Sunday, September 9, 2012
Chinese Dropshipping - Building a business based on Dropship Wholesalers
The import of goods from China can be both scary and exciting for many companies. On the one hand, China offers huge potential to make lots of money from reselling wholesale goods purchased in China at very low prices. Dropshipping China has huge profit margins, if you can find wholesale dropship. But on the other hand, cultural barriers and language differences can create many problems for sellers.
The main problem that most people are worried about is payment: How do I pay? Will your money disappear? etc. This type of problem exists because most Chinese wholesalers will only accept payments through Western Union or wire transfer. However, pay attention to these forms of payment, because they are not very safe.
The reason why these Chinese dropship wholesalers only accept payment by bank transfer is because it is really the only payment method available in China. Credit cards are extremely rare in China - heavy government regulations make it extremely difficult to get one.
Therefore, you are pretty much stuck with bank transfer and Western Union to import goods from most Chinese suppliers. In order to minimize the risk, I recommend starting with a small order to test their product reliability first commit. As your relationship develops over time, you can increase your product orders.
In general, many Chinese wholesalers and dropshippers are genuine, reliable people who really want to establish long term relationships with customers. They want repeat business, so it will not be earning enough to rip you off!
Another important thing to be aware of when using dropshipping China is able to communicate. It can be quite difficult to negotiate with a language barrier. I avoid this problem, asking for new contacts to their AIM or MSN screen names so you can chat online with them. They usually very friendly and happy to converse in English, especially because it helps them improve their language skills.
Once communication is established, you can then begin to ask questions, such as images of their products and minimum order size. After developing a good relationship with them, I then ask for a sample order. If a company is legitimate and genuine, this is not a problem at all, and let you see the quality of their product up close. From there, I can be certain that the dropship wholesaler is reliable.
Another thing to consider is the quality of the product. This is usually another concern for companies that may have problems trying to figure out if a branded product is real or not. In my experience, almost all the branded products which come from China are fakes or replicas.
I discovered that dropshipping China is best used for generic, low-cost vouchers that can be resold at much higher prices in the West. For example, some popular products like generic electronics and scooters do not need a brand to sell well, and are ideal for importing from China.
I personally would recommend using a reliable wholesale supplier directory, such as Sale Hoo, who keeps up with the best and most reliable suppliers around the world. You will save a lot of time by not having to find and search for wholesalers dropship few can find on your own .......
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