I'm new to this community. To be exact, 2 days old. I reside in Singapore.
I'm currently stuck in the order+delivery+shipping because I couldn't understand the entire process of dropshipping.
My current understanding of dropshopping is: For example I set up a Shopify account -> source a product from Oberlo -> X supplier (China center only) e.g. AliExpress -> I then adjust pricing, marketing stuffs etc.
Okay. Then... I'm now stuck because I don't quite understand the blueprint behind the scene:
1. Once an order has been placed by my customer, is there an app that automates this ordering/ fulfillment process?
2. Are there apps that I should install for Local shipping (Singapore) and International shipping (rest of the world)?
3. When X supplier (in China) completes an order, how do they / or who (the local delivery services? through which method do I integrate them?) delivers the product to a Singapore customer vs a USA customer?
Thank you so much for the help. Would really appreciate the assistance.
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I am from Singapore too. You don't need a W8BEN. As a dropshipper you are like a middle man. In other words instead of the buyer buying direct from AliExpress, you buy on his behalf. So you buy from AliExpress and put the customer shipment address as the delivery address.
You will need to install the free app Oberlo if you are dropshipping from AliExpress. When you are building up your product lists in Shopify, you should import the items into your Shopify store through Oberlo. On so doing, Oberlo will automatically update your store inventory level corresponding to the inventory level as seen in your AliExpress vendor.
OK. When your customer place an order, you will be able to see the order coming to your Shopify app as well as your Oberlo app. You will need to manually place your order through Oberlo. Oberlo is like your control panel. When you order through Oberlo, it will bring you to your AliExpress vendor to purchase the item. You will buy the item using your own credit card or payment method. For shipment address instead of putting your own address, you put your customer's shipment address (at USA for example). Also you have to choose the correct shipping method which normally is AliExpress Standard shipment or ePacket.
Hi all, thanks for the help.
Thanks Famoseco for the detailed explanation. So it seems like once my customers have ordered, I have to do manual clicking on the products on oberlo for it to be sent to suppliers, and suppliers will ship them directly from their warehouse.
"For shipment address instead of putting your own address, you put your customer's shipment address (at USA for example)." so I have to manually edit this as well?
"Also you have to choose the correct shipping method which normally is AliExpress Standard shipment or ePacket." - I have to edit the shipping method. But the delivery from warehouse to doorstep of customer will be done by supplier?
Oberlo is the brain or the link between your Shopify store and AliExpress. When you see there are orders coming in, you should log into your Oberlo account to manage it.
At Oberlo, you go to the Manage Order section and you should be able to see your customer orders listed there. At each item there is an Order Product button. On clicking the Order Product button, Oberlo will automatically bring you to Aliexpress Checkout page. Also Oberlo should have automatically placed your USA customer address as the shipping address. Sorry I was wrong earlier mentioning that you need to type in his shipping address. You just need to verify that the address points correctly to your customer address.
For dropshipping, it would be advisable to provide Free Shipping to your customer in your Shopify Store. Reason is if you charge your customer shipping fee, they will likely come after you if the item does not arrive within a week. Hence your Shopify item pricing obviously must be able to cover shipping cost. To be safe you should also mention in your Shopify store that shipment will be estimated to be 3 to 4 weeks.
When you place your order in AliExpress make sure you check which is the affordable and fastest shipping method. Most likely they should be AliExpress Standard Shipment or ePacket. Some AliExpress vendors provide Free Shipment but if you look closely their shipment period is like 50 days. Make sure you do not click that shipment mode.
Finally, all the best to your new venture!