eCommerce continues to grow, with consumers spending, in 2018, $ 2.8 trillion in online purchases. As the industry grows, so does our demand to have everything right now.
Online retailers have to keep up with that demand. They turn to third-party logistics companies and dropshipping suppliers to streamline the process.
Many U.S. companies are looking to China for their dropshipping suppliers. So, what’s the attraction to Chinese suppliers?
This guide answers that question and gives you tips on finding the right Chinese dropshipping supplier for your business.
The Benefits of Dropshipping Over 3PL
In eCommerce, business owners use three options for order fulfillment:
- Third-party logistics
Self-fulfillment is self-explanatory. You handle everything including warehousing, picking, packaging, shipping, and communicating with your customers. It’s not efficient for managing cash flow or time as most companies need to rent out warehouse space.
When you use 3PL, you partner with an order fulfillment company. Your company buys product and stores at the 3PL warehouse. They handle the filling, packaging, and shipping elements while you focus on sales and customer service.
The biggest benefit of 3PL is you save time. The biggest disadvantage is it can get expensive and also you have to buy products in advance.
Dropshipping saves you time and money. The supplier handles the warehousing and shipping so you never buy inventory. They make the product, keep it in their warehouse, and ship when someone places an order on your site. Plus you can order your product when you have already received and order on your store.
Dropshipping is great for new businesses since it doesn’t take a lot of money to get started. But, you can make a lot of money in a short amount of time.
It’s also easy to choose which products you want to sell. The biggest time-consumer for entrepreneurs is choosing the right dropshipping supplier.
Why Having Good Dropshipping Suppliers is Important
Aside from costing very little money upfront, dropshipping allows you to have versatility. You’re not tied to X amount of inventory that you’ve already paid for with no promise of it getting moved. So you can test as many products as you want and sell only the one that are more profitable.
You can sell any product you think consumers want and change your product line as needs and wants change. All you have to do it find a reliable wholesale dropshipper and drive customers to your online shop.
Even when you choose an overseas supplier, you could still cut down on the time it takes to get to your customer. You’re not waiting on back orders or a several hands to get involved in the process.
Plus, it’s the 21st century and international shipping options are plentiful! For example with Special Line is possible to ship a product from China to UK in 3 days time!
China is a Gold Mine For Dropshipping
You’ve likely heard that a lot of your competitors are using Chinese suppliers and you want to know why. The first reason is that China’s economy is booming and has been for many years.
China’s GDP is second only to the United States. But, using Chinese dropshipping suppliers is often more economical for American businesses.
There are four main reasons for China’s impact on dropshipping:
- Materials are easy to get
- China are experts at mass production
- China has refined, organized, and fast production lines
- China has great shipping services
Because of all these factors, China is now the world’s leading exporter at $2.59 trillion a year. Do you know where $499 billion of those goods get exported to? The United States.
How to Find the Best Dropship Suppliers in China
You may be thinking, “How do I find dropship suppliers in China?” It’s an important and valid question. In fact, knowing how to find the right Chinese dropshipping suppliers is the most important information you need.
It’s not as easy as Googling “best Chinese dropship suppliers.” There are precautions you need to take so you don’t end up losing customers, money, and your eCommerce store.
Visit Trade Shows
Chinese suppliers attend some trade shows in the U.S. like The International Consumer Electronics Show in Las Vegas. But, you’re limited in the products that these few suppliers showcase.
If you’re able to attend a trade show with Chinese participants, you can speak to them directly. This gives you insight not only about their products but their company values. You’ll also learn about their processes such as production capacity and quality control measures.
In China, the Canton Fair and the East China Fair are very popular. Both of these trade shows attract thousands of participants including suppliers. They also feature a variety of exhibits and products.
The downside is that traveling to China isn’t cheap and you need to plan it well in advance.
Search Online Then Cross-reference
It sounds simple, but you can search online for Chinese dropship suppliers. This comes with the most risk. You have to do extensive research of all companies to make sure they’re legit.
Look around at their site for:
- A business license
- The company location
- Their ownership status
- Photos of the factory
- Any certifications
- Contact information
Doing business with a Chinese company is much different than you’re used to, as you might expect. They may not be forthcoming with their information and you may have to pick up the phone and call them yourself.
There are some well-known marketplace sites but use these with caution. Fake companies post products on these sites and don’t take credit cards, meaning you have to wire the money. Once they get your money, you’ll never hear from them again.
Legitimate suppliers use these sites as well, but it’s tough to sift through the good from the bad when they’re all bundled together. A smart thing to do is to place an order for one or two items to see firsthand how their process works.
Use Dropshipping Software
You can use one of the two traditional sources above, or you can use software designed for connect your store with Chinese famous eCommerce, like Aliexpress.
These softwares allow you to scrape and import product from Chinese eCommerce stores and sell them on your store with a margin.
This system is really fast and easy on the practical side, but has many flow on the business side, because you will buy products directly from store like Aliexpress, so:
- You’ll buy products at B2C price, from a store that already sell products to final customers, so if a user is smart enough, he can find the same product on Aliexpress for a cheaper price.
- You’ll have to buy one by one your items on Aliexpress
- If there is some problems you have to contact the supplier, that is not Aliexpress, but the merchant that put the items online, so if you sell many products you’ll have to be in contact with countless suppliers.
- You can’t Customize your products
- You can’t control your shipments
Watch the video below
We Redefine Dropshipping
Choosing reputable and reliable dropshipping suppliers is key to a successful eCommerce business. Why take the chance with Google searches or Chinese marketplaces, when you can choose Yakkyofy?
Yakkyofy is a comprehensive software suite for managing and automating all your dropshipping business daily tasks.
We set everything up for you, so all you need to do it pick the products and sell them.
We are better than traditional suppliers and better than dropshipping software because:
- We offer you products at B2B price, so at wholesales prices
- We automate all the order fulfilling process, so that you’ll not spend time ordering your items one by one.
- If there is some problems, you can contact us.
- We help you dropship products with Private Label
- We can ship your products in 3-10 days time with Special Line.
- We send an automatic email with the tracking number of your shipment to your customer
- We offer you a space in our warehouse for your stock and your returns
And so much more…
Check out all our amazing features on our website or
to start using our software.