Dropshipping with DHgate/AliExpress: The Essential Keys to Success
by rodney •
February 15, 2016 •
In this guest post we are going to discuss the key factors in achieving success in Dropshipping, utilizing China Wholesale platforms such as Alibaba, Aliexpress.com and DHgate.com
1. Make sure you sample the products yourself before you start dropshipping. Next, you need to work out a deal prior to purchasing goods. The wholesale discount for 50 products is nice, but that price includes shipping. Many times when you dropship, the seller is going to want you to make individual orders for each different address. Only do dropshipping when you know your seller can deliver in a good timeframe.
2. Dropshipping can be a very profitable business, as sellers do not require any form of inventory, but certain precautions do need to be taken before using this approach in the online market.
First and foremost, the person or company from whom you are purchasing the goods from, will determine the outcome of your business, whether you have your own webstore or are listing in popular auction sites, such as eBay. It is mandatory for you to sample a small amount of the goods before you invest in buying, because quality is No.1 to customers, and without their satisfaction, your business will undoubtedly fail. Furthermore, you will need to rely on their positive feedback to expand your reputation, so this is one area that should not be overlooked.
As for sampling the goods, you can negotiate with the other party to sell you a few of their wholesale items, if they are offered in large lots. When the package arrives, make note of how long it took to get to you (i.e. Was it a few days, a week or more). Is the box safely packaged, so that the goods are well-protected? Broken items means returns and refunds, which will mean you not only make no money, you will have an unhappy customer. That points to negative feedback, and very often, you will have a difficult time convincing your customer to withdraw their negative feedback, thus permanently affecting your business record and discouraging others to buy from you in the future.
Decide whether you want to focus on one category (i.e. electronics, clothing, etc.) or in several. Remember: the more items you have, the better organization you will require. You will have to keep track of your inventory and make sure that your wholesaler has them in stock, not on backorder. It’s best to start out with a few items sold in moderate quantities, so that when competition starts pouring in (as this does happen all the time) and you need to lower prices to gain sales, you won’t lose capital.
1.) Find a reputable wholesaler to establish a long-term business relationship with.
2.) Sample the wholesaler’s goods yourself before launching your dropshipping.
3.) Make sure the item(s) arrive on time and in good condition.
4.) Ensure prompt and courteous communication with your customers.
5.) Always do your research before dropshipping, even if the item you’re selling does not cost a lot. Even one poor transaction can have a great impact on your business!
3. If you face any problem during delivery time, or there is some delay in it, you need to talk to your customer immediately. It is important that you should establish a good communication and inform them so that they feel in good hands.
4. Dropshipping is really convenient way to sell for profit as you really cannot lose anything and plus no physical inventory is needed. You first make a sale then buy and dropship the item. Now depending on where you and your customers are located could be a challenge. The most cost effective way to ship is using EMS but it’s also one of the slower shipping services. From my experience, DHL is the fastest but most sellers require a certain weight before selecting that service. Hope this helps!
5. you need to create a good working relationship with your supplier to ensure that dropshipping will be successful.
Choosing products that are low profit, high turnover are the best products to choose for dropshipping because they give you steady daily profits.
Using HK post or China air as shipping method rather than EMS is also a great way to keep product buy costs down – however the shipping times are a little bit longer.
Factory sellers are not ideal dropship suppliers – finding new dghate sellers with small feedback scores that are just starting out are the suppliers that are more willing offer dropshipping.
Factory sellers only like to deal with wholesale orders.
Dropshipping is a great way to test the water with new products – and allow you an insight to the product before committing to wholesale.