What Is AliExpress Dropshipping?

Dropshipping is a business model that helps entrepreneurs to start an online business and sell products to their customers without actually shipping the items themselves.

But it’s not a new business model.

Huge companies like Amazon, Sears, and Zappos have all been using this business model for a while in their early years.

And it’s not just the major companies that use dropshipping to launch an online company — an estimated 33% of the entire e-commerce industry uses dropshipping as their primary inventory management model.

Dropshipping is a model that has some very obvious benefits, such as not having an inventory, which enables entrepreneurs to concentrate more on important items, such as attracting new customers and scaling up their businesses.

What Is Dropshipping?, How Dropshipping Works

At this point, you might be wondering, how does dropshipping work?

Maybe you’ve heard the term before, or maybe it’s your first time you’ve heard the concept — don’t worry, it’s easy to understand.

Essentially, dropshipping is a business model that allows entrepreneurs to start an e-commerce store without any stock inventories — drop-shipping entrepreneurs will have suppliers who store their products in their warehouses until they make a sale.

If drop-shipping companies make a deal, they will need to contact their supplier, who will then send their goods directly to their buyers at the front door.

Benefits of AliExpress Dropshipping

Dropshipping is a business model that offers entrepreneurs a number of advantages, particularly when they are looking to start an online business.

• You control your margins — you are not bound by the proposed retail price (MSRP) and you can choose your retail price on your own.
• You don’t need to be an existing business entity before you start your store (although you’ll need one as you grow up).
• You have access to a catalog of millions of products that you can add to your store through Oberlo using AliExpress dropshipping.