INTRODUCTION

You probably might have heard that China offers the cheapest dropshipping suppliers with a gigantic catalogue of products. Well that’s right without a doubt!! But you should have also known this fact that everything comes with a cost. While the availability of large number of China dropshippers provide great advantages to potential dropshippers they do have certain costs. In this blog we shall have a detailed look at the possible costs of dropshipping from China and their possible solutions.

DROPSHIPPING FROM CHINA DEFINITELY A GOOD IDEA

A. Mature e-commerce market

China being the biggest exporter of products tends to be the most mature market when it comes to the e-commerce business model of dropshipping. The country offers the cheapest dropshipping suppliers. Whenever the dropshipping business model has been discussed the concepts of China dropshippers come to mind automatically. Hence being the hub of dropshipping in the world earns Chinese dropshippers a really good rupture and advantages over dropshipping suppliers in other countries.

B. Cost-effective in terms of product pricing

Since a large number of dropshipping suppliers are often offering the same product hence they compete on pricing. In this way, the consumer gets the price advantage and often selects the supplier offering the cheapest rates. Because of the availability of Chinese dropshipping companies like Ali Baba and Ali Express it is estimated that by 2023 64 percent of the total retail sales market will be owned and occupied by Chinese Suppliers. The existence and growth of Chinese dropshipping suppliers are in response to the increased demand for products in the market. The availability of cheap and affordable dropshipping suppliers from China will help the country’s dropshipping market size to reach an estimated revenue of 557.9 billion by 2025.

C. Availability of shipping Companies

The presence of the cheapest dropshipping suppliers definitely leads to the presence and growth of affordable and variety of shipping companies in the country to cater to the demand of increased deliveries across the globe. When it comes to China drop shipping, the consumers have to spend more effort in selecting an appropriate shipping company as compared to a selection of product and dropshipping suppliers. The selection of a reliable China dropshipping supplier leads to an increase in the brand’s customer loyalty. Why? Because when customers will get their products delivered in time without any extended waiting period then definitely they will order again and recommend the brand to others.

D. Potential to create your own private label

China dropshipping provides an opportunity especially for emerging entrepreneurs to create their own private labels and brand names through dropshipping. When the clients succeed in finding cheap drop shipping suppliers along with a reliable shipping company then it can ask the suppliers to deliver the products in custom-made packing with the client’s brand logo. There are also companies where the services of customized product packaging can be outsourced and hence clients can create their own private labels.

PERCEIVED COSTS WHILE DROPSHIPPING FROM CHINA

A. TRANSPORTATION COST AND DELAY IN DELIVERY

China dropshippers despite being the availability of various shipping companies face a lot of hurdles in the transportation of products. The transportation costs are aggravated by the fact that the distance between China and Europe or the US being the target country for many dropshippers is huge. For the past two years, Coronavirus had immense impacts on the dropshipping business and brought huge delays in delivery because of the unavailability of packet services.

B. UNCERTAINTY COST OF PRODUCT QUALITY

Despite the fact that China offers the cheapest dropshipping suppliers it still has a lot of questions raised about its dropshipping services. One of the major costs incurred by dropshippers is uncertainty cost. Despite being the largest manufacturer of products people still view the made-in-China products with questionable eyes. The uncertainty about product quality remains until the product is received by the consumer. In case if the product quality is not better than the perceived quality then it might result in product returns which will impact business revenue.

C. COMMUNICATION COST

The language barrier is a valid reason while working with China Dropshippers thus leading to the potential communication cost. It is estimated that out of 100 Chinese only one can communicate in English. Since most of the China dropshippers cannot speak and understand English hence this language barrier can lead to misunderstandings between the buyers and sellers.

D. VERIFICATION ISSUES AND CUSTOMER WAITING COST

Payment verification is also a potential issue while dropshipping from China. Separated by continents sometimes credit card verifications can take longer times thus making delivery of products late. On the other hand, when customers will face delays in deliveries they might ask for refunds thus leading to order cancellations.

HIRING A DROPSHIPPING AGENT; THE SINGLE SOLUTION TO OVERCOME ALL COSTS:

The simplest and most convenient solution to overcome all the before mentioned costs is hiring of a drophipping agent. Following are the reasons why collaborating with a reliable dropshipping agent can be beneficial for your business.

Since dropshipping agents will belong to China hence they will definitely know both Chinese and English both. This language proficiency can help you overcome the language barrier in your business. This is important because language barrier when combined with longer response time can bring chaos in your business.

LET’S CONCLUDE

This fact should be considered that dropshipping from China comes with various perceived costs and advantages at the same time. But the good thing is that all the costs of dropshipping through China dropshippers are avoidable. It is thus advised to do a thorough market research for the selection of product and the supplier if you want a successful dropshipping business. Moreover hiring a dropshipping agent with long term collaboration can help you grow your dropshipping business easily by overcoming all the perceived costs such as language barriers, connecting with a reliable supplier etc.