

• Monitor search data on Alibaba Insights to know which products are "hot".

• Adjust prices flexibly according to holiday seasons (Tet, Christmas, Ramadan...).

• Help Vietnamese businesses optimize revenue during peak export season.

Pricing strategy is based on optimal logistics costs

• Many Vietnamese businesses ignore international shipping costs when quoting prices.

• Please cooperate with a logistics unit that supports FCL/LCL, CIF, DDP... to get better rates.

Reasonable selling price + competitive shipping fee = total cost lower than competitors.

Premium pricing strategy for typical Vietnamese products

• For products of regional origin (eg: Buon Ma Thuot coffee, Phu Quoc fish sauce, Phu Quoc pepper...).

• Positioning a high-end brand, not competing with cheap prices but with quality and Vietnamese cultural stories.

• This is a sustainable direction to help Vietnamese products be highly profitable and maintain a professional image on Alibaba Vietnam.

5. 5 Practical tips to help optimize prices when opening an Alibaba store

• Consulting on opening a store properly: Ask Alibaba Vietnam experts to support store setup, optimize product information, MOQ and shipping policies.

• Use the “Smart Pricing” tool on Alibaba: Automatically calculate optimal prices based on market data.

• Monitor customer feedback: If many customers ask for prices but do not close orders, the price may be high or the product description is not clear.

• A/B Price Testing: Create 2 listings with different prices to see which price has a higher conversion rate.

• Build reputation through feedback: When your store has many 5-star reviews, you can increase prices by 3–5% while still maintaining a stable number of customers.

6. The role of Alibaba store opening consultants in pricing strategy

Consulting units opening Alibaba Vietnam booths help businesses:

• Analyze industry, competitors, and buyer behavior.

• Build price lists suitable for each market.

• Propose advertising strategies and keywords (keyword optimization).

7. Common mistakes of Vietnamese businesses when setting prices on Alibaba

• Low prices to compete at all costs - causing profits to decrease and the brand image to be positioned as "cheap products".

• No shipping fees or international taxes – resulting in a cost imbalance when it comes to delivery.

• Not updating prices in real time – while competitors have adjusted to exchange rates or materials.

• Copy your competitors' prices without analyzing the value of your own products.

• Lack of flexible discount policy causes large B2B customers to leave.

ALIBABA VIETNAM COMPANY - EXPORT E-COMMERCE FLOOR

• Head office: 19th Floor, Saigon Center Building, No. 67 Le Loi Street, Ben Nghe Ward, District 1

• Email:  [email protected]

• Phone: (+84) 987 258 510

• Branch 1: 10th Floor, Becamex Tower, 230 Binh Duong Avenue, Thu Dau Mot, Binh Duong

• Branch 2: 9th Floor, TTC Plaza, Vo Thi Sau, Thong Thong Ward, Bien Hoa City, Dong Nai

• Branch 3: 123 Cong Hoa, Ward 12, Tan Binh, Ho Chi Minh City 700000, Vietnam