Aliexpress has been known as a dropshipping sites’ major supplier for years. You can just seek for items and you will be able to find the same items sold by a few (if not hundreds or thousands) websites with very affordable prices. Normally, if you go on Aliexpress.com to search for those items, you would find that those items are being sold on Aliexpress.com for even lower prices (sometimes the price margin is over 300%+). That’s secret (and soul engine) the world of the dropshipping sites nowadays. Same to the very famous shopping app, “Wish”, as well. You can find exact same items on Aliexpress for much lower price… why? because all of those shopping sites purchase items from Aliexpress once they get orders in. They are all dropshipping sites. They have only ONE supplier – “Aliexpress.com”.
Well… everything sounds great, right? Lower prices from those sites… and if you don’t like … you can just go onto Aliexpress.com to make purchase yourself. In fact, what the heck why we should spend more $ on those dropshipping sites when we can just go onto Aliexpress.com and get the same products for much lower price? All in all are good but there is one very inconvenient factor that you need to suffer… which is… “shipping”. When you purchase items from those dropshipping sites/apps (or even from Aliexpress.com), you would normally need to wait for weeks (if not months) to receive your shipments. Why? because majority of products are made in China and shipped from China. It’s a big hassle (trust us on this one… especially if you have some disputes with sellers).
A LOT … We Meant … A LOT of US Consumers Purchase from Aliexpress & Wish… Even Though It’s A Chaos
It’s a human nature that we seek for comfort and cheaper prices comfort us somehow even if we can predict there might be some pains in the future. Therefore, a lot of US consumers still spend time and $ on purchasing those affordable pricing products on Aliexpress.com, Wish app and all those dropshipping sites. This is a very very very profitable segmentation as well. That’s right… margins aren’t that hight but if you multiply the quantify … wow… it’s another billion dollars market as well… so … why should Amazon forgo this terrain, right?
Amazon’s Response – “$10 & UNDER WITH FREE SHIPPING”
With its big arms, Amazon launched “$10 & UNDER WITH FREE SHIPPING” section. It’s essentially a marketplace selling whatever Aliexpress is selling (also … Wish app is focusing on) on the mainstream purchasing group. For instance, bracelet, necklace, keychain, stuff toys… etc. All those cute, adorable, and affordable accessories which generate millions of millions of revenues for all those sites. Now this category is with Amazon along with it’s prime “FREE” shipping. How is this changing the landscape of the dropshipping industry? Well… first of all, it’s not changing the dropshipping industry. It is a total subversion of this industry. The only reason for consumers to pull $ out of their pockets on the dropshipping sites is the “affordable pricing”. Amazon not only found the balanced pricing point to turn this industry up side down but eliminated the most loathing factor, “shipping”, in dropshipping industry as well.
Amazon “$10 & UNDER WITH FREE SHIPPING” Is NOT Changing Dropshipping industry… It’s a TOTAL SUBVERSION of Dropshipping industry
“FREE” 2-Days Shipping On $10 & Under Products
If you don’t believe that you would choose Amazon over other dropshipping sites for the same items (even if you need to pay a couple dollars more on Amazon), you should definitely try yourself.
Let’s give you a really normal scenario comparison on what will happen if you make a purchase right on those dropshipping sites and Amazon.com. For instance, you saw a great Bracelet on Aliexpress (or Wish… or any dropshipping sites) for about 7 bucks. And then … you saw exact the same item on Amazon.com for $10. You decided to make a purchase on Amazon.com so you made a purchase and receive your order in 2 days. If you don’t like it, you make a return request and get your $ back in about 1 day. Or … if you like it, you keep it … and if anything goes wrong, you get the support from Amazon and get helped in one day.
However, if you purchased that item from Aliexpress (or Wish… or any dropshipping sites), you would need to wait for weeks or months to get your hands on that bracelet. Also … there is a very high chance that you will receive a totally different item (or different color) due to the low quality control on their end. And… if there is anything wrong… you have to spend another weeks or months to get things solved… Well… good luck if you have that much time to deal with those couple $ stuff. So … most likely you will just write this purchase off your book… just absorb the loss yourself. Therefore, you ended up paying more for the same product on Aliexpress (or Wish… or any dropshipping sites). Or … even worse … you paid more (and spent more efforts) and ended up with “NOTHING”. How pathetic situation is that?
Amazon Is Ending Dropshipping Era
It’s a really bad scenario for those dropshipping sites since … the loss of incoming revenues are enormous from Amazon’s decision to enter into this category. However, it’s a great thing for consumers since … Amazon is solving all those problems for mainstream consumers. Not only we will get what we want in much more affordable pricing but the major obstacle of it is the “sloth” pace shipping … is being removed as well. Along with all those superior supports and helps… well… what else can we ask? This is just a awesome day for US mainstream consumers to get their hands on all sorts of great, adorable, cute, and affordable stuff from China (that’s right … still from there) but with the assurance that we will get products much much much faster (compared with those dropshipping sites, we should have used “INSTANT” to describe the difference of the shipping) and hassle free on the purchases we made on Amazon.com
It’s really a great time for consumers that we not only have much more (product) choices but also get can them on much more affordable prices. In addition, we have Amazon behind us at all time since we know that Amazon is the one who does not jump ship depending on the direction of the wind. Amazon is alwasy on customers’ side 100%. That’s the buyer’s psychology 101 which is “we are willing to stick with it and are willing to pay more for a peace of mind”.
Buyer’s psychology 101 – “we are willing to stick with it and are willing to pay more for a peace of mind”.