Recently, while researching keywords, I ran across an interesting question: Is dropshipping ethical or not?
This is clearly a question people want to know if they can find it online. It’s not hard to understand why. It’s easy to think that anything so lucrative must have some sort of seedy underbelly.
This is the question I have decided to address and we will have a serious conversation about dropshipping ethics. Let me first make a disclaimer before I start:
It is important to remember that ethics can be subjective. One person may be able to accept a certain practice, while another might find it unacceptable. These are just my thoughts on the ethics of dropshipping.
There are many types of dropshipping.
Before I can go any further, there is an important distinction.
Dropshipping can be described as a broad term. It is a broad umbrella that can be divided into several categories to allow for different ways of conducting the business.
Dropshipping is the most common type of dropshipping. It means that either the manufacturer or brand that owns the product will ship it to you. You are simply the one marketing the product.
I believe that not all business models can be considered equal. Dropshipping can be done in many ways. Some dropshipping methods may be better than others.
Two main types of dropshipping are discussed: low-cost dropshipping through websites like Aliexpress and high-ticket dropshipping. After I explain what they are, I will dive into the ethics behind each.
What is it?
Dropshipping involves listing products on one website like Aliexpress and then marking them up on your website. You then promote the product by running Facebook and Instagram ads. You want to promote the product as much as you can. This is why you will see many insane ads on Facebook.
It’s amazing, don’t you think? These insane videos catch your attention every time you scroll through your Instagram feed. These ads are designed to get into your emotions and convince that you cannot live without the product they sell.
They are all extravagant. They create emoji-filled ad copy, work with influencers and make videos that make you stop scrolling… the list goes on.
The goal of the salesperson is to make you buy something cheap, and then mark it up so that they can make some profit.
Is it ethical?
Dropshipping is not ethical, according to my personal opinion. Although it’s not the most profitable business model, it is still a viable option. However, dropshipping can be a way to sell products that are too expensive.
Although price can be subjective, it is still exploitative to mark up a product that you bought for $1 to make it $20. You can bet that the product you are selling isn’t of high quality and the price you are asking for it to cost you more than it is worth.
To sell your product, you must appeal to people’s emotions. Your buyer will believe that your product is cheap if you have flashy ads and influencers. There’s a good chance that your customer will get something they don’t like.
You might find it broken right away or even worse, after you order it. Even worse, these suppliers may not be consistent so your customer might not receive their product.
You should also consider the target audience for these types sales. You will often get older people with limited technical skills, and possibly younger children who don’t realize that you are simply taking their money and placing orders on another website.
You can bet they would order the item from Aliexpress if they understood.
This doesn’t necessarily mean that every seller who offers you a higher price than the one they are selling is unethical. If you purchase anything from anyone, I guarantee that you paid more than the person selling it to.
Dropshipping is unethical because it conceals the fact that you can just open another browser and purchase it cheaper.
If all of this fails to convince you, the fact that dropshipping is a low-profitable business model may. Dropshipping is not a way to build a long-term, sustainable business.
What is it?
Let’s look at dropshipping at BAO. You probably already know this if you have looked at our website before or taken our courses.
But, if you’re new to the site (welcome! Here’s a brief explanation of what we do. Yes, we do drosphipping, but we don’t do Aliexpress dropshipping.
Dropshipping is a method that we use for high-ticket orders. Our suppliers are mostly located in the USA and Canada, so we don’t ship from overseas suppliers. For high-quality, expensive products that are of high quality, we have relationships with suppliers. These items are then sold on our sites.
It is unethical.
It is not always easy to determine whether something is ethical. Dropshipping is a high-ticket business that I believe is ethical.
Here are some reasons I believe so:
- Products we sell
- These are the prices for which we sell our products.
- Our customer service.
Our advertising isn’t flashy like what you would see for Aliexpress dropshipping. We aren’t trying to disrupt you or exploit your emotions in order to get you to purchase something from us.
A method known as query-based marketing is used. This means that you will see our ads if you search for the product we sell. When we believe you would actually like to purchase from us, we market to you.
Our products are also high-quality. Dropshipping high-ticket products is all about choosing a wide range of products. This is because you want to sell as many as possible while making as little profit as possible. Our products are high-end and often luxury items made by well-respected brands.
We don’t need to mark up prices for high-ticket items. They are sold at the same price as other people, so you won’t be ripped off.
We offer extensive customer service, not just a dropshipper Aliexpress will. We won’t just take your money and disappear from the face of the Earth.
Ethics is not always a binary matter. These types of questions are not always straightforward, especially when it comes down to business. Especially when it comes to business.
Last note: How you treat yourself in your business practice. Dropshipping on Aliexpress is a way to cheat yourself of your valuable time and money.
Dropshipping is a high-ticket business. You’re ethical. This means that you aren’t wasting time on nothing. It’s not wasteful to spend money on Facebook ads or on influencers.
Instead, you are building a viable and real business that can withstand the test. This is a business you can sell one day. Because it is sustainable all year, this business is known as an evergreen one.