Alibaba is a less of a manufacturer to consumer online platform, moreover, the platform focuses on a business-to-business model. Alibaba is currently the largest online multinational company working across the globe. Dropshipping with Alibaba has also a witnessed a growing graph since the last few years.
Founded by Jack Ma in the year 1999 with pretty less knowledge of coding and business industry nonetheless, today Alibaba has over 755 million active users working with each other on this China-based e-commerce application.
Alibaba not only works like a shopping and selling site but also has a reach to almost each and every niche of business.
Alibaba also owns
Taobao – China’s largest shopping website
Alipay.com – Works like PayPal in China
Tmall – A Chinese shopping website for the emerging middle class of the country.
AliExpress – All the countries of the world can buy products from Chinese manufacturers and wholesalers by using Alibaba dropship.
However, these are the few of the many business models owned by Alibaba.
How does dropshipping work?
Post pictures of the products on the e-commerce site. The sellers are expected to give the customers all the detailed information about the product and its use.
For example, if you are running an account for clothing than the colour options available, the different sizes, delivery options and the payment options should be clear.
- Customers go through the various options than the customers place their order and also pay for it.
- Undoubtedly, every dropshipper has one or many suppliers for the product that he/she sells online. After the order is placed, the seller will contact the supplier who has the inventory where he stocks or produces the products.
- Nonetheless, Either the supplier can place an order as same as his customer or buy the same product from the supplier.
- Then the supplier delivers the product to the customer according to the given information i.e. address, by the seller.
- Once the product reaches the customer the process of dropshipping the product is complete.
Is dropshipping business risky?
If you are a newbie to business or someone who already understands and owns a business, dropshipping is still the best option to make money with minimal investment.
Pros of dropshipping
- You can do it as a part-time business with your other activities.
- There is less investment as compared to other start-up businesses.
- You can reach all over the world with your products.
- There are immense profit margins with less man work.
- You can run the business from any part of the world.
Cons of dropshipping
- It is difficult to get hold of good and reliable suppliers.
- Building rapport and trust with the customers is a difficult task.
- To compete with the already leading dropshippers.
- Customer service is hampered with supplier and inventory management issues.
How does dropshipping on Alibaba work?
Dropshipping on Alibaba is known as AliDropship. With AliDropship, the sellers benefit from the various amenities given to each seller.
There is also something called AliExpress offered by Alibaba. AliExpress is a traditional model of dropshipping but AliDropship offers you
- Specialist Services
- Better Software
- Various marketing options
- Variety of options to manage the dropshipping business
Let’s know more about dropshipping on Alibaba.
How can you launch your AliDropship business?
A few things you need to take care of before launching dropshipping business.
- Knowledge about the dropshipping industry
- Computer and stable internet connection
- Good supplier connections
- A Domain name, website and WordPress
- Marketing Strategy
Knowledge About the Dropshipping Industry
Firstly, you should have proper study and analysis of the industry that you are stepping into. Dropshipping might be a good business with less investment but it can prove dangerous if one does not have the proper information about the industry.
Indeed, you will learn more with experience in the industry but having a foundation about all the important aspects.
Computer and a Stable Internet connection
As all the process of this business is online, having a computer or a laptop with a stable internet connection is essential.
- Receiving orders
- Receiving Payments
- Ordering the Supplier
- Tracking the order when dispatched from supplier
- Customer reviews
All these processes need a stable internet connection. Dropshipping revolves around the world of the internet.
Decide your niche before starting your business.Along with this, study all the various niches that people are working on. Furthermore, you have to decide a niche for yourself.
The niche should be interesting to you as well as your customers for your business to keep running.
Good Supplier Connections
Once you have decided on your niche. You have to decide and set up a good supplier network for your business.
- Supplier details
- Their supplying/Delivering options
- Packaging process
- Product Quality
- Product variety
All these things should be taken care of.
A Domain name, Website and WordPress
Without a doubt, you’ll need a name for your domain that’s related to your niche or store, a pre-paid provider hosting on the web to activate your store so it can go live online, and a website.
Firthermore, the website can be turned to a fully-fledged dropshipping store, which you can create yourself, or order customized products by dropshipping experts. A WordPress system is necessary to help you arrange your website, plus it’s really easy to use.
Unquestionably, It is very important to manage your account efficiently.
- Keep the customers engaged
- Catchy advertisements
- Good discounts for festivals
- Reply to customer’s queries and problems
- Noticeable online presence
Finally, with all these elements you will be set to dropship on Alibaba.
I hope this article is helpful to you and you will make the best of all the information provided.