How to Run a Dropshipping Business Well through AliExpress

As we know, dropshipping allows entrepreneurs to start an online business and sell products to their buyers without actually stocking the items themselves. Instead, when a dropshipping store sells a product, it purchases the item from a third party and has it shipped directly to the customer.

AliExpress is well known to merchants who are running businesses on eCommerce sites. As a large platform for dropshipping, it is popular among merchants because of the variety of products, affordable prices, and efficient logistics. As a newcomer in the field of dropshipping, it is undoubtedly a great choice to choose AliExpress to develop your own business.

So, as a novice seller, what do you need to pay attention to when looking for high-quality products on AliExpress? 




1) Choosing the Source of Products from Multiple Aspects

There are two aspects that should be considered when seeking a supplier of goods. Firstly, focus on hot-selling products which generally represent a relatively stable supply and sales. Secondly, select goods according to the price value, preferably low. Although you may find a low-priced product that you like, the supply may not be stable enough. For this reason, you should focus on both aspects. After some research, you'll learn how to find a product that has both a stable supply and a lower price.



2) Products with Low Prices First

As the old saying goes, “cheap goods are not good, and good goods are not cheap”. Still, most buyers in AliExpress tend to buy products with lower prices, and in general, low-priced products have more customers than high-priced ones. This is one reason we suggest selecting low-priced products. Popular products include men and women’s clothing, shoes, bags, electronics, sports equipment, sunglasses, cosmetics, and adult products. Adult products have a huge market potential and sellers can consider selling it. As lower prices attract more buyers, sellers can find hot products quickly through a combination of high-potential products.



3) Proper Utilization of AliExpress Product Screening Tools

The AliExpress product display can be filtered and sorted from multiple dimensions. Sellers can select products according to the sales volume from high to low. In this way, sellers can identify products that have both a stable supply and a low price. This brings the best of both worlds and is more reliable than other platforms in terms of the supply of goods. Product screening tools include Dropshipping Center, Adspy, Econhunt, among others.



4) New Product Launching

Starting out as a new business, a new seller needs to put as many tested products on the shelves as possible. Only when you have enough products on the shelves will you know which category is easier to sell. More new products mean more opportunities to be exposed, and the more exposure, the easier it is to sell. Product testing often takes a lot of time, but you'll find that eventually it's worth it. 



5) How to Set the Price Distribution of the Product

Set your price distribution by using tiered pricing and make the price distribution of the products reasonable. Let me give you an example: suppose there are 500 products in a store. How should the prices be arranged? The best layout would be: 1—5 dollars set for 15 products; 5—10 dollars for 50 products; 10—15 dollars for 100 products; 15—20 dollars for 200 products; and more than 20 dollars for 150 products. In this way, your customers will have more options. It will not work if you only set one price for all the products.

Reasonable price distribution allows customers with different budgets to have more choices, thus increasing the probability of their purchase.



6) Price Setting for New Products

There are two aspects to be paid attention to before you put products on the shelves. Firstly, based on the consideration of in-store sales and discounts in later periods, sellers are required to set the discount of 40 percent in many sales. Therefore, unreasonably low pricing will result in an inability to participate in the discounts. Because of this, we suggest that sellers set the prices of their products to 3 times the cost price to provide convenient opportunities for discounts later.

The advantage is that the sellers will be able to participate in more activities with higher discounts later, thereby controlling profits.

The second is that the price of the product should be set at one times the cost price plus cost price. Let’s say your product price is $2 (product itself plus China shipping charge). The price can be set as $9.90 with free shipping when it hits the shelves on the premise that the foreign AliExpress shipping fee is controlled at about $3. In this way, the sellers can free up space for a discount of 15 percent or more for later product promotion.

Pros: Orders will be fast and numerous

Cons: It won’t be conducive for participation in discount activities in later periods. (Stores should only be arranged in one of the ways above, and mixed stores should be avoided.)



7) Recommendations of Related Products
There are many customers who are willing to spend time browsing related items, so you can take advantage of this to increase your sales. Related product recommendations can sometimes help you increase your exposure and the per customer transaction. Related sales should be prepared in advance before the product launch. The recommendation logic must be clear and relevant.



8) Setting the Product Titles

It is crucial to do your research in advance in order to understand the keywords for your product categories. It’s a good idea to not just pile up keywords. Many people think that if the title is optimized and the keywords are all covered, the sales will increase. However, this is not the case. This overgeneralization will make the product lose its individual characteristics. Because each product has its own characteristics and functions, sellers need to think about target customers in advance. Sellers can refer to the keywords of similar products, and consider the preferences of target customers, so as to select the best ones.

Cross-border e-commerce is currently in the stage of rapid development. As long as you understand how to select products and have some operational skills, you can do it well. If you can fully understand and use the above points, then you are not far from becoming a successful dropshipping business owner. Reasonable use of the right tools can speed your business down the path of success. For novices, Hitter can meet all of your basic needs. If you want to learn more, you can also use the Oberlo community to learn even more professional knowledge.

May you quickly succeed in reaching your goals!



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