Why Choose Drop Shipping from China
Traditional shipping process: Suppliers first export to overseas localities by sea or air in large quantities by the B2B trading and customs mode. After the buyer clears the customs and pays import taxes and fees through B2B, the buyer transfers the goods to the local warehouse or fulfillment center. Then 3PL fulfillment center pick&pack and ship products to the final consumers. We generally call this mode B2B2C. In this B2B2C mode.
Some unnecessary or high costs will be incurred:
1. Importing from China to the local area in B2B general trade will generate high import taxes and fees;
2. Then processing the goods from the local warehouse to customers, there will be inbound fees, storage fees, outbound fees, etc.;
3. There will be high order processing( sorting, packing, labeling, etc.) fee to fulfillment the order.
The advantages of drop shipping from China:
1. Ship directly from China to consumers in the way of B2C to many countries (such as the United States, Canada, Australia, etc.), we can use the duty-free quota to avoid import taxes and fees.
2. The processing cost of warehouses in China is much lower, including the cost of inbound, storage and outbound, which is much lower than that of developed countries in Europe and the United States.
3. The cost of labor in China is lower, so the processing cost of the order is lower.
4. On-demand Delivery and Last Mile Delivery. Shipping from China, there are more choices of logistics solutions, and different solutions can be accurately matched according to the profit and timeliness requirements of different products.
5. Based on our huge daily shipment volume, some of our express and zip code logistics accounts have relatively large discounts, which have certain cost advantages.
In addition, in the traditional B2B2C method, we first need to export large quantities of inventory to overseas localities. In the possible process of long-term transportation or warehousing, there will be risks of inventory occupying funds and slow sales, which will bring sunk costs. This problem can be perfectly avoided through China's elastic and flexible drop shipping model.
Applicable scenarios of drop shipping from China:
1. Sellers on e-commerce platforms, such as eBay/Amazon/Walmart/Shopify...
2. Crowdfunding platform pre-sale mode platforms sellers , such as Kickstarter, Indiegogo...
3. Other pre-sale models/platform/social commerce
4. KOL(Key Opinion Leader) marketing/TickTalk marketing direct sales
5. Temporary out of stock maintains sales continuity through China's flexible and flexible drop shipping, avoiding sales interruption and profit loss.
Some possible concerns when considering drop shipping:
1. Outward shipping packaging and logistics track information of the shipment, etc., may let finial end consumers know that it is shipped from China (the goods are Made in China).
2. If you choose to let the supplier ship directly, it may expose your final end buyer's information to the supplier, and there will be certain business risks.
3. The delivery time from China may be slower than the direct delivery from overseas, which may lead to the risk of customer complaints due to logistics problems.
In these cases, you can consider a more intelligent drop shipping plus program:
What are the advantages of drop shipping plus program?
1. Choose a 3PL logistics service provider (rather than a supplier) to fulfill the drop shipping orders to avoid the risk of business information leakage.
2. The professional 3PL logistics service provider handles the order operation, and the shipping packaging and delivery method are all in English, so as to realize the same delivery experience and logistics query method as overseas local delivery. In this way, the buyer has no idea that it is shipped from China.
3. Fast electronic data customs clearance through direct flights, multiple ports of entry, combined with the delivery service of local advantages, the timeliness of drop shipping from China is the same as that of overseas local fulfillment and delivery.
Glowing large cross-border e-commerce sellers in China (eBay/Amazon/Walmart/Shopify...) and some overseas brand owners have been preferring fulfillment and delivery method recently.
On the one hand, it can save the overall cost and reduce the risk of unsalable inventory in large quantities to overseas locals. On the other hand, Drop shipping from China has achieved the same timeliness and delivery experience as overseas local delivery through multiple links of operation optimization, while being more flexible and cost-effective.