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Future of Dropshipping. Does it exist?

by bspoljar
12 replies
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Hello everybody!
I'm considering to start my dropshipping adventure with Aliexpress.
I have one „small" concern and would be thankful to you guys, if you could give me your thoughts.
From the buyer's perspective, why should anyone buy from various random, unknown, new websites, retail webshops if it is a known fact that almost everything can be found on Aliexpress or Ebay?
Anyone could easily register with Aliexpress, in their own language (Aliexpress multi-language sites, national domains), pay with most credit or even debit cards (Maestro) and almost always cheaper than elsewhere.
So my question is where will it go in future? Aliexpress is going hard with ads, facebook, google.. How long it is going to take when Aliexpress alone will become only reasonable choice for online shopping?
Is there a future for dropshipping?
What kind of service is there left to offer to be competitive? Any new ideas, trends, ways of selling?
Thank you for your answers. And please, my question is about dropshipping from Aliexpress, and I know some of you will say that one should go directly to wholesaler and avoid middlemen. I am also not interested in importing products, it is kind of complicated in my country and I am really NOT interested in that. That should be another topic. I'm talking about small scale dropshipping here.
Cheers
#aliexpress #dropshipping #exist #future #multi-language #trends and predicitons
  • Profile picture of the author violet0176
    When drop shipping, it's wise to work with manufacturers and wholesalers that sell only to businesses(B2B). Aliexpress is a retail outlet, so yes, you'll be competing with them and you'll need to figure out how to attract customers.

    Rather than offer cheap junk found on Aliexpress, find a unique or untapped niche and offer consumers something of value.
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  • Profile picture of the author dave_hermansen
    As Violet mentioned, successful dropshippers focus on selecting niches that are untapped.

    Most new sites also focus on content marketing which provides more value than the product alone. By creating content that is related to the product being sold the site provides additional resources that major sites don't have. Brand new dropship sites aren't trying to compete with the major brands, instead they're finding people who want additional information about a product than just a description and some reviews.
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  • Profile picture of the author Auctiondebteliminator
    Is dropshipping dead? No. Is it hard? Definitely. Is it getting harder? Yup.

    I'm not always an advocate of dropshipping, mostly because the atmosphere around being successful at it has changed dramatically.

    I understand the appeal. You never have to house the items, and you just sell it. I get that. However, I would rather work for 100 dollars an hour than 15 dollars an hour dropshipping.

    That being said, it is possible, and can be profitable. I know because I used to dropship, became stupidly successful at it, but then I went to wholesaling/importing.

    It was a great starting point that allowed me to completely change my thought process from 'volume' to 'margin.'

    There are some things you HAVE to know before you do this, though.

    #1 - You need to know the market worth of your items. Meaning, you cannot just slap something on eBay/Amazon and expect it to sell. You need to know what your buyers are willing to pay for it.

    #2 - Your margin. Too many people assume that if you sold something for 30 dollars and bought it for 20 dollars you'd make 10.

    Nothing is further than the truth. In fact, in this scenario you'd be losing money.

    There are six numbers that EVERYONE needs to know prior to investing in an item. I've taught them for years, and have used them myself as well.

    Please don't be a statistic. (You know, the bad kind. There are good kinds, too.)

    Enjoy!

    ADE
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    Famous for my '$1000 dollar challenge,' I've been teaching people how to DOMINATE on eBay for YEARS. Sell 100% of your items FOR A PROFIT. Rank higher, sell faster, sell more, and DESTROY your competition with a data-based approach. Quit listening to Guru's-in-training! Click now below!
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    • Profile picture of the author Anton543
      Originally Posted by Auctiondebteliminator View Post

      #2 - Your margin. Too many people assume that if you sold something for 30 dollars and bought it for 20 dollars you'd make 10.

      Nothing is further than the truth. In fact, in this scenario you'd be losing money.
      Care to explain this? If we assume advertising costs are minimal and postage costs are separate, why would the above scenario result in a loss?
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  • Profile picture of the author Kathybergess
    I am also looking into drop-shipping. Has anyone used WorldWideBrands? Any thoughts?
    Where can one find good drop-shipping companies? Thanks!
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    • Profile picture of the author Importexport
      Originally Posted by Kathybergess View Post

      I am also looking into drop-shipping. Has anyone used WorldWideBrands? Any thoughts?
      Where can one find good drop-shipping companies? Thanks!
      Use the search facility, or to save you the effort, here is a link to a thread where your question has already been answered. Is WorldWide Brands worth the $299 membership fee?
      It is a long thread, so maybe you should start on Page 2.
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      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author Ryan David
        I dropshipped most things when I was starting out and it gave me a decent start, but that was in 2004. I used to have a website that did 100% dropship and it performed nicely for a little while. As an example, I was buying a particular product for $15 and selling it for $30, which I didn't think was too bad.

        At the same time, I was importing a different product from overseas and it randomly occurred to me that I could probably get that $15 produced by these guys as well They came back with a price of $2.50 for the exact product customized the way I wanted and packaged for me. I have since dropped almost all the other products and exclusively sell this one product on Amazon and my website and make more money than I ever did in teh past....with 1 product.
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        • Profile picture of the author Importexport
          Originally Posted by Ryan David View Post

          I dropshipped most things when I was starting out and it gave me a decent start, but that was in 2004. I used to have a website that did 100% dropship and it performed nicely for a little while. As an example, I was buying a particular product for $15 and selling it for $30, which I didn't think was too bad.

          At the same time, I was importing a different product from overseas and it randomly occurred to me that I could probably get that $15 produced by these guys as well They came back with a price of $2.50 for the exact product customized the way I wanted and packaged for me. I have since dropped almost all the other products and exclusively sell this one product on Amazon and my website and make more money than I ever did in teh past....with 1 product.
          The OP is adamant that he/she doesn't want to import due to technicalities around the process in his country, but your post is very relevant for many of the people who will read this thread.

          Margins such as you are making are beyond the wildest dreams of dropshippers and many of my students are likewise getting such massive margins.

          It is something that should give intending dropshippers food for thought. There is no truth to the myth that you have to place large orders to get a good price.

          I have taught hundreds how to safely source small quantities direct from genuine manufacturers, not from wholesalers who are middlemen, and still buy at real ex-factory prices.

          "If you think education is expensive - consider the cost of ignorance."
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          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author Auctiondebteliminator
    Here's what will happen if you dropship.

    #1, You'll recognize that your supplier is making money off of you, so they are probably getting a good price.

    #2, You'll start researching where your supplier gets their products and if you're successful, you'l find out that they get them either from another dropshipper, wholesaler, or a manufacturer.

    #3, if it is the first two, you'll recognize that they are making money off your supplier, so you'll want to find out where they get it.

    This will continue. You'll keep wanting to go down the chain to find out who can give you it for cheaper.

    I wish you all the success dropshipping. It's hard, but I'm sure with you, like me and thousands of others, you'll move onto greener pastures.

    Thanks,

    ADE
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    Famous for my '$1000 dollar challenge,' I've been teaching people how to DOMINATE on eBay for YEARS. Sell 100% of your items FOR A PROFIT. Rank higher, sell faster, sell more, and DESTROY your competition with a data-based approach. Quit listening to Guru's-in-training! Click now below!
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    • Profile picture of the author violet0176
      Originally Posted by Auctiondebteliminator View Post

      Here's what will happen if you dropship.

      #1, You'll recognize that your supplier is making money off of you, so they are probably getting a good price.

      #2, You'll start researching where your supplier gets their products and if you're successful, you'l find out that they get them either from another dropshipper, wholesaler, or a manufacturer.

      #3, if it is the first two, you'll recognize that they are making money off your supplier, so you'll want to find out where they get it.

      This will continue. You'll keep wanting to go down the chain to find out who can give you it for cheaper.

      I wish you all the success dropshipping. It's hard, but I'm sure with you, like me and thousands of others, you'll move onto greener pastures.

      Thanks,

      ADE
      Drop shipping is a starting point and unless you're incredibly smart and funded(like Wayfair) drop shipping will only be used as a stepping stone. I for one do not want to invest $500-$1000 to buy inventory nor do I have anywhere to store it, so drop shipping is a fairly convenient way to make decent money and later invest it in other ventures.

      The thing about buying inventory is that you have no idea if or when it will sell, so you're basically out of the money indefinitely. As a small business, that doesn't sit well with me.

      I do buy gemstones and beading supplies to make jewelry but they are small items and I sell exclusively to local boutiques, so I don't have to worry about inventory sitting around for months or years.

      Drop shipping serves its purpose if you're smart enough to do your research and work with manufacturers and wholesalers and get good margins. If your margins are anything less than 30%, find a new (real) supplier. I discovered a popular product that sells wholesale for $7.95 and it retails for $32. Just got confirmation this morning that my application was approved, so I will start selling it on Amazon today with my other products. I'm new to drop shipping, but it hasn't taken long to figure out how to become profitable. I also only drop ship with American companies, so the Chinese(Aliexpress, Alibaba) are not the only ones offering good pricing. Early on, I actually tried using Aliexpress to drop ship clothing --never again.

      Sorry, I went off on a tangent for a minute. Too many drop shipping naysayers on this forum. Drop shipping should be taught to all poor/fixed income people. Which is actually what I plan to do locally at some point -teach poor women how to start in ecommerce/drop shipping.
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      • Profile picture of the author Auctiondebteliminator
        Originally Posted by violet0176 View Post

        Drop shipping is a starting point and unless you're incredibly smart and funded(like Wayfair) drop shipping will only be used as a stepping stone. I for one do not want to invest $500-$1000 to buy inventory nor do I have anywhere to store it, so drop shipping is a fairly convenient way to make decent money and later invest it in other ventures.

        The thing about buying inventory is that you have no idea if or when it will sell, so you're basically out of the money indefinitely. As a small business, that doesn't sit well with me.

        I do buy gemstones and beading supplies to make jewelry but they are small items and I sell exclusively to local boutiques, so I don't have to worry about inventory sitting around for months or years.

        Drop shipping serves its purpose if you're smart enough to do your research and work with manufacturers and wholesalers and get good margins. If your margins are anything less than 30%, find a new (real) supplier. I discovered a popular product that sells wholesale for $7.95 and it retails for $32. Just got confirmation this morning that my application was approved, so I will start selling it on Amazon today with my other products. I'm new to drop shipping, but it hasn't taken long to figure out how to become profitable. I also only drop ship with American companies, so the Chinese(Aliexpress, Alibaba) are not the only ones offering good pricing. Early on, I actually tried using Aliexpress to drop ship clothing --never again.

        Sorry, I went off on a tangent for a minute. Too many drop shipping naysayers on this forum. Drop shipping should be taught to all poor/fixed income people. Which is actually what I plan to do locally at some point -teach poor women how to start in ecommerce/drop shipping.
        I actually have some great news for you! Market research actually has some awesome (free) research tools.

        You can basically look at a certain product to see if it does sell. If you're looking at it based on Economics, you're able to see not only if the item has demand, but also if it has a profit margin.

        If you are to wholesale, you don't have to worry if the item won't sell, or if it will at a margin loss. This is quite predictable.

        Also, I agree that dropshipping CAN be successful, but isn't always the most profitable/efficient.

        Like I said, I did start out dropshipping, but eventually was able to take all of the lessons learned to actually make it big.

        The best thing, though, is to have all of the information you need to be certain of a profit - and sell-ability.

        However, NO business project should be pitched as 'easy' or 'turnkey.' Every success requires work. The cheetah always has to run to eat. It's hard work, but rewarding.
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        Famous for my '$1000 dollar challenge,' I've been teaching people how to DOMINATE on eBay for YEARS. Sell 100% of your items FOR A PROFIT. Rank higher, sell faster, sell more, and DESTROY your competition with a data-based approach. Quit listening to Guru's-in-training! Click now below!
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  • Profile picture of the author Auctiondebteliminator
    Aaaaaaaaaaaah yes.

    Thank you so much for asking.

    First off, there are actually 6 number you need to know. (Not the three explained above.)

    First off, you need to know how much it WILL sell for- yes, this is predictable.
    Then you need to know how much you get it for.
    These two numbers are in the example above...
    Before you need to know your margin, you have some more deduction.

    -The eBay fees
    -The Paypal fees
    -Shipping cost

    Many people never put this into consideration.

    So, let's just do some math:

    Selling price - 30
    Cost to acquire - 20
    eBay fees: 3.00
    Paypal fees: 1.17
    Shipping cost 6.80

    ACTUAL bottom line:

    -.97

    (The shipping cost is assuming a modest weight for the item) Even if the shipping cost would be less than this, the actual margin still isn't 10 dollars.

    Know your selling price (the actual price people value for the item) and know your deductions.

    ADE
    Signature
    Famous for my '$1000 dollar challenge,' I've been teaching people how to DOMINATE on eBay for YEARS. Sell 100% of your items FOR A PROFIT. Rank higher, sell faster, sell more, and DESTROY your competition with a data-based approach. Quit listening to Guru's-in-training! Click now below!
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