In 2018, people spent $2.8 trillion on online purchases, which shows that eCommerce is still growing. As the industry grows, so does our need to have everything right now.
This means that online stores have to keep up with the demand. To speed up the process, they use third-party logistics companies and dropshipping suppliers.
A lot of dropshipping suppliers for U.S. companies come from China. So, why do people like Chinese suppliers?
This guide tells you how to find the right Chinese dropshipping supplier for your business and gives you the answer to that question.
The Benefits of Dropshipping Over 3PL
In eCommerce, there are three ways for business owners to fill orders:
Self-fulfillment
Dropshipping by third-party logistics
Self-fulfillment is easy to understand. You take care of everything, like storing, picking, packing, shipping, and talking to your customers. Most companies have to rent out warehouse space, so it’s not a good way to manage cash flow or time.
When you use 3PL, you work with a company that fulfills orders. Your business buys things that are kept at the 3PL warehouse. They take care of the filling, packaging, and shipping, so you can focus on sales and customer service.
The best thing about 3PL is that it saves you time. The biggest problem is that it can get expensive, and you also have to buy things ahead of time.
You save time and money by using dropshipping. The supplier takes care of storage and shipping, so you don’t have to buy any inventory. They make the product, store it in their warehouse, and ship it when someone orders it from your site. You can also order your product if you have already received an order on your store.
Dropshipping is great for new businesses that don’t have a lot of money because it doesn’t cost much to get started. But in a short amount of time, you can make a lot of money.
It’s also simple to decide what you want to sell. Choosing the right dropshipping supplier takes the most time for business owners.
Why Having Good Dropshipping Suppliers is Important
Dropshipping costs very little money up front and gives you a lot of options. You’re not stuck with X number of items that you’ve already paid for but have no guarantee of selling. So you can try out as many products as you like and only sell the ones that make you the most money.
You can sell whatever you think people want, and you can change what you sell as people’s needs and wants change. All you have to do is find a reliable wholesale dropshipper and get people to your online shop.
Even if you choose a supplier in another country, you could still get your product to your customer faster. You don’t have to wait for back orders or a lot of people to help before you can join in.
Plus, it’s the 21st century, so there are many ways to ship internationally. For example, with Special Line, you can ship something from China to the UK in just 3 days!
China is a Gold Mine For Dropshipping
You’ve probably heard that a lot of your competitors use Chinese suppliers, and you want to know why. The first reason is that China’s economy has been booming for a long time.
Only the United States has a bigger GDP than China. But it is often cheaper for American businesses to use dropshipping suppliers in China.
China has had a big effect on dropshipping for four main reasons:
It’s easy to get things.
China is very good at making lots of things.
China’s production lines are smooth, well-run, and quick.
China has great services for shipping.
China is now the largest exporter in the world, sending out $2.59 trillion worth of goods every year. Do you know where $499 billion worth of these products go? The American people.
How to Find the Best Dropship Suppliers in China
You might be wondering, “How do I find China dropship suppliers?” It’s a good and important question. In fact, the most important thing you need to know is how to find the right dropshipping suppliers in China.
You can’t just Google “best Chinese dropship suppliers” and find them. You need to take certain steps to keep from losing customers, money, and your eCommerce store.
Visit Trade Shows
Some Chinese suppliers go to trade shows in the U.S., like the International Consumer Electronics Show in Las Vegas. But you can only get products from a small number of suppliers.
If you can go to a trade show where there are Chinese people, you can talk to them in person. This tells you not only about their products but also about how they run their business. You’ll also learn about their processes, like how much they can make and how they make sure the quality is good.
The Canton Fair and the East China Fair are very well-known in China. Both of these trade shows have tens of thousands of people, including suppliers, who come to them. They also have many different displays and products.
China is a great place to visit, but it’s not cheap and you need to plan ahead.
Search Online Then Cross-reference
Even though it sounds easy, you can look online for Chinese dropship suppliers. This is the most dangerous. To make sure a company is legit, you have to do a lot of research on it.
Check out their website for:
A license to do business
The location of the company
Who owns them? Pictures of the factory
Any credentials
How to get in touch
As you might expect, doing business with a Chinese company is very different from what you’re used to. They might not give you the information you need, and you might have to call them yourself.
There are some well-known market sites, but you should be careful when using them. These sites sell goods from fake companies that don’t take credit cards, so you have to wire the money. As soon as they have your money, you won’t hear from them again.
Legitimate sellers also use these sites, but it’s hard to tell the good ones from the bad ones when they’re all in one place. The smart thing to do is to order just one or two things to see how their system works.
Use Dropshipping Software
You can use one of the two traditional ways listed above, or you can use software that connects your store to well-known Chinese eCommerce sites like Aliexpress.
These programs let you scrape and import products from Chinese eCommerce stores, which you can then sell on your own site for a profit.
This system is really quick and easy to use, but it has a lot of business flow because you buy products directly from stores like Aliexpress.
You’ll buy products at B2C prices from a store that already sells to end 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 each item on Aliexpress separately.
If there is a problem, you have to contact the supplier, which is not Aliexpress but the merchant who put the item online. If you sell a lot of products, you’ll have to talk to a lot of suppliers.
You can’t change the way your products look.
Your shipments are out of your hands.