Do these 5 things BEFORE using a Chinese Aliexpress Dropshipper or Alibaba Supplier!
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#1: Check to see if your suppliers has been to a tradeshow
If you are trying to decide between two suppliers, checking to see if either has been to a tradeshow is a great way to help pick between them. Going to a tradeshow is very expensive and so a lot of legitimate suppliers do not go because it is hard to make enough money back to make it profitable. What this means is that if a supplier has gone, then it indicates they are financially is a good position (which means they are unlikely to go out of business any time soon).
If your supplier is on Alibaba, you can go to their profile and check to see if they have visited any tradeshows. If your supplier is based on Aliexpress, find the brand of the item that you would like to sell and then go to Alibaba to locate the manufacturer. You can then visit the manufacturers profile page to see if they have been to a tradeshow.
#2: Avoid using pictures with models
If you are working with a Chinese dropshipper on Aliexpress or a Chinese supplier on Alibaba and they have stock photos that use models, we recommend that you don’t use those photos yourself. This is because Chinese suppliers have a history of illegally taking pictures from model’s social media accounts (like stealing the images from Instagram). They can get away with this in China, but in the West the model can contact Facebook/Amazon and get your ad/listing taken down. Avoid using pictures with models so that you don’t infringe on copyright.
#3: Check to see if you’re working with a manufacturer, trade company or wholesaler
On Alibaba you will usually encounter two types of suppliers: manufacturers and trade companies. A manufacturer is the factory that originally made the item. A trade company is a middle-man between a manufacturer/factory and you. Neither is better than the other, they both have advantages and disadvantages. The advantage with a manufacturer is that you’re going straight to the source and it’s usually cheaper. On the other hand, a trade company usually charges more since they make a commission on the sale, but their reps usually speak better english which makes communication much better (sometimes they can negotiate lower prices than if you were buying straight from the manufacturer as well so it’s good to check even if you are price sensitive). You can check what the company is in their Alibaba profile.
On Aliexpress you’ll usually encounter either manufacturers or wholesalers. Manufacturers tend to brand their store their generic label brand (e.g. Transhome) and only sell products under their brands. Wholesalers will usually name their store something less generic (e.g. Mr & Mrs Store) and will sell products from a variety of manufacturers. Wholesalers are sometimes more expensive but they have a wider selection of products.
#4: Recap your agreements and contracts in writing
If you and your supplier are negotiating a contract or an agreement, make sure that you get your suppliers to recap it and write out the agreement in text. It’s very easy for both cultural and language differences to cause misunderstandings. Ask your suppler to recap each element of your agreement in text (either by email or by sending a copy of your contract in writing).
#5 Prioritize products that have multiple manufacturers
The profit margins for Chinese manufacturers is very small, because they sell their items so cheaply. That, along with the fact that doing business in China is relatively difficult means that unless a factory is well managed, it can go bankrupt and have to close. If you’re dropshipping an item or private labeling it for Amazon and your supplier goes out of business, then unless you have a backup supplier that manufactures the same item - you will have nothing to sell and your money will dry up.
That is why, when choosing between products, it’s good to look for one that has multiple manufacturers and suppliers. Then, on the off-chance your supplier has to close it’s doors, you can switch to a new one - and your business can continue, and you can keep making money.
Very good video (and been living 8ys in China). Here to refresh knowledge and I must say I agree with most points you’re making! Good job again (adding speaking Chinese is A BIG plus to negociate better prices in Alibaba).
I start my website for 6 months now. Thanks for all of your video and the useful tips. You are my online professor. My website below, do you think I could fix anything to increase my conversation rate? I have only 0.9%.
Your store is one of the better looking stores I get sent - congratulations! Two things to think about:
1) You need custom product descriptions ASAP.
2) Phone cases are tough because when you advertise on FB, it can be hard to reach the right audience with the correct phone.
3) People only need 1 case - cross-sells are much harder.
i don't agree with rule one, most of suppliers who take trade show, they are only business trader, not manufacturer at all. For manufacturer like me, we don't go to trade show, because we don't have time to, we only focus on producing products. And at the same time, many traders ,they will bring my products to the trade show, so ,why i go there by myself..
Sara, you are absolutely amazing. One of the only people I have found that actually teaches important info in every video - even though the videos are free. Also, your promo of your paid course(s) is always very short and professional. I truly appreciate your approach, your knowledge and your personal style Sara. Thank you very much.
Thank you for an informative video .. I would like to summarize for future reference ..
1- Suppliers who participated in Tradeshow ( Longterm history and quality products )
2- Avoid pictures with models ( they could sue )
3- Check who you're working with ; a MANUFACTURER (BEST), a trade company or a wholesaler
4- Recapping agreements (ask specific questions with detailed specs )
5- Prioritize products that have multiple manufacturers ( make sure to avoid those likely to go out of business )
Hey Sarah I want to start selling clothes from Ally express to my online store but every clothes I want to start selling have a model so what should I do can I still use the picture with the model or what should I do can you please help me out.
Wholesale Ted Sarah, I love every video I've watched so far! Even though you claim some of the topics you cover as "boring" or "unsexy" they are necessary and relevant, and I greatly appreciate you for doing so, and the way you present them has always been upbeat and enjoyable to see, thank you and keep up the good work!
P.S. I'm about 1 video away from buying the camera lens coffee mug, potentially unintended sales tactic, but I'm sold! 😉
What nobody talks about, it's this what will make the West so poor in the next 50 years. Chinese blatantly copy everything. Make pictures from stores in Europe send back to China. Copy that same dress, sweater without a tag and sell it back to you. There are multiple local websites which foreigners don't know about where they have these copied pictures and where you can buy exact same items without a tag and then resell on Alie. They have no idea about marketing. They ONLY win based on price. Just visit a Chinese factory. Owner and staff have no style, nothing. But hey keep buying. So easy to see the market is flooded with 2nd rate Russian models making a buck in China doing promo for these Chinese factory bosses. I have far greater respect for Koreans and Japanese and even Vietnamese. They bring in their own idea's, greater styles and know to market a product.
No. Actually many of us can communicate with you with simple English. Just that you need try to make the sentence a little easier and more specific. And some can use other languages like Spanish or Russian. But most people on alibaba can only speak English which is enough for communicating by texts. I am not the youtuber you were asking for but i hope this helps.
Your videos have their own fantastically unique quality and production to them that makes them above and beyond anything I've yet come across.
Thank you for sharing as I'm sure you're helping myself and many many others.
Love and thanks from us to you!
This is just superb, I've been looking for "alibaba dropship products" for a while now, and I think this has helped. Have you ever come across - Gonrooklyn Dropshipping Fraternity - (just google it ) ? Ive heard some interesting things about it and my partner got amazing success with it.
Love how Sarah gave a great picture of not being fair to Chinese manufacturers. I something similar to someone just the other day when they stated about not trusting certain medical professionals. I also thought it extremely unfair and explained to the person why it was not fair to state what they did. It all boils down to us to educate ourselves first before we can pass judgement. In the case of a manufacturing product request samples first, in a case of health advice or something similar, turn to forums and other people that know and understand about a condition for advice.
Just like would you consult your bank manager for investment advice if they were not an Independent Financial Advisor, or a Cardologist for advice about Scoliosis.
I would like to dropship baby items such as clothes and accessories. However, every item has models of babies. It also seems necessary to sell the product. Can I do this? Or how should I ask the manufacturer very clearly if the pictures are legal to use?
I was looking up the difference between epacket and China post ordinary small packet plus and I read a post someone had written on oberlo forum saying that cpospp takes 60 days and sometimes even if you choose epacket they'll ship it however they want anyway. Definitely a specific question to ask a supplier.
Sarah, would you need to have an agreement with every supplier? Would they even bother signing papers with dropshippers?
Is there a way to find attendees of those Trade Shows and the names of those Trade Shows? Thank you!
Kevin Won I've been thinking about including a t-shirt or two in my niche store, but I decided not to just because there are so many variants to fill out anyway. I didn't even think about the model part.
I just do not believe you anymore. Still waiting for your FREE BOOK. Seems like I have to pay for it. After watching so many of your videos, I thought you were the real deal. I was wrong. Too bad for me.
Hi Sarah, what do you think about using Amazon as dropship source (instead of Aliexpress) for shopify store? Many people are doing that, it has a much lower profit margin than using Aliexpress (2-5% compare to 100-300%) but the delivery time is definitely shorter and it's also easier to sell.
I love you channel!! And I have my own store and dropship using aliexpress, how do the customers get their prpduct once they've bought it from my site? I'm very new to this and still don't completely understand how that works.. I don't ship the items myself right? Any feedback is appreciated😁
I am interested in subscribe to the dropship club but I don't find any users reviews. What it the difference between the YouTube channel and the subscription? Does it worth the $67 monthly fee? Where can I read subscribers reviews?
TY for the great info. Quick question- do u have Facebook alternatives for advertising when drop shipping with shopify? Had many bad experiences with them amd their service is awful. They have deducted money for ads I didn't run and can not get my cash back from them. Thank you again. Xx
Hi Sarah I'm currently doing your training and I know that you said to pick items that are $5 or less when starting out your store. but there are two niche items on my list that are having really high numbers, a lot of positive feed back and really good engagement, but they are priced at $9.79 and $30. would it not be a good idea to start selling with these items as they exceed the criteria?
If you sell those, you'll need to sell them for high prices to offset advertising costs. It is up to you: if you've got a very engaging ad (in particular, an engaging Facebook ad) then it could work, but it's honestly a lot easier to sell items for $8-15 (especially for $10 or less).
Hey Sarah. Another great video as always.
I buy phone cases from several suppliers directly and I find the level of English grammar to vary somewhat. Without sounding patronizing or condescending, I tend not to elaborate with my queries and thus I use broken English. I know that English is taught as a second language now in China and in all fairness my conversations are very good with the agents, however it doesn't hurt not to roll off on some grammar mission lol.
Ask your question clearly and to the point and if the agent doesn't understand fully, then re-word your query more directly, but always get a reply from them to say that they understand, so that you can come back to the conversation at a later date if you're using Skype. (lol some Chinese agents have spoken with better grammar then me sometimes!)
All the best guys :)
Hi, Sarah. I've created my shopify store with the help of your videos but I'm getting problem in payment methods. I'm in Pakistan and here we are not eligible for using PayPal. What other methods I can have which would be helpful for me and also for the customer to buy easily? Can I use my Bank Account? How can i use 2Checkout? Kindly help me out by making a video on alternative payment methods.
Haris Malik Register with Stripe Atlas. They are meant for international businesses that need US bank account and presence. There are websites you can sign up for virtual address and phone numbers as well. They can help you create a store whereby you can charge in US Dollars.
Having done these, apply with Stripe Atlas, although it's quite expensive to get one.
If you can't afford that, I suggest you buy a virtual address, then switch your store from Pakistan to US, then you can use Shopify payments. However, when you hit a certain amount of sales they may ask for your ID. It's then important to have a passport scanned to them.
I've got to be honest Haris. Unless you can use PayPal (or can set up USD with Shopify Payments) I don't recommend dropshipping as the other payment processors don't support it except under very special circumstances.
Hi Sarah, Thank you for all your videos, I have learnt so much and my store is almost ready. But I have a big question for you. I live in Australia and would really like to know how do I change the currency settings so my products show up in USD in my store????
Really hoping you can help with this
You're a star Sarah, thanks heaps. I have one more question... do you know much about paypal payflow pro as a credit card payment provider? I'm in the process of setting this up so my store can receive credit card payments. Just wondered if you had any opinion about this.
Thanks in advance. Keep up the good work.. everyone really appreciates it 🖒🖒🖒🖒
I really enjoy your videos and I can’t wait to put your information to use. We are in the process of having a logo designed and researching products but I have a question...Do you actively operate both a Shopify store and an iPage store? Thanks.
Thank you as always for your videos Sarah, I find them very helpful as I am still in the planning phase of opening a Shopify store. Do you have any thoughts on donating a small portion (~3%) of the store's profits to a related charity to 'up' the profile of the store? ex: a travel accessory store that donates to end world hunger.
Good question. Unless you genuinely care about the charity and its an important thing for you, no, I think that it hurts more than it helps. Watch my store review of someone else who did this: https://youtu.be/Tep3yL_tzYQ
Alibaba is a directory of suppliers who will sell you items in bulk, which is not what we want. Aliexpress is a directory of suppliers who will sell you items individually, which is what dropshipping it. Stick to Aliexpress!
Hugo Maier If you’re running your own store with Shopify or WooCommerce, Aliexpress. If you’re doing Amazon FBA, use Alibaba. Alibaba is for wholesalers (therefore you would have to buy the products in bulk) and Aliexpress deals with single unit products
hello nice informative vlog, just subscribe your channel..............one question As you operate your shopify store outside USA did you pay any kind of taxes to USA government ?? Please reply me.........Thanks in advance..............
Should we put the brand name of the product on my website or should I live it without a name? Can a create a name myself for each product? What if the client receive the item with the manufacture name?
Don't worry about including the name of the item. The items "brand" is just the factory it was produced at. You can come up with your own name, it honestly doesn't matter that it won't be printed on the box. Most items are sent in brandless white packaging (like white boxes) anyway.
You can set it up on oberlo or Shopify, I forget which one, a message that automatically goes to the supplier- you can ask them not to include an invoice, etc. It was in one of the training videos from the ebook I think.
You always talk very basic. I learned drop shipping from your channel but now switched to some other advanced channels. I am earning really good but you need to teach people how ad works and much more. Thanks!
Wholesale Ted this reply has really changed my mind. Yeah I have learned dropshiping from your channel and now I am hitting 5 figures easily and I always tell people to go and learn from your channel but when it comes to run fb ads I have to tell them to switch to some other channel. Keep up the good work. Please don't mind my criticism. I still watch your videos to learn new things so they are not basics haha. Keep it up
I do not think that this is a fair assessment to be honest! A lot of people think that Facebook ads are the "advanced" form of this business: and frankly, I see that as people who are focused on short term gains rather than a long term business. There is plenty of videos on Facebook ads already so I choose to talk about advanced, serious issues of building a real business: vetting suppliers and seeing their history, choosing a good long term niche and products that have high conversion potential (something I see people struggle with still a lot - and if you get this part wrong, it doesn't matter how good your ads are, so you can't skip this). Setting up taxes, understanding your legal obligations, avoiding infringements - this is probably the largest resource on the Internet discussing legal and tax obligations as a dropshipper, and to call this information basic is something I think is not an accurate statement. I choose to focus on very important, advanced, often unsexy topics that most people ignore but need to be addressed by someone. I am still glad though that my videos did help you, and I wish you well on your dropshipping journey.
Stay far far away from the Chinese...they are good at only two things.
1. Stealing intellectual property
Ok kiddies that's your lesson for the day..be back tomorrow with some more realist news.
Hey I just found your channel yesterday. So far you’ve been really helpful but I’m still scared to actually start my store. I’ve been thinking about going into a kitchen niche where I sell different kitchen gadgets. Do u have any tips on how I should get started and if my niche is even profitable.
Btw I’m just a high school student. I’m not trying to make millions but just trying to get some sort of income coming in.
The biggest thing is to take action get started you will learn more doing it than watching my biggest advice is to stay very careful with paid ads they will kill your business before it even starts your young build a following on social media, And YouTube these are your keys to the other side
The niche "kitchen gadgets" to me sounds a bit too broad, I don't know anyone that is passionate about kitchen gadgets. They are helpful but people don't collect them or join fan clubs about them. Check out my video that talks about the importance of picking a passion niche: https://youtu.be/afaknQqkiAw this niche DOES have potential, but it probably needs very engaging video ads to truly succeed.
Don't be scared! I started just a month ago and am pretty young too (going to be a sophomore in college this year) and her videos are very helpful!
In addition to the WholeSaleTed videos, Alidropship has a fantastic blog that guides you on creating your ecommerce store, including how to know if your niche is profitable here: https://alidropship.com/best-dropshipping-niches-rate-select/
This guy makes some VERY valid points about the state of amazon FBA: https://www.youtube.com/watch?v=cWVxGc8Hl5g Can you please make a video addressing these problems that he lays out? I'm sure a LOt of FBA beginners would want to know about this stuff and how to overcome it.
mouad NV You're more likely to hack it with Shopify. It's simpler to use. Although new to the terrain myself and having watched almost 200 videos researching this, I'd say it's best to start with Shopify. Do the trial for 14 days, run ads on Facebook to test the products, then scale up from there.
I recommend, however, that you watch a lot more videos and read more. I personally prefer to watch videos so I can read through the comments; plus it's practical enough for me.
I have a question. My understanding after watching many videos is that if you have a dropshipping store you simply order the products from the ali-express sellers. Do you need to have a relation with them or are you just like any normal customer purchasing an item for themselves?
Thanks for the great content Sarah, Regarding the dropship club while I'm sure the video content is just as good or better than the free content here on youtube I am bound to have specific questions. I am I able to ask questions directly (within reason) and get a reasonably timely response with my membership.
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Gandalf as a Maia (named Olórin) before leaving the Undying Lands.
Originally called Olórin , he was accounted as the wisest of the Maiar (with the possible exception of Melian). He was a Maia of Manwë and Varda. He also served under two other Valar, such as Irmo and Nienna. When the Valar decided to send the order of the Istari (also known as Wizards) to Middle-earth, to counsel and assist all those in Middle-earth who opposed the Dark Lord Sauron, Manwë and Varda decided to include Olórin among the five who were sent.
At first, Olórin was nervous and described himself as too weak and too afraid of Sauron. Manwë understood, and told him that that was one main reason why he should go, to overcome that fear. Thus, he insisted that Olórin should go as the third, but Varda convinced him not to include Olórin as the third, but as the second. Olórin agreed, and prepared for his departure from the Undying Lands with the other four wizards.
Arrival in Middle-earth.
When he arrived to Middle-earth, he received Narya, the ring of fire, from Círdan the Shipwright. Olórin, renamed Gandalf , spent many centuries walking among the elves as a stranger, learning from them and teaching them. He later revealed himself as one of the Istari, and eventually became known as the wisest of and most powerful of that order. He joined the White Council, which was formed to investigate a dark power in Dol Guldur, of which Galadriel wanted him to become the leader, yet Saruman came to lead the Council instead of him. Although Saruman was initially more powerful and more knowledgeable about many matters regarding Sauron and the Rings of Power, and was head of the White Council before the War of the Ring, he later grew jealous and afraid of Gandalf,  which was the reason of his betrayal.