Transitioning from AliExpress to Direct 1688 Sourcing: A Step-by-Step Guide

The AliExpress Margin Squeeze

Most beginners start dropshipping via AliExpress because it is easy to use and has English descriptions. However, AliExpress sellers are middleman traders who mark up factory prices by 30% to 100%. As your sales volume grows, these markups make scaling ads unprofitable. Transitioning to direct 1688 sourcing is the only way to recover your profit margins.

3 Steps to Shift Sourcing to 1688

Step 1: Identify the Source Factory

Use the GP Sourcing extension to run an image search of your AliExpress product. The extension will show matching direct 1688 manufacturer listings, revealing the actual wholesale cost.

Step 2: Negotiate Sample Orders

Contact the 1688 supplier directly to order samples. Check their transaction history and return rates to verify they can handle bulk scaling.

Step 3: Partner with a Shenzhen 3PL

Since 1688 factories only ship domestically within China, set up a warehouse account with a Shenzhen-based fulfillment company (like GPfulfillment). The factory ships your bulk items to the Shenzhen warehouse, where they are consolidated and shipped to your global customers.