Differences between purchase prices and people's habit

[digitx]

Hi guys,

I'd like to get your opinion in this thread. What do you think, what may become more profitable in dropshipping sale scenario:

1) selling stuff, which is quite cheap on Ali (1-5$), but you don't get a huge profit on selling one item, so you need to count on big volume of sale,
2) selling stuff, which is quite expensive on Ali (50-100$) and you get a reasonable profit even if you sell just one item.

I mean, the second scenario seems to be much better for seller, but I'm not sure, if people are able to spend money like 100-200$ for online shopping, where they have to wait 10-30 days for delivery of the item.

Can you share your opinion with me, please?

 

[Direct Webstore]

The second scenario is what I see "You Tube Gurus" recommending ... but they are dropshipping with suppliers in the U.S with much shorter delivery times. If I spend $50-$100 on something, I'd want it delivered very quickly. So if you used Aliexpress to sell higher priced items, I'd say you'd have to scrap the free shipping and go with paid faster shipping.

On the other hand ... if I bought something dirt cheap ... I wouldn't mind waiting longer for it to be delivered.

 

[otk]

I've had better experience with items priced around 20-40 in Ali

 

[Direct Webstore]

I've had better experience with items priced around 20-40 in Ali

Is that $20-$40 Aliexpress "wholesale" price ... or your store's retail price?

 

[otk]

Is that $20-$40 Aliexpress "wholesale" price ... or your store's retail price?

Wholesale price. Retail price 50-70. I can't imagine getting big sale numbers by selling $10 products. (also, marketing costs would eat up the margin)

 

[Direct Webstore]

Wholesale price. Retail price 50-70. I can't imagine getting big sale numbers by selling $10 products. (also, marketing costs would eat up the margin)

Yeah ... that seems to be the concensus everywhere. Do you use free shipping only or a selection of shipping?

 

[otk]

Yeah ... that seems to be the concensus everywhere. Do you use free shipping only or a selection of shipping?

Only free

 

[Direct Webstore]

Only free

Is that because you're dealing with multiple sellers with different shipping prices and it's a hassle ... or because you simply just sell more stuff with the free shipping?

 

[otk]

Is that because you're dealing with multiple sellers with different shipping prices and it's a hassle ... or because you simply just sell more stuff with the free shipping?

For products with price 20+ on Aliexpress, the sellers 99% of time provide free shipping by ePacket. And free shipping is always better for conversion. I haven't even tried asking for money. Free shipping is better for long delivery time in my opinion.

 

[digitx]

If I spend $50-$100 on something, I'd want it delivered very quickly.

On the other hand ... if I bought something dirt cheap ... I wouldn't mind waiting longer for it to be delivered.

I've got the same thoughts. On the other hand, I agree with @otk, that selling cheap products may be frustrating considering marketing costs and big sale volume needed to get reasonable profit.

I consider two extreme niches. Maybe hitting beetwen them will be the best way.
Thanks guys!

 

[Direct Webstore]

I consider two extreme niches. Maybe hitting beetwen them will be the best way.
Thanks guys!

That's exactly what I'm thinking of. But I'm planning on having multiple stores ... so either a mix of cheap/expensive in the one store ... Or have some stores selling cheap stuff and others selling pricier stuff. But whatever we do ... multiple income streams is the way to go. Then over time you can kill the non performing sites, keep the good ones and keep making more until you have a nice portfolio of star performers. Well ... that's my plan anyway.

 

[digitx]

Sounds good! Good luck with that!