AliExpress is a big shopping platform like an online wholesaler. This is the place where sellers meet their buyers online and do transactions. However, there is a dropship system in AliExpress that you may not be familiar with. What is AliExpress dropshipping and what are the pros and cons of it?
What Is AliExpress Dropshipping
The dropshipping system in AliExpress is pretty simple. A dropshipper will advertise the product that is available on AliExpress.com. After that, Aliexpress will act as a supplier that will send the product to your buyers. You can have your own platform or accounts in e-commerce outside of AliExpress.
Many people are into this system because it does not cost much for operation. This process will be repeated unless the product in Aliexpress has sold out. The marketing cost is also lower than other business models because the product itself has been familiar in the community.
The Pros of Dropshipping Business in AliExpress
1. There is no minimum quantity
A wholesaler usually requires their dropshipper to order in a certain quantity, but it is different from Aliexpress. There is no minimum-quantity requirement which makes this more flexible than other platforms. There is no additional charge even though the order quantity is just one item.
As a dropshipper, this gives benefits to you because you do not have to wait until the order reaches a certain amount before they are shipped. As long as you have one order from your buyer, the supplier in AliExpress is willing to ship out the item. It increases your daily sales as well.
2. Starting with a minimum budget
AliExpress dropshipping will not cost a lot of money to start. A dropshipper does not have to think about buying some inventory because you rely on the network, gadget, and time. Thus, AliExpress products are mostly from China which are very cheap to resell. Your dropshipping business can grow well.
3. Picking the best-sold item
A dropshipper is free to choose what they are going to sell. Most dropshippers will choose the products that can be sold out in no time or popular items. Some others might choose the unique items to sell. Even Though the items are not sold often, the competition is lower.
The best-sold item helps your store to grow better. However, as a dropshipper, you have to keep the track of trends and performance. What you sell today may not be a good trend in the next two years. So, researching this can give you a chance to take a U-turn and find something better to sell.
The Cons of AliExpress Dropshipping
1. You have no control over the stock
The cons of dropshipping from aliExpress is the fact that you have no control over the stocks. The supplier should be trusted or else, you can miss the number of stocks that may ruin your store. This is why you have to preview the reputation of the supplier first before starting this business.
2. Low margin
This is another reason why AliExpress does not have the margin like other platforms. Dropshipping from China has low margins even though its price is already low. It is because the buyers have expected the quality and the tagline made-in-China which means the items are cheap.
3. High competition
AliExpress dropshipping has a very high competition. So, this may be harder for a new entrepreneur who has little knowledge about the drop shipping business. When you are about to try this business, there are many senior sellers already that have high numbers of sales and it is harder to compete.
This risk can be avoided with good strategies. You have to learn about many dropshipping strategies, especially in AliExpress. This way could differentiate you from other sellers. The best option is creating your e-commerce and websites, and then branding your values.
4. Slower shipping
Another issue that a dropshipper could face after starting this dropshipping business is slower shipping. Since you do not have stock by yourself, it is harder for you to control the supplier. The customers may ask you in case it is slower, but you have no idea about it.
Plus, most items are from China. Meanwhile, the buyers could be in other countries. They cannot force you to ship the items fast because it takes at least a week to arrive. Some other issues are about custom and local shipping which makes it slower to deliver.
AliExpress dropshipping is easier if you use an SMS broadcaster device. This device keeps you engaged with the customers and other potential buyers. You can broadcast messages and information about your latest product, so the competition in dropshipping can be lower.