Dropshipping is a business model that allows entrepreneurs to start online and sell products to their customers without actually storing them.
However, dropshipping is not a new business model.
Large companies like Amazon, Sears and Zappos have used this business model in their early years.
And not just big companies use direct sales to conduct online business – it is estimated that 33% of the entire e-commerce industry uses direct sales as the main inventory management model.
Dropshipping is a model with some very obvious advantages, such as no inventory, which allows entrepreneurs to focus more on important things, such as introducing new customers and expanding their business.
Want to know why most of the world’s businesses use direct forwarding? In this article, we’ll delve into what is direct marketing, why AliExpress dropshipping is so popular, and why you should focus on this business model if you’re interested in creating your own e-commerce store.
ready? Let us sneak in.
What is Dropshipping? : How does Dropshipping work?
At this point you may ask yourself how does dropshipping work?
Maybe you have heard this word before, or maybe you first heard this concept – don’t worry, it’s easy to understand anyway.
In essence, dropshipping is a business model that allows entrepreneurs to create e-commerce stores without every inventory – direct entrepreneurs will have suppliers store their products in their warehouses until they do Sales.
Whenever an investment company sells, they need to contact their suppliers, who then ship their products directly to their customers’ door.
The benefits of Dropshipping
Dropshipping is a business model that offers entrepreneurs many advantages, especially when they want to do business online.
You can control the margin – you are not subject to the Suggested Retail Price (MSRP) and you can decide the retail price yourself.
You don’t need to be an established business entity before you start using your store (although you need an entity as you grow).
You can access a catalog of millions of products that you can add to your store via Oberlo using AliExpress dropshipping.
What is direct investment? : How to develop direct investment business
1.How to develop the Dropship business: Can you easily get the Dropship product?
Yes, with tools like Oberlo, you can easily get off the boat. If you want to create an e-commerce store using the direct sales business model, Oberlo is an essential tool.
2.Does my client know if I am downloading?
We cannot guarantee this. If you use AliExpress Direct to do business, we recommend that you contact the supplier to let them know that you do not want any promotional materials in the package. The best way to avoid customer suspicions is to build a professional Shopify store and provide high quality service to your customers.
3.Why should someone buy from my store instead of the supplier?
Because you are better.
Called better marketing execution, first reached potential customers.
Call it brand promotion and encourage people to buy from you.
It is called a store that creates people’s trust.
By providing additional services or content, it is called the value you provide.
Call it technology to make it easier for your customers to shop.
Don’t concentrate on asking questions like “Why don’t customers buy from my suppliers?” Think about it – when was the last time you purchased a product directly from a supplier rather than a brand?
4.Using AliExpress Dropshipping for too long, will my customers wait?
Your task is to define a shipping policy and then display it on the store’s website to set clear customer expectations.
With a limited ePacket delivery option, a package of services typically takes 7-14 days from China to the US.
In addition, some suppliers keep their most popular products in US warehouses, which means your delivery will be faster.
5.What about quality risk and copyright infringement?
You may have heard stories about the low quality of Chinese products. Sadly, some of these statements are correct. However, as always, each story has two sides.
In fact, you can easily meet your suppliers regardless of location.
Finally, be cautious when choosing your direct sales provider.
6.Does the Dropshipping supplier speak English?
When it comes to AliExpress dropshipping, many of the suppliers you interact with will be Chinese, which means that their English is not always perfect. However, you can contact the supplier in advance to understand their proficiency before starting a business with them.
Larger vendors are often very sensitive because they let the sales team manage your orders and can answer your questions via online chat or email.
7.Does PayPal support AliExpress Dropshipping?
PayPal is one of the most famous and widely used payment gateways, so it makes sense for many e-commerce entrepreneurs to use it for their business.
From a customer perspective, PayPal is a great system because it tends to customers rather than merchants. For example, if a customer has a payment dispute or wants a refund, PayPal may accept the customer’s words and respond accordingly. All of this is to protect millions of people who use PayPal to shop every day.
In order to create a more stable and secure experience for customers, PayPal has developed some precautions that can be used as a payment gateway, which is a bit of a hassle. For example, PayPal will limit the funds in your account in advance. These limits depend on your business history, tracking records, the ability to provide delivery documents on time (by tracking numbers), the physical location of your business, and many other factors. Holding your money can sometimes last for months, which can cause problems when you try to grow your business.
As direct sales become more popular, PayPal is also adjusting its policies to make it a more friendly environment for e-commerce entrepreneurs to download, and there are certainly businesses that have successfully used this option. In other words, we still recommend exploring other payment gateways. Some of our top choices in this area include Stripe, 2Checkout and Shopify Payments. If your store is hosted on Shopify, Shopify Payments is especially a good choice because you can accept payments directly from this built-in system, which eliminates the complexity of using a third-party payment gateway. However, please note that Shopify Payments is not available in every country.
8.How does a mature business benefit from Dropshipping?
When it comes to dropshipping, learning by doing usually works best.
Dropshipping is the ideal model for your first venture. It is perfectly understandable that the established business does not change its order fulfillment model and adapts to direct downloads, but in these cases it is still worth considering.
In short, Plug and Play is a great model that you can use to quickly test new product ideas, regardless of the size of your business.
In addition, you can add new product categories within a few days, and if it turns out to be successful, you can store the product in the warehouse as usual. In this way, you can reduce the risk of inventory stocks before you understand sales. It increases the flexibility of your business.
9.How does AliExpress work?
AliExpress is an e-commerce site that offers a vast catalog of products. Consumers can use AliExpress to find products purchased online for personal use. Entrepreneurs can use AliExpress to find and source products for their e-commerce business. With just a few clicks, you can use Oberlo’s Chrome Extension to import products directly into the Shopify store. Whenever you use AliExpress for direct sales, you can purchase the product from the AliExpress supplier and send it to your customers.