Need convincing that dropshipping at B2B prices is the way to go? If you want to know the reason why, keep reading.
It used to be that Chinese dropshipping platforms provided a lucrative source of income for entrepreneurs who bought products at B2C prices and resold them on their websites for a profit. For several years now, dropshippers have been able to reap the benefits of this method and reap substantial financial rewards.
However, with the rise of dropshipping competitors and the implementation of consumer protection policies by platforms like Facebook and PayPal, this business model is no longer lucrative.
As a result, while Chinese marketplaces like AliExpress and Wish were once widely used by dropshippers, they are now exploring other options to ensure consistent shipping times, higher product quality, and, of course, greater savings through bulk purchases.
In fact, if you want your dropshipping business to thrive, you’ll need to find suppliers who are willing to sell to you at B2B prices.
Dropshipping products at B2C prices is not worth any more
Online Chinese marketplaces like AliExpress, Wish, and others like them have only recently become mainstream, but daily, more and more people make purchases from Chinese sellers.
Dropshippers once flocked to these sites to find product sources about 5 years ago, when they were not yet as well-known. Due to its widespread adoption, software like Oberlo and Dropified have emerged. If you have a store and want to sell items that you find on AliExpress, these apps will come in handy.
However, these apps only serve as a conduit; you would still be purchasing goods from AliExpress vendors at B2C prices and reselling them on your website for a profit. You would still be charged the same B2C price whether you bought one item or one hundred. This would prevent you from expanding your business and increasing your profits.
Since AliExpress is a business-to-consumer marketplace, it is populated by many resellers, increasing the likelihood that you will not interact directly with the manufacturer of the goods you purchase. In addition, we’ll let you know that if you sell a hundred products, you might have a hundred different resellers to negotiate with. In the event of a problem with your order or shipment, you may not know who to contact for assistance.
While it was still possible to make a lot of money by purchasing products at B2C prices a couple of years ago, due to all the reasons described above, this is no longer the case today.
Why dropshipping products at B2B prices
The dropshipping industry is becoming increasingly competitive as more and more eCommerce business owners and industry newcomers adopt the model. We’ve covered some of the reasons why it’s usually not a good idea to buy products at retail, where most people do.
Buying your dropshipping products at B2B prices is the key to the success of your e-commerce business because:
It’s the only way to get your hands on items that are normally reserved for resellers;
You can save money by buying in bulk;
Your supplier will come to appreciate you more as a customer the more you buy from them;
You’ll have more room to negotiate with your supplier over the prices they quote you;
But it’s also true that in 2020, if you want your dropshipping business to succeed, you need to find a reliable supplier who can source your products at B2B prices so you can maximize your profits and get the help you need to keep your operation running smoothly.
Where to find dropshipping products at B2B prices?
Getting in touch with a few Chinese factories is the first step to finding dropshipping products at B2B prices in China. This can ensure that you receive your items at manageable B2B prices.
This may seem straightforward and simple at first, but in practice, there may be more layers of complexity than you anticipate.
To begin, there is always the possibility of a language barrier; unfortunately, not all Chinese vendors have adequate command of English to ensure a smooth business transaction.
The second question is how you’d handle the logistics of actually fulfilling those orders. If you have hundreds of customers every day, sending a file containing all of your orders to your suppliers and giving your customers individual tracking numbers can be a time-consuming process.
As an added complication, if you work with multiple vendors, you’ll need to go through this procedure multiple times, taking care to always send over the correct document. It’s important to remember that a time zone difference may mean that your suppliers respond to you the following day, delaying the processing of your orders. Which is likely to cause dissatisfaction among your customers?