hey guys it's Stuart here and today
we're going to talk about how to start
drop shipping with Aliexpress with no
startup capital Aliexpress has gotten a
lot of publicity in the past few years
with established businesses sharing
their success stories about how it
helped them grow it's got the reputation
of being the magical e-commerce store
that requires no startup cost while
that's partially true not everything
about Aliexpress is amazing it's got its
pros and it's cons in this video we're
going to tell you exactly how to drop
ship with Aliexpress step by step we'll
also run you through the good and the
bad of the dropship model so there's no
surprises for you already let's get
started so what is Aliexpress by now
you've probably already heard of Chinese
billionaire Jack Ma or his three hundred
and seven billion dollar company Alibaba
he's like the Asian version of Amazon's
Jeff Bezos starting in 1999 the company
was a result of Ma not being able to
find Chinese products online easily the
resulting platform enables Western
buyers to connect with Chinese and Asian
sellers and has revolutionized the
e-commerce sail around the globe Alibaba
the original site is built for wholesale
purchases sellers usually have minimum
bulk order requirements you can connect
directly to Chinese manufacturers and
payment is usually via bank transfer
Aliexpress is its sister site it's for
smaller sites who don't stock the
products that they're selling and they
accept credit card payments instead of
buying directly from the manufacturer
the sellers are actually third-party
individuals or companies who are
reselling to you you won't get the best
price but the buyer protection and
ability to make single orders makes it
perfect for drop shippers so why do I
not need any startup money or capital
that's what you're asking right now I'm
gonna tell you the answer it sounds too
good to be true
right well in this case it actually is
true let me explain because these
manufacturers mass-produce goods they're
able to sell them for pennies on the
dollar we're talking fancy jewelry for
under 30 cents apiece nice shirts for $1
and even electronics for a few bucks
that you can resell for $50 or more but
I still have to buy product so I need
some money I hear you cry actually you
don't
that's where dropshipping comes in you
don't have to buy a thing until an order
comes through on your website which you
can set up with sale who stores so
you pay for your products with the money
your customer pays you now you may be
thinking what about shipping cost I mean
it comes from China
the shipping should be like through the
roof that's actually not the case with
the invention of a packet shipping you
can get these products from China for
free or at the most a dollar or two the
only startup money you need is enough to
buy a domain and hosting so less than
$20 now let's talk about what you
actually need to do how drop shipping
with Aliexpress works drop shipping
simply means that when a customer makes
an order on your website you send the
order to the supplier and the supplier
sends the order straight to the customer
drop shipping from Aliexpress requires
you to have a store or a place to sell
your goods like Amazon or Ebay when one
of your customers makes a purchase you
put the order through with all the
Express they then send the order through
and you get to keep the price difference
as a profit once the item is sent to the
customer they believe it's you there's
no reason for them to think that it's a
drop shipping process as you get bigger
and scale your store you can send in
bulk orders to your suppliers to get
better rates in terms that's why it's so
important to choose the right suppliers
from the start and build a good
relationship with them but what about
returns we'll discuss those later first
let's talk pros and cons there are some
good and bad things about using
Aliexpress for drop shipping here they
are ollie Express has a huge database of
hundreds of millions of products you're
not gonna have a hard time finding what
you're looking for starting a drop
shipping business with Aliexpress is
100% free other services like worldwide
brands and Doba charge hundreds of
dollars in start-up and monthly fees
this can be a huge burden for someone
who's trying to start up their business
with minimal funds you control your own
profit margins Aliexpress prices are
really low and allow for a lot of profit
product trends appear on Aliexpress
overnight when a trend like fidgets
spinner shows up you can bet you can
find that product on Aliexpress now for
the cons shipping can take more than a
month in some cases however a pack is
shipping to the US and select other
countries only takes about 12 to 15 days
packages no longer have to be
transported by boat so transport time is
faster
you cannot bundle orders if a customer
orders three products from three
different suppliers there is no way to
make sure
those products arrive to the customer at
the same time it takes a few days for
your credit card to be verified at first
if you set up a shop make sure you build
enough time into your first sale so you
don't have Angry waiting customers
suppliers on Aliexpress may not speak
the best English so it could result in
some communication issues now is
Aliexpress safe and reliable yes the
great benefit about working with
Aliexpress is it provides a lot of
protection for sellers and buyers that
protection is found through the process
of ordering shipping and even returns
it's in the best interest of Olli
Express to make sure that the sellers
are legitimate and the products come as
advertised there will be a lot of
merchants selling the same item so read
what people are writing and only
purchase from those sellers who have the
best ratings one thing you should always
do as a drop shipper is reach out and
contact the sellers directly start a
conversation with them talk to them
about the product and make sure you're
working with someone reliable what is
oli expresses standard shipping there
are multiple shipping options on
Aliexpress but a packet shipping offers
the best balance in shipping time and
price thankfully a packaged shipping has
been introduced to Hong Kong and China
allowing for your customers to get their
drop shipped goods within 12 to 14 days
a packet delivery is available for goods
that weigh four point four pounds or
less and have a worth of less than four
hundred dollars another benefit of a
packet shipping is that you can provide
your customer with end-to-end tracking a
packet used to only be available in the
US but now the list is expanding with
over 30 countries meeting your customers
shipping needs will be one of your
biggest priorities as a drop shipper
that's why it's especially important to
spend time finding a good supplier and
change suppliers if they don't offer a
packet shipping your customers are
probably used to sites like Amazon which
can get them their product overnight
which is also one of the reasons why
Amazon is so successful the more you can
lower your shipping time the greater
your customer satisfaction will be so
spend that little bit of extra money to
get that a packet delivery ensure that
your customers get what they want in a
timely manner so let's move on to our
next topic how do you find and choose
products to sell on Aliexpress how do
you get your niche choosing a niche and
selling online should be a relatively
simple process and can be broken down
into three simple steps however
simple doesn't necessarily mean easy and
implementing them in real life could be
a lot of hard work the easiest way to
start selling products is to find a hot
market what are people interested in
right now what trends are big you need
to find a market who has passionate
customers who are spending money next
you need to find out what your customers
are having problems with take advantage
of social media and reach out to your
customers to see what they're having
trouble with and then think about how
you can solve those problems using
products from Aliexpress think of it
right now
think of an issue you're having in your
life come on we've all got some I can
think of like three right now and it
took me when we like point zero seconds
do you need a swimsuit for the upcoming
summer season are you struggling trying
to find a good gift for your significant
other these are real issues that people
have every day if you listen to people
they will tell you what you need even
indirectly be open to people struggles
what they want to achieve you need to be
empathetic so you can work to understand
them finally use your online store to
offer customers what they want it's it's
that simple
okay well maybe not in practice when you
start up an online business like this
the hard part is coming up with a
product that customers actually want
making them say oh I want to buy that
and clicking on that button people want
more than just a product in their
shopping cart they'll look for the best
one the cheapest one the one with the
best value the best quality and there's
thousands of different products out
there that would meet their needs so
make sure that your stands out in any
business model it's important to offer
something other than just the value of
the product for example if you're
selling coconut oil give them a recipe
book with different ways they can use
that product if you can create long
lasting value with your customers
they'll come back to your ecommerce
store again and again so to recap find a
hot market ask your customers what they
want and give your customers what they
said they wanted the great thing about
Aliexpress is that you can complete
steps 1 and 2 on its site you can find
hot markets and come up with product
ideas by going to all e expresses best
selling page here you can see all the
top Aliexpress products in different
categories and look for an item or
similar items that you might want to
bundle together in the product listings
you can delve further into customer
reviews view pictures they took and
discover any differences there may have
in between the product listing and the
actual product upon delivery the last
point is extremely important many
pictures or reviews of a product can be
deceiving so it's absolutely important
that you verify through product reviews
or by buying the product yourself to see
if the product is what it is but what if
you want to skip the hard steps and
quickly find out what's working now you
little rebel I like you salehoo has a
market research lab a drop shipping tool
similar to the search engines that
display Aliexpress is bestsellers along
with Amazon's and eBay's bestsellers to
show you the hottest products on the
market you can also use it to find how
often the dropship products are selling
as well as finding the best suppliers
for each product now let's talk about
how to add products to your store
there are many third-party applications
that make it easy to add products to
your store if you have a Shopify store
you can use Ober lo which is extremely
easy to setup all it takes is a few
clicks to add all specs information and
pictures on your store if you're using
BigCommerce check out the Aliexpress
drop shipping app which has a free three
day trial and is just $10 a month after
that a few e-commerce tips for you take
time to write your own copy for product
titles and descriptions and other things
you're the one selling a product you're
the one marketing it so make sure it's
awesome choose high resolution product
photos that don't have any branding and
are shot on a white background make sure
you mark the price up enough to be
profitable at least 100 to 150 percent
offer other incentives like free
shipping or a discount when they sign up
for your email list work with a web
designer and learn search engine
optimization including with Google
AdWords so that your product pages rank
higher on people searches now how to use
Aliexpress to dropship once you have
your drop shipping store with Aliexpress
up and running orders should start
coming in if you're using Ober lo
processing orders is really easy it just
takes a few clicks to process ship your
order and then add tracking info make
sure that you're using a packet shipping
though as for some Aliexpress sellers
it's not the default option the same
goes for the big commerce
Aliexpress drop shipping app when
ordering products through Aliexpress it
takes about 24 hours for the order to be
processed once the item is paid for and
shipped you have to update the customers
order information along with that
information you also send them a receipt
and tracking info here are the different
types of payments
Aliexpress because Aliexpress is a
worldwide service it offers a variety of
payment methods credit cards are the
most common type of payment information
Aliexpress accepts mastercard visa and
maestro the biggest benefit of using a
credit card is that in case returns and
refunds are not given to you or you
receive a poor product on Aliexpress you
can always file a dispute with a credit
card company and request a charge back
this protection is not available on some
of the other types of payment and should
be a must for any drop shipper when you
first sign up it takes oli Express two
to five days to process your card
details during this time you're not
gonna be able to place any orders now
let's talk about Aliexpress is refund
and return policies Aliexpress is buyer
protection program has been designed to
favour buyers / sellers the company
wants to make sure that you get exactly
what you order and protect you at every
stage of ordering through delivery
however be aware that many suppliers
will not offer refunds you have to
factor this into the cost of your
business
if there's an issue it's probably going
to be because the order doesn't arrive
or it doesn't match the description if
the order never arrives
Holi Express will refund the entire
purchase if the order is not as
described you can send it back to the
seller for a full refund or you can let
the customer keep it and offer them a
partial refund in this case you'll have
to work with the Aliexpress supplier and
the customer to make sure the customer
stays happy the customer will have to
provide photos of the damaged or
non-matching items for you to be able to
make the dispute in any case there are
many options for you as a drop shipper
just make sure your business has some
liquid cash reserves so you can continue
making orders even if there's a lot of
return requests now let's wrap up with
three tips to help you succeed in oli
Express drop shipping while some of your
more savvy or experienced customers will
probably figure out that your drop
shipping there are some things you can
do to make it a little less obvious tip
number one ask the supplier not to
include a packing slip invoice pricing
or samples tip number two avoid selling
products that infringe on copyrights
Aliexpress is chock full of designer
knock-offs but I'd recommend avoiding
those like the plague
when the customer eventually gets their
item and realized that it's not the real
deal be prepared for your impact
to be flooded on the other hand you
could state that these are not the
genuine goods on your website but then
that's also kind of asking for trouble
I mean famous designers rarely sue small
ecommerce stores but you never know at
the end of the day it's much easier to
sell non branded items tip number three
use the Aliexpress affiliate program if
you're still hesitating here's an easier
option you might be interested in the
Aliexpress affiliate program in a
nutshell here's how it works you set up
a website and promote various Aliexpress
products on said website if your readers
are interested in buying a product they
click on the link on your website and
are redirected to the Aliexpress website
and when they make the purchase the
Aliexpress merchant pays you an
affiliate fee you don't need to place
orders or handle products or deal with
returns or anything like that and you'll
get a minimum of 8.5% commission it
could be as high as 50% now some final
thoughts on drop shipping from
Aliexpress no inventory needed no
shipping costs minimum capital what more
could you ask for it doesn't matter if
you're living in a one-bedroom apartment
and have no place to keep your stocks
screw it it doesn't even matter if
you're living in your mom's basement hey
mom
all you need to do is cough up 20 bucks
for your domain name in your Shopify
account and you can get started plus 22
to 33 percent of online retailers have
adopted drop shipping as their primary
method of order fulfillment this means
that drop shipping is a tried and tested
model and it's definitely profitable
it's time to stop being a salaried
employee and start building a business
of your own
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