With ever-increasing feasibilities for carrying out businesses, the process of dropshipping has been becoming increasingly popular.
If you are planning to start a dropshipping business and are searching for the right platform for that, Alibaba.com is one of the most popular sites to go for. The Alibaba Group, through its various sites, offers dropshipping opportunities to its users.
This post aims to provide you a complete guideline of what the process exactly is and how to execute it on the group’s flagship site, Alibaba.com.
What is Dropshipping?
Dropshipping is a supply chain model in which the retailer does not keep the inventory in stock. Rather, the retailer sends the customer’s order to the dropshipping supplier (wholesaler, or a manufacturer) who then ships the order directly to the customer on the retailer’s behalf.
How do I set up Dropshipping on Alibaba.com?
Alibaba.com is an ideal platform to set up your dropshipping business.
All you have to do is:
- Chose a niche product
- Search the product on Alibaba.com
- Search for suppliers and select one (supplier selection process can be understood in detail through this post)
- Order a sample
- Negotiate price
- Get product drop-shipped to the customer
Alibaba.com has also started offering wholesale prices. Moreover, it has removed restrictions on where and how to sell products. This means that buyers now have the liberty to list their items on other e-commerce sites as well.
Who is Dropshipping on Alibaba.com for?
Since Alibaba.com has a business to business model, dropshipping on the platform is practiced on a corporate level. The majority of the suppliers are wholesale suppliers and the general expectation is to sell in bulk.
For those looking to buy in small amounts, dropshipping on Alibaba.com might not be a suitable option. This is because the wholesale suppliers charge much higher prices for smaller quantities and price relaxation is offered only for bulk amounts.
This explains that a successful drop shipment business on Alibaba.com would likely be one that connects two businesses.
Alibaba.com vs AliExpress for dropshipping:
While Alibaba.com is a popular choice for drop shipping, AliExpress is also widely used for the same purpose.
However, there is a difference between their business models. While Aliababa.com follows a business to business model, AliExpress follows a business to consumer model.
This difference means that two are targeting a different customer base. (For detailed general comparison between Alibaba.com and AliExpress, read this post.)
|Dropshipping on Alibaba.com||Dropshipping on AliExpress|
|Other businesses act as customers.|
The end customers directly act as clients.
Has a minimum order quantity requirement – typically, dropshipping is carried out for bulk amounts here.
No minimum order quantity requirement – can get products ordered for individual use.
Fewer payment options – payment methods here are suited for large sums of money.
Fast payment methods including credit and debit card, PayPal, AliPay.
Shipping cost on Alibaba.com is higher because of the absence of ePacket shipping.
Shipping cost is regulated, and also offers money-back guarantee and refund policy.
Alibaba.com has no such platform.
AliExpress has its own drop shipping platform called “Alidropship.” You have the option to buy a dropshipping business or buy the Alidropship plugin.
Depending on the type of e-commerce store you run, you can determine which site would be the best to smoothly execute drop shipping.
Benefits of Dropshipping on Alibaba.com:
Alibaba.com allows businesses to negotiate prices with the suppliers through the “Negotiate with the Supplier” section. This facilitates businesses to get satisfactory outcomes.
- Low Startup Cost:
A dropshipping business on Alibaba.com does not require a large amount of capital. All that you need is a domain and an account on Alibaba.com.
Alibaba.com has over 20 million products. It’s very likely that you will be able to find the product of your choice. Also, due to the diverse range of suppliers available, the possibilities are endless. This means that a drop shipping business has the option to provide services for a range of product categories instead of focusing on just one.
It is obvious that the services of a dropshipping business rely heavily on the supplier they have. Instead of digging the internet searching for reliable suppliers, the easier approach is choosing the right platform to cater to your requirements.
This is what makes Alibaba.com one of the most popular and important sites facilitating dropshipping. Where else would you want to search for the most reliable suppliers other than one of the largest e-commerce site! To learn more about starting a business at Alibaba.com, enroll in this course offered by Airschool right away!