I started a charms store (jewelry) and I found this great high-end product on AliExpress, but they are branded. I mean, the charms are marked with the brand (Valinor) and the packaging is branded too. So the customer can easily search the product online and find it cheaper direct from AliExpress...
Would you still dropship a product like that? How much margin would be fair? I worry people will later find out on the web that they could get it cheaper.
I want to preface this answer with noting that this is just one guy's (my own) humble opinion who loves Shopify, has built many stores, and exclusively works with dropshipping for his own stores.
I do not recommend adding branded products to your store, for the exact reason you've brought up, and additionally, you may need a resellers license to sell some branded products (ie. Nike, Adidas, etc) or risk having your payment gateway disabled (or worst case, being sued by the brand you're selling). Most customers do at least a quick pricing check via searching Google before purchasing online. If they copy and paste your product's name into Google and find the exact same thing (on the first page) but for cheaper, they will probably not purchase from your store.
If you do wish to support these products, what I recommend doing is removing the brand's name from the product title & description, and creating your own (unique) name for it. It's okay if the brand name shows in the product photos - you just don't want to make it overtly obvious that you're selling the same product for a higher price.
Dropshipping is a respectable and LEGAL business practice. There shouldn't be any negative feelings towards offering a product for a slighly higher price than competitors. It may not be the most lucrative business model out there, but everyone has to start somewhere. As far as margins go, that's 100% up to you to decide. If the product is under $5, I recommend doing 50% margins, and then decreasing the margins as the product price goes up. People will pay more to purchase from a respectable business with excellent communication skills, rather than buying from overseas wholesalers with English as a second language.
Hope this helps and best of luck with your new store! :)
Is there a way to find out if I need a resellers license for brands that I come across on Alliexpress. There are brands which don't appear to have the status of Nike and Adidas (etc.), but how would I know? Is it matter of choosing products whose brands are exclusive to Aliexpress? If so, how do I determine that, because they are likely to be found on many stores who are drop-shipping etc.
A lot of 'Oberlo' and AliExpress suppliers provide photos that are readily acceptable for my / most dropshippers use. But they are some suppliers (not big names) who put their company or brand name ON the photos they provide to e.g. Oberlo (or AliExpress) store - some even put their phone numbers! Can I delete the brand name from the photos? If not, I am afraid just like Josiane - of losing some sales - which will not benefit the supplier in the long run anyway. In fact I have deleted some products from my store just because of the supplier's brand name appearing in their product photos. But they are some nice products that I really want to promote in my shop. So my question is: Can I edit the photos i.e. delete the brand name (and the subtle tactic of the suppliers of getting free traffic from my efforts :) Looking forward to your quick reply. Thank you.
I have a problem with brand name toys, from Oberlo and AliExpress, my gateway suspended on Shopify because complain from factory I guess, they are asking permission to sell their names, that is not possible unless Oberlo and AliExpress not provide to us. They told me today, just remove brand name from description. Do you think will help?