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Home > Blogs > eCommerce Seller Resources > How to set up your AliExpress dropshipping business
Discover the essential steps to launch and grow your AliExpress dropshipping business
Key takeaways
Importing from China can be a good opportunity for e-commerce businesses to source goods at reduced costs.
But what if you don’t have the upfront capital for bulk orders or storage space for wholesale stock? That’s where dropshipping comes in.
While there are several ways and platforms to dropship from, we explore how to dropship from AliExpress in this in-depth guide. Keep reading to learn more.
AliExpress is a global retail marketplace based in China. It was founded in 2010 by Alibaba, the Chinese multinational company that also owns Alibaba.com, Tmall, Taobao and various other subsidiaries. Businesses located in China list their products on AliExpress to reach a global customer base.
While customers can directly buy products from AliExpress, marketplace sellers in Australia and other countries can use AliExpress to dropship products.
AliExpress dropshipping is a retail fulfillment method where you don’t keep an inventory of the products you sell. When a customer places an order, you purchase the product from an AliExpress dropshipper who is then responsible for packing and shipping the product directly to the customer.
You act as the main storefront that customers can visit and place orders from. You charge the customer and the AliExpress dropshipper charges you.
Your profit = What you charge the customer
If you are listing dropshipped products on marketplaces, you must be aware of each marketplace’s dropshipping rules before you list your products.
For instance, this is Amazon Australia’s dropshipping policy:
To become a dropshipper selling on Amazon AU, you need to:
Some of the main advantages of dropshipping from AliExpress include:
Cost-effective: Many AliExpress sellers are wholesalers or distributors, offering products at cost-effective prices. Dropshipping also involves a small upfront expenditure since you don’t need to order bulk products in advance and maintain inventory.
Wide range of products: You can easily find unique products on AliExpress that align with the needs of your target customers. Trending products appear quickly on AliExpress due to China’s streamlined manufacturing sector. If you have recently seen viral products on TikTok or Instagram, there is a big chance you will find them on AliExpress.
Experienced and reliable suppliers: AliExpress sellers have experience in handling global dropshipping. They are already aware of the international shipping guidelines and dropshipping policies of different marketplaces. Of course, you need to ensure you are partnering with reliable suppliers that have previous experience and positive reviews on AliExpress.
No minimum order requirements: There is no MOQ for dropshipping from AliExpress. You can even place an order for a single product to get dropshipped to your customers directly.
There can also be some drawbacks of dropshipping from AliExpress
Longer shipping time: Shipping from China can take 5-15 days, depending on your customers’ locations. You can choose a faster shipping option, but it can be more expensive and decrease your margins.
Language barrier: Since most product suppliers on AliExpress are based in China, they may only have a basic understanding of English which could lead to communication issues. Although, this can be easily rectified by hiring an interpreter or using a translator.
Currency conversion costs: When you have a dropshipping agent in China and customers across multiple countries, currency conversion costs can quickly stack up and affect your profit margins.
AliExpress has a dedicated section where you can find products available for dropshipping.
Start by looking for products that are high in demand. You can check how many orders have been placed for those products recently or sort the products based on their price and number of sales
Other than that, here are a few other platforms that can help you find popular products to dropship:
After you have found the products you want to dropship, open the product page to learn about the supplier.
Oftentimes, you will find multiple suppliers selling the same product.
While pricing is not the only factor, it is an important factor to consider when dropshipping because your margins are already very low.
Go to Amazon to check how the other sellers are pricing the same product. To remain competitive, you will have to price your product within the same range.
The pricing offered by AliExpress suppliers should be low enough to give you a healthy profit margin (Make sure to factor in other marketing expenses like listing fees and advertising fees). You can also negotiate with suppliers to get the right price for products.
But remember: Just because a supplier offers products at a lower price doesn’t mean they can provide good quality.
Look through the reviews for the product and supplier. You can also buy a sample product to check the quality yourself before you finalise the supplier.
You can use your own website, platforms like Shopify, BigCommerce, and Wix, or plugins like Woocommerce that offer dropshipping integration options.
By integrating your online store with your AliExpress account, you can sync product details and automatically send orders from the store to your AliExpress supplier. Once the products are shipped, you can also share the shipping details with your customers.
If you are listing products on a marketplace like Amazon or eBay, you will have to handle everything manually.
Just going live with your online store is not enough. You need to market your products constantly to increase sales.
Many marketplace sellers drive traffic with a combination of paid and organic marketing tactics.
Paid channels include:
Organic marketing strategies include:
If you don’t use a connected app for dropshipping, you’ll need to monitor orders as they come in and create AliExpress orders manually. In principle, this is a simple process:
Most e-commerce platforms let you track site visits, sales and other stats via your dashboard. You can also use tools like SEMrush and Google Analytics to keep tabs on key performance indicators (KPIs). Track your sales over time and adjust the AliExpress-sourced products you offer to take advantage of seasonal and consumer trends.
When deciding on the best product to source from AliExpress, it’s worth checking through their product categories. Once you’ve chosen your category and the product you want to resell from AliExpress, there are a few points you’ll need to consider:
Branded products: As a dropshipper and reseller, you should not sell products with any brands and logos to avoid infringing on another company’s intellectual property – unless you’re looking to be a licensed reseller. However, being a licensed reseller will impact your margins and overall profitability.
ePacket delivery: Third-party logistics providers can help support faster shipping from local manufacturers in China and Hong Kong to your customers. This is important to consider when choosing a seller on AliExpress, as some sellers offer ePacket shipping and others don’t. It’s best to pick a seller who does, so your products can be shipped more quickly to customers in the US and Europe with local distributors such as UPS, Canada Post and Royal Mail.
Ranking and sales: Pick products that have 4.5-star ratings or higher and choose from sellers who have positive customer reviews. For more insights into the seller, use third-party tools such as AliExpress Seller Check. Additionally, you’ll want to check the number of sales the seller has made. If the seller has sold to many other customers, you’ll know that there’s demand for their product and possibly repeat orders.
Difference in price: Price will always determine what your overall profit margin will be. When looking at a product on AliExpress, check how much the seller has it listed for. Then cross-check the same product on marketplaces such as Amazon. You’ll then be able to determine the average sale price of the product and the overall profit margin you may receive when you start to sell.
Product details: Order the product yourself so you have first-hand knowledge of the customer experience. You’ll be able to see shipping times, whether the product is high quality, how it’s packaged and how to use it. This will help you understand any issues if customers have negative feedback later. You can also ask the seller for additional information before you place an order with them.
Business bank account: On AliExpress, you can choose to purchase products in a selection of specific currencies, including Dollars, Pounds and Euros. On the site, you can configure the currency you want to make purchases in and the price of all items will be displayed in that currency. Many AliExpress sellers will mark up goods in international currencies. You can negotiate and purchase the goods in currencies such as USD or CNH. To do this, you must have an international business bank account with the ability to store funds and payout in multiple currencies.
The best items to dropship from AliExpress are lightweight, easy to ship, and have a proven track record of demand. Ideally, they should also offer good profit margins while appealing to your target audience.
If you already have an online store, start by choosing products your audience is likely to buy. If not, AliExpress has a ‘Winning Products’ section where you can discover trending items, complete with sales data. But remember: if you enter too late, competition may already be fierce.
Here are some of the current trending products to dropship from AliExpress:
Beyond specific items, here are some product categories consistently perform well for dropshippers:
Compact projectors, wireless earbuds, phone accessories, and smartwatches are hot sellers. They’re low-cost, high-demand, and always in style.
Jewelry, watches, sunglasses, and handbags are inexpensive to source and easy to ship, making them staples of AliExpress wholesale dropshipping.
Nail kits, skincare tools, and hair accessories see steady demand. Many customers are happy to try affordable alternatives before committing to premium brands.
Pet grooming kits, toys, and feeding accessories are high-margin and appeal to a passionate customer base.
Compact storage solutions, wall art, and multipurpose tools have global demand, especially among younger consumers decorating their first homes.
One of the biggest advantages of AliExpress dropshipping is that it’s free to use. Unlike some wholesale marketplaces or supplier directories that charge monthly subscription fees, AliExpress allows you to browse and connect with suppliers at no cost.
Of course, there are operational costs:
Compared to traditional retail, the startup investment is minimal. This makes AliExpress dropshipping a low-risk option for new entrepreneurs.
If you have been wondering, can I dropship from AliExpress to Amazon, then the short answer: yes. Here’s what the entire process looks like
But there are also some challenges that you might have to tackle
If you choose this route to sell on Amazon, focus on niche products, communicate clearly with suppliers, and manage customer expectations around shipping times. Alternatively, you could also sell on Amazon from Alibaba.
Tariffs have become a major issue for businesses sourcing from China and selling in the US specially. Many AliExpress suppliers are based in China, and their imports into the US and other countries might be subjected to tariffs.
This can raise the final cost of your product. For example, a $20 gadget may arrive with an additional $5-10 in duties, making it difficult to competitively price it.
To handle tariffs, you can either consider partnering with suppliers outside China for your customers in the US or you can dropship products with higher margins and lower tariff rates to absorb the operational costs.
When placing orders, leave a note in checkout: “This order is for dropshipping. Please don’t include invoices or promotional material.” This prevents customers from seeing wholesale prices or unrelated marketing. If you are selling on Amazon, you also would have to ask the supplier to add your business name on the seller invoice.
Always monitor shipment status. If items don’t arrive on time, follow up with suppliers and use AliExpress Buyer Protection when necessary.
Many AliExpress sellers don’t accept returns, so build your own refund policy.
One of the biggest friction points in AliExpress dropshipping is paying suppliers. Traditional bank transfers often come with slow processing times, high FX markups, and hidden intermediary fees. Credit cards can add extra international charges.
Instead, you can pay suppliers directly with the World Card, which is a multi-currency virtual debit card linked to your World Account. You can use the Mastercard-powered card to pay AliExpress suppliers just like any other card at checkout, but with major advantages:
Whether you’re paying in USD, EUR, CNH or more, the World Card helps you streamline supplier payments, manage costs, and stay in control of your cash flow.
Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
Rick Hill has worked in payments and financial services for the past nine years. He began his career at a large institutional bank and has since worked across startups and scaleups. Over the past four years, his experience with e-commerce retailers has led him to believe that WorldFirst will be crucial in helping brands expand globally by demystifying the complexities of entering new markets.
Rick Hill
Author
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