What is Dropshipping?
Le Dropshipping is a business model E-commerce where the customer places an order on the distributor's website, which transmits it to the supplier for the latter to ensure delivery and manage stocks.
Dropshipping is a great way to start an online store. It is the preferred choice of many entrepreneurs in e-commerce who don't want to indulge in the intricacies of inventory and shipping management.
How To Make Money From Dropshipphing?
The earnings come from the difference between the purchase price and the resale price. So, if you want to increase your profits, you can increase your prices as far as is reasonable for your customers. Or, you can negotiate a lower purchase price.
We are now going to share with you some tips to increase your profits in Dropshipping with AliExpress.
Here are two tips to increase your Dropshipping Profits on Aliexpress.
Cashback (AliExpress affiliation)
This is the most popular way to reduce the cost of Dropshipping in AliExpress.
Affiliation AliExpress is similar to other affiliate programs. A special link to AliExpress products is provided to you for you to place orders through this link to earn commission on each product sold.
Commission rates vary according to the types of products. The average commission rate is around 5%, some promoted products even pay up to 50% commission on each sale.
So your actual cost will be the purchase price minus the commission.
For example, if you buy an item for your customer on AliExpress for $ 10 and get an 8% commission on AliExpress, your actual cost will be 10,00 - 0,80 = $ 9,20. The commission will be your extra profit!
Get a VIP price
We have introduced AliExpress Affiliate, but sometimes you will find that there is no commission paid even when purchasing through the affiliate link.
Why ? Because the commission is paid by the AliExpress sellers and not by the AliExpress company itself. So you won't get any commissions if the sellers haven't joined the affiliate program.
If your product does not benefit from the affiliate program, it is time to contact your supplier to negotiate a low purchase price and therefore reduce your costs. Usually, the supplier will post a special product with a discounted price on their store. Then you can directly order this product for your customers.
Did you know these tips? Try them out and earn more money!