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Can You Beat Amazon With Your Aliexpress Dropshipping Store?

By Olga L.

Beat Amazon with Your Dropshipping Store

One of the most common questions people ask us is ‘How can my dropshipping store compete with giants?’

We understand their concerns. Indeed, if you own just a tiny store with 50-100 products, how can you win over market titans like Amazon? With hundreds thousands items, global recognition, positive reputation and premium marketing, they seem unbeatable.

But actually, there are at least THREE reasons why your store can be better than Amazon! And if you use these factors right, you can forget about competitors and enjoy a nice solid income from your dropshipping venture.

Table Of Contents

Your dropshipping store vs Amazon: focus on price

Why do people usually order items from Amazon?

Mostly because they think it’s cheaper.

But in the reality, Amazon items are not as affordable as it’s commonly thought. Let’s take a look at the following example.

You probably remember our World of Harry store – we talked about it when we explained how to create an AdWords campaign with a huge ROI, and also we used it as an example of using a successful strategy for Facebook promotion.

We started working with this store quite a long time ago, and we know this niche fairly well. That’s why we were really surprised when we saw that one of the niche items is listed on Amazon for a really high price:

Beat Amazon with Your Dropshipping Store

Please notice: the Amazon item is sold for $19.49 PLUS you must also pay $4.99 for delivery. Therefore, the total cost of this purchase would be $24.48.

Er…maybe this necklace really turns back time, we don’t know. No, seriously. We have no other logical explanation why the seller would set such a price for it.

Compare this offer to the identical one on AliExpress:

Beat Amazon with Your Dropshipping Store

The same niche category, the same product, even the same picture. But the price is $1.12, and free shipping option is available. The item is MORE THAN 20 TIMES cheaper than the identical one on Amazon!

What does it mean?

It means that we as dropshippers have a great opportunity to secure ourselves good profits if we partner with AliExpress sellers. We take their products, add them to our stores, set a nice markup, and the overall price is 2 TIMES LOWER than the one from Amazon. Take a look:

dropshipping store vs Amazon

That’s a screenshot from our World of Harry store showing the very same item – as you can see, even the product photo is totally identical. The price we set is $9.99, and free shipping is available.

In other words, we have increased the initial product price more than 8 times (800%), but it is not a problem for our customers! Paying half the Amazon price, they get totally the same product, plus enjoy the free shipping. And we, in turn, enjoy our profit. Everyone is happy!

You might say: okay, that’s a really specific niche, and not a common product. Plus, it’s a kind of fan merchandise, so it’s clear why Amazon has higher prices.

Nope.

That’s not the case.

Amazon items are just more expensive, and it is true for every niche on this marketplace.

Let’s take another example – a piece of jewelry. How about some common generic things that are not exclusive – pendants, maybe?

This is a cat-shaped pearl pendant that costs $26.99 on Amazon.

Beat Amazon with Your Dropshipping Store

And this is an identical cat-shaped pearl pendant on offer for $6.00 on AliExpress.

Beat Amazon with Your Dropshipping Store

Conclusion?

Buyers will choose YOUR ecommerce store over Amazon if you set your prices correctly. Your prices are your competitive advantage, so keep that in mind while setting your pricing strategy.

If you reasonably increase the original AliExpress price, you will get the item price that:

  • Is lower than the price for identical item on Amazon;
  • Is fine and suitable for your customers;
  • Is enough to provide you a nice profit.

Niche dropshipping store vs Amazon: specialize

Beat Amazon with Your Dropshipping Store

We have already discussed why niche stores are more appealing to customers than huge marketplaces. But we would like to talk about this aspect again because it is really important for a successful growth of your dropshipping business.

While browsing huge online marketplaces, people get confused quite often. It takes them a really long time to find the item they are looking for, and to check if every particular seller is trustworthy. You certainly know how easy it is to get distracted, forget why you are here, and finally leave the site without buying anything.

This can’t happen in a store that is focused on a specific narrow niche. For example, when an Internet user visits store that is solely dedicated to socks, this potential customer won’t get distracted with other stuff like phone cases or shower curtains. Therefore, the chances for a completed purchase are much higher!

Also, if a person visits a store dedicated to socks, they expect to find here some specific and rare kinds of socks – not just something generic that you can buy anywhere else. Naturally, this is why you need to pay careful attention to the choice of products you add to your dropship store.

Plus, visiting a dedicated niche store, customers expect to deal with professionals who specialize on this narrow subject. They expect to get answers for any questions about the used materials, the place of origin, the technical specifications, the peculiarities of use, etc. for EVERY product on offer.

It means that your ultimate goal is to create a fitting atmosphere in your store. When an Internet user visits your site, they should immediately get impressed by your professionalism and knowledge in this sphere. Even our own clients recommend working with a niche you are passionate about.

Analysis of successful dropshipping business shows that your own interest towards the store niche is a key to commercial success. It helps you persuade your potential buyers that you REALLY know what you are doing. Therefore, your customers understand that they can expect a top quality of items you offer, and also count on prompt and professional support.

Amazon vs dropship store: go global

Beat Amazon with Your Dropshipping Store

Nowadays, you can place an international order in Amazon only if you live in a supported country – there is a list of countries (mostly European ones) where Amazon mostly operates. If you too are focused on the same countries, you still can compete with Amazon because of a lower products price and higher quality of customer service.

What about the rest of the world?

Well, technically, Amazon delivers items to other countries as well. But for these regions, it offers higher shipping fees and longer terms of delivery. What’s more, there are 5 countries on the globe where Amazon doesn’t ship items at all. Also, there are about 30 more countries where Amazon shipping might be limited on certain conditions. And obviously, delivery terms differ from seller to seller. It means that customers must carefully check every Amazon seller to figure out if they can deliver these items to the seller’s country. Surely enough, it creates a huge inconvenience for buyers.

With dropshipping stores, however, this is not the case at all. Dropshipping business itself means that you can deliver any item to any point on the globe, and make people happy.

All you need to do is choose suitable items on AliExpress and add them on your website. AliExpress delivers products all over the globe, so you only need to make sure that the seller offers free delivery option or ePacket delivery option – both of them are more interesting to buyers than standard delivery.

As you can see, it is not correct to think that Amazon is a scary competitor that can’t be beaten. Your store, no matter how young and tiny, has huge advantages! Learn them carefully, use them, and reap rewards from your ever-growing dropshipping business.

So, are you ready to start a profitable dropshipping store and beat the heck out of Amazon in your sleep?

 

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By Olga L.
Olga is a Copywriting Director at AliDropship. She works on guides, tutorials, and other educational materials to help you start and run your dropshipping business with ease.
17 Comments
XXII May 25, 2017 9:01:45

Hi guys,

Will like to ask if you can elaborate further on the first reason, re: ‘Price’.

It seems that the Chinese manufacturers/suppliers are also selling their products on Amazon and any product that is on AliExpress seems to be on Amazon at very low prices too.

Are there therefore still any products/niches that can be exploited at this point in time?

I mean, I’m sure that this is the million dollar question that everyone will be asking while doing niche research. But is this really possible?

Or do we just dropship the product/niche anyway and just price it lower than Amazon, hoping to make in volume rather than a nice profit margin?

I have seen some products that are even priced the same as on AliExpress!

Obviously, selecting a niche to go into is the toughest part of dropshipping for me.

Thanks in advance for any insights you may have on this!

    olga.lavrinovich May 25, 2017 11:14:30

    Thank you for your interest!
    Even if there are relatively cheap products on Amazon, it doesn’t mean that you can’t successfully compete with it. Basically, you can choose any niche without paying any attention to the Amazon. Does it matter what is the Amazon price on a product if this product can’t be delivered to your customer?
    Whatever the price is, free shipping worldwide, as well as top quality customer service, will be your competitive advantages that Amazon simply doesn’t have. So don’t worry about it, and choose any niche you like. If you need some help with the niche choice, take a look at our articles about the hottest niches in 2017 and general thoughts about choosing a niche. Also, take a look at our list of the most promising niches.
    Best of luck!

JeffC May 25, 2017 16:35:11

The global retail market is worth trillions of dollars annually and is only going to keep increasing. According to various sources currently eCommerce sales accounts for approximately 12-15% of global retail sales.

Clearly Amazon has a nice segment of the eCommerce market but it no means dominates the global retail marketplace.

I believe there is plenty of opportunity for anyone who wants to open an eCommerce business. We need to keep reminding ourselves that not everyone on the planet has access to online eCommerce presently. That is expected to keep growing over time also.

All the points covered in this article are insightful and accurate. All eCommerce niche business operators need to be customer driven NOT competitor driven. That is not to say we should not pay attention to what competitors are doing. By focusing on what customers want and need – and being able to provide services worldwide – niche owners can do quite well as part of the overall global market.

XXII May 27, 2017 3:50:00

Hi Olga,

Thanks a lot for the reply!

And yes, will have a re-read of those articles again.

Have a great weekend and good luck everyone!

Hazel June 6, 2017 3:04:08

Hi
Interesting article, but how do you compete against Amazon prime shipping etc. With Aliexpress shipping takes days and even weeks with some items. Shipping time on Aliexpress I believe is a big deterent.

    yaros June 6, 2017 4:17:08

    Hi, AliExpress shipping can take longer but AliExpress ships to all countries and have free shipping for almost all products (not like Amazon). Besides, you can choose e-packet shipping option on AliExpress that is free or really cheap ($2-5) and it takes only 5-12 days to deliver.

      Joey September 30, 2017 19:16:16

      Yes, AliExpress may be able to ship to all countries.

      But the problem then is, as a drop shipper, you normally just speak one or two languages. If my language is English, very likely I will target countries like US, Canada, UK, etc. and these countries are usually covered by Amazon.

      and, for countries like countries in Africa, those poorest countries, does it really make sense that goods can be shipped to these countries? do people in these countries really check and shop at the online e-stores ?

      honestly I do have questions when I read through the article.

      anyhow, happy reading…..

        yaros September 30, 2017 19:26:35

        People in ‘these’ countries do really check and shop online! Furthermore, some dropshippers target exactly these countries to get good profits. According to my experience and experience of our clients, Africa and countries like Brazil, Chile, Mexico can work really great.

Anthony Mcgee November 3, 2017 6:40:07

I drop ship from aliexpress to ebay and I’m looking to automate the advert creation and order process. Is this something you can help me with?

    Yaroslav Nevsky November 3, 2017 7:39:51

    unfortunately, we do not have any solution for it.

Rolando December 17, 2017 20:24:29

My main concern is shipping, speed is everything do you agree?,the faster it ships, the happier the customer, I would like your honest opinion.
My reason? I would like to change my career and have my own dropshipping business, I thank you in advance for your helpful advice.

    Steven February 14, 2018 14:07:58

    This is a great question Rolando. Consumers want products delivered as fast as possible. We live in a world that is connected by smartphones whereas people want instant gratification. All industries and business verticals have pros and cons, you have to focus on your strengths while providing a great experience for your end users. However, shipping speed is crucial and I would love to hear other readers comments on this. Are there other channels/strategies that can speed up dropshipping shipping methods for independent dropshippers?

Angala patrick August 14, 2018 21:25:27

MY QUESTION IS IF HAVE GOT A DROPSHIP STORE, DO ALIEXPRESS HELPS ME IDENTIFY CHEAPER PRODUCTS FROM WORLD MARKET OR I HAV TO DO IT BY MYSELF FOR RESALE.
THANKS
PATRICK

    Yaroslav Nevsky August 15, 2018 6:09:35

    You will need to search for a good items and sellers yourself or you can also download a DrophipMe plugin that already has best selling products database with all items picked and edited manually https://dropship.me/

Jamel December 5, 2018 16:08:17

I have a read a bunch of articles like this and no one ever mentions the disadvantage that drop shippers have when it comes to delivery time especially when drop shipping from China. Any thoughts on that. Why would customers wait a week to get their items from me when they can get their items from Amazon in a day or two..even same day in some cases.

Chris December 9, 2018 16:54:32

Thanks for the tips. Helped put things into perspective for me.

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