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Hi Just new to all of this. Am curious about drop shipping using Shopify/Oberlo/AliExpress. My main concern is how to work out what niche would work using the above. How can having your own drop ship shop compete with the likes of Amazon?
#drop #shipping
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  • Profile picture of the author dave_hermansen
    It all comes down to picking the right product(s). The Shopify/Oberlo/AliExpress model tends to work best with Facebook advertising and only if the product has some sort of "wow" factor and is at a price point that does not cause people to have to worry about spending a whole lot of money (an impulse buy).

    Things that tend to work best are products that everyone is talking about (or clones of them), products that solve a problem or products that are very unique ("wow, I've never seen anything like that before, it's so cool!"). Other than that, you can sometimes have success selling a product that caters to a very specific avid audience.

    They have to be those types of products because nobody goes to Facebook looking to buy things. Your ad needs to catch their attention and make them think, "I have to have that now". Amazon is not a factor because the people you are advertising to are not on Amazon when they are introduced to the product; they are on Facebook looking at your ad.

    Think about the types of things people are talking about, the type of groups that are really passionate about something and the type of problems people have that they need a solution for. Then, find a product on AliExpress that might work for one or more of those situations.
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    • Profile picture of the author hectorj
      Totally agree with Dave, a winner product is key, now there´s a trend to use stories to sell your products on facebook. I mean you can pay for ads but even with that there´s no guarntee to get clicks and sales.
      People is not there to buy products, but if you use the wow factor, the I have to have that then you will get clicks through your store.

      The second part is to have a trust worthy store and provide good prices, good offers, discounts and more.

      The question is where you can find winner products right? well there a lot of tools and trainings for that.

      I wish you the best success with your store.
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  • Profile picture of the author jonnyg13
    Honestly, the aliexpress dropshipping market is very saturated. The problem is it's extremely easy to get started so literally anyone and everyone can do it. There is definitely money to be made but you have to find a good niche market.

    The real issue is that many of the popular products have been bought in bulk by big sellers and are available on amazon with domestic shipping so people don't have to wait 2 weeks for their product and it's very hard to compete with that

    I'd personally recommend selling some sort of private label product via dropship, there are plenty available in the US and it means you create something unique.
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    • Profile picture of the author dave_hermansen
      Originally Posted by jonnyg13 View Post

      Honestly, the aliexpress dropshipping market is very saturated. The problem is it's extremely easy to get started so literally anyone and everyone can do it. There is definitely money to be made but you have to find a good niche market.

      The real issue is that many of the popular products have been bought in bulk by big sellers and are available on amazon with domestic shipping so people don't have to wait 2 weeks for their product and it's very hard to compete with that

      I'd personally recommend selling some sort of private label product via dropship, there are plenty available in the US and it means you create something unique.
      We have a whole new course launching soon that incorporates a lot of what you suggest. We recommend starting with the Ali dropship method just to gauge interest and then transition to a bulk purchase model, private labeling the products and establishing your own brand.
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  • Profile picture of the author Pablo Visconti
    Forget about competition. I mean don't FORGET forget about it. But the fact that people are buying more and more every day, means you have a better chance of getting a piece of the pie.

    Branding out is what you eventually want to do. Niche down, make a store around a product and sell that product, or variations of it. It takes a lot of time, but it's doable.

    Of course, this is long term. Short term, you can start a general store.

    You think Amazon was the only one selling fidget spinners when they came out? No. Sell what is selling
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  • Thanks @dave_hermansen @jonnyg13 @Pablo Visconti - I appreciate the feedback. Fidget spinners - where did that madness come from anyway?

    I was thinking about making a website dedicated to a specific need of a hobbyist market I have in mind.

    I'm wondering whether this could be more appealing to a potential buyer than just rows and rows of product pics on amazon.

    Does it have a better chance if it (my shop) looks like it lives and breathes this aspect of this hobby? Kinda thinking like: knitting needles r us sort of thing as an example.

    I'm also a bit concerned about being ripped off by the supplier. I mentioned my thoughts on doing this to someone I know and they said that a lot of people have been burnt by suppliers in China faking the actual dispatch of goods - Is this possible?

    I watched this video: https://www.youtube.com/watch?v=ykOqvTHdMVw&t=183s

    The guy in the video says that they have a rating system including crowns. I went to the same seller he went to in the video and couldn't find any crowns (which are meant to signify trustworthiness). Has this changed recently? Am I to trust this 'top brands' thing that AliExpress bang on about?

    And just to clarify - if I were to use the shopify/oberlo/allixpress setup - does this mean that when a shopper on my site purchases something (I dare to dream), does this mean that they actually pay the seller on Aliexpress and somehow the site I've made using shopify sends me my cut of the sale? Is that right?
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    • Profile picture of the author dave_hermansen
      Originally Posted by MonkeyBoy Simian View Post

      Thanks @dave_hermansen @jonnyg13 @Pablo Visconti - I appreciate the feedback. Fidget spinners - where did that madness come from anyway?

      I was thinking about making a website dedicated to a specific need of a hobbyist market I have in mind.

      I'm wondering whether this could be more appealing to a potential buyer than just rows and rows of product pics on amazon.

      Does it have a better chance if it (my shop) looks like it lives and breathes this aspect of this hobby? Kinda thinking like: knitting needles r us sort of thing as an example.

      I'm also a bit concerned about being ripped off by the supplier. I mentioned my thoughts on doing this to someone I know and they said that a lot of people have been burnt by suppliers in China faking the actual dispatch of goods - Is this possible?

      I watched this video: https://www.youtube.com/watch?v=ykOqvTHdMVw&t=183s

      The guy in the video says that they have a rating system including crowns. I went to the same seller he went to in the video and couldn't find any crowns (which are meant to signify trustworthiness). Has this changed recently? Am I to trust this 'top brands' thing that AliExpress bang on about?

      And just to clarify - if I were to use the shopify/oberlo/allixpress setup - does this mean that when a shopper on my site purchases something (I dare to dream), does this mean that they actually pay the seller on Aliexpress and somehow the site I've made using shopify sends me my cut of the sale? Is that right?
      We certainly advocate the niche store concept vs. being a general store. If you really want to get the best camera, who do you think is going to be more knowledgeable, a specialty camera store or Walmart? When you "niche down", you have a much better chance of being perceived and, in fact, becoming an expert on that much smaller niche and people appreciate that.

      It's not super common for a supplier to stiff you and not ship anything. Although I'm sure it does happen, we've never experienced it.

      For the AliExpress model, we really only start there and then choose a handful of the best sellers and try to find the best manufacturer of them and then order them in bulk (often white labeling them as our brand). That gives you more control over quality and the shipping time.

      Yes, they got rid of the diamonds and crowns on ALiExpress. Now, the only thing that exists is a ribbon that says "Top Brand" and you can only see those when you hover over each product on the search page. You can, however, click through and read the reviews of each product. It also doesn't hurt to look at how many products they have actually sold. Far more time consuming, for sure, but better than nothing.

      When the customer purchases, the money is transferred directly to you by your shopping cart. If it is Shopify and they paid via Shopify payments (a.k.a. Stripe), you receive the money in your bank account three business days later. If they paid via PayPal, you'll usually see the money in your account in one business day, providing that you capture and settle the transaction. You order and pay for the items from AliExpress with your own money. They are not involved at all in the customer's transaction.
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  • You need to do some research on what are the hot and unique products that you are passionate about. Setting up a store using Shopify is not difficult, the most critical thing is on how to drive traffic that can convert to sales.
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  • Thanks again @dave_hermansen . So to make a really obvious statement - online shopping pretty much is exactly like old school bricks and mortar. I guess rather than continuously asking these rudimentary questions regarding the mechanics of all of this here, I think I should dig around online. Thanks a bunch though.. I've got a more focused vision of what I should be doing now.. cue the 'Rocky' theme tune.. and thanks to @InternetMarketingMadeEZ, the traffic issue will be right there on one of my front burners.. I think I'm going to be rather busy with my research.. all advise is extremely welcome.
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    • Profile picture of the author dave_hermansen
      Originally Posted by MonkeyBoy Simian View Post

      Thanks again @dave_hermansen . So to make a really obvious statement - online shopping pretty much is exactly like old school bricks and mortar. I guess rather than continuously asking these rudimentary questions regarding the mechanics of all of this here, I think I should dig around online. Thanks a bunch though.. I've got a more focused vision of what I should be doing now.. cue the 'Rocky' theme tune.. and thanks to @InternetMarketingMadeEZ, the traffic issue will be right there on one of my front burners.. I think I'm going to be rather busy with my research.. all advise is extremely welcome.
      Actually, if you are dropshipping, it is not like a brick and mortar store at all. You get paid first and afterward you take some of that money to pay for the product from the supplier.

      It's only when you decide on a few that you would like to bulk purchase, stock and ship that it becomes more like a brick and mortar business. If you use a fulfillment center, you won't need to pay for space like you would with a brick and mortar store, you won't need to pack anything or deal with postage and, of course, you are open 24/7/365, unlike most brick and mortar stores.
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  • Thanks @mspike - you've certainly given me a lot to research

    @dave_hermansen - I have just one more noob question: according to my research last night, my understanding of the purchase process is this: customer clicks on something on offer at my site

    Using Shopify > Oberlo > AliXpress an order for that product gets sent to me or the guy on Alixppress? This I'm not sure of.
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    • Profile picture of the author dave_hermansen
      Originally Posted by MonkeyBoy Simian View Post

      Thanks @mspike - you've certainly given me a lot to research

      @dave_hermansen - I have just one more noob question: according to my research last night, my understanding of the purchase process is this: customer clicks on something on offer at my site

      Using Shopify > Oberlo > AliXpress an order for that product gets sent to me or the guy on Alixppress? This I'm not sure of.
      The order gets sent to you via Shopify. You place the order within your Shoify admin panel via the Oberlo app with Alixpress. AliExpress sends the order directly to your customer.
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  • thanks again @dave_hermansen .. and @rabbiefpv .. your idea sounds like a surer way to begin. It's interesting - based on what @dave_hermansen said most recently that it seems quite labour intensive.

    Don't get me wrong, I'm not saying that I'm not prepared to put in time.. but... I already run an actual business (lawn mowing and gardening), so I know all about labour - and the time it takes to see it running as a business.

    Im hoping to transition out of this - as I'm becoming rather senior now (51) and really, I'm over it. I just mean, that the idea of actually manually making every transaction for 10 bucks here and 10 bucks there, doesn't seem so time effective. I'm hoping to do something "passive" - I think it's called.

    Of course if it aint gunna happen for me online then I'll most likely be doing the same shit until I drop dead. But.. I'm going to give it a good bash.

    I've been poking around online since my last post here and am now exploring the idea of blogging - with an eye on affiliate marketing. So far, the total of 90 minutes I've had spare to research this has turned up this guy: https://billionaireblogclub.com

    Have just read his intro and contemplating my next move. I'm on my annual leave right now and have a couple of weeks with bonus time to spare. I guess it can't hurt to ask does anyone have any ideas on the best intro course? Obviously, as I'm dipping my anxious toes here - any free ones?

    Amongst all of the things I'm obligated to do around the house and a few days away in the country, I've kinda made a pledge to myself to get something, anything off the ground - where it can clog up some bandwidth amongst the others.

    I'm also thinking that this thread is now unrelated to this and should start a new one on that topic.
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    • Profile picture of the author dave_hermansen
      Originally Posted by MonkeyBoy Simian View Post

      thanks again @dave_hermansen .. and @rabbiefpv .. your idea sounds like a surer way to begin. It's interesting - based on what @dave_hermansen said most recently that it seems quite labour intensive.

      Don't get me wrong, I'm not saying that I'm not prepared to put in time.. but... I already run an actual business (lawn mowing and gardening), so I know all about labour - and the time it takes to see it running as a business.
      It might take a total of three minutes total to process an order from receiving, to placing the order through Oberlo to getting the tracking number added to it. In other words, not very labor intensive at all!

      I don't know what you plan to sell but we never sell anything where we don't make at least $20 on an order (and many of our sites, it's well over $100 per order). I DO KNOW that I have never paid a lawn service guy $20 for three minutes of work!

      The actual work involved comes long before you get the order(s).
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  • Fair comment @dave_hermansen - It just sounds clunky to me at this stage. I am of course speaking from a position of having no experience with this system.

    I just would've thought that the orders would go through automatically from the customer to the Aliexpress guy and simply log that as a sale at your end - wishful thinking I 'spose. And it sounds like the profit margin is important if you hope to make a living out of it.

    Would you be able to throw up a link to one of your shops so I can get a better idea? Or is that not right?

    PS: Sorry I made you use caps
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    • Profile picture of the author dave_hermansen
      Originally Posted by MonkeyBoy Simian View Post

      Fair comment @dave_hermansen - It just sounds clunky to me at this stage. I am of course speaking from a position of having no experience with this system.

      I just would've thought that the orders would go through automatically from the customer to the Aliexpress guy and simply log that as a sale at your end - wishful thinking I 'spose. And it sounds like the profit margin is important if you hope to make a living out of it.

      Would you be able to throw up a link to one of your shops so I can get a better idea? Or is that not right?

      PS: Sorry I made you use caps
      Fist off, you did not make me use caps and I apologize if that was offensive. I just use caps stylistically to emphasize things.

      I think you will find that few people who have successful websites will divulge those sites or the niches they are in for obvious reasons and I am no different.
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  • @dave_hermansen I wasn't sure if it was wrong or not - now I know. Re the stylistic caps.. I wasn't offended, though I think I've riled you up, so sorry - not my intention.. just trying to learn the ropes here.
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    • Profile picture of the author dave_hermansen
      Originally Posted by MonkeyBoy Simian View Post

      @dave_hermansen I wasn't sure if it was wrong or not - now I know. Re the stylistic caps.. I wasn't offended, though I think I've riled you up, so sorry - not my intention.. just trying to learn the ropes here.
      NOT RILED AT ALL!!!! (only kidding with the caps).

      You'll know when I'm riled. Just trying to help here. :-)
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  • Glad I haven't upset you.. I think that sometimes I can be annoying with my questions.

    Just thought I'd let you know that I had a look at your profile and noticed that you have a course... and free.

    I've google it and it appears that yours is actually one of the rare exceptions to the multitude of scammy ones on offer. I think I might sign up. I'm still tossing up between starting with affiliate marketing and then progressing to drop shipping.

    From what I've learned so far, it appears that affiliate marketing is a good way to dip your toes into it and get some low cost practice at driving traffic amongst the other things I'm yet to understand. Rather than try and learn that stuff while paying for a shopify store. So if you see a monkey pop up in your incoming emails signing up - it'll be me.

    Thanks again for the advice..
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    • Profile picture of the author dave_hermansen
      Originally Posted by MonkeyBoy Simian View Post

      Glad I haven't upset you.. I think that sometimes I can be annoying with my questions.

      Just thought I'd let you know that I had a look at your profile and noticed that you have a course... and free.

      I've google it and it appears that yours is actually one of the rare exceptions to the multitude of scammy ones on offer. I think I might sign up. I'm still tossing up between starting with affiliate marketing and then progressing to drop shipping.

      From what I've learned so far, it appears that affiliate marketing is a good way to dip your toes into it and get some low cost practice at driving traffic amongst the other things I'm yet to understand. Rather than try and learn that stuff while paying for a shopify store. So if you see a monkey pop up in your incoming emails signing up - it'll be me.

      Thanks again for the advice..
      We're not allowed to mention anything about our course - even if it helps answer someone's question here. If we were allowed, we might suggest that we also discuss how to build affiliate sites in the course. As far as dropshipping vs. affiliate site, both can work but we prefer the higher profits of dropshipping.

      As far as Shopify goes, you just have to decide if you've got one dollar per day to spend on a dropship website or not. You're still going to have to pay for hosting with an affiliate site so the monthly price difference is really less than $20/month between the two.

      (This entire post will probably get deleted because I had the audacity to answer a question that mentioned our course.)
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  • Profile picture of the author Harry Avery
    If you're going to peruse drop shipping I'd recommend finding a product then a niche, seeing as products that sell are few and far between these days...

    Good luck in your ventures though.
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    • Profile picture of the author dave_hermansen
      Originally Posted by Harry Avery View Post

      If you're going to peruse drop shipping I'd recommend finding a product then a niche, seeing as products that sell are few and far between these days...

      Good luck in your ventures though.
      I'd definitely disagree with that. Retail sales online are at their highest levels ever, so people are sure buying something!

      I think you have become discouraged by the cheap stuff offered on AliExpress that everyone is selling because there is no barrier to entry and have forgotten that there are tons of real, name brand products out there that are being dropshipped - things that people actually want and are looking for.

      More products offered on Amazon are dropshipped than are not, almost everything on Wayfair.com is dropshipped and everything on Hayneedle.com is dropshipped (last I saw, Hayneedle was doing more than $350 million in sales per year). All three of those are online-only operations.
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  • Profile picture of the author Expresso77
    Try to start at first w/ a general store and then later on go more narrow in your niche.
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  • Profile picture of the author Bortnite
    Making sure your website is advertised correctly can make you compete with sites like Amazon.
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  • There are a lot of good drop shippers out there, try finding one that offers a push to ebay or amazon option get your feet wet and learn the business before trying to do it yourself.
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  • Profile picture of the author career123
    Dropshipping is great if done correctly. You can compete with sites like amazon you just need to have the right place to advertise and so on.

    Facebooks ads directed at 16-19 year olds is the best for almost every product.
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