If you’re new to e-commerce, dropshipping can seem a little intimidating.
But the truth is that it’s actually easier than you think, and anyone can do it.
This post will show you how to dropship on Shopify with no money needed!
How To Dropship On Shopify With Aliexpress
Dropshipping from AliExpress to Shopify is one of the most popular business models in the eCommerce industry today. It is a profitable venture that gives us a flexible time managing our online business anywhere globally.
Many dropshippers have already established their eBusiness through these platforms. However, as beginners in dropshipping, we first need to equip ourselves with the right information so that our online stores will thrive in this industry.
Newbies in dropshipping need not worry because this article is a complete beginners’ guide to dropshipping from AliExpress to Shopify. We will discuss the steps to dropship successfully on these platforms, from establishing an online business to increasing sales.
What is Dropshipping And How Does It Work?
Before we proceed, let us first discuss the basics of dropshipping for those new in this field.
Dropshipping is an online business model that allows the seller to fulfill customers’ orders online.
Since this eBusiness framework does not require the dropshipper to retain a physical inventory of the items, the seller only oversees the marketing and selling of the items. Conversely, the quality, storage, inventory, and delivery of the products to the customers lie in the supplier’s hands.
Here is how dropshipping works:
- Step 1: Customer buys the product
- Step 2: Seller fulfills the order
- Step 3: Supplier ships the package
- Step 4: Dropshipper makes a profit
Step 1: Customer Buys The Product
The first step to dropshipping is when shoppers purchase items available in our online stores.
We list these products from our supplier pages to our selling channels. For example, we source products from AliExpress and dropship them on our Shopify stores. By doing this, customers can readily buy products from our dropshipping stores.
For instance, a customer buys a dog collar in your online store. Upon check out, the buyer pays for the order at the price you set.
Step 2: Seller Fulfills The Order
After customers place their orders in our store, we need to fulfill them through our supplier.
Our supplier then prepares the package for shipment directly to our buyers.
Continuing with the example above, after the customer buys the dog collar from your dropshipping store, your store forwards the order details to the supplier with the help of an order fulfillment software (or, you can purchase it manually with a personal buyer account). You, the dropshipper, pay the wholesale price of the dog collar to the supplier.
Step 3: Supplier Ships The Package
Once the supplier receives your order, they will prepare and deliver the dog collar directly to the customer and provide you with tracking details once they are available.
Step 4: Dropshipper Makes A Profit
After we complete our customers’ orders, we gain profit from our sales. The profit comes from the difference between the retail price (or what the customer pays you for the product) and the wholesale price (what we pay to the supplier).
How To Dropship On Shopify With Aliexpress
Looking for a way to get started selling on Amazon but don’t want to spend a lot of time or money doing it? Enter: Dropshipping on Amazon!
If you ask an experienced e-commerce seller for a good way to get started selling products online without breaking the bank or spending a ton of time, chances are they’re going to tell you that dropshipping is the way to go.
In this article, we’ll cover the following:
- Recent updates to consider
- How does dropshipping on Amazon work?
- The advantages and disadvantages of dropshipping on Amazon
- How to start dropshipping on Amazon
- Five tips for success when dropshipping on Amazon
Recent Amazon dropshipping updates
Before you jump into dropshipping on Amazon, please make sure you fully understand Amazon’s guidelines on dropshipping so you don’t end up with a suspended account.
On May 21, 2021, Amazon sent out a reminder in Seller Central stating that they’ve updated their policy page to ensure all sellers clearly understand their strict guidelines with regards to dropshipping on Amazon.
If you violate the policy in any way, you may lose the ability to sell via FBM, or even have your account suspended.
In order to fulfill orders using a drop shipper, you must adhere to the following:
- You must be identified as the seller on all invoices, packing slips, external packaging, and any other information included or provided with the product. There should be no mention of your supplier or manufacturer.
- You are responsible for accepting and processing returns.
- You must comply with all of Amazon’s Terms of Service according to the seller agreement.
Do not — and I repeat — do not purchase products from another online retailer and have them ship the product to your customer. This is a big no-no from Amazon and they will suspend you for it.
Example: You list a coffee maker for sale on Amazon. A customer purchases the product, you purchase the same item from Walmart.com and then enter in the Amazon customer’s shipping info. The Amazon customer receives a package with Walmart identifiers on it. THIS IS NOT ALLOWED!
If a customer receives a package from Walmart, they’re going to be very confused and frustrated, as they ordered from Amazon. You may instead practice what’s called retail arbitrage, where you purchase an item from another store such as Walmart and resell it on Amazon — as long as there is no mention of Walmart on a packing slip or the packaging.
How does dropshipping on Amazon work?
Dropshipping is an e-commerce method in which the seller takes orders on behalf of a manufacturer, distributor, or supplier. Then, when a customer buys the product, the seller uses their supplier to fulfill those sales.
Often, dropshippers reposition the sold goods as their own and the end consumer is never made aware that the goods came directly from the manufacturer. This practice is popular on e-commerce sites like Amazon, eBay, and Shopify.
And while this may sound somewhat complex, we’ve broken it down for you to help you get a better handle of how it works and how you can start dropshipping in 2022.
Here is a diagram that teaches you the basics of dropshipping on Amazon (explained in further detail below):
- First, an Amazon customer (on the left-hand side of the diagram) purchases the product you’ve listed on Amazon.
- Second, once the transaction is finalized and you receive the funds, you purchase the product directly from the supplier (on the right-hand side of the diagram) and give them the customer’s information.
- Lastly, with the buyer’s information in hand, the supplier then sends the product to the customer.