|Home >> China Wholesale Market >> China Wholesale Business >>
China Wholesale Drop Shipping
China Wholesale Drop Shipping
What is Dropship?
Dropshipping is a cost effective method of purchasing wholesale goods and delivering them to their purchasers.
It is a supply chain management technique that means the retailer does not need to actually physically keep the items they sale in stock. Instead they transfer their customer orders over to the wholesaler who then sends them on to the customer directly.
Essentially this turns the retailer into a sales agent who finds the customers and takes the profit margin between the low price of the wholesale item and the higher price that the customer pays.
How to Benefit from Dropshipping
A whole range of people benefit from Dropshipping – including small business owners, online auctioneers and those selling custom products.
Many people who use Dropshipping try to hide the fact that they are using this method to avoid the stigma. They can do this by arranging with the wholesaler to have return address labels of the retailer instead of of the manufacturer. Retailers may also wish to hide the fact that they are Dropshipping to prevent other people from finding the source of their items that could jeopardize their business.
Small businesses often make use of the benefits of Dropshipping if they receive a large order for single product when they usually just sell small quantities. Instead of paying for the cost of having the order delivered back to the retailer and then out again to the customer – they will often organize a drop ship so that the order is delivered directly to the customer to help cut costs.
This method is particularly useful when purchasing large, expensive items such as steel buildings – where there it would be a waste of money to have it delivered to the retailer and then out again to the building site that purchased it.
Online auction sites are renowned for using the Dropshipping method – and thousands of EBay and other online auction users use this method to maximize their profits. They will usually not mention to the customer that they are using the Dropshipping method – instead when they will list the item as if they had it in their possession and then have the wholesaler ship it to the final purchaser on receipt of the payment. This method is perfectly legitimate and authorized by EBay – as long as certain rules are followed.
An increasingly popular use for Dropshipping is in the custom product industry. Many wholesalers in China and around the world produce custom items to the retailers specifications and then dropship them to the customers. The items could be as simple as customized corporate key rings up to customized vitamin formulations and nutritional supplements.
Why is China a good choice for wholesale Dropshipping?
China is one of the most popular options for those looking for good value wholesale dropshippers.
Due to low production costs in China – they can offer significantly cheaper prices on their wholesale items than most other countries in the world – meaning that retailers can benefit from maximum profits from their products.
Many wholesale Dropshippers in China are very well established and have spent many years dealing with foreign customers – and most have English speaking representatives who can talk you through the process and help you in making decisions about your orders.
Where to find China Wholesale Dropshippers
The best place to find China wholesale Dropshippers is through a personal referral or recommendation from a friend – as this helps give you an inside look at the running and reliability of the company you may potentially be working with.
However, if you don’t have any friends who have had experience with wholesale Dropshippers in China the next best option is the internet. Almost all large wholesale Dropshipping suppliers in China have their own website in English where you can look through their products and prices.
A large number of the China wholesale dropshipper websites offer a b2b (business to business) interactive program whereby you can speak directly with a person at the suppliers who can answer any questions or queries that you may have. You usually have the option of speaking over a microphone or via instant messaging.