If you’re an aspiring entrepreneur looking to start your own online business, one of the things you need to look into is the dropshipping business model. This business model allows you to sell products without having to stock any items yourself.
However, this model isn’t new. In fact, most big-name companies, such as Amazon or Sears, used dropshipping when they were just starting out. And it’s not limited to the big names — about a third of the ecommerce industry is found to use dropshopping primarily.
The most important advantage of using dropshipping is that it removes the need to carry an inventory, so the entrepreneur can focus on other factors such as how to get more customers and grow their business.
Of course, there are a multitude of reasons why dropshipping is highly preferred by businesses. This article will cover the definition of dropshipping, explain why AliExpress’ services are highly preferred, and why you should use this for your ecommerce store.
How does it work?
If you use dropshipping, you can run your ecommerce store even without a stock inventory. This is because the suppliers themselves will store the products. Once your store makes a sale, you will need to contact the supplier and have them ship the product to the buyer directly.
There are several advantages to this business model, including
- Getting to decide the retail price of your products, allowing you to control your own profit margin.
- Easier to get started with, even if your brand is not yet established.
- You gain access to a massive product catalogue by using Oberlo and AliExpress services.
1. How difficult is it?
It’s easy! All you need to do is to use the right tools, such as Oberlo. In fact, Oberlo is going to be important if you’re planning on using dropshipping for your ecommerce store.
2. Will the customer know?
There are no guarantees on this one. You can try talking to your suppliers and asking them to refrain from including promotional materials in the packages. However, the best thing to do in order to avoid suspicion is to make a professional-looking Shopify store and ensuring high-quality services.
3. Why would they choose my store over buying directly from the supplier?
Simply because you can sell it better.
Because of marketing, so possible customers know about you.
Also branding, giving your business a more respectable front that compels people to buy your products over other brands.
Because you can provide additional value through extra content or services.
Because of the convenience that your store provides due to its nature, allows people to shop easily.
In short, worrying about it is pointless. What you need to think about is making your brand more appealing so that people will choose your products over others.
4. AliExpress Dropshipping takes a while, are my customers willing to wait?
What’s important is that your website clearly displays the store’s shipping policy, so that the customer’s expectations are managed properly.
The ePacket delivery, which is the most favored option, normally takes about 7 to 14 days before the package gets to the US all the way from China.
However, there are cases where the supplier will keep a product in their warehouses in the US due to its popularity, so the shipping and delivery can be much faster.
5. Are there risks with the products?
Chinese products are notorious for being cheap, low-quality ripoffs of well-known products, and this stereotype has a reason for existing. However, the truth is that bad suppliers can be found everywhere, not just in China.
In short, you must always exercise caution when choosing a supplier, regardless of their location.
6. Do the suppliers use English?
If you’re using AliExpress, then a good majority of suppliers you’ll meet are going to be Chinese, so don’t expect their English to be perfect. To avoid any awkward scenarios, you can always try to contact your suppliers beforehand in order to gauge their proficiency in speaking English before deciding if you want to do business with them.
If the supplier is large enough, they’ll probably employ sales teams to manage orders, and these teams will be able to answer any questions or inquiries using email or even live chat.
7. I AliExpress Paypal-friendly?
Paypal is a giant when it comes to payment methods, so it’s only logical for online stores to use it as a method of payment since so many people love using it.
And there’s a reason why so many people love using Paypal. For one thing, Paypal’s system favors the customer more than the merchants. If there are any disputes over the payment, Paypal is more likely to take the customer’s side over the merchants.
However, using Paypal might have some hassle, but it’s mostly because of the precautions they have in place in order to create a more secure payment method for its customers. For one thing, there is a limitation on your account’s money which is based on factors such as track record, business history, your location, and several other factors.
Paypal also tries to be more friendly to ecommerce merchants, so it’s definitely a good option. However, there are other alternatives which shouldn’t be overlooked, such as 2Checkout, Stripe, or Shopify Payments. The last one is highly recommended, especially if you’re using Shopify as a website host, because it’s already built into the system. This eliminates the need for a third-party to provide a payment gateway. The problem with Shopify Payments is that its coverage is not as wide as Paypal’s.
8. Is dropshipping still good for established businesses?
Dropshipping can still be good, especially if you’re trying to test out new products or catalogues. If they succeed, then you can start stocking them into your warehouse. Basically, dropshipping allows for greater flexibility by allowing you to test out a product before deciding whether to stock up on that product or not.
AliExpress and how it works
AliExpress is a website for ecommerce with a massive catalogue of products. If you’re a customer, you can use their site to find the products you want. If you’re an entrepreneur, you can use it to find new products and sources for your own store.
Oberlo also has a Chrome extension that imports products to your Shopify online store with merely a few simple clicks.
When someone buys a product from you via AliExpress, you will need to buy that product from an AliExpress supplier who is then responsible for shipping it to your client.
Dropshipping is probably the best way to kickstart your own online store. If you’re already an established brand, it’s still good for trying out new products. Using it allows for lower capital and therefore, lower risks.
Additionally, there are several apps you can use such as Shopify and Oberlo, which can make your experience much easier. These tools will give you more time for other things in order to establish your brand.
For more information, check out our other blog posts regarding the platforms and apps you can use for dropshipping.