In recent years, AliExpress dropshipping took the online world by storm with a record number of successful online businesses set up by digital entrepreneurs without even the need to leave the comfort of their homes. With that in mind, the very first thing that comes to mind — is dropshipping still alive? Sourcing Nova believes it is. Or, has it become completely saturated and should be avoided by any prospective online entrepreneurs?
As with all business models, sooner or later they become outdated. The use of technology further exacerbates this process. As was remarked by one clever commentator: “Technology is a double-edged sword”. It furthers innovation at the cost of eradicating old ways of doing things. Search Engine Optimization (SEO) is a prime example: 10 years ago it was a walk in the park. Nowadays, with Google releasing updates almost daily, old ways of ranking websites have become largely obsolete. Same goes with Cost Per Click methods such as Google AdSense, which have been largely replaced with targeted advertisement.
Oftentimes, by the time you hear about something, it is too late. Does crypto ring a bell? Is this the case with dropshipping? Taking all of the speculation aside, let’s have a look at the raw data. One good indicator would be to check how AliExpress dropshipping is trending on Google.
Here, Google Trends for the keyword “aliexpress dropshipping” clearly indicates no sign of slowing down even in the slightest. Perhaps this is due to the fact that AliExpress become more well known.
This goes to show that whilst dropshipping started off as a relatively niche business model, closely tied to the notion of buying from AliExpress and re-selling at a mark-up, piggy-backing from AliExpress hype and popularity, in 2019 it stood as it own great entity.
How Viable Is the Shopify Dropshipping Business Model?
This is the next question that needs to be answered. The attractiveness of the dropshipping business model is an obvious one. Find a Chinese manufacturer/supplier that’s sitting on piles upon piles of cheap, unsold goods, eager to sell them. Connect that supplier with high-income, trigger-happy Western consumers that are eager to buy. Pocket the difference — simple.
It’s not all sunshine and rainbows, however. This business model has its drawbacks as well; some of the major ones include:
- Long shipping
- Bad customer support
- Product quality
- Supplier unprofessionalism
- Difficult refund process
Traditional businesses always put customers first. A phrase coined by a prominent British marketeer Harry Gordon Selfridge comes to mind: “The customer is always right”. Dropshippers, on the other hand, oftentimes neglect their customers, focusing on profits instead. This is why all these gurus on YouTube are selling courses and showing off how their 6-figure-a-month income happened, and yet none of their stores are currently open. They don’t focus on long-term customer satisfaction. With typically only one sale per customer and without many returning customers, they will have profits in the short term, but will never have any sort of sustainable growth in the long term.
Is AliExpress Dropshipping Dead?
This question remains controversial. A simple Google search will reveal an amplitude of Reddit, Quora and other Q&A forums that are filled with vocal discussions on this topic. This goes to show even further that dropshipping is going as strong as ever!
This makes a lot of sense. Why would the idea of buying something for cheap and selling it at a mark-up be dead? Did China suddenly close its borders, ceasing all exports? With that in mind, it wouldn’t be too crazy to say that dropshipping will never die. The concept is a sound one; the issue is the competition. For this reason, dropshipping ought to be treated as a real business. If your business puts customers first, treats them with respect and provides value, then there is no reason why you shouldn’t succeed in dropshipping. For instance, take a look at stores like InspireUpLift, Bluecrate and Wish. These dropshipping stores have been around for years and are still thriving.
It’s as great of a time as ever to start an AliExpress dropshipping business, for the following key reasons:
- The age of ecommerce is upon us; ecommerce is thriving
- Online payments are widespread and frequent
- The concept of Shopify dropshipping is widespread and merchants are on board with it
- Small upfront cost
Staying Ahead of Competition with the Use of Ecommerce Tools, Dropshipping Tools and Dropshipping Software for the Product Analysis
There is nothing more natural in the business world than the competition. The competitiveness of the Shopify dropshipping industry is a strong indicator of growth and innovation, without which the industry should go stale. It is more important than ever to do your research efficiently and correctly in order to ensure that you have the upper hand.
With the vast amounts of products being added daily to platforms like AliExpress, Amazon and Ebay, it is almost impossible to keep up with all of the latest trends. With that in mind, product research and marketing tools like SaleSource aren’t just handy, they’re indispensable. Competitive market research is an absolute key to success in Shopify dropshipping and knowing what your competitors are up to can make a difference between a successful business that’s able to keep up with the demands of its sector and an unsuccessful one that fails to keep up with the pace and innovate.
SaleSource allows you to identify the most reliable online suppliers, ensuring that your goods aren’t damaged and that your customers get them on time. You can acquire factory pricing where you can buy goods from AliExpress without the retail markup, therefore improving your margins. Their comprehensive product analysis lets you weed out products that will waste your time and money, allowing you to focus on the winners.
Final Words
AliExpress dropshipping isn’t dead and remains a lucrative business model for those interested in making money in the comfort of their own homes. The only thing that’s changed is the amount of competition. Trying to trick the system by taking advantage of people and their lack of knowledge is dead. On the other hand, building a long-term business which provides real value to its customers is very much alive and will never die.
