I've watched a lot of videos on drop-shipping and checked out some successful stores, heard stories and watched interviews and read a lot of articles as well.
One thing that I couldn't find a reference to, is how do the store owners manage the shipping labels and packaging?
Lemme give an example. If I buy something from a store named XYZ. When the package arrives and it has a Chinese company's name on it and no reference to store XYZ whatsoever, I'd never accept the package.
So, in case of drop-shipping, when a store owner orders something from a merchant, either on Ali Express, or Amazon, the merchant packs and delivers the item with their name on it and not XYZ.
Doesn't customer get confused? What you do when they refuse to accept such a package? I understand that they have already paid for that order, but doesn't this costs the XYZ's owner a customer?
How does this REALLY work?
If you pick a solid manufacturer, they usually allow you to have your companies name on the packaging.
Or, in most cases, you can elect to have the manufacturer remove all packaging/labels of them. So your package will have no labeling.
Is it possible to do this on Ali Express?
Yep! totally possible.