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The Ultimate Guide on How to Dropship from Alibaba.com

Dropshipping is a well-known internet business plan of action that is reasonable for business people anytime in their web-based selling venture. Because of the help of devoted outsourcing apparatuses from Alibaba.com, getting everything rolling with this kind of undertaking is more straightforward than at any other time.

Here, we will examine all that you want to be aware of outsourcing on Alibaba.com. We will share the bit-by-bit process for setting up your outsource store with the assistance of Alibaba.com. We’ll likewise share various tips and deceives to further develop your outsourcing experience en route.

About Alibaba.com

First, let’s learn more about Alibaba.com.

Over 20 years since it was established in 1999, Alibaba.com has grown into a B2B marketplace platform used by suppliers and buyers around the world to develop and grow their ecommerce businesses. Alibaba.com is popular because it offers a wide range of services, products, features, and administrations that simplify B2B procurement.

With Alibaba.com, you can be in direct contact with reputable global suppliers and buy products at wholesale prices. You do not have to pay anything to create or maintain the account as a buyer on the platform and there are no additional fees.

With over 18 languages, Alibaba.com has a host of features that make online sourcing easier than ever. It is a significant resource for new and established businesses, and Alibaba.com dropshipping is extremely popular to trade directly with manufacturers, factories, and international wholesalers.

B2B merchants can sell to dropshipping customers through Alibaba.com and offer order fulfillment. This means that a wholesaler can stock goods for retailers around the world and fulfill ecommerce orders from specific warehouses.

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What is dropshipping?

Dropshipping is an e-commerce business model that involves outsourcing order fulfillment. When you have a dropshipping business, buyers make purchases on your storefront, but your fulfillment partner holds all of the inventory and ships all of the orders.

Since order fulfillment is handled by a third party, dropshippers do not need to hold any inventory. With the support of the right tools and technology, it is relatively easy to start a dropshipping business.

Why start a dropshipping business?

There are quite a few benefits of starting a dropshipping business.

For one, it is relatively cheap to get started. This makes it an attractive business model for aspiring entrepreneurs who want to test the waters of the online business world.

Dropshipping businesses are also easy to grow and scale. If you want to offer more products to your dropshipping store, you simply must find a reliable supplier and list the items on your online store.

If those benefits are not enough, here are a few stats that showcase the wealth of opportunities in the dropshipping space:

  • The dropshipping industry was worth US $149.4 billion in 2020 and is expected to reach a value of US $557.9 billion by 2025
  • Over 2 billion people shop online
  • About a third of online businesses use the dropshipping model
  • It is possible to start a dropshipping business for as little as US $280

Does Alibaba Do Dropshipping?

Alibaba has a dropshipping solution that makes it easy for store owners to sell products without keeping stock on hand.

However, it can be a bit challenging to find dropshipping suppliers on Alibaba as Alibaba is geared towards selling large quantities.

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Selling small quantities at low margins and shipping them overseas from China can be unprofitable. That’s why Alibaba sellers generally avoid fulfilling small orders.

That being said, there are suppliers on Alibaba that cater to dropshipping sellers.

How to Start an Alibaba Dropshipping Business?

You can list each product that you like on Alibaba on your online store, regardless if you’re using Shopify, WooCommerce, eBay, etc.

The first thing to do when searching for Alibaba suppliers is to type your ‘product + dropshipping’ or ‘product + private label’ if you want to customize.

Products on Alibaba will have different MOQs, clearly visible in the search results you get.

If you’re starting with a minimum budget and you still don’t have a proven bestseller, it’s better to look for a supplier that agrees to ship out individual pieces one by one.

However, you have to convince the supplier to collaborate with you. For example, you can tell them that you want to test the product first, but you will place larger orders in the future.

Here’s a great YouTube video that explains the best ways to contact Alibaba suppliers and increase your chances of collaboration:

Is AliExpress Better than Alibaba for Dropshipping?

As we mentioned above, there are pros and cons to both platforms, depending on the dropshipping needs.

If you’re new and still haven’t tested any products, AliExpress is better for dropshipping ready-to-sell, single products to end customers.

However, if you do have a proven best-selling product and a stable number of daily orders, Alibaba is much better. With Alibaba, you’ll get a better price and the possibility to customize the products with your branding.

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When using Alibaba for product sourcing, ensure that you either find a supplier that agrees to dropship your products or your own storage space.

What Are the Advantages of Alibaba Dropshipping?

Some of the benefits of dropshipping with Alibaba are the following:

  • Lower prices in bulk;
  • Better customization opportunities;
  • Possibility for collaborating directly with manufacturers;
  • Displayed supplier rating;
  • Potential for price negotiation;

What Are the Disadvantages of Alibaba Dropshipping?

These are some of the cons when it comes to Alibaba dropshipping:

  • MOQ (minimum order quantity) set in place;
  • Fewer payment methods available;
  • More challenging to find dropshipping services;
  • Harder to order one piece of a product;
  • Must order a sample first, since there are no product quality insights;
  • Requires negotiation skills;
  • Fewer automation tools for integration with eCommerce stores;

In Conclusion

As you can see, Alibaba dropshipping is possible but probably not suitable for everyone.

If you’re new in the eCommerce business, it’s better to start dropshipping with AliExpress until you have a proven best-selling product.

However, once you reach some stability and wish to scale and order in bulk, Alibaba is definitely a great option!

If you feel that Alibaba dropshipping is not the right choice for you, you’re welcome to get in touch with us. We can source the same products from Taobao or 1688, where they have a lower MOQ and even cheaper product prices!

 

 

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