There are many business models that eCommerce companies use today. Dropshipping is one of those business models that you have probably seen. Dropshipping is a popular option in the eCommerce industry.
In 2019, the dropshipping industry was valued at US$ 162.44 trillion and is expected to grow to US$ 591.77 trillion by 2027. It is also expected to grow at an 18.3% CAGR over the forecast period.
Dropshipping is rapidly gaining popularity in the market. You must be competitive in this market if you want to or already are.
AliExpress dropshipping is a great way to compete in the market.
Dropshipping with AliExpress is something you’ve never heard of. We will cover it in detail in this article. Let’s start by learning the basics. Let’s first understand dropshipping. Then, let us find out how AliExpress dropships and why it is so important.
Dropshipping: What does it mean?
Dropshipping allows a business to fulfill orders without the need to have inventory/products. Instead, they get the products delivered/supplied directly from a supplier.
Businesses rely on suppliers to store the products and deliver the orders to customers. After the customer has placed an order, contact your supplier to place the order for the products.
Dropshipping means you don’t have to pay inventory nor spend your time managing your warehouse or staff. You can learn more about dropshipping by reading The Ultimate Guide To Dropshipping.
Let’s now get an understanding of dropshipping.
What is Aliexpress?
AliExpress is an online marketplace that offers a huge selection of products. AliExpress began as an online buying and selling platform for businesses. However, AliExpress is now available to consumers and businesses.
AliExpress doesn’t just bring products from one supplier, but also from suppliers, manufacturers and wholesalers all over the globe. The products’ prices are extremely competitive, considering this.
AliExpress today is available in these nine languages:
AliExpress offers products from many countries at reasonable prices. It is also known for its shipping plans. AliExpress is a popular dropshipping platform for many businesses.
Are you curious about the types of products AliExpress can sell? We will be covering the different types of products that AliExpress offers in the next section. Let us delve into it!
What Products are Available on AliExpress?
We have already discussed how AliExpress works with a variety of suppliers. As you can see, the range in products is quite extensive. AliExpress is a master of all trades. AliExpress has everything you need, including accessories, jewelry and books. AliExpress has it all.
You may have questions about the supplier and quality of the product. You can read customer reviews before you buy the product, just like any other online shop.
If you have any doubts about the supplier, it is possible to run a background check and make a decision whether or not you want to purchase a product.
This was about AliExpress and the products that you can find on AliExpress. Let’s now see why AliExpress is the best dropshipping platform.
Why should you dropship with AliExpress
Dropshipping with AliExpress can be done in a few steps. First, there are no upfront costs and no fees to the suppliers to partner with you. This allows you to test the products before purchasing them.
Second, AliExpress sellers usually have the product description as well as the image of the products with them so you can use it in your shops. You can make modifications to the product descriptions depending on your business and market position.
Thirdly, AliExpress’s low labor costs in China mean that the base price for the product is often low. This means that you have a high profit margin.
Dropshipping with AliExpress is like any coin. There are pros and cons to every coin. Let us delve into it.
AliExpress Dropshipping: The Pros and Cons
There are no startup costs
AliExpress requires very little investment to start your business. AliExpress requires a minimal investment, in contrast to retailing businesses that require you to invest all of your money at the beginning. AliExpress requires that you only purchase a domain.
If you invest all of your money in a retail company, everything is at risk. And if the company fails to succeed, everything is lost. AliExpress is a great example of this. Even though you only made a small investment, your business won’t be destroyed.
Dropshipping with AliExpress is free. You only pay for orders from customers. If you receive something that has been sitting in your shop/store for a while and nobody is buying it, you can dispose of it and get it replaced at no cost.
This allows you to save money and also lets you try a variety of products.
Dropshipping doesn’t require you to have a warehouse or storehouse in order to sell your products. You can run your business from anywhere you want.
You can manage your business anywhere with a laptop or computer and an internet connection. AliExpress allows you to accept orders and place orders. You can also get the products delivered directly to your customer or yourself.
No Holding Inventory
You can get bulk goods in the retail industry. Because you can only buy bulk, you will get the products at a lower price or a discount. To be ready for market demand, you purchase the goods and keep them in your inventory.
AliExpress Dropshipping helps you to eliminate these costs. Dropshipping with AliExpress allows you to sell large quantities of products in your store, without having to spend any money. There are no warehouse costs and no products that are left in stock.
No overhead Cost
Retail business requires a lot of fixed costs as well as overheads such as rent, representative compensations, bills and so forth. Dropshipping is a great option because there are very few overhead costs. All you need to do is install the software on your computer.
If your store is too small to accommodate all the products you need, you may be able to hire remote consultants or helpers instead of full-time employees.
Dropshipping with AliExpress comes with its own set of cons. Let’s look at some cons.
Dropshipping is not new at the moment you are reading this article. It’s been around as long as the Internet was in existence.
There are thousands or even hundreds of dropshipping business visionaries in every specialty. This means you’ll have competition.
This is why it happens. It’s easy for you and every other person to pass because of the low initial costs and few restrictions.
Marketing is the best way to market dropshipping. There are so many elements to the game. Drop transporters aren’t likely to attempt marking their own business, so if you make branding the core of your business, and build a strong brand, you could be able to dominate your competitors.
Control is impossible
Dropshipping with AliExpress is difficult because you don’t have control. You will not have much control over your suppliers, their satisfaction, or the conveyance measures. You must be able to trust your suppliers and allow them to follow through as promised.
It is important to do your research on the provider carefully by reviewing their audits, asking their approaches or using your presence of mind and judgement to evaluate their demonstrated skill.
Although it may be very unfortunate if your provider is a trick while transporting a block to your client’s home, remember that nobody will blame you, no matter how much you try.
Dropshipping with AliExpress means that your customer’s order is shipped all the way from China. Delivery can take up to two weeks.
Although faster delivery options like FedEx and DHL are possible, these options can be quite expensive. Your customers should be informed about the delivery options available to them, their costs, and the time it will take.
Many suppliers offer faster shipping options like FedEx and DHL, but these can be quite expensive.
Margins of low profit
You can sell some products at a high margin. However, if there are many products in your market, and you have to compete with them, your margin will drop.
Drop shippers are most likely to drive traffic via Facebook ads. This makes it easy for customers to see the same product from different sellers. Your customers will be able to compare your prices with those of your competitors. You risk losing credibility if you set your price too high.
Before you price your products, make sure you do your research. And, as I said above, branding is the key to a dropshipping business.
Complex refund/return process
If your customer has a quality problem and requests a return, it is almost impossible. No one wants to send the product back to China and then wait for a new one. I
It is important to note that quality problems can occur due to the delivery process and not because your supplier shipped a defective product. To deal with these situations, you will need to establish clear policies for refunds and returns.
Let’s now learn how AliExpress can be used to dropship.
How can AliExpress be used to dropship?
Once your customer places an order, you can purchase the products via AliExpress. You will need to enter the name of your client and their delivery address. Rest is handled by the AliExpress merchant.
You will need to do this physically so you will need a bookkeeping program. This can help you keep track of your products, their price on AliExpress, as well as a link to AliExpress.
This will make it easier for you to locate the supplier and track the price changes when you receive a product request.
Deskera can handle this accounting for you. It can also make it easier to order on AliExpress. This will allow you to save time. You can develop your business without worrying about arranging thousands of AliExpress products physically.
AliExpress allows you to place orders. However, you need to let the supplier know that you are dropshipping the product and you will not be buying it but will sell it. Drop shipping means that the products are shipped without invoices or promotions.
You may also want to consider ePacket shipping when your orders are being shipped, if it’s an option.
Once the order has been shipped, you must wait for it reach your customer. AliExpress receives a notification when the product reaches its destination. A confirmation mail is sent informing you if the product arrived on time.
That’s it! It’s now time to wait for your customers. AliExpress will email you to confirm that the order has been received. AliExpress will allow you to raise any issues you might have with the product later.
After you’ve learned how to dropship AliExpress products, let’s now see some things to keep in mind when choosing the products to dropship.
How to Choose the Right Product to Dropship
Find out the capabilities of the product
It is important not to focus on one product. The product you think is the best will probably not be able to sell in your market. Take a look at all the AliExpress categories and compile a list of twelve products. Below is a list of top dropshipping products.
You can then do a quick Google search to determine which product is most popular among the products on the market. Which product has received the most traffic.
Fakes & knockoffs are not recommended
To avoid imitations or fakes, you should not purchase products from any current brand. You could get in trouble if you have not entered into a legal partnership with a brand. You must have the permission of high quality, well-known brands.
These brands also have legal divisions that are responsible for locating individuals who exchange their products without their consent, and cutting them down.
You can sell on Shopify and WooCommerce regardless of your stage. If they verify that you do not need authorization to sell their items, your shop will be closed.
Select Suppliers that have at least 300 Orders
If you are seeing a lot of people asking for the product, there are two important things. First, it means that there is a positive interest in the item. A supplier who has received this many orders is a sign that they are reliable and more trustworthy than usual.
When you are searching for an item, choose the option to sort by order. This will allow you to find providers based on how many orders they have handled.
Select ePacket Shipping
Dropshipping is all about transportation of goods. AliExpress. Your orders will be shipped from China and can take up to two months to arrive in the US using traditional transport options.
Your clients might be discouraged from buying if the delivery time is too long. Fortunately, ePacket Shipping is a fast and affordable delivery option that you should look for.
ePacket can be used to ship goods from third-party logistics (3PL), providers in Hong Kong or China. The United States Postal Service (USPS), announced an agreement in 2011 with eBay China and Hong Kong Post.
It allows you to track your ePacket from China and Hong Kong, and also receive USPS First Class Mail Service and delivery confirmation.
ePacket also allows customers to receive faster and more affordable delivery. It is now available in 44 countries.
Concentrate on Suppliers with Above 4.5 Stars Rating
This is the minimum rating you should look for. A provider with a rating below this point will generally have a lot of problems with their product quality. Go to the product page to read reviews.
You can read the one-star reviews to ensure you have all the answers you need. Ask them how they will handle it when it happens.
Pick High Margin Products
You should choose items between $1 and $20 in value. This will allow you to promote more to get new clients.
Low costs are often the best way to motivate clients to make purchases. Clients will be more careful about what they buy if excessive costs are involved.
Your clients will be more uncertain if they are not able to clearly see their costs. Your capital may be small at the beginning. Make sure you get every advertising dollar back to keep your business afloat.
Always order a product sample
If you want to make sure that your client receives exactly what AliExpress shows, request an example.
In any event, although this is the right thing to do, it can cause you to have problems if you need to outsource 100 products. It will be very costly to arrange for an example for each of these items to verify their quality.
All things considered, you should conduct organization tests for only the items you plan to publicize. These are the items you believe will bring the greatest amount of traffic to your shop.
Dropshipping visionaries who are smart would organize tests on these most likely items in order to verify that they meet the standard quality. You can’t advertise 100 items at once, isn’t that obvious? The shopping app Just Wish can make it possible.
These center items will give your store credibility and help you expand your sales.
Get your Dropship Store Setup
Dropshipping with AliExpress requires you to use an application that works for dropshipping as well as a site that can be used for general purposes. Dropshipping is possible with many applications.
This will allow you to engage more customers and keep all of your products in one place. Deskera can help build your website and increase your company’s success.