AliExpress is one an online marketplace that sells products at competitive prices. It has an advantage over other online marketplaces because its manufacturers are based overseas. Whether you are looking for wigs or electronics, you will find it all at AliExpress. Amazon is the largest online marketplace in the world that sells anything from baby diapers to car parts. It boasts more than 300 million active customer accounts in over 180 countries and has millions of products.
AliExpress has an infrastructure that supports dropshipping while Amazon is an excellent way to reach millions of buyers. Dropshipping is recommended to those who want to start an ecommerce business without stocking inventory or worrying about the shipping process. With dropshipping, you have the liberty to buy them from AliExpress, accept orders from customers, and ship those orders directly to your customers.
The process to buy from AliExpress and sell on Amazon can be easy but it does require some time to get used to it, especially if you are a beginner who has never sold on Amazon before. Here is an outline of steps that you need to follow before you can sell on Amazon by dropshipping from AliExpress.
My Experience with Buying from Aliexpress and Selling on Amazon – Doesn’t work in 2022
Prior to the pandemic, Aliexpress had an edge. In terms of pricing. But most of the Chinese sellers started selling on Amazon directly. The only way to make this drop shipping thing work is buy low from Alibaba, work on brand building and sell at a premium with some custom packaging. This concept of just buying from Aliexpress and selling on Amazon is long gone.
Buying from Aliexpress and Selling on Amazon
Steps to follow:
- Create an Account on AliExpress
- Buy from AliExpress
- Check Product Rating
- Pay Attention to the Number of Orders
- Avoid Branded Products
- Select High Margin Products
- Take a Look at the Photos
- Talk to the Seller about Bulk Orders
- List your Products on Amazon
How much does it cost to start dropshipping on Amazon?
In order for you to use the Amazon Dropshipping facility, you must first sign up as a seller on the site. They have two plans you can choose from; the individual plan where you pay $0.99 on every unit sold and a professional plan that costs around $39.99 regardless of how many items you sell.
What you need to know is that the dropshipping fees charged by Amazon vary between 10% – 15% depending on the type of product you’re going to sell. This margin may not be feasible for those who are selling products that carry a small profit margin.
Benefits of Dropshipping with Amazon
Here are some of the key benefits of owning an Amazon dropship business.
- No warehouse costs – One of the main reasons why dropshipping with Amazon is a lucrative business is because sellers don’t have to pay warehouse charges to store or hold their goods. However, if a seller does happen to set their products as FBA or Fulfilled by Amazon then warehouse charges will be applied as Amazon will handle the delivery and storage of the products.
- Amazon has a large audience – With well over 300 million users, using Amazon as a platform will ensure bigger returns as long as you sell the right products at the right price. As a seller, you will be able to select your target audience and can easily reach new customers in no time, something that would not be possible without Amazon’s backing.
- You can target a variety of categories – Amazon does not limit the number of categories you can target. In fact, they have over 30 unique categories that you can target and as a seller you can sell in as many categories as you desire. This helps you serve multiple audience groups and in turn bring in more profits for your business.
- Flexibility – With Amazon dropshipping you can sit anywhere and all you’d need is a smartphone or a laptop with a working internet connection to fulfill any incoming orders.
Drawbacks of Dropshipping with Amazon
- Amazon has some serious competition – Since dropshipping is not a new concept, don’t be surprised if there are already some experienced dropshippers on Amazon that cater to the same niche you’re planning to target. The only way you can outshine other dropshippers is if you build a strong brand to stand out from the rest.
- As a seller, you have no control – One of the worst drawbacks of dropshipping on Amazon is that you will have no control over the quality of the products being delivered or the shipping and delivery time frames. If the supplier decides to close their shop and are not responding to you, then you’re going to be in a tight situation and will have to take the blame from the customer.
- Bad return and refunds process – One thing that can really affect your dropshipping business is a damaged or faulty product being delivered to your customer. It might not be feasible for you to have the customer send the product all the way back to China just to get a replacement or refund. There’s not much that can be done here except ensuring that the seller is trustworthy and reliable.
Register on Amazon Seller portal
If you want to sell products on Amazon then you need to first register on the Amazon Seller portal. When you set up a new account you need to provide your bank account number and bank routing number, government issued national ID, phone number, chargeable credit card, and tax information. Make sure you have these close by so that you can register quickly on Amazon Seller portal. There are two selling plans available; individual and professional.
Individual plan is for those who sell less than 40 products per month while the professional plan is for those selling more than 40 items. When you are starting out, it is best to start with the individual plan because you will be finding your footing in the first few months of buying from AliExpress and selling on Amazon. Once you are able to understand the process, you can always switch to the professional plan. You will be charged subscription, selling, FBA, and shipping fees among others.
Create an account on AliExpress
Before you buy from AliExpress, you have to create an account if you don’t have one already. You can use your email address and password to sign up to make a purchase. Alternatively, you can sign up using your social media accounts such as Facebook, Twitter, and so on. You can then add your payment details. You can also add your shipping address in the ‘My Profile’ section after you register successfully if you want to test whether a supplier is reliable or not.
Buy from AliExpress
This is the main component of selling on Amazon from AliExpress. You need to know what products you are going to sell on Amazon. You can browse through the numerous categories that are available on AliExpress to make a decision. You can then decide what you want to sell from there. Do you want to sell dog-related products? Do you want to sell hair accessories? The best way to go forward is to ensure the following before you buy from AliExpress.
Product rating matters
When searching for products to sell, you want to look for products that are rated high; preferably 4.5 and above. You should also take a quick look at the seller feedback and ensure that there is mostly positive feedback. You can even use a third-party tool to ensure the seller is an actually reliable one. The product rating should be high because this indicates that the product is a good one and people are satisfied with their purchase.
Pay attention to number of orders
When more people place more orders on the same product, it means they like that the particular product is a reliable product that you can sell. When you are choosing what to sell, you want to look at products that have at least 300 orders or more than that. It is an indication that the product is in high demand and there is a high probability that the product is one that you can succeed selling on Amazon.
Avoid selling branded products
When you sell branded items, you can potentially get in legal trouble with the said brand itself. The reason behind this is that many times the products can be knockoffs and if you sell them to customers, then you can get in trouble even without realizing it. The only way around it is to ensure you communicate to the brand directly if you want to sell branded products. But for a beginner, this is a lot of hassle and time-consuming. It is best to look for products where branding isn’t important.
Select high margin products
When you are purchasing products on AliExpress, you want to ensure that you buy products that range between $1 to $20 because you can attach a higher price tag and sell them on Amazon to your customers. For instance, a $15 item can be sold at $45. The high profit margin will ensure you can easily cover the marketing cost and other costs that may arise as you sell on Amazon. It will also create a safety net so you don’t run in losses while running your business.
Take a look at the photos
Before you choose a product, you want to ensure there are legitimate photos available for the product. Use Google image search and ensure that the photos that you see from the seller on AliExpress actually belong to the particular manufacturer. Photos play a major role in purchase decisions because customers want to take a good look at the product before they choose what to buy. The better the photos, the better and easier it will be for you to sell on Amazon.
Talk to the seller about bulk orders
You may be wondering what this has to do with the product, but this is an important step. Aliexpress sellers are quite flexible in terms of shipments and you can strike good shipping rates with them for bulk orders.
Step 4: List your products on Amazon
Once you know which products you want to sell on Amazon, you should then create a product listing for each product you wish to sell. You have two options; create a new listing or match an existing one. If this is the first time the product is being sold then you need to create a new listing. If someone is selling the same product, then match the existing listing. With an individual plan, you need to list products one at a time. Listing your products on Amazon will ensure it is visible to both the B2B and B2C customers.
When you list a product on Amazon, make sure that you write your own product descriptions. The descriptions you find on AliExpress aren’t written properly and so using them on Amazon isn’t a good option if you want to ensure you sell successfully. The product descriptions you write can ensure sales and help you stand apart from the other sellers if you are also selling similar products. When writing product descriptions, make sure that you write about the product benefits.
One of the challenges of selling on Amazon by first purchasing from AliExpress is the delivery time. Products you buy from AliExpress can take a long time to arrive. And so if you are getting them shipped to your customers, it is a good idea to mention the shipping and delivery times accordingly. Amazon is known for quick shipping and so you don’t want to lose customers because the orders come in late. Always mention the delivery times beforehand so your customers are aware of the shipping and delivery times.
This can take some practicing because you need to test out which products are doing well and getting your re-orders. This testing phase might take some time but it is well worth it because it will show you which products are worth your time and which aren’t from AliExpress. Be ready for some challenges because they can occur in your process of dropshipping and selling on Amazon. You want to make sure you keep an open mind and keep working hard so you can do well by selling on Amazon.
Dropshipping from AliExpress and selling on Amazon is a great way for beginners to make serious money. However, make sure that you keep the tips above in mind to ensure you are making profits and your customers are satisfied. While it can be tricky at the beginning, it won’t take long for you to get the hang of it and do well by dropshipping from AliExpress and selling on Amazon. Are you ready to start your business with dropshipping? What are you planning to sell?