AliExpress Dropshipping 101: A Complete Guide for Beginners

Imagine being your own boss, working on your own schedule, and making up to 6 or 7 figures with minimal costs and investment.

That’s what dropshipping can do for you.

And AliExpress, China’s biggest retail marketplace, makes it easier than ever.

This article will tell you all there is to know about AliExpress dropshipping, especially if you’re just starting out.

We will discuss the basics of AliExpress dropshipping, its advantages and disadvantages, expert tips, and even a step-by-step guide to help you get started.

What is Dropshipping?

Before getting into the details of dropshipping with AliExpress, it’s important to understand how dropshipping really works.

Dropshipping is a business model that lets you sell products to customers without worrying about production, inventory, packaging, and shipping.

In the dropshipping model, the supplier takes orders from the retailer and ships products directly to the customers. As a retailer, all you need to worry about is making a sale and keeping the profit to yourself!

How Does AliExpress Dropshipping Work?

AliExpress is a huge global retail marketplace full of suppliers located in China. It’s also a favorite of dropshipping entrepreneurs – for good reason!

It’s super easy to sell products with AliExpress without worrying about inventory or shipping. Plus, there are tons of product categories and variations to choose from. Like clothing, office supplies, beauty products, and even household stuff.

You can pretty much sell anything in the world – AliExpress will probably have a supplier of it.

Here’s how it works.

You select a supplier, list and promote the product on your store, and have the supplier ship it directly to your customer. You pay the supplier only when you make a sale and get to keep the profit to yourself.

Want to find out more? Keep reading for a detailed, step-by-step guide below.

But before that, let’s talk about the benefits and potential drawbacks of dropshipping with AliExpress.

The Pros and Cons of AliExpress Dropshipping

Just like every business model, AliExpress dropshipping is not all rainbows and butterflies.

Sure – it’s popular for a reason. There are tons of benefits of dropshipping with AliExpress.

But you still can’t ignore all the challenges that come with it.

It’s important to know both sides of the coin, so you can make the right decision and have a better idea of how to tackle any potential issues.

The Good

We’re not going to lie. AliExpress dropshipping is awesome!

There’s a reason thousands of entrepreneurs all over the world – especially in the US – dropship with the platform.

In fact, there are many reasons.

Here are the top advantages of dropshipping with AliExpress:

Low startup costs

The great thing about AliExpress dropshipping is you don’t need a whole lot of investment to get started.

Compared to retail, it literally costs peanuts to set up your own online store. All you need to invest in is a domain and hosting – which doesn’t cost more than a few hundred dollars a year.

Plus, you don’t need to stock up on inventory to get started or worry about paying the rent, bills, etc.

Minimal risk

There’s really not much to lose with AliExpress dropshipping. In fact, the risk involved is too insignificant to worry about.

For starters, you only pay for the products that you sell. You don’t need to worry about leftover stock or ordering items in bulk.

Also, if selling certain products doesn’t work for you, you can always start selling something else. And with absolutely no switching costs at all!

Flexible location

You can operate your dropshipping business from anywhere in the world.

All you need is a computer and a solid internet connection. Work from home or somewhere on the beach – it’s totally up to you!

No inventory

We all know storing products can get expensive.

Good news – AliExpress dropshipping completely eliminates the need for inventory!

This means you don’t have to worry about warehouse costs, packaging, or leftover stock at all.

Low overheads

Imagine owning a retail store. There are tons of fixed costs you need to worry about – shop rent, bills, salaries, and more.

With dropshipping, you barely have any overheads at all!

Everything you need is on your computer. You can even hire part-time virtual assistants instead of full-time employees to help you out.

Sell unlimited products

No inventory means you can sell as many products as you want – there is no limit to the number of items you can list in your online store.

Also, you can always set up multiple categories if you’re just starting out. This is a great way to find out what sells the most – and the least!

The Bad

Dropshipping with AliExpress comes with its own challenges.

The good news is – you can always learn to tackle them effectively. We will discuss some tips and tricks to help you do that later on in this article.

But first, here are some top disadvantages of AliExpress dropshipping:

Highly competitive

Dropshipping isn’t really a new concept. There are thousands of entrepreneurs in the business. It doesn’t matter what niche you choose – you probably have some serious competition.

The low startup costs and minimal barriers to entry only make it easier for every other person to start dropshipping with AliExpress.

But not all hope is lost.

Most dropshippers in the business don’t even bother to brand themselves. If you focus on developing a strong brand, you can easily get an edge over your competitors!

Lack of control

The biggest disadvantages of AliExpress dropshipping is you don’t have much control over your suppliers. You rely on them for all the production, packaging, shipping, and quality assurance needs of your business.

Sometimes, this can be pretty disastrous. Especially if your supplier turns out to be unreliable and messes up the delivery.

Remember – the customer will hold YOU responsible, not your supplier.

Shipping time

Dropshipping with AliExpress means you’re getting products delivered to your customers all the way from China.

Sometimes, this can take weeks. Or even a month, depending on where your customers are.

Most suppliers also offer faster shipping options, like DHL and FedEx, but these are pretty expensive.

Low profit margins

Let’s face it. You can’t really expect to sell a $5 product for $50. It’s just not worth it.

Plus, with so much competition, there are tons of other online stores selling the same product as you.

Customers can easily compare prices. If the difference is too high, you risk losing lose your credibility and your sales.

But that isn’t always a bad thing. One perk of dropshipping is you can sell in high volumes, which easily makes up for low profit margins.

Complicated refund/return process

What if a customer faces an issue with your product and demands a refund?

You’ll need to send it back to China and communicate with your supplier on their behalf.

Compared to regular retail, this can sometimes get complicated. Especially when there’s a language barrier between you and the suppliers.

Step-by-Step: How to Dropship with AliExpress

Dropshipping with AliExpress is not as complicated as you think.

In fact, it’s a pretty straightforward process.

Here is a detailed, step-by-step guide to help you get started:

Step 1: Define Your Niche

Before setting up your store, you need to know what exactly you’re going to sell.

AliExpress has a huge selection of products, and it’s easy to get confused.

 

Plus, the competition out there is fierce – picking a specialized niche is your best bet.

It’s easier to brand a specialized niche over a generic one. And you also get to keep a higher profit margin.

First, do your research.

Find out what products people are searching for. Focus on popular keywords and check out the products currently trending on Amazon and eBay.

Note: Make sure the products you’ve identified in your research are available on AliExpress!

Also, we recommend you go for high-priced products. They are typically of better quality and it’s easier to charge a premium if you brand yourself properly.

You can also go for low-priced products if you plan on selling in high volumes. Just make sure you pick a reliable supplier.

If you’re still not sure you want to stick to a specific niche, you can try setting up a more generic store. Sometimes, this can be a good way to find out what products sell more than others.

Step 2: Get a Domain and Hosting

Now that you’ve decided on a niche, it’s time to purchase a domain name (“www.yourstore.com”).

You can buy one for a tiny fee from GoDaddy or namecheap.

Remember to pick a name that’s affordable, easy to remember, and relevant to your business.

Once you’ve bought your domain, it’s time to get reliable hosting.

Hosting is basically renting space for your store on the internet. For beginners, SiteGround is a great choice.

Note: Most e-commerce platforms, like Shopify, include a free domain and hosting in some of their monthly plans. If you plan on using Shopify, we recommend you skip Step 2.

That’s it – on to setting up your virtual shop!

Step 3: Set Up Your Online Store

This is the fun part! Here’s where you finally get to design your online store.

For beginners, we recommend using an all-in-one e-commerce platform, like Shopify or WooCommerce. They are super easy to use, offer tons of beautiful templates, and have a huge selection of apps and tools to help you sell better.

You can also use WordPress, especially if you want total control and extensive customization, and already own a domain and hosting.

The key to designing a great store is to make customer experience your top priority.

Here are some tips:

• Select a beautiful theme that reflects the preferences of your target market
• Offer easy navigation through the store
• Create distinguishable product categories
• Use multiple payment options

Step 4: Import Products from AliExpress

Once you’ve set up your store, it’s time to list the products you want to sell.

Oberlo is a great app to help you do that. Simply connect it with your store and start virtually importing products from AliExpress. You can also get in touch with verified suppliers and let them know if you have any specific requirements.

This takes us to the next step – customizing your product listings.

Step 5: Edit Product Details

Let’s be honest – the default product titles and descriptions straight from AliExpress are kind of ugly:

Product copy like this works great for AliExpress – it contains all the right keywords that potential customers might be searching for.

But will this work for your store? Not really.

If you want to develop a strong brand, you need to be very careful with product details. You need to make the product your own.

Using generic, AliExpress images will just expose you as a dropshipper right away. No one wants to buy the same product at a higher price if they get a better deal somewhere else.

We recommend asking your supplier for a sample first of the product you want to sell. You can use it to take some unique, attractive pictures to showcase on your store.

Also, create catchy product titles and descriptions that your target customers won’t be able to resist. If you plan on selling high-priced products, use a mature, sophisticated tone.

Don’t forget to set the prices. Oberlo offers pricing automation to help you find out the optimal price for your products.

Step 6: Promote Your Store

If you plan on dropshipping with AliExpress, you need to promote your store through multiple digital channels.

How else are your customers going to find out about you?

Building a powerful social media presence is a great way to boost brand awareness. Think Facebook, Instagram, Snapchat, Pinterest, Twitter, and more!

You can try to organically gain a following by creating great content and connecting with influencers. But that doesn’t always work – there’s a LOT of competition out there.

It’s a good idea to combine your organic strategy with paid ads and promotions across different platforms. This gives you an edge over your competitors.

But social media isn’t everything.

According to this study, 77% of customers would rather receive promotional content via email instead of through SMS or social media.

Here’s an example of an e-commerce marketing email from Manach:

Also, don’t forget to optimize your website to show higher up on Google. Try to find out the keywords your customers are searching for and use them to create your website copy.

You can find out more about on-page SEO here.

AliExpress Dropshipping Tips & Tricks

AliExpress dropshipping is great – but it’s a tough, competitive market out there.

And not everyone makes it to the top or manages to grow their business.

Here are some expert tips and tricks to help you do it right:

Find the Right Suppliers

AliExpress is a huge marketplace. Naturally, this means it’s not free of unreliable, low-quality suppliers.

But that doesn’t mean there aren’t any good suppliers on the platform. You just need to find them.

Before you pick a supplier, do your research. Find out how many suppliers are selling the specific product you’re eyeing.

Next, check out the supplier rating and read the reviews before making a decision.

Lots of bad reviews and ratings are a red flag.

Also, do check the pictures some customers attach with their reviews to get a better idea of what the product looks like in reality.

If you’re using Oberlo, you’ll have access to certain verified suppliers – they are usually reliable and offer good quality products.

Sometimes, the same product is being sold at varying prices by different suppliers. You need to find one who isn’t ripping you off, yet still has a good reputation.

Don’t forget to consider the location of your customers. Some suppliers have warehouses in the US, and can offer faster and cheaper shipping within the country.

Brand Yourself

Without developing a strong brand, your chances of standing out from the competition and charging higher prices are pretty weak.

Your customers should perceive you as a credible, relevant, and good quality business. And that depends entirely on how you present yourself.

First, find out what exactly makes you different from other stores in your niche.

Use that key information to develop a narrative around your brand – from your logo, website design and copy to your promotional content. Every aspect of your business should reflect your brand story.

Also, instead of trying to sell every kind of product you come across, focus on only selling the ones that align with your brand identity.

Price Your Products Strategically

Pricing your products just right can be tricky. Are you charging too much? Or are you underselling your products?

AliExpress products are manufactured in China – naturally, they are very cheap compared to similar products in the US.

But that doesn’t mean you should sell for low prices, too.

Consider your audience. If you sell too cheap, your business might come across as low-quality. If you sell at the market price of similar products in your country, you’ll be able to make higher profits without coming across as a rip-off.

The key is to create value around your product by developing a strong brand.

Also, you can use tools like ShopMaster and Oberlo to help you price your products strategically.

Use Multiple Sales Channels

Don’t just rely on your online store to make sales.

Shopify, for example, lets you connect multiple sales channels to promote and sell your products on.

You can connect social media platforms, like Facebook, Pinterest, and Instagram. You can even sell through Amazon if you want – although they have some strict regulations when it comes to dropshipping.

Using a multi-channel approach makes your brand well-integrated and wholesome. It gives you greater exposure and increases your chances of appealing to different types of customers. It’s also a great way to increase traffic on your website.

Ask for a Sample First

Before you decide to sell a certain product on your store, order a sample for yourself.

This is a great way to check out the quality, material, and specifics of the product. It helps you create better, more accurate product titles and descriptions.

You can also use the sample to photograph the product in your own, unique way. Instead of using generic photos from AliExpress, you can use customized images of the product to stand out from your competitors.

Also, checking out samples beforehand lets you tailor your promotional strategies accordingly. You can even use the sample to create product reviews, videos, and other content to supplement your marketing efforts.

Plan Ahead for Refunds and Returns

With AliExpress dropshipping, refunds and returns can be complicated.

Customers don’t know they’re receiving products directly from China. If they face any issues and want to send a product back, they’ll hold you responsible.

We recommend you plan ahead for refunds and returns to make sure the process is as smooth as possible. Communicate with your supplier beforehand and see if you can reach an agreement.

Also, make sure you have a pre-established return policy on your website. This helps you stay out of trouble with customers.

Monitor Your Competition

Remember. You’re not the only one selling AliExpress products.

Whatever niche you choose, there’s bound to be some competition. You need to keep track of it for several different reasons.

First, monitoring your competitors gives you a good idea of the branding and promotional strategies they’re using. What kind of products are they selling? What kind of ads do they run? What is their brand voice/tone?

You don’t have to copy everything they do. But it’s good to learn from them and take inspiration.

You can also find out what keywords they’re using and ranking for. BuzzSumo is a great tool to help you do that.

Also, check to see if your competitors are offering a way better price than you are. This can cause potential customers to switch from your store to another in no time.

Offer Free Shipping

Here’s a tried-and-tested secret to multiply your sales and reduce cart abandonment rates.

Offer free shipping!

Why does this work?

Simply because it creates value around your product. You don’t even have to cut down on your profits – simply add the shipping cost to your product price.

Remember. Perceptions are bigger than reality. A $120 handbag with $30 shipping will sound less appealing to customers than a $150 bag with free shipping.

That’s just how psychology works.

Prioritize Customer Service

The key to growing a solid e-commerce business is to offer excellent customer service.

Customers might not remember what they purchased from your store. But they’ll remember how you treated them.

Offering exceptional customer service can give you an edge over your competitors. Don’t just respond to queries and complaints – go out of your way to make sure your customers are happy with their purchase.

Ready to Dropship with AliExpress?

AliExpress dropshipping can turn into a very lucrative business – if you do it right.

This complete guide will help you get started. But it’s not the end of it. Every good entrepreneur learns and grows with their business.

Did you find this article helpful? We’d love to know what you think. Feel free to drop your comments and suggestions below!

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