If you’re looking to make money by dropshipping consumer goods on a site like eBay, it makes sense to try and get the cheapest price possible. If you do your research on where your competitors are dropshipping from, you’re likely to come across a few that are dropshipping from far off countries like China. But is it a smart move to partner with a Chinese dropshipper? In most cases, it’s not a wise decision and we’ll tell you why.
Stay Away from Dropshippers in China
If you think you’re going to make 100K a month with drop shipping from China, you have to be living in fantasyland. Don’t buy into the the hype.
- Companies like WorldWideBrands (WWB) are leaving near to zero margin for you. All the products sold by drop shipping companies are highly competitive.
- Also, if you think about the returns, RMA holding time, and other fees inherent in a dropshipping business, a lot of people actually lose money with this kind of business. Do not ever drop ship from China. Stick with USA wholesalers only, or else the long shipping times and your having to implement a “no returns” policy will kill your business.
- For instance check the prices of a “low cost” China drop shipper (for instance ChinaVasion) and compare that with factory drop shipping prices (aliexpress.com for instance). Now compare WWB prices with ChinaVasion. If you think the Chinavasion prices are expensive, wait until you go over the WWB price list. There’s only a small margin where you can hope to eek out a profit.
Ways of making money as a DropShipper, even from China
There are ways to make money with the drop shipping business but not as a reseller.
- Go to Google and type in “Dropshippers”. If you think these are the only dropshippers then you should just quit now. Now of course you can find dropshippers that are real, but it just takes some detective work (more than just doing a Google search).
- If you need to do order fulfillment with products shipped from China, try http://sendfromchina.com/ as they’ll likely have the best shipping prices.
Trying to Make it on eBay as a Dropshipper
Most people who start by selling on a site like eBay have a goal toward running a profitable business. But if all you end up doing is running an import business where goods get shipped in from China to sell on eBay, then that becomes a big problem as your not adding much to the value chain.
- The real profit is in finding a product everyone wants but no one is able to get. Unreliable stock and competition from chinese firms who sell directly to consumers in the US and UK can drive prices down almost to near the cost that you pay for the items.
- Also, eBay has a reputation for being a bit cheap, people go there to find bargains. As far as keeping competitor’s out, it’s an open market with zero barriers to entry. It’s not a good idea to compete solely on price, as there’s always someone who’ll be able to sell it for cheaper.
- You can make a killing from being the only seller, but then another seller might join and sell at a similar price to yours, and then your profits will take a hit.