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Dropshipping the easiest way to start an online business

Discussion in 'Dropshipping & Wholesale Hookups' started by natureguy, Dec 14, 2018.

  1. natureguy

    natureguy BANNED BANNED

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    With the dropshipping business model, store owners can sell products to their customers without having to store the items themselves. Dropshipping is not something new, in fact, Zappos started using it in 1999. Amazon and Sears also use this business model. If the big brands do not get your attention, look at the normal guys who have stepped in and share their stories as distributors of dropshipping on Reddit. Today, up to 33% of the entire e-commerce industry uses dropshipping as the primary model for inventory management.

    Small-scale e-commerce entrepreneurs love dropshipping because there is no inventory to maintain, which translates into a lower initial investment. Not having to manage an inventory also allows you to focus on the most important thing: attract new customers. In this article, you will learn what dropshipping is and why you should be interested in it.

    What is dropshipping? and how it works?

    At this point you are probably wondering, how does the dropshipping work? Maybe you've heard the term on several e-commerce platforms, or maybe this is one of the first times you find yourself with the concept. In the simplest terms, after a seller who drops drops (dropshipper) sells a product, he buys it from a supplier, who will send it directly to the customer. In general, the process works in the following way. An Ecommerce merchant publishes products on your website, from where a customer places an order and pays for the item. Then, the merchant completes the order by placing an order for that same product to the supplier, who sends it directly to the customer. When merchants decide to host their e-commerce stores in Shopify, applications like Oberlo simplify and streamline the process by acting as the connective tissue between suppliers and the online store, from where the products are displayed and can be purchased. Oberlo's application facilitates the import of products directly from suppliers to the store and helps to manage any changes in inventory or prices so that there is no discrepancy between what is shown in the online store and the real characteristics of the item in the store. market.

    In addition to the numerous advantages of dropshipping, this model is extremely flexible:

    Resellers control their own margins. In addition, they are not subject to a suggested retail price and can decide for themselves on their retail prices.
    Resellers do not need to be established business entities before starting their online stores, but they should be established once they grow.
    Resellers have access to millions of products instantly.
    Understanding the Supply Market

    Jack Ma's name should be familiar to you, since he is the guy who built the $ 179 billion Alibaba empire, which precedes the AliExpress supply market. Ma is constantly compared to Jeff Bezos from Amazon, since he started his business in 1999, after not being able to find Chinese products online. He built Alibaba as a platform to offer products from Chinese suppliers to the western world.

    On Alibaba, online entrepreneurs can buy wholesale products to stock their stores. Hence AliExpress was created to accommodate dropshipping, in which sellers buy items and send them directly to their customers from AliExpress instead of storing them themselves. In other words, Alibaba is set up for wholesale purchase, while AliExpress was created for the e-commerce dropshipping model. With AliExpress you can also buy individual items for you.

    Small-scale e-commerce entrepreneurs and individual sellers can register on any of the platforms and purchase products from suppliers to sell to people around the world. It is important to note that neither Alibaba nor AliExpress have inventory, as they are simply platforms that house individual suppliers looking to sell their products to different merchants. They are markets or marketplaces created in a similar way to eBay. For purposes of better understanding dropshipping in conjunction with AliExpress, the most common supply market used with this e-commerce business model, let's review how this crucial aspect of the process works in more detail.

    How does dropshipping work with AliExpress?

    Doing dropshipping with AliExpress is very similar to doing dropshipping with traditional methods, since you can search the products directly on the platform and choose from among millions of options. Once you find an item that interests you and that you want to sell in your online store, simply import the product from AliExpress to your store and set your own price margins. Oberlo facilitates the import and synchronization of products, photos and descriptive information of them, since otherwise it may be difficult to synchronize the AliExpress platform with your online store. This is because AliExpress is a market where the prices of products fluctuate and inventories vary. Do not forget that once you sell a product in your online store you will have to buy it in AliExpress so that the supplier sends the item directly to the customer.
    What makes AliExpress special to do dropshipping?

    Besides being the only stop for the importation of all your products, doing dropshipping with AliExpress has multiple advantages, including the fact that when selling AliExpress products you have more freedom and time to concentrate on what really matters: marketing your products , which is one of the most important aspects to operate a successful dropshipping business.

    The reason why AliExpress differs from other dropshipping markets is its constantly expanding size, as there is a huge variety of products available for resellers to choose from. To compare, one of the largest wholesale directories, WholeSale2b, offers more than 1,500,000 products, while AliExpress sells alone more than 1,500,000 shirts, which you can sell in your online store simply by importing them from AliExpress. This without mentioning the amazing amount of other categories that include everything from electronics, jewelry and much more.

    In addition, resellers can start their dropshipping business immediately and completely free of charge. Doing dropshipping with AliExpress is possible even without having to contact the supplier, and to start you can simply browse the platform and look for the products that you would like to sell. If you are not sure how to select the right products, another advantage of using AliExpress for your dropshipping business is that AliExpress products are products that are in fashion, since Chinese suppliers do their research work and follow the patterns of what is being sold So follow his example and do the same. Consider the events that are happening in the world and sell products accordingly. Have you noticed that more and more people wear sunglasses that look like cat eyes? Go to AliExpress and import some pairs for your own store!

    This all sounds very good, right? So, what can be the most complicated part of starting a dropshipping business with AliExpress? Next, I'll answer the most frequently asked questions I've heard about dropshipping with AliExpress. Since I am an AliExpress fan, II will do my best to provide an honest and accurate image with objective answers.

    What is dropshipping?
    Frequently asked questions on how to start a dropshipping business
    1. Can you do dropshipping of AliExpress products easily?

    Yes, through dropshipping you can easily sell AliExpress products, which is much easier with tools like Oberlo. Doing dropshipping from AliExpress allows all parties to win, since AliExpress as a platform takes a part of the income, suppliers sell their products and you get profits.

    Personally, as a distributor of products sold through dropshipping, I have sold more than $ 3 million in AliExpress products and I know people who have sold even more. The dropshipping business model really works.
    2. Will my clients know if I am selling AliExpress products through dropshipping?

    Only if they themselves find the products on AliExpress. There are rarely promotions in the packages that the clients receive, especially if it is previously specified to the suppliers that do not send any type of promotion. If you are selling many products from the same supplier, you can even agree to send personalized packages or brochures for free.
    3. How to start a dropshipping business: why would someone buy from me, if you can buy the same product on AliExpress for much less money?

    Because you are better. Call it better marketing execution, to reach the prospective client first. Call it having a brand, which leads people to buy in your store. Call it having a store that people trust, even if this is based solely on location. Call it the value you offer, for providing services or additional content. Call it technology, which allows your customers to buy easily.

    Do not worry about price competition, or worse, not having unique products. In the world of electronic commerce you will never be the cheapest, and most likely you will never sell unique products.

    Especially with lower priced products (<$ 100), this is not the determining factor.

    Look at the same product on different websites:
    dropshipping - what is drop shipping Dropship

    All these stores are multi-million dollar businesses. Are these companies competitive in terms of price? No. Have you closed your business? Not because? Because in the important things, they are better.

    Having said that, the ability to set your own prices and not have to worry about being competitive in terms of prices should relax you on how to start a dropshipping business. If you have already calculated that winning a customer costs you $ 15 to pay for marketing on Facebook, add $ 22 to the original price of AliExpress and try to sell it that way. You can increase the margin, as long as it makes sense for people to buy the product at that price.

    You can rearrange your pricing strategy later, but for those who are selling through e-commerce for the first time, this is a great relief.
    4. AliExpress shipping takes a long time, my clients will not wait.

    Alibaba sold more than $ 17.7 billion in a single day. The customers of the businesses that bought you did not worry about the long delivery times and you should not either. Your task is to define your shipping policy, and show it clearly on the website of your online store to make clear expectations with the customer.

    In addition, AliExpress packages are no longer shipped by sea and do not always take 60 business days. In fact, with the ePacket delivery option, a package usually takes between 7 and 14 days to arrive in the US. Another benefit of the dropshipping model is that the ePacket delivery method is already implemented in 29 countries around the world, including Mexico and Spain. Additionally, some suppliers keep their most popular products in stores within the US, allowing for even faster delivery.

    Note: the differences in delivery times between the shipping options are huge. Some suppliers claim to ship their orders the same day with ePacket delivery (delivery time: approximately two weeks), while others ship their orders within 10 days after purchase and offer China's standard 45-day shipment ( delivery time: approximately two months).

    Finally, do a good research and choose only the best suppliers. If you choose a provider at random, it is likely that you choose the one with the 2-month delivery option.
    5. What about quality risks and copyright infringement?

    You have probably heard stories about the poor quality of Chinese products. Unfortunately, these statements are often true, however, there are always two sides in each story.

    In the end, you should be careful when it comes to choosing your dropshipping suppliers and it is up to you to separate the bad providers from the good ones. Unfortunate stories are well documented, so read them and do not repeat the same mistakes.

    AliExpress is a marketplace. In the same way that I can put any item on sale on eBay, a Chinese supplier can put any item on AliExpress. Just as eBay has had thousands of scammers and quality problems, AliExpress has also had its thing.

    Being a public company that expects to do business in foreign markets, AliExpress is forced to do a great job and correct its deficiencies. AliExpress provider accounts are no longer free, so providers must pay ~ $ 1,500 to have a fully functioning store, making it difficult for scammers to create an account. In addition, AliExpress offers a generous security program for buyers and hires thousands of employees to review the listings of products they offer. In fact, Alibaba has hired more than 2,000 employees to verify that its products do not infringe copyrights.

    In short, many Chinese suppliers can no longer afford to sell cheap products.
    6. Do AliExpress providers speak English?

    English from Chinese suppliers is not perfect, but you can contact them in advance to get an idea of their level before doing business with them. There are even some who have staff that can communicate in Spanish, although it is not the most common. Larger providers often respond fairly quickly and have sales teams that manage their orders, which often answer questions via live chat or email.
    7. What is the best way to handle returns and refunds when doing dropshipping with AliExpress?

    Having a simple policy of refunds and refunds is one of the competitive advantages that you can offer. That said, keep in mind that it can be a little complicated to offer this service effectively.
    Returns

    AliExpress suppliers rarely accept returns, and even if they accept them, they usually do not notify you once they receive the item. Even if the supplier receives the refund, it is your responsibility to send the customer the refund. In my experience, I suggest accepting returns directly to your office, and if the product is not damaged or used, re-sell it and resend it from your location.

    It will be easier for your customers and so you can offer better customer service.

    If in your online store you effectively communicate the relevant information about the characteristics of the product and the delivery terms, the return rate of products should have an average of 6-8%.
    Refunds

    The two most frequent scenarios:

    The order has not been sent or is going too late.
    The customer chose the wrong product or is not satisfied with the quality of the product.

    For the second case, you can apply your return policy. To reiterate, I suggest that you accept the return order in your office or warehouse. If the problem was of quality, it covers the return costs and issues a refund. If your customer chose the wrong product or simply does not want the product anymore - cover the return costs is optional - make sure to issue a refund.

    In the first scenario, it is unusual to handle a return trusting that the supplier of AliExpress will reimburse the item and then issue such refund from your own account to the customer. Chances are you have to cover the rebate for yourself.

    AliExpress suppliers are generally opposed to issuing refunds. Most likely, they insist that the order has already been sent or that they finally offer to resend it. The risks increase once you start making more sales, so try to establish a reimbursement agreement with your provider from the beginning, since blind dropshipping can cause serious problems.

    Avoid pitfalls and mistakes in this respect by being strict and persistent. If the supplier refuses to make a refund even when there is an acceptable reason for the return (for example, the package was never delivered or the tracking status of the order is pending for 30 days or more), request the safety program for AliExpress buyers. You should also continue writing to the provider every day, and even consider bombing it with bad reviews. Changing a supplier account on AliExpress is not easy, and they value this source of income very much, so the good ones will respond quickly. Just try not to get to the point where the order was not delivered, the tracking code is inactive, 50 days have passed and your customer is angry.

    They literally took photos of every order they sent, for months!
    8. Can PayPal be used as a payment gateway when doing dropshipping with AliExpress?

    Because the order process includes additional steps when doing dropshipping, there are often many questions about payment gateways. PayPal is one of the most well-known and widely used payment gateways, so it makes sense that many e-commerce entrepreneurs want to incorporate it into their business.

    Having said that, we suggest you think well before deeply integrating PayPal into your business. From the customer's perspective, PayPal is a great system because it tends to favor customers over merchants. For example, if a customer has a payment dispute or wants a refund, you can bet that PayPal will take the customer's word. All this is designed to protect the millions of people who use PayPal to make their purchases every day.

    In order to create a more stable and secure experience for customers, PayPal has established some precautions that may make its use as a payment gateway a little complicated. For example, PayPal can limit the money in your account in advance. These limitations are based on your business history, your ability to provide timely delivery vouchers (through tracking numbers), the physical location of your business, and, depending on many other factors, limitations may vary. Withholdings of funds can last even months, which means that you will probably have to make and complete orders with your AliExpress suppliers from your own pocket.

    As dropshipping becomes more common, PayPal is also adapting its policies to be a friendlier environment for e-commerce entrepreneurs doing dropshipping, and certainly there are merchants that are successful using PayPal. That said, we suggest you explore other payment gateways. Some of our recommended payment gateways include Stripe (Mexico, Spain and Brazil), 2Checkout and Shopify Payments (only available in the US, Canada and the UK). Payments through Shopify Payments in particular are an excellent option if your store is hosted in Shopify, since you can accept payments directly with this system that is already incorporated, which eliminates the complication of using an external payment gateway. However, keep in mind that Shopify Payments is not available in all countries. For Latin America you can also use PayU, Conekta and ComproPago.
    9. How can established businesses benefit when doing dropshipping with AliExpress?

    When it comes to doing dropshipping, what works best is learning by doing it. The dropshipping business model with AliExpress is the ideal model for first-time entrepreneurs. It is completely understandable that an established company does not change its business model and adapts to the AliExpress dropshipping, but it is worth considering. The dropshipping with AliExpress is ideal to quickly test new product ideas. In addition, you can add a new product category and, if successful, store the products in your warehouse as you usually do. In this way, you reduce the risk of storing inventory before knowing what products are sold and you increase the flexibility of your business.
    conclusion

    It is likely that this article will generate more concerns about the dropshipping with AliExpress than enthusiasm. In fact, it is far from being a perfect platform as it is difficult and complex. Becoming a dropshipping expert with AliExpress requires time, planning and careful research. However, I believe that its advantages make it the easiest way to start an online business and it is totally amazing to try new product ideas.

    Even with the challenges involved for those who are just discovering how to start a dropshipping business, as well as for experienced entrepreneurs looking to improve their existing stores, established platforms like AliExpress offer many benefits. It requires a low initial capital and, therefore, you have the ability to try your luck in the world of electronic commerce with limited risks.

    There are many useful applications and services available for use in conjunction with the AliExpress dropshipping, including Oberlo and Shopify, which can facilitate and automate the most complicated aspects of the dropshipping process, and eliminate some of the drawbacks we have discussed in this publication. With these tools you can spend your time maximizing profits by developing appropriate marketing techniques and consolidating your brand without having to worry about storing inventory, which will accelerate the development of a successful business. For more information, check out the Oberlo app
     
    Last edited by a moderator: Dec 14, 2018
  2. Jure321

    Jure321 Regular Member

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  3. INCC

    INCC Jr. VIP Jr. VIP Premium Member

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    You copy paste random articles from google. This is not sharing knowledge.

    The line between spamming and this is thin.
     
  4. natureguy

    natureguy BANNED BANNED

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    bro.its not copy pasted.
     
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    INCC Jr. VIP Jr. VIP Premium Member

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    Stop spamming your own blog " or check out our blog for more information on the main applications and dropshipping platforms.".
     
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    high mike Jr. VIP Jr. VIP Premium Member

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    I replied something mean but deleted it.
     
  8. TheShrewMan

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    lol nice way of driving traffic to your blog :) why would anyone listen to you when you dont make money online?
     
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    Asif WILSON Khan Executive VIP

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    Another worthless thread from OP.

    OP has already admitted to being a broke noob, so these threads are just for lols