Think of an idea of you making money up to 6 figures with no inventory, no capital as a startup. Well! Think no more, eCommerce dropshipping is just the answer you need.
So what is eCommerce dropshipping ?
According to Google dictionary, dropshipping is moving of goods from the manufacturer directly to the retailer without going through the usual distribution channels. Think of it as an idea where you (the merchant) do not store or own the inventory, instead you purchase inventory as ordered by your customer and you buy it from a third party usually a manufacturer or a supplier who will supply your demand.
This idea has been a growing business among many startups in that anyone can start the business because very little is expected of you, all you need is just to take the order, make your order, deliver that order and keep the margin, and you actually are not involved in any packaging process of the goods.
Pretty awesome? Huh! And the interesting part is you can start with as little as you want and build it to over 1000 products depending on your business niche and within no time get orders to deliver.
This model is cost effective, i.e., you do not need capital to start and one of its cool features is it offers security of payment, if you order goods from the manufacturers and the goods are not delivered in time, or they are spoiled then there is a refund process that is set aside to guarantee your money returned. If you are a startup and you wish to startup then my advice to, you are to invest a lot in your venture, and there are two ways you can invest.
The first way is investing your time (which is the most recommended), before you pour out sums of money into the drop shipping venture it’s important to focus your investment in time compared to money that means understanding how the business works.
What opportunities are out there and have not yet been tapped?
This will save you a great deal because once you understand what you are up against you will probably have a smooth flow. The second way is to invest in money, however this is only necessary if you have a very specific market that you need reached immediately.
All this has been simplified thanks to AliExpress, which works exactly like the traditional drop shipping where you copy the product from AliExpress to your store, then you adjust the prices to suit your expected margin, then once you sell the product you purchase it from AliExpress and have it shipped directly to your customer.
It has been a growing platform due to this properties:
- AliExpress offers great security between the merchant and the manufacturer or supplier, i.e., incase goods are not delivered the money can always be refunded back to the merchant.
- It is also very flexible that means you have full control of your margins.
- It is also free you can start immediately without even contacting the third part agents such as suppliers or manufacturers.
- You don’t need an established business to start your online store, however as you grow, you will need one.
- AliExpress offers tools that make dropshipping easier and more dependable, for example, Oberlo which provides up to 50 orders for free.
- With AliExpress you can be assured of satisfaction in both parties.
In conclusion, we can say that this is a venture that will guarantee you maximum profit at the minimum hustle. However it has its shortcoming, but the advantages surpass the disadvantages.
Merits and Demerits of AliExpress
Well at this point we all have an understanding of what drop shipping is and how it works and am sure you are already impressed and pressed to, your drop shipping journey. Well in this chapter I will look at some of its advantages and its shortcoming specifically on AliExpress.
You get stuff straight from the source for cheap
Well, most of these third party source we are talking about is a manufacturer, and for suppliers, they are mostly the primary source of the product which means there is reduced price because the chain has been reduced to just manufacturer and merchandizer, i.e., no brokers involved.
Free access to the database. You have access to millions of products instantly
Data access is guaranteed with AliExpress, as a result drop shippers all over the world can browse and view products, and one important feature is as a merchandiser you don’t even need to have an account to access data.
This means you can access a great resource of information about manufactures before making a decision on which manufacturer to go for, by giving you a brief information about the supplier/ manufacture on his or her performance and reliability, giving details such as the period of existence, percentage of positive feedback left by buyers and the number of business operation conducted or orders placed by buyer, thus allowing businessmen to be able to source the best and only the best supplier.
It’s very common for the most drop shipping platform to offer a membership plan that can either be monthly or yearly which is depended on the type of seller regarding a number of business carried through. To another site, they charge in case a customer returns stock or item that are returned by defects.
However, with Aliexpress this is not the case to get access to information about suppliers is free and once you start transacting with the supplier it’s free of charge. And even when making business transaction no additional fee is required, any expenses that may arise from returned goods or even damaged goods the bearer is the seller.
No legal requirements needed
With AliExpress you are not locked to a specific country, most online businesses require you to belong to the country, e.g., the USA, however, this is not the case with AliExpress since you have full access to information and you can communicate with suppliers in case of orders or even complains.
Quality of products
With AliExpress you are provided with information such as the rating of a supplier, his/her length of business operation, with the need to be reached for information you are not just making a guess work selection, you can pick from the best possible supplier.
Again you can communicate with the supplier and ask them to send you a picture of the packaging thus helps you to get only the best kind of goods out there.
Alipay is another brand by Alibaba that ensure both the buyer and seller are protected, Alipay hold the escrow amount until both parties are satisfied and should there be any conflict Alipay acts as the negotiator making sure no party loses out by, extremely neutral. This payment mode support credit card, bank transfer, and western union thus you aren’t locked out.
AliExpress is among the few online platform e-business sites that have joined hands with the China Post Mail offering free shipping worldwide; this move was initiated to favor small and medium quantities, this move assists you to save up to 35% on any shipment cost.
AliExpress also support worldwide shipping companies such as DHL, FedEx, TNT, and EMS; these methods are mostly preferred because they offer two days to 7 days. This carrier is mostly preferred because they provide tracking, customer help and are faster in delivery.
Prices are competitive
The prices being offered on AliExpress are quite competitive due to the reduced chain and elimination of brokers, i.e., you are getting goods straight from suppliers and not past middle men like most local suppliers offer. Again you can choose from a wide range of supplier and even negotiate prices with them.
If you are not careful you might be sold goods that were returned or used by other the and returned.Read full post about Pros And Cons Of Aliexpress Dropshipping
Do you have any question as per ecommerce dropshipping is concerned? kindly comment below.