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7 Important Things to Know About Dropshipping from China

June 20, 2019 eCommerce Tips

Dropshipping is a great business model that any entrepreneur can tap into. It is an e-commerce that is flexible, cost-effective, and involves low risk.

Many e-commerce startups have not engaged dropshipping from China because they have little or no idea of what it entails. For this reason, they end up not investing in it and make the most out of it. In this article, we will be throwing light on the vital things you should know about dropshipping from China.

Low Risk

Dropshipping from China alleviates you from the hassle and risk of buying bulk inventory from your supplier. Sometimes the products in the inventory may become damaged while being stored at the warehouse or during delivery to customers. The effect of the damage can cause great harm to your business. All that is there is for you to do as far as dropshipping is concerned is for you to pay only for goods purchased by your customers. You will not worry about having a bulk inventory or the goods’ safety during delivery.

Deal With Products That Have Multiple Manufacturers

Going for a product that has limited manufacturers may not bode well for your business. What if demand for the product from your customers is high and your supplier has run out stock for it? You are going to lose your customers, as they will search for it at another e-commerce site.

In China, different manufacturers replicate and sell a product without any consequence. Find out as many suppliers as possible that are supplying the same product you are selling. This on a long run will help you sustain your business.

The Product That You Deal On May Not Match Customer’s Standard(S)

Most of the products that are found on the dropshipping websites in China are designed for the Chinese market. This does not mean that the products fall short of safety and product regulations standards. Products manufactured in China have great quality.

There is a myth that China manufactures substandard products. This is not true. Reason being that the China domestic market has a laid out product regulation and safety standard that is in variance with international markets. Bear this fact in mind that you are liable, not the supplier, for any issue that arises with the products from the customer.

It is Cost-effective

You may think that for the fact, the dropshipping is coming from China and the supplier manufactures the goods in bulks it will cost you an arm and a leg to start. Do you even need to have an inventory for the products you are selling? The answer is NO. All you need to have is an e-commerce website wherein the products you are dealing on are displayed.

When a customer makes a purchase of a product from your website, you order the same item from your supplier to be delivered at the doorstep of your customer. You do not have to worry about building an inventory, packaging, and delivery. This, in turn, saves you cost.

You Do Not Have To Market

Dropshipping involves a wide array of products on your e-commerce site without investing in manufacturing or sales. For the buyer, the seller is the main person they know. They do not know about the distribution chain. Regardless of this perspective, the dropshipper does not need to invest in marketing. They act as an intermediary between the supplier and the buyers. The suppliers rely on them to help sell their manufactured products through the website of the dropshipper.

Legal Registration is Not Necessary

It is common that when a new venture is established, paperwork, registration with relevant authorities and taxes are expected to be dealt with. These processes can be time-consuming and costly.

When it comes to dropshipping business from China, this is not the case. If you have chosen the Chinese market to start your dropshipping business you will not be asked by any supplier if your business is officially registered or not. You simply just locate a supplier, order for products and have them delivered to your preferred destination.

You Can Easily Find a Supplier

In China, there are many suppliers that are willing to collaborate with you. All you have to do is search for a product, contact the supplier to have them supplied to your dropshipping store.

Experience is Not Important

Little to no experience is not required in the dropshipping business from China. Even if you have not sold anything in your life, you can still effectively run a dropshipping store. All that is required is having an e-commerce site, have products to sell and a supplier. Dropshipping from China does not require becoming conversant with export rules or anything of the sort. Such hurdle does not stand in you, which, in turn, makes the whole process easier.

There you have it! Above are some important things to know about dropshipping from China. Dropshipping business from China does not require having your business registered and licensed, marketing, experience, involves low risk and is cost effective.

There are some cons regarding dropshipping from China doing the rounds. Whatever it is, the advantages outweigh the downsides of this business model. While choosing a supplier of the brand you own, go for one that manufactures high-quality products and makes early delivery. Imagine the kind of reputation not being able to deliver a high-quality product ordered by your customers and at the same time fail to deliver them. Your guess is as good as mine.

Do you need help with your drop shipping business? Contact us today at Fulfillman. We are leading provider of Drop Shipping services, China sourcing, Warehouse fulfillment, Third Party Logistics, and many more. Our dedicated team will be available to speak with you and discuss your needs. Our dedicated team will be available to discuss with you and provide suitable answers to your questions and concerns. We guarantee you excellent services. An amazing experience awaits you.