Watch the video, or read the Blog Post below.
If you've ever wondered if you should still be Dropshipping from AliExpress then this post is for you.
SPOILER! I still Recommend Dropshipping from AliExpress but here is why - there is a REASON I want to share with you.
The Back Story: I got this email wondering if I would still recommend Dropshipping from AliExpress
I opened up my gmail and I saw this email and it's actually not the first email of its kind.
Yep, the long shipping times from AliExpress - how can they be reasonable for our customers, right?
Let me first explain something before we dive-in. You probably already know this but I just want to get in fresh in your mind to ensure the rest of the article makes sense.
What is Dropshipping? Remember: Dropshipping is a business model
I want you to look at this image below and make sense of it yourself.
No, I'm just joking. That would be crazy. haha.
Let me break down the above image.
Dropshipping is a business model for ecommerce. It involves selling products YOU DON'T HAVE.
You get a sale, then the supplier (or factory sometimes) sends the product directly to your customer.
In the example above, we are selling a product on our website for $30 including shipping.
We pay facebook ads $15 to get us a sale. So, we pay facebook $15 to get us a sale on our ecommerce website worth $30.
We then pay the supplier $7 for the product, including it to be sent directly to our customer.
And.. we keep the difference - we keep $30-$15-$7 = $8 profit per sale.
But that's just it.
I teach people how to sell products THEY DON'T HAVE.
This is what dropshipping is.
Next, let's understand that we only sell hot-selling products that other marketers are currently making money with
We go into facebook and we find products that other people are advertising. We look to find HOT-SELLING products that they're making money with RIGHT NOW.
FIRSTLY, if an ad we see inside facebook has a lot of likes, comments, shares, and video views, that means this advertising has been promoting this product inside facebook by spending A LOT of money.
Commonsense prevails here - no-one spends money to show their ad a lot of times if they're not making money.
So, we know this product is making someone money as they've run the ad to a lot of people (indicated but the number of video views, social engagement like number of likes, comments, shares etc).
SECONDLY, we do this because we know this marketing is making money advertising this product ON FACEBOOK - exactly where we are going to advertise it.
THIRDLY, we can see what price this advertiser is selling the product for by going to their website. The price is RIGHT ON THE PRODUCT PAGE.
So we know what price to sell it for on our website, we know that it's making someone else money, and we know it works selling it inside facebook.
VERY IMPORTANT: We don't sell all products...
I repeat, we don't sell EVERY product we find other people currently running ads for and making money with. There is a SPECIFIC set of criteria we look for when researching what products we should be dropshipping and I call this set of criteria the Winning Product Framework. I recommend everyone check it out, here is more information on it in the box below.
The Winning Product Framework (WPF)
The WPF is a Google Sheet template you can download that helps you decide whether or not a product is worth marketing.
Not all products you find that are trending are going to be products that you want to try and make money with yourself. Some products can result in lawsuits (think small parts in baby toys), be too seasonal, or just not have enough profit margin. To save you the risk of spending money on these types of products, you can plug them into our Winning Product Framework google sheet file to see if they are worth testing.
Should I dropship from AliExpress? Yes, here is why...
So we know what dropshiping is (selling products we don't have in stock ourselves), we know the best types of products for dropshipping (other products other marketers are making money with), so let's cover the question you've been wondering...
Why do I recommend dropshipping from AliExpress?
Because MOST of the ads you will find of hot-selling products that other marketers are making money with CAN BE FOUND ON ALIEXPRESS.
This opens you up to being able to marketing the LARGEST range of products because you can easily source most winning products you find. The ability to try sell a lot of products is going to offer you the most chance to find a product that will make you money.
But AliExpress has long shipping times. How do I deal with long shipping times from AliExpress?...
Ok, so you've found a product another marketer is making money with, you've added that product to your CommerceHQ website using Dropified, you've ran some ads and you're starting to get some sales. Now what?
Once you find a product that you start getting sales with, you have OPTIONS.
The more volume of a product you are selling, the more LEVERAGE you have with your suppliers.
When you start making a lot of sales for a dropshipping product when you're dropshipping from AliExpress, you can speak to your dropshipping supplier in China and find faster ways to ship your items.
In my 100K Case Study, my online course which is available below, I reveal a specific method I use for shipping where I get my items from China into the USA in about 7 days AND the package looks like it has shipped from within the USA when the customer tries to track their order.
Cool, hey? If you want to see how I do this and watch over my shoulder as I find a new product, create a new dropshipping store and do everything to scale it to $100,000 in 30 days, here is some more information below.
100K Case Study - Learn Dropshipping FAST while saving time and money!
We realized that there were courses which teach people how to make money with ecommerce and dropshipping but there weren't any where you actually saw a REAL store grow from 0 to hero (aka making money). That's why we made our 100K Case Study!
The 100K Case Study is 150 videos and you get to watch over Grant's shoulder as he finds a product, sets up the initial facebook ads, and then scales up the store. It's The Exact System I Used To Generate $105,080 In 30 Days With A New Store!
In the Case Study, these strategies and systems Grant shows YOU how to use are the exact strategies he uses to make over $1000 profit per day in the Case Study, as shown below!
Want to learn more about the 100K Case Study?
But bringing this all back to the post at hand, what I am saying is that when you start getting sales, you can find ways to improve shipping times and do other good stuff like lower the price of the items you're buying from the supplier. If you're buying products for $7, when you start doing 50 orders a day, you can negotiate the price with your supplier down to closer to around $5-6 a piece and so on.
Dropshipping from AliExpress can actually have LESS RISK than, say, fulfilling domestically from the USA. Let me tell you a story...
I started a story in a not too distant past and it was going really well.
I was actually getting 200 orders a day for this product, so I started buying in bulk to help with stock logistics.
And as sales increased, and the product seemed to have stability on the advertising from and all things were looking good, I looked into maybe fulfilling the product from the USA.
I was actually getting quotes to have over 1000 pieces of my product sent in bulk from China to the USA to fulfill from the USA when suddenly..
My facebook ad account was deactivated.
It wasn't so great. I had just bought over 700 pieces of this product and now I had no way of promoting it to clear the stock.
LUCKILY the product was all still in China. This was a big wake-up call for me
Sometimes a product sells very well right out of the gates we you get ambitious - I am guilty of this.
We scaled hard, and I was looking into USA fulfillment for dropshipping within a month of promoting this new product.
Products have a lifecycle and sometimes it can be short
We're always looking for new products to sell and the truth it, products sell well and then they..don't.
Sure, you try to better your ads that you're running, try new marketing angles to sell the products, but that fact is, sales can be volatile and for a new product, even if it is selling well to start and scaling is working, I don't recommend looking to fulfill domestically until you have stability over quite a bit of time. I'm talking months.
There's just too many factors to go into play and, to be honest, my customer don't complain about long shipping times. It's rarely an issue.
The Facebook Ad account that was disabled was caught in one of facebook's sweeps and you never know with facebook what's going to happen.
I get ad accounts back and then sometimes I don't. It's part of the fun.
Should you dropship every product in your store from AliExpress?
Here is diagram of how a store could naturally evolve and have a mix of AliExpress dropshipping products and then dropshipping from the USA, and how you could transition to dropshipping from the USA or other domestic instances.
The 4 stages of Dropshipping from AliExpress
STAGE 1: You're just getting started and you've got your first winning product
You start to get some sales and your fulfilling your dropshipping product from AliExpress.
STAGE 2: You add some Upsell products that compliment your main winning product so you can increase your Average Order Value (AOV)
If your main product from AliExpress is a Cat Necklace, you could then add an upsell to compliment this which would be matching Cat Earrings. I would also recommend sourcing this upsell product from AliExpress
STAGE 3: Continue building out your product catalog
Now that you've got one main product that is selling well, and you've added your complimentary upsell product and it's all making you money and working well, you've VALIDATED a niche and you're most likely building your store around just this niche.
By now, you KNOW WHAT SELLS and now you can start to go into AliExpress and find products that are in your niche that you can add to your niche website. Keep doing this and building up your product catalog - it's an easy way to increase your sales and scale, especially through email marketing. More products to buy = more your customers from email marketing can buy from your store as they have more reason to keep coming back.
STAGE 4: Now that you have your NICHE STORE and it's working with a good range of products in there from AliExpress, make some phone calls to domestic suppliers and see if you can dropship any of their products in your store
Now you have a HYBRID of AliExpress products and products fulfilled from the USA.
AND you've got a niche that you've validated and is making you money.
That's it! That's how I see this unfolding for most people who start dropshipping from AliExpress.
Wrapping up why I recommend dropshipping from AliExpress
To buy thousands of pieces of stock, of a new product that you're just starting to scale, just isn't what I would recommend
That's why I recommend starting with AliExpress.
Start with AliExpress and sell products other people are currently making money with.
Build some sales, scale your products, build out your product catalog in your store, build up your mailing list.
A few months later (or ideally 6 months or more) if things are in full swing, your customers are coming back to buy a second and third time, you have a mailing list bringing predictable, stable revenue, and you know this product is worth investing your time and effort into, then you can look to domestically fulfill if that suits.
Hope that helps and again, I highly recommend you download the Winning Product Framework to ensure you know the right types of products to sell. This link is back in the content of this post you are reading.