Hook

After the drop shipping basics episode, the questions flooded in. How do I pick products? How many do I need? What about shipping from China? In this episode, I answer the most common drop shipping questions about using AliExpress, Shopify, and Oberlo to build your first ecommerce store.

What You Will Learn

  • How to select products and validate them using Facebook research
  • Practical answers to shipping, tax, and business setup questions
  • Why the barrier to starting a drop shipping business is lower than you think

Episode Summary

Following Episode 143 where I explained the drop shipping model, listeners sent in excellent questions. This episode covers the most frequently asked ones:

  • Product selection: Look for sourceable products on AliExpress that you find interesting and that are already being successfully advertised on Facebook.
  • How many products: Start with one or two. Test with small Facebook ad budgets. Scale winners and add more products over time.
  • Shipping times: ePacket from China takes 10-20 days. Set expectations upfront and provide tracking. For impulse-buy items, this is rarely a problem.
  • Sales tax: Charge in your nexus state. Shopify handles collection. Consult a tax professional.
  • Business setup: No LLC, UPC codes, or supplier disclosure required to start.

Key Takeaways

  1. You can start with almost no money. Free AliExpress account, Shopify trial, and $3-5/day in Facebook ads.
  2. Test products cheaply and quickly. Do not spend months building a perfect store before testing.
  3. Shipping from China works for impulse buys. Set expectations and provide tracking.
  4. Keep it simple. No legal entity or special paperwork needed to start.

What Has Changed Since This Episode

  • Faster shipping options now available. Many suppliers offer US warehouse fulfillment with 3-7 day delivery.
  • Online sales tax rules changed in 2018. The Wayfair decision means you may owe tax in states without physical presence. Use automated tax solutions.
  • Oberlo has been discontinued. DSers and other apps now serve the same function of connecting AliExpress to Shopify.

Resources

Related Episodes

Full Transcript

The full transcript for this episode is available at LNIM 144 Transcript: Answering Common Drop Shipping Questions.

Take Action

Browse AliExpress for 15 minutes in a niche that interests you. Find one product under $10 that you could sell for $20-30. That is your starting point. Subscribe on Apple Podcasts or Spotify.

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