How to Make Money Dropshipping Using AliExpress and Shopify

How to Make Money Dropshipping Using AliExpress and Shopify

By Ian | eCommerce/Dropshipping

How to Make Money Dropshipping Featured Image

If you’re trying to crack how to make money dropshipping, you’re in the right place!

This lesson’s length is about to achieve EPIC proportions, and the last thing I want to do is prolong it unnecessarily with a “hypey” introduction. I think the content of this lesson speaks for itself.

BUT… I do want to preface it with one note:

I’m not trying to “sell” you any of these tools. There are a handful of affiliate links in the message below, but all of these are tools that I use everyday in my own eCommerce business to make money dropshipping.

You can “cut me out” by going directly to the source, if you prefer (you’ll pay the same price).

But I’m not going to waste any of your time pitching or “selling” to you — all of these tools/resources will pay for themselves 10x over if you stick with eCommerce and “crack” it using the training below.

I use them and they save me a ton of time. I think anyone entering this industry should do the same — that’s as “pitchy” as I’m going to get.

With that being said, here’s everything you need to know to crack eCom/dropshipping in step-by-step format:

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How to Make Money Dropshipping — Using this Guide

illustration of the eCommerce and dropshipping cycle

If you’ve never done most of this, just reading through this guide isn’t going to make any sense.

It’s going to come off as really abstract, overwhelming crap that your brain has no idea how to visualize or interpret.

So I strongly recommend following along with each step, taking action and interacting with the sites/resources as they’re discussed in this tutorial.

With this in mind, it could take you a few days to work your way through this whole guide — and that’s fine.

This should take some time. It’ll be the foundation of your entire eCommerce business.

Step 1: Pick a Niche

archer shooting an arrow

I learned the hard way that there are two main components to a good niche, particularly when you’re just dropshipping someone else’s products rather than building your own brand. These are essential to anyone’s success when trying to figure out how to make money dropshipping:

  • You want a niche with at least 10 million people internationally — even more is better (we’ll cover how to find this out in the next step).
  • Ideally, you also want your audience to be somewhat passion-charged. The lowest-hanging fruit in eCommerce/dropshipping is impulse buys, so the more excited they get over the items in your store, the better.

We’ll really sink our teeth into picking products later, but for now, let’s talk a little bit about audience research.

Step 2: Facebook Audience Research

dropshipping niche research using Facebook's Audience Insights tool

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If you’re struggling to come up with ideas for a niche that meets the two criteria above, just jump into this step and start playing around. If you keep the criteria from Step 1 in mind, a lot will start to “click”.

Hop into Facebook’s Audience Insights tool (this link is not broken; you’ll need to be signed into a Facebook account): https://www.facebook.com/ads/audience-insights/people

The best way to get a feel for this tool, just like anything else, is playing around with it for a few hours over the coming days. There’s A LOT of incredible data here — it’s actually kind of creepy…

I recommend narrowing the “region” down to a 1st-world country where most of its citizens can afford to shop online (no offense intended, but your store is going to flop without people that can afford your products).

Then I’d start typing in popular Facebook pages in my targeted niche, in the “interests” field on the left.

researching niches using Facebook's audience insights manager

Don’t have a niche yet? Just input one of YOUR favorite Facebook pages and start looking at the top categories, top “liked” pages, etc. You can even narrow it down further by adding other Facebook pages to the “interests” section, and likely begin finding some popular niche stores in the top 20-30 “Page Likes” section.

Having trouble picking a niche? Get step-by-step training for free here >>

These niche stores can be golden when you find them. They provide key insights like what’s selling, what price points you should aim for, etc.

That should get the niche ideas flowing. Remember — you want it to be able to combine enough of these interests around the world to reach an audience of AT LEAST 10,000,000 people.

Create a spreadsheet categorizing the Facebook interests and pages that you see popping up the most, and that you think would be most likely to buy products in your niche. Examples of interest groups you might use (the columns in your spreadsheet) are:

TV Shows
Music
Events
Magazines
Retail Websites
Boutique/Niche Websites
Humor
Celebrities
Etc…

I’d recommend building out a spreadsheet of at least 5-7 broad interest groups (like those listed above) each with 5-10 interests in the rows below.

So in the end, you should have a total of 25-70 different interests and pages. Save this spreadsheet somewhere — you’ll use this for ad targeting later.

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Step 3: Create a Shopify Account

Shopify signup page

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There are a lot of ways to build an eCommerce store — WordPress, WooCommerce, BigCommerce, Magento, and countless others.

None of them make it as quick and easy to make money dropshipping than Shopify.

Create a Shopify account (the first 14 days are free, so make the most of them) and, just like anything else, start playing around with it to learn the ropes.

Shopify also has a massive knowledgebase and awesome support team if you get stuck anywhere: https://help.shopify.com

Setup the general navigation and “feel” of your store — we’ll worry about the rest a couple of steps from now.

Step 4: Create a Dropified (or Oberlo) Account

This is the tool you’ll use to import products to your store from AliExpress (detailed later) AND fulfill your dropshipped orders with just a couple of clicks. These are apps that connect directly to your Shopify store.

Shopified app homepage

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I’ve noticed that a lot of people talking about how to make money dropshipping discuss Oberlo, but not Dropified. Dropified is a bit newer, which I think is part of the reason it’s not discussed as much, but I think it’s largely due to a lot of people in this industry regurgitating what others are saying instead of “cracking the code” and making money dropshipping themselves.

Everyone I know making money dropshipping is using Dropified these days. Although Oberlo was recently purchased by Shopify, so hopefully it will compete more in the coming weeks.

I’ve used them both. I started off using Oberlo and later transitioned to Dropified (it’s a pain to transition, but it was worth it). Dropified is a hell of a lot faster, more robust, and rolls out new features MUCH more often than Oberlo.

Every store I now launch, I setup with Dropified rather than Oberlo. Like I said, the transition isn’t easy. Both have free trials, so choose whichever one appeals to you most:

Signup for Dropified

-OR-

Signup for Oberlo

We’ll dig into using these during Step 6.

Step 5: Create an AliExpress Account

AliExpress homepage

This is where you’ll source your products from, at least to begin. Anything you find on AliExpress can be imported to your store and fulfilled with two clicks using the Dropified or Oberlo plugin.

It’s a massive collection of incredibly cheap products shipped directly from China.

If you play around with it for more than a few minutes, you’ll discover really quickly: we’re paying a hefty markup for almost everything we buy as consumers — almost everything is imported from China.

AliExpress gives us direct access to the same manufacturers that many multimillion-dollar retailers use.

Now you can benefit from the markup of really cheap Chinese goods, too. This is how most dropshipping are earning income and building their businesses.

These are NOT all crap quality — we’ll talk about how to ensure you’re sourcing high-quality goods in the next step.

Want to source the perfect products for your store? Learn how in our 100% free, step-by-step training >>

Step 6: Pick Your Products for Testing and Import Them to Your Store

Alright, we need to linger on this step for a bit because there’s a lot of important information to cover. Before you really dig into products, keep these things in mind:

  • You want items that aren’t easy to find at local stores
  • You want items that you can mark up at least $20 and still have great “perceived value” by the consumer — more on that later
  • You want items that have high-quality images; preferably demonstrating the product being used (or worn, in the case of accessories/apparel)

If you fail to satisfy ANY of the points above, you’re starting the race by shooting yourself in the foot. It’s going to be difficult making money dropshipping with products that don’t meet these criteria.

picking the right products to dropship using aliexpress

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Play around with all kinds of search terms — shirts, jewelry, bags, accessories, pants, dresses, shoes, sunglasses, gadgets, etc.

It’s as easy as “NICHE shirts”, “NICHE blouses”, “NICHE accessories”, etc… A small tweak to a search term can pop up TOTALLY different results on AliExpress.

It can take several hours to hunt down 4-5 REALLY good products. Take your time here — this will be one of the biggest factors that determines your success or failure.

As you search on AliExpress, always click the option at the top of the search results to sort by “Orders”. This will sort the most-frequently-ordered items to the top of the search results, which is helpful, but there’s more to ensuring your products are high quality.

I personally only import items to my store that have at least 100 reviews/ratings and 4.3+ stars. That narrows down your options a lot, I know, but it also SIGNIFICANTLY decreases the customer service burden you’ll face once you start getting a lot of orders.

Once you sort by orders and see the “cream” rise to the top, it’s basically up to your judgement to pick ones that you think will sell.

Import the ones that you think will sell using Dropified or Oberlo (those are non-affiliate links to tutorials about how to do this step-by-step with each app).

collecting products for dropshipping using Shopified

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Remember that you need to mark each of these items up by at least $20 to make money dropshipping after your advertising expenses and item cost.

I’ve sold dresses, that I purchased for $20, for $40-$50 and they still seemed like a “steal” to the customer, so my impulse buys were through the roof (and so were my profits).

I’ve also tested shirts that I got for $5 and had to sell for at least $25, and as a result, they didn’t sell very well at all (low perceived value).

I prefer to stick to items that I can mark up $20 – $30 and they still have a “perceived value” by the consumer to be a total bargain.

You get a “feel” for this over time, but just keep it in mind as you’re picking products to import to your store.

Nobody knows what’s going to sell for sure when they enter a niche — it’s a guessing game for us all. Don’t be discouraged by this.

After you have 4-5 products that meet all of the above criteria, it’s time to launch some tests!

Step 7: Create a Facebook Business Account

Facebook Business account homepage

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This is really straightforward. You can launch your test campaigns from your personal Facebook account, but it’s best practice to open a business account first.

This will allow you to run ads to multiple niche stores over time in an organized way.

Again, not totally required, but it’s free and takes less than five minutes, so why not?

You can create yours at https://business.facebook.com

Step 8: Launch Your Test Ads

Here we go! This is where things can start to feel either:

Really intimidating…

Or totally thrilling.

(maybe both!)

This is where everything from the steps above starts coming together.

Create ad groups based on your interest groups from earlier.