AliExpress has been one of the most, if not the most, popular platforms for dropshippers to source their products and suppliers in recent years. Although it does provide some advantages, many dropshippers, especially those with medium and large numbers of daily orders, are discouraged by its limitations.
Let us first explore some disadvantages of using AliExpress.
Firstly, dropshippers have little control over what is going on behind the scenes due to limited interactions between them and the suppliers on AliExpress, potentially leading to inconsistent quality of products. Besides, many AliExpress sellers are themselves dropshippers, which might result in higher costs of goods sold and lower profit margin for you. Since there are limitations to what can be communicated between two the main parties, the process would be lengthened and involve more complications. For instance, there are more challenges in reaching agreements in terms of product requirements and shipping times. It might also be hard for them to provide you additional services such as branded packages and quality control, especially when they need to facilitate a large number of orders from various dropshippers. Furthermore, since this platform has a designated section for best selling products, your winning products can be revealed if you order them predominantly on AliExpress. In worst cases, as more people retail those products, their price becomes so low that you can no longer make a profit from them. You then would have to dedicate additional efforts and resources to find new items, or even niches. Most importantly, AliExpress is not suitable for mid-sized and above dropshipping since you need to fulfill the orders manually and individually.
As a result, many experienced dropshippers choose to work with dropshipping agents to expand their business.
In addition to overcoming the drawbacks of AliExpress, you would also enjoy additional benefits when working with a trusted dropshipping agent. Firstly, in most cases, since dropshipping agents work directly with suppliers, your product catalogue is not finite. If you come across a product when browsing the Internet and find it interesting and possibly profitable, your agents can help you source a suitable supplier that meets your requirements. Additionally, this means there are little to no hidden fees and costs, allowing you to have a higher profit margin. With additional services that many dropshipping agents offer such as storage, fulfillment, and quality inspection, you would be able to improve customer satisfaction thanks to many other factors, such as faster shipping time and consistent product quality. If you want to better safeguard your business and gain more trust from your customers, they will also help you to obtain product certification. Last but not least, dropshipping agents usually integrate some software in the operation so that most steps are automated. This would also save you some resources such as time and from the trouble of hiring Virtual Assistants (VAs). As a result, you can dedicate more efforts to other aspects of the business such as front-end development.
Now moving on to the question of what kind of dropshipping agents you should work with.
You are convinced that partnering with a dropshipping agent is a good idea. The next question is who you should work with to bring your business to its maximum potential. In general, there are two types of dropshipping agency services that you can choose from. On one hand, you can work with big companies such as CJDropshipping and Oberlo, who are able to fulfill your basic needs as a dropshipper (most listed above). On the other hand, you might opt for private ones, which offers you certain advantages over the afore-mentioned. First of all, since they operate on a smaller scale, you would have the opportunities to work with your own dedicated account managers. By establishing close long-term relationships, they know your business better, thus being able to provide you with personalized advice about their services, products, and suppliers as well as some strategies that can be implemented to boost your sales. This also helps you to better keep track of your business progress and any updates and disruptions in the industry as the managers are usually well-versed in dropshipping-related matters. As a result, the sourcing and fulfillment process would be more efficient.
With over 30 years of logistics experience, Xianchao Logistics began to branch out to serve the dropshipping industry in 2015. With our experience in logistics fulfilment and close relationships with suppliers, our company has risen to help different dropshippers grow their businesses over these years. We believe that our company’s success and growth will only come with helping our clients grow. Do you have a dropshipping business to grow? Discuss with us and let’s get started ASAP!
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