Are you making any of these six Aliexpress Dropshipping mistakes? Read on to find out…
It’s no secret that Dropshipping is one of the best, ‘newbie proof’ methods to selling physical products.
But even with such a low-risk, low cost business model, there are certain mistakes new sellers tend to make that cause them to lose money or fail in dropshipping.
These mistakes can you to lose money, put off new and existing customers, and ultimately sabotage your chances of increasing your store’s sales and income.
And that is why in this article, we are going to explain the six common mistakes that new sellers make when starting a Dropshipping store.
It’s important to avoid these six mistakes, as they may be a big reason why you might be struggling to make any sales in your store, or haven’t found a profitable niche or product yet.
Not only will these six mistakes make you aware of the common pitfalls dropshippers usually fall into, but you’ll gain useful insights on what NOT to do in your dropshipping business.
Mistake #1: Not Buying From Reputable Sellers
When you are dropshipping from Aliexpress, you should always look for suppliers that have a proven track record and excellent reviews.
One way to find these suppliers on Aliexpress is by setting your search preferences to only list suppliers who have a good ‘seller rating,’ and receive the most daily customer orders.
For example, if you searched ‘dog toys’ in the search bar, in the ‘Sort by’ section above the listings, click the ‘Seller rating’ button, and then the ‘Orders’ button.
Now your search will list suppliers based on the highest rating scores and the number of items a supplier has fulfilled within a given time period.
This simple yet effective ‘hack’ can help you to easily find Aliexpress suppliers who have the highest number of customer orders, while also maintaining a four-star seller rating (from previous buyer experiences).
Working with reputable suppliers means that you can trust them to send orders out on time, which equally keeps your customers happy and satisfied with your service.
And it also means customers are generally happy with the quality of their item, which is an indicator that you are dropshipping a good item… without having to purchase it first!
Mistake #2: Not Talking to Your Suppliers
When it comes to making a profit, sellers tend to forget that suppliers play a big part in how much money you ultimately make, spend, lose etc.
So if you want to reap the most reward out of your supplier relationships… then you need negotiate, negotiate, negotiate!
And there is no limit to what you negotiate… it could be for a bigger discount, faster delivery, or even free shipping.
Whatever it is you are negotiating, understand that you will never have a greater capacity for bargaining than before the deal is made.
Suppliers are not created equally, so you never know how much MORE you could get from a deal with a little bit of negotiation.
Mistake #3: Creating a General Store and Selling Everything
People prefer to build a general store over a niche-specific store.
After all, with a large variety of items to choose, there’s now more of a chance to make a sale, right?
Well, not quite. Though it may sound reasonable, selling too many products could actually sabotage your opportunity to turn visitors into happy customers.
Why? Because when customers have too many options thrown at them at once, they become ‘paralyzed’ in their ability to choose what to buy.
Because here is the thing… choice is a double-edged sword. Meaning that listing several items in your store gives customers more options of what to buy…
… But also creates MORE distractions for the customer, so choosing what to buy ends up feeling a lot harder than it should.
So if customers are bombarded with other items that they don’t want or have no interest in, they will likely be put off and ‘bounce’ from your store without buying anything. This means that your conversion rates will drop and you also miss out on any potential sales.
With a niche store, the goal is to sell niche-related items. That way when someone interested in that niche visits your store, they will see EXACTLY what they want to buy, and feel compelled to purchase it right now.
Focusing on one specific niche also gives you the advantage of building a brand for your store.
Because unlike general stores, focusing on one niche means that things like your domain, your store name and logo, and even your website theme and colour scheme can all fit perfectly around your niche.
The point here is to not worry about appealing to everybody. Instead, build a store that attracts a specific audience.
Mistake #4: Going After the ‘Bestsellers’
Choosing popular items that already make hundreds of sales seems like the obvious way to find and sell a profitable product.
But the truth is, picking products to sell from a best seller list doesn’t work for everyone, and shouldn’t be used as a strategy to find products to sell.
A best seller list should be used as a tool to help you find a profitable niche, instead of finding an actual product to sell.
Finding a profitable niche or product requires a lot more research, instead of simply relying on what’s hot on the bestseller list.
If you want to learn how to find a ‘winning’ product, read this article here that shows you exactly what determines a profitable product to sell.
Mistake #5: Not Focusing on Repeat Customers
Most sellers don’t realise they are literally leaving money on the table by ignoring their existing customers.
The truth is, your best customers are always your previous customers, and your best leads are always the ones you already have.
By simply promoting other items in your store to existing customers, you can dramatically increase the profit you make from a single customer.
For example, the average advertising spend for McDonalds is $1.91. So if you purchased a burger for $2.08, they only make a small amount of $0.18.
But when McDonald’s sell you fries and a drink for $1.50 more, they now make $1.68 in revenue. That is a 900% increase with only ONE customer!
If they wanted to make the same amount of money, but this time through new customers, they would need 9 in total!
The lesson here is it’s a lot easier to increase your revenue and profits by upselling to existing customers, rather than focusing on acquiring new customers through advertising.
When setting up your Shopify store, focus on creating a funnel that upsells customers to items similar to what they have initially purchased.
For example, if they purchase a cat coffee mug, you could upsell them to some cat coffee spoons that complement the mug they already bought.
By doing this, you greatly increase the average order value for each customer, which equally increases your profit margin (without having to invest money into paid advertising).
Mistake #6: Not Letting the Market Dictate What You Sell
There are lots of tools at your disposal which will help you pick the right items to sell.
You have the Google Keyword Research Tool which will tell you which keywords or phrases that people are searching for.
And you have the Facebook Audience Insights tool that shows people’s purchasing behaviour, what pages they like and gives you insights into the types of demographics you can target.
Use these tools to help you identify items that people want to purchase. Don’t try to guess what is selling. You don’t want to set yourself up for a disaster when you realise what you thought would sell turns out not to!
The Bottom Line
Take a look at each mistake outlined in this article, and then ask yourself if you are currently making any of them in your store.
It’s always good to be aware of what is sabotaging your ability to make more money in your store, because you now have the power to fix that problem, rather than being completely unaware of what is holding back your store from success.