To put it simply, dropshipping is crucial to the success of any online business.
Dropshipping eliminates the need for you to keep stock of products in a physical location. Dropshipping allows you to fulfill a customer’s order by purchasing the goods directly from a wholesaler or other distributor rather than from your own stock.
Once an order is placed, the business will dropship the item directly to the buyer. This eliminates the need for any interaction between the company selling the product and the product itself.
We understand that if you’re thinking about partnering with a fulfillment center and a China dropshipper, you have questions about the logistics and advantages of doing so.
If you want to know the details, keep reading.
What Is a Warehouse Fulfillment Center?
Before we talk about the perks of partnering with a China dropship company, what should we cover first?
To begin, let’s make sure you know what a fulfillment center is and does.
Put simply, a fulfillment center facilitates the distribution of the goods your customers have ordered. It’s a more convenient alternative to handling the shipping and delivery on your own, saving you time and money.
Items destined for customers can also be packaged at a fulfillment center.
They label or re-label the products so that you can give your customers exactly what they asked for. Your products and stock won’t go stale because they’re keeping them safe and secure.
You can think of it as third-party logistics assistance.
It’s safe to assume that you already know that utilizing the services of dropship companies and fulfillment centers in China is a common practice.
But what specific advantages does it give your business?
In the following paragraph, we’ll get into that.
Why Dropshipping eCommerce use Chinese Fulfillment Center.
Everyone in the industry is aware that the vast majority of dropshipping products originate in China, so it stands to reason that this is where you should look for suppliers if you intend to start a dropshipping business.
Therefore, all of the world’s distribution of your goods will also take place in China.
When a dropshipping company starts to generate a lot of revenue, it becomes extremely challenging for the dropshipper to keep track of all the orders, returns, and shippings. At this point, it is common practice to outsource these logistics tasks to a fulfillment center.
If all of your suppliers are located in China, then of course your fulfillment center will be there as well.
Using a Chinese fulfillment center and Chinese dropshipping suppliers has many advantages.
If you use a fulfillment center, you can increase your order volume because your shipping times will decrease and you will have more oversight over your deliveries.
Label your products or develop a branded packaging to increase consumer confidence.
If a customer who bought a product from you on AliExpress or a similar platform sends it back, you’ll never see it again. But if you use a fulfillment center, the product will be stored in a warehouse near you, giving you the option to resell it.
Prevent shortages by maintaining an adequate supply of goods, especially during peak demand periods such as Black Friday or when the product’s user base suddenly explodes. No dropshipper can assure you that he won’t run out of stock, leaving you with orders and nothing to fill them with.
In conclusion, a fulfillment center is probably unnecessary for a small dropshipping business, and instead, you can simply work with a Chinese supplier.
But once you start seeing a steady stream of revenue, using a fulfillment center makes expanding your business simpler than ever.