The most popular and beginner friendly method of Dropshipping is by using the Aliexpress as the supplier marketplace. Aliexpress is a popular online marketplace for retail sellers. But, the prices of Aliexpress suppliers are very competitive, allowing you to have a good mark up by reselling their products.
Learn How to use Aliexpress for Dropshipping
- What is Aliexpress
- Aliexpress Vs. Wholesale Suppliers
- Business Strategy for Dropshipping with Aliexpress
- How to Find Dropshipping Suppliers in Aliexpress
- How to Pick Dropshipping Products in Aliexpress
- How to Import Aliexpress Products into your Store
- How to Process Dropshipping Orders from Aliexpress
- Dispute Handling with Aliexpress Dropshipping
The main aspect of the Dropshipping model for e-commerce is that you do not need to maintain a physical stock of products to sell on your online store. You can just list products from a selected supplier, and once you get an order, you can ask the supplier to deliver the product to your customer. You can read more about What is Dropshipping in our comprehensive beginner’s guide to Dropshipping.
1. What is Aliexpress
The most popular and beginner friendly method of Dropshipping is by using the Aliexpress as the supplier marketplace.
Aliexpress is a popular online marketplace for retail sellers. But, the prices of Aliexpress suppliers are very competitive, allowing you to have a good mark up by reselling their products.
2. Aliexpress Vs. Wholesale suppliers
Most of the big players in the online Dropshipping industry use their own wholesale suppliers to source the products they sell. These wholesale suppliers may offer very low prices compared to the prices listed in Aliexpress.
Read about How to find Dropshipping suppliers in our comprehensive beginner’s guide to Dropshipping.
But, if you are a beginner, sometimes you may feel that working with wholesalers are bit complex. You may need to get into a contract with them before ordering. And, sometimes you may have to pay in advance to start a credit account with them. All these procedures may scare off the beginners of Dropshipping.
That’s where you can use Aliexpress to source your products. Almost everyone knows how to order a product through an e-commerce store. You may have already used Amazon or eBay to buy some products you need. Aliexpress is a similar platform which allows anyone to purchase products from listings. So, sourcing through Aliexpress is not harder than buying a product through Amazon.
So, now you may ask why would anyone buy from my online store when they can buy the same product for a lesser price on Aliexpress. The answer is the business strategy with Aliexpress dropshipping.
3. Business Strategy for Dropshipping with Aliexpress
If you decided to source your products from Aliexpress, you need to change your gameplan accordingly. When you source your drop-shipping products from Aliexpress, you cannot market your business based on competitive prices. Or, you cannot market your business for unique products. There will be thousands of other competitors who sell the exact same product for even lesser prices.
So, how can you win this race? The secret is how efficiently you reach out to your customers. All of that is based on your marketing strategy. We have added more details about marketing in this guide of How to handle marketing for your dropshipping store.
4. How to Find Dropshipping Suppliers in Aliexpress
Now let us try to find the suppliers in Aliexpress for your Dropshipping niche. If you do not know how to pick a niche for your dropshipping business, we have an excellent guide to help you. Check out the “How to pick a niche for Dropshipping” guide and learn the right way of choosing a profitable niche.
Aliexpress is a massive marketplace with thousands of suppliers in different niches. Once you have your niche in mind, select the right category to see suppliers related to that niche. As a case study for this guide I will pick, men’s wallets as my dropshipping niche.
So, I have selected wallets under the category of Bags & Shoes > Men’s Luggage and bags.
Now I got a large number of product listings related to men’s wallets from different suppliers. Now I need to do a little bit of sorting to find the best suppliers.
As the first step, I would try to sort suppliers who have ratings above four starts. In this way, I can assume that these sellers are better than the others.
Now that you have narrowed down your potential suppliers, now it is time to pick individual products.
5. How to Pick Dropshipping Products in Aliexpress
Now, it is the time to see which products do well. This is something you need to understand more clearly. It can be overwhelming to see a large number of beautiful products with small price tags. You might be already calculating the costs in your head. But, you have to understand that the product which you like, may not be the best-sellers in this category.
Pick popular products
If you need profits, you need to pick the popular products. You can use the “Sort by Orders” filter to sort the product listings with the highest number of sales. By this method, I can assume that these products have more demand compared to the others. Next, as a practice, I would start by selecting the price ranges with the highest sales. This is again a measure of the demand for the products.
No for Brands
When it comes to Dropshipping, it is always better to stay away from branded products. There are a few reasons for not to sell branded items with Aliexpress Dropshipping. First, you may not have the license to resell some brands. Sometimes, you may end up facing lawsuits by selling substitutes and counterfeits. So, for your own safety just pick generic products, which do not carry any brand names, or do not resemble a branded product.
Price with a high markup potential
When you source products from Aliexpress for Dropshipping, it is better to stick to the products with prices ranging below 25USD. Then if anything goes wrong, you lose a small amount of money. And when you select products, try to choose the products where you can sell around 50USD. In this way, you can keep a higher margin while lowering your risks.
Almost 99% of the Aliexpress products are coming from Hongkong or Mainland-China. So, the E-packet delivery is the most economical and quickest way of shipping these products to the USA or Europe. If you can find the products which offer E-packet delivery with Free shipping, that would be ideal. So, you can provide the Free shipping option to your customers, which usually increases your chances of selling a product.
Products with unique photos
What if you buy products from another retailer who is just Dropshipping like you. He will again keep a profit margin, narrowing down your profits. Also, he may not be able to provide good customer support by providing you with any unique product photos, or specifications. So, by checking for the unique product photos in Aliexpress listings, you can filter out useless re-sellers on this marketplace. You can check for such resellers by doing a quick image search on Google. Use Google image search for the product photos, and those who have unique product photos can be the sellers who have an actual stock of the products they sell.
6. How to Import Aliexpress Dropshipping products into your store
Now it’s time for us to list the selected products in your store. Depending on the platform which you are using there can be some useful plugins or apps to automate this process. You can read more about How to create an online drop shipping store guide.
Using an app or plugin ease the overall process, as they can track the real-time stock levels of the supplier listing and update your stock level accordingly. Also, these apps can assist you through the order fulfilment process.
7. How to Process Dropshipping orders from Aliexpress
Once you make a sale for a product on your store, you have to fulfil that order on Aliexpress. The process is as simple as ABC.
As we have mentioned before, if you use any apps or plugins with your store building platform, you can apply that service to process orders. But, if you want to do the order forwarding manually, all you have to do is go to the supplier listing and place the order on behalf of your customer.
But, when you do so, let your supplier know that you are Dropshipping by adding a particular comment under the comment section. Aliexpress sellers know that most of their customers are drop shipping retailers, and they are happy to do this for you. You can type in something like, “Hi, This is a Dropshipping order. Please do not add any promotional materials or invoices”.
And, once you place the order, soon you will get an email with an order confirmation from Aliexpress. Now you can go to your order page and see all the available details. If you have selected E-packet option as the delivery method, you will see the tracking number for the product.
Now you can go back to the admin panel of your store, and fulfil the order by entering this tracking number.
8. Dispute Handling with Aliexpress Dropshipping
You have to handle your customer services by your self. If your customer requests a refund or return, handle that as you would typically do in your business.
If your customer did not receive the package, you could contact the seller and ask for a resolution. Or you can even use the Aliexpress buyer protection scheme to do so.
Usually, the Aliexpress suppliers do not accept returns. If your customer wants to return the product, you may have to receive the return package.
Sometimes your customer may receive a damaged product or a different product. Then you can ask your customers to take some photos of the product, and you can forward these photos to the supplier for a resolution.
If your customer is unsatisfied with the product, you may have to get the burden and provide a refund either by accepting the return or not. It is all up to your return policy.
Is there anything else you would like to know more about and wish was included in this article? Let us know in the comments below!
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