Before we talk of the Pros and cons of Aliexpress Dropshipping, In my first article, I covered about what is dropshipping and am convinced you have a clear answer to that.You are in a position to differentiate between the current dropshipping module to that of tradition.
Even though one does not need a significant capital to start drop shipping, but that doesn’t make it free business one can start anytime without facing challenges.
So, before you start running a dropshipping business, its wise you familiarised yourself with the Pros and cons of dropshipping business.
These are Pros and cons of Aliexpress Dropshipping Business Globally
Pros of Aliexpress Dropshipping Business
Since sellers on Aliexpress are Wholesaler retailers, you stand an opportunity of getting products from the source at a fair price.You get the product at a discounted price as compared to other sources.
You granted access to Millions of product database to choose from at no extra fee.Its likely for any seller on Aliexpress to grant access for buyers to view their database, browse products and select the one they like most.
The sellers on Aliexpress rarely limits access to their database, its safe way before the buyer to place an order.
To sign up on ALiexpress and start making orders is free of charge. Also, the platform provides excellent product data vital for dropshippers to decide between buying or continuing product search.
The data provided by Aliexpress shows product performance regarding orders, feedback left by customers, the store ratings and any red flag that may be in the store.This Data preview helps dropshippers make a conscious decision.
As a buyer you need to check for the above, to be able to order a quality product that matches the product images on the store.
No fees Associated with Aliexpress Dropshipping
In a normal dropshipping setup, the service provider charges annual or monthly standing fess to use their services, e.g., access to their product database, the fee varies from one seller to the other.
At times they insist on paying a restocking fee, they need this to help cover for refunds and any other disputes raised by customers from your end.
For dropshippers who work on Aliexpress platform and works directly with AliExpress suppliers, they don’t get charged any fee apart from when they buy from the seller.
You don’t have to pay any entry fee to dropship from Aliexpress, and no additional payment required of you in the whole process of dropshipping.
The refunds and returns cases are directly resolved by the seller on Aliexpress and not you as the dropshipper, but at times you would do it to save your brand.Let us continue with our list of Pros and cons of Aliexpress Dropshipping.
No legal Requirments for Dropshipping
On other dropshipping platforms, the providers prefer working with established dropshippers from specific countries only, e.g., US entities who are the USA registered Businesses.
But with Aliexpress you don’t have to worry whether you are an official established an entity to start dropshipping.
ALiexpress accommodates everyone from all walks of life and no legal requirement, e.g., LLC. You don’t need any of the above to contact a manufacturer on Aliexpress.
Aliexpress is famous among other e-commerce platforms, its both used by a private individual who buys products for consumption and not for reselling, the reason why Aliexpress sellers gladly work with everyone regardless of country of origin or legal status.
Great customer care is a vital aspect of any successful business either online or offline.The customer services your store offers gives it an additional value and help build reputation and trust among your customers.
It becomes hard to reach a seller or manufacturer via emails or through their contact page on their respective websites.
Aliexpress makes reaching the seller easy and quick; this is made possible when placing an order, you can get in touch with the seller anytime you fancy.
When you send a message, the seller with reply even if they are offline they get notified via email that customer left an inquiry about their products.
This also applies when there are any technical issues either shipping or any other difficulty, the support team at Aliexpress comes very handy.
Aliexpress stands out in many ways, but what makes it outshines other platforms is that anyone can access it and place an order.Before, many would not order same products online since the platforms couldn’t ship to their respective countries.
When dropshipping with Aliexpress you get a chance to save few coins, they run offers, discounts and offers coupons too.Sellers tend to run a promotion on social media of the same product you are dropshipping from their store on Aliexpress.
If you are using Oberlo or dropified, then you must enter the coupon when ordering the products from their stores to save few bucks during the checkout.
Shop with Peace of Mind
On Aliexpress, Dropshippers and buyers get protection in case of anything during the buying process.The security covers shipping, products don’t match the one you ordered, or if the product is damaged.In all of the above, you are allowed to file a dispute and request for a full refund.
Trending Product Ideas
The sellers on Aliexpress are good researchers who try to keep up with the trend, the suppliers do their research and are very creative.
You can get any product you need based on the current trend, or any other product idea you have can be implemented to reality.
Easy To Control profit Margin
The reason why you are starting a dropshipping business is to make a profit and be able to run the company in the long term.What more would you wish for if not control your margins? Aliexpress gives you option of controlling your price using Oberlo or dropified app.
Cons of Aliexpress Dropshipping
Its recommended for any dropshipper to do a proper evaluation of the suppliers they want to use on Aliexpress.Some of the suppliers on Aliexrss are unreliable and may cause you your business.
Some will ship poor quality products or products that don’t match the description or the images you saw while placing the order. Some suppliers may delay shipping, and this may bring about customer filing disputes, and you know what that means to PayPal lol.
Copyright infringement issues
Dropshiper should be careful when selecting products on Ali express, there are still suppliers who infringe copyrights of other brands and resell product of the same but if poor quality is baring the original brand name.This may bring problems either shop shut down or your Facebook ad account banned.
Since we all know Aliexpress is a retail website, sister to Alibaba,there is no unanimous return policy implementation.
Shipping and Delivery time
If you are just starting a dropshipping business and your targeting USA customers, you have to stick to epacket, EMS, DHL, and other reliable shipping companies offered on Aliexpress platform.
Epacket is cheaper compared to other shipping agencies like DHL.
Suppliers will offer free shipping to others countries but with US customers free shipping can take up 30 days, and this may result in losing customers and getting bad reviews.
Low-Profit margin due to High Niche Competition
If you chose a poor niche with many stores selling the same product then you stand to lose, the higher the competition, the lower the profit margins.
Don’t be surprised to find some Shopify shops selling the same thing you just launched on your site. The low-profit margin is brought by logistic challenges, order fulfillment and shipping cost.
Selling the item is just one half of the equation. Fulfillment is where you can make or break it. Be lousy at it, and your feedback can drop faster than a sack of potatoes down a laundry chute. Have you ever tried to recover a 100 percent rating on Facebook after receiving negative feedback? It probably can’t be done. So go to great lengths to keep your buyers satisfied.
Fulfillment is a significant issue with drop shippers because, apparently, there’s a shift in control. You don’t have anything to do with fulfillment at all, so if your supplier is unreliable, you’d better look for another supplier.
Even if your supplier is reliable, however, you still need to keep at them to give you constant updates on your orders. The thing with buyers is that if there’s going to be a delay in the delivery, they appreciate it when you are proactive about it by letting them know, apologizing, and giving them a new ETA.
This way, you are less likely to get negative feedback because the buyer knows you are keeping them informed before they ask or complain about a delayed fulfillment.
Did you learn anything about the Pros and cons of Aliexpress Dropshipping ? If yes kindly share and spread the news.