Dropshipping from China, great idea or a terrible mistake? (honest answer)

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A lot of people are saying that when you dropship from China your account will be in risk and it may get suspended. Also that the buyers will not buy from you because of the long shipping times.

Today we are gonna talk about the pros and cons of dropshipping from China and giving you our own honest point of view about this.

First of all, let’s go through the Pros & Cons! and then we will move to the Myth of dropshipping from China.

The Pros:

High Profits:

Chinese suppliers play the big numbers game, which means that they are trying to generate many sales as possible even if they are making low margins on each sale.

Therefore we can make a much higher profit margin while drop shipping these products on eBay.

Also, most of the Chinese suppliers have a cashback system that we can use to make an extra 2-5% profit margins in the backend.

Easier to be Unique – Less Competition:

Most of the drop shippers are afraid to work with Chinese suppliers, because of that it’s much easier to be unique, easier to find products with less competition, which allow us to make higher profit margins compared to the regular Online Arbitrage (Amazon to eBay, Walmart to eBay…)

Worldwide Shipping – not like GSP:

eBay-US-Traffic-By-Countries

If we go and check eBay.com’s traffic we will see that only 63% of the traffic is coming from the United States!

Which means we have another 37% of the total visitors that we can not reach if we are working only with Amazon, Walmart, Homedepot without using the Global Shipping Program (GSP doesn’t accept all the countries).

When we work with Chinese suppliers, most of the time we have very cheap worldwide shipping options. This allows us to target more countries and generate more sales by showing our products in more than one marketplace.

Chinese Suppliers Support Dropshipping:

Chinese suppliers really like drop shipping, because of that they can provide you with any invoices, contracts that you are asking for.

Because have a contract with Banggood.com, we or Banggood can easily provide you with a contract by just reaching to the customer support. So you can provide it to eBay or PayPal for the verification process. 

Now let’s move to the minuses of dropshipping from Chinese suppliers.

The Cons:

Language:

This is not a Con anymore, as most of the Chinese sellers do speak English, even if they don’t, we can still use any translation platform like google translate for example to translate everything from Chinese to English.

Customer Service:

People are saying that Chinese suppliers don’t have good customer support, which is right! 

Most of the Chinese suppliers have customer support that is not as good as the American suppliers, but we can still work with them.

In order to find good suppliers, we need to check the seller’s feedback and the product’s rating. These two parameters can tell us a lot about what we are going to experience before dropshipping a product.

Long Shipping Times:

Unfortunately, this is right too! When we are dropshipping from China we have longer shipping and handling times even with ePacket available.

Complicated Returns:

The returns are a bit more complicated but when you know how to work with it, it’s very easy. 

Dropshipping from AliExpress | How to give American good customer service with Chinese products?

Now let’s move to the Myth of dropshipping from Chinese Suppliers.

Dropshipping from Chinese Suppliers Myth:

Low Quality Products:

People tend to believe that when you work with Chinese suppliers you will be working only with low quality products, which can lead to negative feedback, and higher return rates.

Well, this is partially right, but not really.

There are many tools that can help us find and sort products to dropship from China. Also if the seller that you are willing to dropship from has over 95% positive feedbacks and he is a long-time seller on AliExpress you can get an idea if his products are actually high-quality products or not.

Also, you can check the product’s reviews because you only wanna work with products that have more than 3.5 stars.

Dropshipping from Chinese Suppliers Will Lead to a Suspended Account:

The account suspension has nothing to do with drop shipping from China. It’s all about listing quality product based on the market research that you conduct before considering listing products.

Your selling account can still get closed even if you are working only with the American suppliers.

Buyers Will Not Buy From You:

Many people are saying that buyers will not buy from you because your shipping time is long, this is not true.

A lot of buyers across the globe prefer to wait a bit longer (2 weeks and even more) in order to get products at much cheaper prices.

If you give better prices but the shipping time is a bit longer it will still worth it for these buyers.

Conclusion:

At the end we recommend you to start working with Chinese suppliers, because the prices are cheaper, the customer support is not that bad as people are saying, and you can make much higher profit margins while Dropshipping from Chinese Suppliers.

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July 11th, 2019|

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