If you’ve only recently started dropshipping, you’ve probably already discovered that many do so from China. This essay will go over the reasons why people dropship from China, outline some advantages and disadvantages, and even offer some advice on how to get started.
Are you still unfamiliar with dropshipping? Check out our dropshipping overview at your convenience.
Why Should You Dropship from China?
The primary factor in dropshipping from China is profitability; as a result of their low production costs, goods offered in China are tremendously affordable.
The two biggest e-commerce platforms, Shopify and WooCommerce, both have excellent automation apps that interact with Chinese sales platforms like AliExpress because dropshipping from China is so widespread.
With just a few clicks, you can quickly and easily import products and their photos into your store using these apps.
Dealing with Chinese enterprises has many benefits, including the fact that they rarely turn down business and frequently enable dropshipping.
In addition, AliExpress has a free portal specifically designed for dropshippers called the AliExpress Dropshipping Center where you may search for trending, hot products.
What are the Advantages of Dropshipping from China?
Now that you are aware of the reasons that thousands of dropshippers choose China as their country of origin, let’s examine a few advantages and disadvantages.
1. Affordable Goods
This is the key justification for why many dropshippers decide to operate out of China. More affordable than everywhere else in the Western world, the product price. This is largely a result of China’s low cost of labor and easy access to a wealth of resources.
Some products are frequently available from a supplier in China for approximately half the price of Amazon.
The reason for this is that when you purchase from China, you are moving up the supply chain. Therefore, it is highly possible that the item from this Amazon seller changed hands several times before it reached them.
2. Little Capital Is Required
This is more applicable to dropshipping generally, yet it is nonetheless one of its biggest advantages.
Starting requires very little money because you won’t be paying for things until a consumer has bought them from you. If you don’t have much money to spare, to begin with, all you have to worry about is paying for hosting and advertising.
3. You Don’t Keep Any Stock
That’s correct; because your suppliers ship directly to your customers, you don’t keep anything in stock. When dropshipping, you are merely acting as the intermediary.
For those who wish to “test the waters,” not holding stock is a huge advantage.
This is because there is a significant risk involved with beginning a business, as there is with many others. What could be worse than having $1,000s worth of unsold stock?
4. Little Risk to Your Finances
You won’t need to keep any inventory, and you won’t have to spend money on rent, payroll, or any of the other irksome overhead costs that a conventional business would.
However, it’s also very simple to set aside money for a 3-month trial run of a new dropshipping concept, run a few ads, and even pick up some new skills in the process.
When dropshipping from China, the majority of suppliers just require payment before sending a product to your consumer, and AliExpress has no minimum order quantity (MOQ).
Naturally, you can move higher up the supply chain for a lower cost per unit if you start selling a lot of products, but this necessitates a commitment to a MOQ.
5. Amazing Scalability
Not being able to generate any sales is the worst thing that could happen to a dropshipper. The second-worst scenario, on the other hand, is when sales surge and inventory runs out.
The amazing scalability of dropshipping from China is a huge advantage. Your vendors will have access to an almost limitless amount of goods.
In the odd event that they run out of stock, your supplier—who may not even be the manufacturer—will still be able to rapidly acquire additional stock.
What are the Disadvantages of Dropshipping from China?
If we didn’t also consider the disadvantages of dropshipping from China, which, believe me, can be very problematic when things go wrong, it would be unfair.
1. Delayed Delivery
Delivery times may be a huge pain in the rear for dropshippers, making this by far their biggest challenge. Delivering a product from China to the majority of Western nations will always be a huge achievement.
Additionally, the global pandemic and modifications to US trade accords with China made it difficult for dropshippers to meet delivery deadlines last year.
Together, these difficulties nearly brought an end to the popular shipping option, ePacket, by increasing both the cost and the delivery timeframes.
By asking your supplier for typical delivery times and using these to manage your customers’ expectations in your shipping policy, you can have some control over this situation.
2. Low-Quality Goods
It’s simple to find Chinese products of lower quality online, and the low price may appear alluring at first, but the cost of returns will be high.
The answer is straightforward: always get samples before beginning dropshipping with your chosen provider.
Additionally, since certain suppliers may use the tried-and-true bait-and-switch technique, it’s a good idea to occasionally order the same goods to spot-check them for consistency.
3. Fierce Competition
If you believe you’ve identified the ‘winning’ product, you’re probably already late to the game. This is due to the fierce competition in the dropshipping industry.
It won’t take long for the competition to arrive, undercut your sale price, and raise the cost-per-click (CPC) for advertising whether you are the first or one of them.
According to recent research, Shopify, the most popular platform for dropshipping, has seen an increase in user numbers in recent years.
Many people have been searching for additional income during the past few years, particularly as a result of COVID-19.
There isn’t much you can do to combat rivals besides outperforming them. To distinguish out, strive to offer quicker delivery, better discounts, or cooler branding.
4. Counterfeit Goods
It takes careful attention to detail to avoid buying counterfeit products created and marketed in China.
Before you start selling them to your consumers, order samples of some of the less visible ones. This is essentially your sole line of defense against this kind of issue.
5. Concerns with Copyright
Although it largely overlaps with the one before it, this issue can stand alone.
I encountered this problem when dropshipping kitchen makeover products; some models were protected by patents in the US, the largest e-commerce market in the world. In the end, this forced me into a limited EU market.
My suppliers either didn’t know about it or didn’t bother to mention it. I think the latter was true. This is due to China’s essentially nonexistent copyright regulations. I should have done my research in this situation.
You must be a store operating in a nation that upholds copyright rules. Before beginning, get legal counsel if there is any legal ambiguity.
Which Leading Suppliers Can You Consider When Dropshipping from China?
After weighing the advantages and disadvantages, let’s examine the top dropshipping vendors in China.
And yes, in case you were wondering, dropshipping is also possible with vendors outside of China.
You may have already heard of this supplier even if you’re just learning about dropshipping. AliExpress is frequently used as an example in dropshipping courses since it is ideally suited for the purpose.
You may choose from millions of goods and countless suppliers on AliExpress. Many of these vendors will make dropshipping easier. However, it’s best practice to double-check before assuming that every supplier does.
AliExpress standard shipping is among the best and is continually improving in terms of logistics. This has developed into the ideal replacement for the ePacket delivery technique, which has had a particularly difficult year.
Navigating the intricate web of manufacturers, logistics, and customer service can be a daunting task. At Globallyfulfill, they provide unique, end-to-end dropshipping solutions designed to remove this burden, enabling you to focus on what truly matters – growing your brand.
With Globallyfulfill, your apparel dropshipping business isn’t just in good hands; it’s in the hands of industry-leading professionals dedicated to seeing your brand succeed.
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AliExpress, a retail division of the Alibaba group, might be viewed as the “big brother” of Alibaba.
The key distinction between the two is that Alibaba is better suited for enterprises than for private users.
As a result, Alibaba offers more affordable prices than AliExpress.
Even fewer Alibaba vendors than on AliExpress will support dropshipping, so always ask them first.
These providers may have a minimum order quantity (MOQ), as was previously noted. These MOQs can be lowered, and the majority of suppliers are quite helpful to start-up companies.
Additionally, an Alibaba Dropshipping Center is currently available!
This site is free to use and created specifically for dropshippers.
A platform called CJdropshipping combines product sourcing, order processing, and shipping fulfillment. Therefore, after you add your goods to your store, the remainder of the process is largely automated.
Finding ultra-niche products on this site may be challenging because, in contrast to AliExpress, CJdropshipping now only has about 400 thousand products listed.
CJdropshipping makes up for its lack of selection with logistics. They are now shipping more locally and have warehouses scattered over the globe. For instance, UPS is the shipping option when shipping to the US, and it only takes a couple of days.
Last but not least, CJdropshipping provides a fantastic connection with your preferred e-commerce systems, like Shopify and WooCommerce.
Another platform designed for dropshippers is available here. Similar levels of choice and integration are provided by Zendrop and CJdropshipping.
Only the US and China have Zendrop warehouses, which isn’t a significant issue if that’s where your consumers are. They also assert that they can deliver packages to your consumers outside of the US in less than 14 days.
They also enable personalized branding and packaging, but this is only available as part of their Pro plan, which costs $49 per month. Additionally, after you reach 50 orders per month with them, you will require the Pro plan.
AliExpress and Banggood are remarkably similar; even their websites have a similar aesthetic. The distinction between the two is that Bangood has just one retailer as opposed to the other’s collection of many.
This indicates that they offer considerably better customer care than AliExpress, which generally makes you wait up to 90 days before issuing a refund for a lost item. As you are not using various suppliers using different shipping methods, it also encourages consistency in shipping.
Because one company cannot retain that many goods, Banggood users do not have nearly as many options as those of the other marketplaces.
Advice on How to Begin Dropshipping from China
So, before you begin dropshipping from China, let’s go over a few points.
1. Selecting Your Suppliers
It’s crucial to speak with suppliers first because this will help you distinguish between the good and the poor.
If you don’t understand their response, ask your question again and again. To be honest, language difficulties can be an issue.
If you choose the supplier and you don’t comprehend them the second time, this will probably be an ongoing issue.
If something seems too good to be true, it most likely is. Some vendors will say exactly what you want to hear to gain your business. Additionally, there is nothing wrong with asking them to support such assertions.
2. Delivery Schedule
As previously said, your supplier should expect to be able to support any claims that they can deliver orders to your clients far more quickly than the competition.
It is possible to confirm this by asking them for tracking information on recent deliveries made to particular nations; this is a common request. Finding out how the provider would handle late delivery at this time is also important.
You can include this in your shipping policy once you are satisfied with the deadlines.
3. Purchase Samples First
All vendors, even those with a MOQ, must offer samples. Samples shouldn’t necessarily be provided for free, but they should be included in your startup costs.
This enables you to guarantee that the product is timely and of high quality. The condition of the package and the caliber of any additional branding are also significant.
You are evaluating your clients’ complete buying experience because you are not holding or transporting the merchandise yourself.
4. Dealing with the Automation
The majority of the suppliers mentioned do a great job with this component, either using their application or a plugin to connect to your e-commerce platform quite quickly.
With just a few clicks, the majority of these tools will import the goods and photographs to your store. The same application can be used to complete an order after it has been placed.
These programs often link the tracking numbers once they have been dispatched by the provider, which is an added benefit.
5. Description of the Product
Once you have your sample product, test it out both on yourself and a friend. Now that you have sufficient knowledge of your product, you may create your product descriptions.
Product descriptions ought to be entertaining, clear, and succinct. It would be preferable if you also refrained from listing the requirements in bullet points, as so many dropshippers do. For what issue does your product offer a solution?
NEVER, EVER import the product description from the product page of your vendors. You don’t want this in your business; it’s poorly written and full of spelling errors.
You always have the choice to hire a specialist on Fiverr or Upwork to complete this assignment if it doesn’t sound like your area of expertise.
6. Consumer Support
First off, having an order tracking page will drastically cut down on the number of inquiries you receive.
When clients do contact you, do your best to respond right away. Make sure your level of customer service sets you apart from your rivals, who may be selling the same things as you.
Over half of clients who have encountered poor customer service will complain to their friends and family. A bad reputation is difficult to overcome, thus this could eventually harm the company.
7. Be Truthful
This can also be categorized under customer service, but it is still important to highlight. Don’t mislead your customers about your products or delivery schedules to get them to buy from you.
Your return rate will only rise as a result to an unmanageable level. Because of this, your shipping terms, refund policies, and product descriptions must all be entirely transparent.
After a few weeks of waiting for their order, customers could become impatient and want a refund.
Being open and honest from the beginning can help to avoid situations like this.
8. Ensuring Your Legal Protection
Once your online store is operational, you should think about your legal responsibilities.
Consider this, for instance, if you sell a product that might be harmful to the consumer. If you haven’t established a business to reduce your liability, they may then pursue you personally if they choose to file a lawsuit.
It’s possible that some nations or states don’t require you to set up a business to trade; despite this, you should still give it some thought.
Scaling Up Your Dropshipping Business
Scaling your store’s growth is the next logical step if you are in the fortunate situation of receiving many sales on your new e-commerce site while dropshipping from China.
Dropshipping from China excels when it comes to scaling your store. As was already noted, you have access to a nearly infinite amount of inventory, and your suppliers typically have instant access to a huge number more if necessary.
Naturally, if you start shipping more, logistics will become a bigger issue. When dropshipping, late deliveries are always possible, thus if your procedures remain the same, you should anticipate seeing more of them.
Your next logical step should be to scale your shipping and fulfillment procedures in tandem with your sales. You can either negotiate this with your supplier or, for a fee, have a dropshipping agent do it for you.
The reasons why so many dropshippers favor operating from China were examined in this article, along with the benefits and drawbacks of doing so.
We also discussed the key differences between the most well-known Chinese dropshipper suppliers.
Dropshipping from China carries a higher risk because of the lengthy delivery timeframes, subpar goods, and communication difficulties with the providers. If not handled properly, this could indeed lead to problems.
For your benefit, we examined a variety of preventative measures and solutions for each of these issues. You can now take advantage of inexpensive items, simple market access, and low financial risk to help you kickstart your dropshipping business.