Editor’s note: This article was first published in March 2017. AliExpress ePacket terms, Shopify and AfterShip offerings, and the claim that 5 or 10 euros of Facebook advertising reaches 3,000 to 10,000 people have all changed since. Since July 2021 the EU no longer exempts low-value imports from VAT, which the article predates.
We are going to use the concept of dropshipping and talk about AliExpress, but don’t worry: the content is easy to follow. When we are looking to generate significant income, or for a very profitable business idea, the best thing we can do is look at the ideas others have had and how they carried them out. With that in mind, I think we have here a business idea that needs hardly any investment, and where, if it fails, the impact on our pocket would be practically zero.
To some it will sound too easy, and others will find it too complicated, but I will also explain the factors involved, where with a bit of good taste, good execution and a little luck we could reach our goal. That said, if you don’t know much about these subjects, there is no getting around rolling up your sleeves and learning.
As examples of similar business ideas, there is the young man who went from working at a petrol station to turning over millions on Facebook, and the man who, after going bankrupt and spending time in prison, became a millionaire thanks to Facebook. The idea we are talking about today is more elaborate and complex, but that doesn’t make it any harder.
What is the business idea I’m talking about?
An introduction to dropshipping
To start with, we are going to look for one or more products that are fashionable or in very high demand on Amazon or eBay (better to focus on Amazon). Then we are going to look for a similar (almost identical) product on AliExpress.
We are going to open our own online store the easy way, and use dropshipping the easy way (if you don’t know what I’m talking about, keep reading).
This idea is aimed at people who want to make money quickly with hardly any investment, and is not, in principle, about investing in growing a brand. And since we are looking for a cheap, easy way to make money, remember that anyone can add other tips we have given in previous articles. The secret of business is not to eliminate risk but to minimise it as much as we can, and this idea achieves that.
Step 1
We open a store on Shopify or a similar platform. After asking several entrepreneurs who have created online stores, almost all of them recommend Shopify for how simple and quick it is to set up a store on the internet without worrying about the technical details. Let’s say it is as easy as creating a Blogger blog.
Step 2
As I said before: look for one or more products in high demand on Amazon. For example: yoga trousers, clothes with an eye-catching design, a tech product or jewellery.
Step 3
We go to AliExpress and look for a product that is almost identical. And there always is one.
Now, being almost identical doesn’t mean it will have the same quality, because, as you will see, the price will be much lower (which, after all, is what we are after).
Here is an example that will quickly show you what we want to achieve.
GoPro cameras. There is no question that, as an action camera, the GoPro is number one, and the price shows it. But we have seen “white-label” action cameras flood the market, and if you look closely, thousands of reviewers say that for value for money (between 40 and 150 euros) they would buy those cameras again rather than a 300 or 400 euro GoPro.
To give you an idea, without going any further, the camera I used for a video I shot in Almuñécar (Granada) was one of those action cameras costing less than 100 euros, and it performed extremely well, even facing straight into the sun (the opening shots were taken with my phone). Of course, I’m sure a GoPro would have done much better.
However, to make sure we are not going to sell something cheap and bad, we need to look carefully at the product’s reviews and stars. We will always look for a product rated at least 4 stars. If it has 4.5 stars, so much the better. And of course, the rating should come from at least 30 or 40 people. There will always be someone unhappy, but 50 people giving their opinion can give us an idea of the product’s quality.
The product must also have AliExpress’s ePacket service
We need this to be able to sell it the way we want and forget about shipping costs.
Once we have found the product or products that meet our requirements, we use them to set up our Shopify store.
We can use their images, but it would be advisable for you to write the product descriptions yourself, using some of the recommended techniques to make the product more appealing.
What is AliExpress’s ePacket and how does it work?
AliExpress ships the product directly to the buyer, and since the order is placed through your online store, the product isn’t shipped until the money is in your account.
The AliExpress seller needs to know that you are selling their product through dropshipping, so that they don’t include packaging or advertising and promotional material. And they won’t refuse, because they know they will do better business that way. In fact, many of the products these companies sell are made for this way of selling.
Some people say, surprised: “The two products look the same. It’s as if someone had taken the sticker off the box.” Well, it isn’t that it looks that way: it is that way :-).
And that is how easy, or how hard, it is to sell your own product in your own online store. Now I imagine you’re saying:
“OK, but it’s not just a matter of setting it up and starting to sell. How do I make myself known? How do I reach potential customers so they buy my product?”
Step 4
We’ll use Facebook advertising
Facebook advertising is effective and very cheap. For 5 or 10 euros you can reach 3,000 to 10,000 people.
But use targeting properly. In other words, if you are selling a product aimed mainly at women, filter the options to “women”, “aged between…” and the country you want to focus on.
See also: What business to start: an entrepreneur doesn’t need to understand everything
The more experienced can also target by users’ interests.
That way, we will be sending not just user traffic to our online store, but potential buyers. As you see the results, gradually increase the amount you spend on advertising or change your ad strategy.
Tips
Start by testing ads, spending small amounts (5 or 10 euros), and when you see that one ad has worked better than another, you will know which one to increase your advertising budget on.
Later on you can add new products in the same way. And further down the line you can even sell your own products, since you will already know how it works.
If you are doing it through Shopify, use a free app called AfterShip to give your customers a shipment tracking number automatically.
Finally, all that remains to be said is that the look of the store, the products and the descriptions must be completely professional. If someone doesn’t get a good impression of your online store, or sees any reason to distrust it, they won’t buy, and will look for the product elsewhere even if they have to pay a bit more.
Don’t get caught out on delivery times
It is better to give a generous delivery time (10 or 15 days) and lose a few sales than to promise a short delivery time and not meet it, because then the reviews will be negative and potential buyers will run a mile.
And that is a tested business idea with which many small entrepreneurs are earning consistent income, and with which some have even reached annual figures in the millions.
Featured image: parcel company, Public domain, via Wikimedia Commons.
