The successful dropshipping journey with our own US warehouse

Yaros

Moderator
Staff member
Hello,

Recently we have opened our own warehouse in the US and I would like to share with you the success of our first dropshipping store that uses our own stock in the US.

Sales Report ‹ The Auto Merch — WordPress 2020-09-30 10-44-46.png


This kind of dropshipping business model is a bit different from the classic one.

How it works

First, we are doing a deep research to find the winning products. Some of these products we start promoting and selling using the usual AliExpress dropshipping model and if we see the potential, we order these items in bulk from Alibaba moving them to our warehouse in the US to sell directly from there.

What are the advantages

The products cost much less and it takes only 4 days to ship across the US (instead of 30+ days from AliExpress).

For example, this product costs us $4/piece to order from AliBaba (including shipping to our warehouse) and +$4 we pay for shipping in the US. So the total cost for us is $8. We are selling it for $29 on our webstore.
Premium Multifunctional Car Seat Organizer | The Auto Merch 2020-10-01 14-19-35.png

The price on AliExpress is $7.42 + $7.45 (30 days shipping to the US).

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We provide a more beautiful and reliable package comparing with AliExpress.

Our package:

1601396346138.JPEG

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AliExpress package with the same item:

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Besides, all ordered items by one single customer are shipped in one package now and we can start working on our own branding.

And finally, the refunds decreased dramatically (almost zero) and returning customers appeared!
 

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Mar

Moderator
Hello,

Recently we have opened our own warehouse in the US and I would like to share with you the success of our first dropshipping store that uses our own stock in the US.

View attachment 13048


This kind of dropshipping business model is a bit different from the classic one.

How it works

First, we are doing a deep research to find the winning products. Some of these products we start promoting and selling using the usual AliExpress dropshipping model and if we see the potential, we order these items in bulk from Alibaba moving them to our warehouse in the US to sell directly from there.

What are the advantages

The products cost much less and it takes only 4 days to ship across the US (instead of 30+ days from AliExpress).

For example, this product costs us $4/piece to order from AliBaba (including shipping to our warehouse) and +$4 we pay for shipping in the US. So the total cost for us is $8. We are selling it for $29 on our webstore.
View attachment 13040

The price on AliExpress is $7.42 + $7.45 (30 days shipping to the US).

View attachment 13041

We provide a more beautiful package comparing with AliExpress.

Our package:

View attachment 13042

View attachment 13045

AliExpress package with the same item:

View attachment 13043

Besides, all ordered items by one single customer are shipped in one package now and we can start working on our own branding.

And finally, the refunds decreased dramatically (almost zero) and returning customers appeared!
@Yaros, we are desperate for sales. How can we take advantage of your new warehouse in the US?
 

Yaros

Moderator
Staff member
@Yaros, we are desperate for sales. How can we take advantage of your new warehouse in the US?
We have a strong desire to make it available for all our clients and to make the life of our dropshippers much easier, but first we need to test everything with our own stores, since there are many operations involved here - suppliers, shipping, transportation, packaging, branding, etc. And we need to complete the development of the plugin with access to these items and fulfilling functionality. Now we have to do many things manually.
 

Mar

Moderator
We have a strong desire to make it available for all our clients and to make the life of our dropshippers much easier, but first we need to test everything with our own stores, since there are many operations involved here - suppliers, shipping, transportation, packaging, branding, etc. And we need to complete the development of the plugin with access to these items and fulfilling functionality. Now we have to do many things manually.
Thanks. This is a very good development. Many of our customers are from the U.S. Even if the shipping destination is to another country, it is still much better in many ways if the product is from a U.S. warehouse especially the shipping time which is a major issue if it is from China. This is a good thing to look forward.
 

Yaros

Moderator
Staff member
Thanks. This is a very good development. Many of our customers are from the U.S. Even if the shipping destination is to another country, it is still much better in many ways if the product is from a U.S. warehouse especially the shipping time which is a major issue if it is from China. This is a good thing to look forward.
I will keep you updated! Probably there is a point to gather a small beta test group here soon.
 

chris37

Well-Known Member
I will keep you updated! Probably there is a point to gather a small beta test group here soon.
That is very helpful... Good job @Yaros .... count me in for the beta test group as well.
My Biggest worry about dropshipping was the delivery time ... and if in USA is gonna cut down to 4-8 day is gonna be amazing.
Also I like to know if the alishipping add-on is gonna be working separate for your USA warehouse?

Thank again for this !
 

Yaros

Moderator
Staff member
That is very helpful... Good job @Yaros .... count me in for the beta test group as well.
My Biggest worry about dropshipping was the delivery time ... and if in USA is gonna cut down to 4-8 day is gonna be amazing.
Also I like to know if the alishipping add-on is gonna be working separate for your USA warehouse?

Thank again for this !
Actually 4-5 days including processing time)

Yes, it will work separately.
 

Yaros

Moderator
Staff member
Another example of a good product for own warehouse.

Amazon: $89.97 and 8 days delivery.

Amazon.com: 5-in-1 Travel Bassinet Foldable Baby Bed, ZOUNICH Diaper Bag Backpack Changing Sta...png

AliExpress: $42.99 and 18 days delivery.

Portable Bassinet For Baby Foldable Baby Bed Bag Newborn Travel Indoor Bed Backpack Bed Breath...png

We buy this product on Alibaba for $16.50 and can offer 4 days shipping.

AliBaba.png
 

mushrukh

Member
Thats great @Yaros . Just a small question apart from all other people have already asked, will your warehouse be compatible with other marketplace like amazon,ebay if in case someone is doing dropshipping on it and his own website as well just like FBA kind of stuffs. and If yes will the product sourcing and shipping to your US warehouse service will be provided by you like complete solution ? or intend to do it in future? so that we can focus the future business.
Or incase if sourcing is not from your side. Do we need to purchase from Alibaba on our own and then ship it to your warehouse on our own? just such couple of questions.. :)
 

Mar

Moderator
Or incase if sourcing is not from your side. Do we need to purchase from Alibaba on our own and then ship it to your warehouse on our own? just such couple of questions.
If that is the case, you need millions of dollars.
 

Yaros

Moderator
Staff member
Thats great @Yaros . Just a small question apart from all other people have already asked, will your warehouse be compatible with other marketplace like amazon,ebay if in case someone is doing dropshipping on it and his own website as well just like FBA kind of stuffs. and If yes will the product sourcing and shipping to your US warehouse service will be provided by you like complete solution ? or intend to do it in future? so that we can focus the future business.
Or incase if sourcing is not from your side. Do we need to purchase from Alibaba on our own and then ship it to your warehouse on our own? just such couple of questions.. :)
On the initial step we will collect our own stock based on our own research and give access to these products. Further we can give our clients a possibility to purchase necessary products on Alibaba and send to our warehouse for selling in the US.
 

BaB

Active Member
Wow, what a great development! It's possible that the warehousing approach is the future of dropshipping, and it's great to see a trusted and dedicated source spearheading such a project. Something with the reliablilty and reputation of AliDropship could eliminate a lot of hassle and improve customer service, especially for those of us still trying to develop our businesses. Please keep me in mind for a beta project as well!
 

sk_brunelian

New Member
I am just wondering how this store earned lot of money in 1 month. Where as you can find similar products on amazon with almost same price or cheaper on amazon and delivery time 1 or 2 days. how these products are winning for you?

because for winning product it should not be available cheap at amazon or Walmart etc?



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