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What is RFQ?
A request for quotation (RFQ) is a business process in which a company or public entity requests a quote from a supplier for the purchase of specific products or services.
In the Alibaba.com RFQ market, buyers from all over the world can publish their purchasing requests on the platform. Suppliers can actively search for purchase requests that they can bid on instead of waiting for buyers to visit their store and contact them.
The Alibaba.com RFQ tool helps to improve buyers’ purchasing efficiency and help suppliers connect directly with more qualified buyers and grab more business opportunities. It is a great idea for suppliers who are yet to have a strong brand or just come onboard on Alibaba.com. It’s perfect for those who want to proactively connect with target business buyers from all over the world.
Differences between RFQ & the Traditional Way of Sourcing & Purchasing
Compared to the traditional way, the RFQ method on Alibaba.com allows buyers to show a list of requirements/specifications/customization they want and buy quickly and efficiently. They can post a public request on Alibaba.com and wait for the suppliers to send them quotations.
For suppliers, they can proactively respond to all the requests in the pool instead of waiting for the buyers to find them. It helps them to have better targeting, reduce non-effective adverting costs and save time. Suppliers can get more opportunities from different buyers from different countries without having to spend extra cost and effort.
Feel free to refer to the table below for a better overview of the comparison between RFQ and the Traditional Way of Sourcing & Purchasing.
(Search, Enquire, Compare, Buy)
(Post enquiries and wait for quotations)
Post products and wait
(Organic Traffic + Advertising)
Proactively respond to requests
(Free quotation + paid RFQ package)
|Marketplace positioning||Rich Supply||
RFQ Performance Score (What and How to Increase) on Alibaba.com
What is RFQ Performance Score
RFQ Performance Score is an indicator of the comprehensive performance of sellers in the RFQ market including quotation quantity and capability to meet buyer requirements. Sellers with better performance will get a higher score. With a higher RFQ performance score, sellers will have better chances of quoting for higher quality RFQ.
4 Ways to Increase RFQ Performance Score
RFQ login frequency
RFQ login frequency is the login frequency of the seller account to the RFQ market in the current month. Multiple login actions in one day are counted as one.
Quotation quantity is the number of quotations sent by the seller in the current month.
Quotation response rate
The percentage of quotations replied to by buyers in the last 30 days.
Business conversion rate
Percentage of buyers who have been converted from store visitors to active buyers in the last 30 days.
5 Ways To Use RFQ Effectively on Alibaba.com
Choose the best time to Quote
Based on the data collected from Alibaba.com, the best time for suppliers to send a quotation is 9.00 – 10.00 am (GMT +8) in the morning or 4.00 – 6.00 pm (GMT +8) in the evening. Most buyers will be active on Alibaba.com and check the quotation in RFQ.
Select RFQs posted within the past 24 hours
You may ask why you should only respond to RFQs that were posted within the past 24 hours. It is because the request is still fresh and probably not many quotations have been submitted. Of course, you are free to send a quotation in response to an RFQ posted more than 24 hours if you are confident that you have a competitive advantage.
Prepare quotations based on the request
Read the RFQ carefully before responding to it. Use the RFQ template to prepare a quotation. Include the most important information that meets the buyer’s requests.
Follow up after sending quotation
Sending quotations does not mean closing sales. You need to contact the buyer by email regularly so that they know you are a serious seller. Sometimes buyers do miss out on certain quotations. By doing a follow-up with the buyer, you can better understand what they want and revise your quotation based on their needs.
Increase RFQ Performance score
As mentioned earlier, increasing your RFQ performance score enables you to receive more free and higher-quality RFQs. Take note of the 4 factors that will affect your RFQ performance score: RFQ login frequency, Quotation quantity, Quotation response rate, and Business conversion rate.
Be proactive in using RFQ to get more sales on Alibaba.com. Happy Selling!
For more details regarding RFQ, please feel free to consult with your account manager to explore more.