Dropshipping with China: open your business

The dropshipping business with China is an actively developing scheme of working with goods from the PRC. This type of activity appeared relatively recently, but has already gained popularity. Dropshippers do not invest their own money in products, which is considered the main advantage of this business. It has its advantages, disadvantages, features and risks. Having understood all the issues, you can sell almost any product from dropshipping from China and get a decent income.

What is dropshipping

Dropshipping is a direct delivery of goods to the consumer through an intermediary. In this case, the mediator performs the role of a bridge: finds customers, takes orders and payment, forwards them to the supplier. After that work of the dropshipper stops: the delivery to the addressee is handled by the owner of the product. The exception is the return of goods. Buyer gave the order and paid the purchase to the intermediary, therefore, he will deal with controversial issues with him.

The scheme of organization of dropshipping with suppliers from China is quite simple:

  • entrepreneur creates an online store;
  • he finds customers, negotiates with them, accepts prepayments;
  • businessman sends information about the order and payment to the supplier (deducting his own profit from the received amount).

After the settlement all further activities are made by Chinese partner : he packs the goods, chooses the delivery method, sends it to the buyer. Such a model of running your own business seems attractive and simple. The intermediary needs only an Internet resource and the ability to find buyers. Invest in the product, to deal with its delivery is not necessary. In practice, everything is a little more complicated, so you should learn about all the advantages and disadvantages of this business.

Advantages of dropshipping

Dropshipping with suppliers from China is considered a profitable business: the intermediary receives income at the expense of margins, without investing its own funds. If we consider that the prices of Chinese goods are low, and even replicas of famous brands are several times cheaper than the original, the benefit is obvious. Intermediary is offered a price with wholesale prices and he puts his own. The difference between them is significant, and therefore the yield is high. In addition, the dropshippper has no overhead costs in the form of rent, fees to sellers, etc.

Benefits of dropshipping:

  • direct work with Chinese suppliers and manufacturers (fewer intermediaries - lower purchase price);
  • initial capital for the purchase of goods is not needed;
  • wide range: you can sell all the products available from the supplier, work with several, choose any niche, change the scope of activity when demand changes;
  • "purchase" price is the lowest due to the absence of a chain of intermediaries;
  • high profits: it is regulated by dropshipper, he sets prices and can raise them on popular goods or reduce them to generate income due to high turnover.

Dropshipping does not have a narrow framework, an entrepreneur is free in his decisions, he can use any opportunities to attract customers, organize promotions, make discounts, arrange sales. He does not spend money on the purchase of "sizes" and in the warehouses do not accumulate the remnants of obsolete or unclaimed goods. But do not forget that along with the advantages of this type of activity there are drawbacks.

Risks of dropshipping

Any business is always associated with certain risks and has its drawbacks. There are they in the mediation work:

  • unscrupulous suppliers: not being able to check goods personally dropshipper depends entirely on the quality of the work of its Chinese partner;
  • long-term delivery: choice of the method of delivery of an order also determines supplier, delay may be caused by the lack of a model in the warehouse, delay in the way due to the transport company’s fault, arrest of cargo at customs. • initial capital: it is still needed, since the site creates and promotes a dropshipper for your own money;
  • language barrier: translation problems often arise when communicating with Chinese partners;
  • competition: e-Commerce is a profitable business, of course, in each niche there are competitors who are able to offer the same or better product at lower prices.

Although there are much less disadvantages of dropshipping than the advantages, the risks of remote work on the network are quite high.

How to organize business

The most important problem in working with China is finding a reliable supplier, especially when it is not possible to control the quality of the goods yourself before sending it to the buyer. Risks can be minimized by including another intermediary in the scheme of work who knows the Chinese market and has direct contact with suppliers. Intersafetrade can become such a partner: having three offices in China and well-established contacts will help in choosing reliable partners. This will allow to a certain extent to control suppliers, to work only with quality products, to influence the speed of delivery.