What are the Pros and Cons of Dropshipping from Aliexpress to Amazon?

 People see a lot of success when it comes to selling products on Amazon and the success stories are too hard to ignore.

 

Dropshipping is a strategy involved in selling products without having the need to buy the inventory in advance. How it works for drop shippers is, they find the product that they want to sell directly from the suppliers, vendors, and other distributors. Those items will be listed on Aliexpress or Amazon. When a customer purchases a product, the seller will buy the product from the supplier and will ship it directly to the customer.

 

Aliexpress and Amazon are considered to be the top platforms for dropshipping, and they tend to attract a good amount of people. Making use of the connection between Aliexpress and Amazon, people can explore different methods to develop their business, such as dropship from Aliexpress to Amazon.

 

Now coming to the topic, we shall look into the pros and cons of Dropshipping from Aliexpress to Amazon. 

PROS:

It is totally undeniable that dropshipping is amazing. There are thousands of entrepreneurs around the globe (mostly in Europe and Amazon) who think dropshipping is the future of business. Here's why it looks so.

 

1. Startup Costs

You will not need to shell out money to start with, considering the popularity of Aliexpress and Amazon. When it comes to retailing, it will not cost you much to set up a store, make a purchase, or maintain an inventory. To drop ship from Aliexpress to Amazon, you will need to purchase a domain and have a plan. 

 

2. Less Risk

If your plan does not go as per your liking and your business fails, you will not have much to lose, and you need not worry about the risk of losing money. With retailing, you will lose all the investment you have in your inventory. With dropshipping, you can only pay when you get an order from a customer. Also, if you have a product in a showcase that does not sell, just get rid of it and replace it with some other product with no difference in cost. You can keep trying on products to find out which works for you.

 

3. Location Flexibility

For dropshipping, you do not need a store with four walls. You can run your business from anywhere and all you need is the internet and a computer.

 

4. Inventory

Having and then maintaining an inventory can cost you a lot, but it is required if you want to sell more products at a single time. For retail, you have to get a certain amount of stock to meet the wholesale price. Only then profits can be made. Now think if you are selling many products in one go, each will bring you to a stock value of $500 and then get a reasonable retail price. The cost of inventory can easily double up thanks to dropshipping.

 

CONS:

Few ill-effects always tend to occur with everything that is extremely good. When you choose to dropship from Aliexpress to Amazon, there are always obstacles along the way to becoming a successful business model. Here are the Cons of dropshipping from Aliexpress to Amazon.

 

1. Competition

Dropshipping is no longer a new concept and it has been since the age of the dawn of the internet. There are already a lot of drop shipping entrepreneurs who are operating. You are bound to have some serious competition when it comes to dropshipping from Aliexpress to Amazon. If low startup costs make it easy for you, it is easy for everyone else. Because there are a lot of people in the dropshipping game, branding matters to form a successful dropshipping. Most of the drop shippers don't even bother to brand themselves, so making a brand will build a strong core for your dropshipping business and can easily stand out.

 

2. Lack of control

One of the biggest disadvantages is that you will not have much control over your suppliers and the delivery process. On the contrary, you have to be dependent on them and trust them to deliver the product through Amazon on time. This comes under the product quality. You will also need to know about the policies and reviews of Aliexpress to take note of their professionalism. It can cause havoc if the supplier scammed you, and you will be blamed by the customer.

 

3. Shipping Time

When you dropship with Aliexpress, the product will come all the way from China and the delivery can easily take a month or two. You can allow the supplier to ship from FedEx or DHL for faster delivery, but it can be costly. Make sure to know the delivery time and the cost and the time duration for delivery.

 

4. Low Profit

You can sell a product at a high margin, but only when the market is crowded. There are many competitors who offer the same product, thus making everyone lower the profit to become competitive and get back in the game. Now with ads and cookies, it is much easier for the user to find the same product from different sellers. If your price is high, you are out of the game and will also lose credibility. 

 

5. Bad Return Or Refund Process

When the customer gets a product of bad quality and demands a return, it's highly impossible to send the product all the way to China and get a replacement. Quality issues are bound to happen the most when you dropship from Aliexpress to Amazon. The quality of the product is not intentional. Have a clear idea about the refund and the return policies to manage the crisis under such scenarios.