Alibaba dropshipping Shopify: A step-by-step guide

With dropshipping, a company fulfills orders without maintaining inventory of the goods it offers. Upon receipt of an order, the vendor forwards it to a different business that ships the item directly to the buyer. The seller acts as a go-between for the customer and the business that is selling the item.

In the article below, we will provide drop shipping instructions between Alibaba and Shopify, the world’s two leading e-commerce platforms. Continue reading to learn how Alibaba dropshipping Shopify works.

What is Alibaba?

Alibaba is a Chinese multinational conglomerate founded by Jack Ma and his colleagues in 1999. Similar to eBay, it began as an online marketplace where companies could sell goods to other companies. Products sold on Alibaba are very diverse including household appliances, electronic devices, cosmetics, fashion, sporting goods, entertainment, motorbikes, etc.

Taobao, Tmall, and Alibaba.com are the three most well-known online marketplaces run by Alibaba. Consumers can purchase goods from individuals and small businesses on Taobao, which is a consumer-to-consumer (C2C) marketplace. Conversely, Tmall is a business-to-consumer (B2C) marketplace that has official brand and retailer storefronts. Alibaba.com mainly serves foreign buyers and sellers in the wholesale market.

Besides, Alibaba has expanded its operations outside its e-commerce platforms, incorporating cloud computing (Alibaba Cloud), digital entertainment (Alibaba Pictures), financial services (Ant Group), logistics (Cainiao Network), and other areas. It is a major player in the global tech business and is frequently regarded as one of the biggest e-commerce corporations in the world.

How does Alibaba work?

Alibaba operates primarily as an online marketplace connecting buyers and sellers. Here’s how it works:

• Online marketplaces: Alibaba runs a number of online stores, such as Alibaba.com, Tmall, and Taobao. Every marketplace supports a variety of transaction types.

• Product listings: Sellers list goods and services on the Alibaba marketplace. These listings usually contain comprehensive descriptions, photographs, costs, and other useful information.
• Search and discovery tool: To search for products, customers can browse the product catalog or use the search engine on the Alibaba platform. Plus, product recommendations, promotions, and featured listings can make it easier for them to find.
• Transaction process: Through the Alibaba platform, customers can easily make purchases once they choose the right product. In the event of a volume order or customized product, the transaction process may entail discussion.
• Payment: Alibaba provides a range of payment methods, like credit cards, bank transfers, and internet banking, in addition to its own digital payment platform, Alipay.
• Order fulfillment: Sellers are in charge of completing the order after the transaction is finished. This covers product packaging, shipment coordination, and delivery of the merchandise to the customer. Alibaba facilitates order fulfillment by means of its subsidiary Cainiao Network, which offers logistical services.
• Customer support: Alibaba offers customer support services to help buyers and sellers with any problems or questions they might have when completing a buying transaction.

In general, Alibaba acts as a middleman between buyers and sellers, expediting transactions, giving users a platform to search for and buy products. At the same time, it also provides a range of auxiliary services to assist e-commerce activities.

How to dropship Alibaba with Shopify

To dropship Alibaba with Shopify, you need to follow these steps: 

Step 1: Create a Shopify account

First, create a Shopify account if you don’t have one already. When you sign up, you can choose pricing plans that suit your business needs. Then, customize your store by selecting a theme, adding your logo, creating product categories, and setting up payment and shipping options.

Step 2: Connect with Alibaba

In this step, your main task is to find products to sell on the Alibaba platform. You should look for reliable suppliers with affordable prices. Additionally, by using filters, you can focus your search on certain factors such as supplier location, minimum order quantity (MOQ), and product classification.

Step 3: Import products to your Shopify store

After you are connected, you can choose which products to import into your Shopify store by browsing Alibaba’s vast product catalog. To reduce the number of alternatives you have depending on quality, price, and other factors, use the search filters.

Step 4: Set prices and profit margins

Based on the cost of the products from Alibaba, shipping costs, and additional costs like marketing and Shopify membership fees, calculate your selling pricing and profit margins. Make sure you establish prices that are both profitable and appealing to clients.

Make product descriptions, photos, and names more appealing to your intended market by customizing them. Emphasize the salient characteristics and advantages of the merchandise to attract possible buyers.

Step 5: Manage orders and fulfillment

Use the dropshipping software to have the supplier on Alibaba receive an order instantly when a customer places one on your Shopify store. After that, the supplier will complete the order and send the product straight to the client. Stay in touch with shoppers and respond quickly to questions or problems they encounter. Good customer service will boost business and build customer trust.

Step 6: Monitor performance 

You also need to track revenue, costs and customer reviews to continue to develop and improve services. To maximize your dropshipping business, you can test different product types, marketing methods, and price structures.

Top suppliers using Alibaba

Huizhou Jinghao Medical Technology Co., Ltd.

Huizhou Jinghao Medical Technology CO., Ltd. is a business that specializes in the manufacturing and marketing of medical devices, especially hearing aids and associated accessories. It is a rapidly expanding manufacturer that specializes in research and development, design, and sales of cutting-edge JingHao brand digital hearing aids, over-the-counter (OTC) hearing aids, Bluetooth hearing aids, hearing amplifiers, and personal sound amplifiers (PSAPs).

Like any other medical device company, they should make sure that their goods meet all applicable regulatory requirements and quality control procedures to guarantee user safety and effectiveness. In order to help customers with their hearing aids, the corporation may also provide services including product training, technical support, and customer service.

Shenzhen Sato Intelligent Technology Ltd.

Shenzhen is well-known as a center for technological businesses, especially those involved in information technology, electronics, and telecommunications. The research and production of several intelligent gadgets, including robotics, Internet of Things (IoT) devices, smart home products, and more, is a major industry in Shenzhen.

Beijing Winkonlaser Technology Limited

Beijing Winkonlaser Technology Limited is a Chinese corporation with its headquarters located in Beijing. Its primary focus is on the creation, advancement, production, and distribution of laser technology goods and services. The company’s main focus is on offering laser equipment and services for a range of uses, including the scientific, industrial, medical, and aesthetic domains.

To guarantee the security, dependability, and functionality of their laser products, the corporation probably complies with strict quality control procedures as well as legal requirements. They might also provide their clients with maintenance, training, and technical support.

Henan Leimengxi Industrial Co., Ltd.

Henan Leimengxi Industrial Co., Ltd. is a leading Chinese producer and trader, specializing in the development, manufacture, and marketing of eyelashes, cosmetic brushes, and other related products. The business is dedicated to offering cutting-edge, distinctive, and exclusive goods with private labels. For many years, the company has offered our international clients expert OEM/ODM services together with incredibly inventive items. 

That company collaborates with major importers, global retail chains, and well-known international brands in more than 30 nations. The business purpose of the company is “Quality assurance, professional service, customer satisfaction”. They consistently release 50 new designs each month, and 99% of our orders are placed again. Having a wide variety of products will aid in market expansion. 

Zhuhai Morning Technology Co., Ltd.

Zhuhai Morning Technology Co., Ltd. is well-known for producing and selling printer consumables, such as toner and ink cartridges, along with related goods. The company offers reasonably priced substitutes for original cartridges and are frequently sold under a variety of brand names.

The business might also manufacture refill kits, maintenance kits, printer paper, and other printer-related accessories and supplies in addition to ink and toner cartridges. It probably follows quality guidelines and might provide compatibility assurances or product warranties. In order to help customers with product questions, installation, and troubleshooting, they might also offer customer support services.

Xuchang Forever Hair Products Co., Ltd.

Xuchang Forever Hair Products Co., Ltd. is a company based in Xuchang, Henan Province, China. As its name implies, this company specializes in the manufacturing and marketing of hair items, including wigs, human hair extensions, and related accessories.

To uphold a favorable reputation in the hair sector, this company may place a higher priority on product quality, client satisfaction, and prompt delivery. You can also go to their official website or get in touch with them to find out more specific details about their goods, services, and ordering procedures.

How to choose the best suppliers on Alibaba

Finding a reputable supplier to order online on Alibaba is extremely important. It is a pity that you ordered products from Alibaba yourself but didn’t learn about the supplier, didn’t know how to find a reputable supplier, wasting effort and money. To find a reputable supplier on Alibaba, you need to choose a supplier with all of the following factors:

Alibaba Supplier Level

These are gold suppliers that offer on-site inspection and trade protection services. These suppliers must pay at least $1500 per year to become a gold supplier. If found to be unreliable, their account will be locked by Alibaba.

• Gold Supplier: Gold suppliers are premium members of AliExpress suppliers. Gold suppliers offer on-site inspection and trade protection services. However, compared to verified suppliers, the reputation is not as high. With a verified supplier, there will be many more outstanding advantages for customers. Therefore, you should look for authenticated suppliers before paying attention to these golden suppliers.
• Verified Supplier: Verified Alibaba suppliers need to fully provide video reviews of workshops and factories; panoramic images and production lines. Alibaba will review and check to ensure that this supplier is reputable. They must also provide customers with the most detailed information about the product.
• Trade Assurance: This is a type of commercial insurance provided by Alibaba to protect buyers. When a transaction is covered by Trade Assurance, if anything goes wrong, the buyer can receive compensation or a refund.

Supplier transaction level

The transaction level is based on accumulated points corresponding to the transaction amount of the supplier. The larger the number of transactions, the higher the accumulated points corresponding to the higher transaction level.

A supplier’s trading level is often determined based on factors such as number of orders, transaction value, and time active on the platform. The transaction level is often divided into different levels, and these levels are often marked with different badges or marks to indicate the trustworthiness and reputation of the provider.

Company website

Company website is an online platform that a business entity creates and manages to offer details about its operations, services, and products as well as contact information. Potential clients, partners, and stakeholders can interact with the business and discover more about it through its digital storefront and communication channel.

For each supplier on Alibaba, many companies have their own websites and there are also some businesses that do not have their own websites. If a company owns its own website, it is also considered a more trustworthy company.

AliExpress Store

If the supplier on Alibaba also has a store on Aliexpress, it shows that you are dealing with a legitimate supplier. If you want to check whether it is a reliable store or not, you need to go to the supplier profile, then click Contacts. There will usually be a link to their AliExpress in the form of a Website link, if they have one.

FAQ

Is it safe to use Alibaba?

In general, Alibaba offers a high level of safety. The business was established in 1999 and has a long history. Suppliers can do international business on the website’s safe digital platform. Online retailers offering goods and sellers in every sector, from clothing to consumer electronics, are available to customers. However, there are hazards involved with this. The more sellers and items there are, the harder it may be to evaluate each one and reduce the risk of fraud.

Here are some tips for you when using Alibaba safely:

• Examine supplier badges in detail: To ensure the safety of online dealing, Alibaba.com has set up a number of rules and procedures. Searching for suppliers with badges or certifications is one of the greatest ways to make secure purchases on Alibaba.com. These badges, which can be Gold, Verified, or Trade Assurance, indicate the supplier’s legitimacy as a realized company.
• Check the price carefully: Alibaba.com typically provides reasonably priced, high-quality products. But, you can tell something is wrong when you see a product that is typically advertised for a premium price for just a few cents. It usually indicates that you might be working with fake or poor quality products. It is advisable to steer clear of deals that seem too good to be true.
• Pay through verified method: To minimize the risk of scams, it is recommended to use approved payment methods on Alibaba.com. Payments can be sent to suppliers via reputable channels such as Western Union, PayPal, Trade Assurance, online transfers, online bank payments, and wire transfers. Make every effort to stay away from doing business with sites other than Alibaba.com.
• Check ratings and review: The most obvious piece of advice for making safe purchases on Alibaba.com is probably this one. When determining whether to purchase something from a supplier, nothing is more reliable than reading reviews. Check out the seller’s previous transactions and reviews before making a buy. You can look for reviews using search engines or by doing an inquiry on Alibaba.com.
• Avoid brand name products: Suppliers with brands on their products are best avoided as they are probably knockoffs. Well-known businesses have rigorous rules about selling their goods on online marketplaces. Hence, there’s a significant probability your provider is ripping you off if they’re supplying Louis Vuitton, Nike, or Disney at a discounted price.
• Confirm product before buying: Make sure the product is what you want by carefully reading the product descriptions, examining the images from various perspectives, and asking pertinent questions. To ensure the quality of the items, it is best to ask for a sample if you are purchasing in large quantities.

Is Alibaba the same as Shopify?

Although both Alibaba and Shopify are e-commerce platforms, their functions and customer bases differ. While Shopify focuses on empowering companies to launch and manage their own online storefronts for retail sales, Alibaba concentrates on easing B2B transactions and wholesale procurement.

Shopify dropshipping store examples

MooShe Socks

MooShe Socks is an example of a dropshipping store in the field of fashion products. Undoubtedly, a dropshipping company’s ability to succeed is greatly influenced by the caliber of its merchandise. Additionally, the business has gained recognition due to its high-quality products, and it has a devoted following of 5,000 monthly visitors. 

To enhance sales and augment revenues, the organization has employed a range of potent Shopify applications, including Recharge (for launching and expanding subscription and recurring businesses) and PushOwl (for retrieving abandoned carts using push notifications).

Burga

Burga is an excellent Shopify dropshipping business that specializes on phone accessories. Despite the fact that traffic has declined over the last month, this store’s favorable statistics merit discussion. For a Shopify dropshipping store, a goal of about 800k website visits is ideal.

Conclusion

Alibaba.com is a great marketplace where you can buy, sell, or do both based on your needs. Alibaba dropshipping Shopify will bring many benefits to store owners, helping them take advantage of the strengths of both platforms and serve more potential customers. However, to use Alibaba safely and effectively, users need to pay attention to information about products and supplies. We hope that the above article has provided necessary and useful instructions for you.