Most people who sell on eBay and have a profitable business usually have an in with a good product supplier. A new eBay seller might feel that they have to source products from overseas locations like China in order to cut down on their product expense. But if you go the China route, you may end up running what is essentially an import business, and that’s usually not a good business to be in especially if you are a dropshipper.
If You Want to Be a Profitable Dropshipper, Stay Away from China
If you think you are going to setup shop with a China supplier and easily clear 10K a month in profit with a dropshipping arrangement, then I think you have very unrealistically inflated expectations. Chinese product suppliers (like the ones you’d find in World Wide Brands) aren’t leaving much of a margin for you. Every single product sold by dropshipping companies most likely already have a bunch of affiliated sites selling them, making that form of dropshipping highly competitive.
If you’re dropshipping from China, so many things could end up killing your bottom line:
- RMA holding time (you don’t get paid until your supplier knows for sure that the money is in the bank and isn’t getting refunded to the customer).
- Unreliable product stock (god forbid if you actually have to try and communicate with some of these Chinese outfits).
- Competition from Chinese firms who will sell directly to consumers in US and the UK. You’ll never be able to compete on price with them, as they can sell down to near the cost of the price you’re paying for product stock.
- Other fees that are typical of running a dropshipping business.
You can see why many people actually lose money while running dropshipping business from China. I wouldn’t recommend ever dropshipping from China (use USA wholesalers instead), or else the long shipping times and people returning merchandise are going to kill your profit. The real dropshipping profit potential is in finding a product everyone wants but no one is able to get. But even then, you could be banking it from being the only seller of a product, but if another seller starts offering the same or similar product sell at a better price than yours, then your profits are going to take a hit.
OK But I Still Want To See What Chinese Product Suppliers are Available
So you’re still interested in checking out Chinese product suppliers? Here’s a list along with some tips.
- Try China product supplier lists like ChinaVision and World Wide Brands. Check on the prices of a “low cost” dropshipper across both listings. World Wide Brands’ suppliers are generally more expensive.
- If you need to do order fulfillment with products shipped from China, try http://sendfromchina.com/ as they’ll likely have the best prices on shipping.
Always compare the above with the factory dropshipping price (for example, Aliexpress.com). And don’t just
Google ‘Dropshippers’: these are middlemen, not true dropshippers. It’s almost impossible to make money as a dropshipping ‘reseller’. You’ll need to dig a bit to find dropshippers who are real.