Dropshipping from China: Benefits and Challenges

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When you think of dropshipping, China comes to mind instantly. The reason is that most dropshippers bring products from China at cheap rates, offering higher profit margins – there’s nothing wrong with that. Correct?

It allows you to provide high-quality products to consumers at affordable costs. However, dropshipping from China comes with its own set of challenges. While you get products at a low price, the shipping time is long and frustrating for the customers.

You’re not alone if you also feel the weight of customer complaints and lengthy delivery times from your China dropshipping business.

Many Australian e-commerce owners are facing these challenges when sourcing products from China. So, is it time to abandon dropshipping from China, or should we optimize the chain?

Wefulfil is an Australia and China-based company focused on providing supply chain solutions for your online business in Australia. We ensure smooth order fulfilment to establish and scale your business.

This article will unpack the secret behind successful dropshipping from China despite the challenges. We will discuss the benefits, address the common hurdles, and share strategies to keep your business sailing smoothly.

Dropshipping from China

Because of their low prices, China has emerged as a global supplier for businesses and consumers. The low manufacturing and product costs are attributed to cheap labour, economies of scale, trained workers, and supportive government policies.

A large fraction of dropshippers globally source their products from China. China exported goods worth $36 billion to the United States by the end of 2023. It is a leading country in the dropshipping market, growing at a CAGR of 29.3% from 2020 to 2027. The dropshipping market in China is expected to reach $399.6 billion by 2030.

Despite all the good factors of China dropshipping, there are aspects that you cannot overlook as a dropshipper. So, let’s look at the common pain points of dropshipping from China.

Dropshipping from China Challenges

Unstable Delivery Times 

Long, unstable delivery times are the most problematic dropshipping feature from China to Australia. When getting products from platforms like Aliexpress, the vendor (who is usually an online retailer instead of a dropshipping expert) will opt for the cheapest shipping solution to save costs. They might choose from China Post, e-packet or Aliexpress standard partial tracking shipping courier to send the goods to the customer.

Besides low rates, these options take ten to thirty days to deliver the order. Australian shoppers do not appreciate long delivery times and prefer someone who can ship in the shortest possible time.

However, it does not mean that you should stop dropshipping from China. Instead, opt for suppliers who can manage the shipping in a shorter time. Australia Post offers an excellent shipping solution from China to Australia with 5-8 working days shipment.

At the same time, you can opt for a fulfilment company like Wefulfil with warehouses in Australia. We bring the products from China to our warehouses in Australia for timely deliveries. Also, you can store your inventory in our warehouses to keep the goods safe.

Undependable Customer Service

Dynamic customer support is one of the star characteristics of an online business, but dropshipping from China often does not provide thorough customer service, and a lack of customer service can hurt the trust in your brand. Because of the time and language difference, dealing with a Chinese dropshipping supplier is sometimes hard, especially when you want to communicate a problem.

In most cases, the suppliers might be retailers and wholesalers instead of a dropshipping company. Thus, they do not understand your needs in the business. So, finding a professional dropshipping company is crucial if you want to dropship from China.

Shipping Limitations

Shipping issues are definitely at the top of the list related to dropshipping from China. Prolonged shipping time is the most crucial part of sourcing from China, as the suppliers use low-cost delivery services that take forever to deliver the products.

Besides the shipping time, dropshippers dealing with Chinese vendors also have to consider the weight and size restrictions. Not all products are suitable to be shipped from China. For example, you might not be able to ship large, bulky products to Australia because of higher shipping charges and risk of damage.

If you are dropshipping a product with a bulky size or heavier weight over 2 kilograms, the shipping cost might be even five times higher than usual. But when selling smaller niche products under 500g, you can offer better pricing than local sellers. Products with smaller sizes, usually under 500g, are definitely worth dropshipping from China; they are suitable for suppliers, dropshippers, and customers because of easy shipping and lower price.

Now that we have discussed the challenges of dropshipping from China and how a dropshipping company can help you, let’s have a quick look at the advantages of sourcing from China.

Dropshipping from China Benefits

Fast Sourcing

The top reason dropshippers dropship from China is because they can easily and quickly get their ideas sourced and dropshipped. China has the world’s largest supply chain resources, allowing you to start a dropshipping business even in one day; get a supplier, set up a Shopify store, run an ads campaign, and you’re good to go.

Fast sourcing and dropshipping is a game changer. With the right processes, you can significantly reduce sourcing time and bring your dream products to your store immediately.

Better Inventory Management

Better inventory management means less headache for you and more reliability for your customers. Dropshipping from China will help you achieve better inventory management efficiency than shipping from Australia locals.

If you ship from Australia, you must first bring the stock, which takes around two months before you can run the campaign and start selling. This means your funds are stuck for two months, and cash flow is trapped. This also leads to stock issues when a product gains the limelight and you run out of inventory at peak sales. So you lose sales because you have to wait two or more months for the new stock.

But if your stock is in China, refilling the stock will be much easier. You will be able to make the best use of your cash flow to make more sales, especially in the Christmas season.

Easy to Build Your Brand

China offers multiple manufacturers who create the products you want with the packaging of your choice. Due to cheap labour, the cost of these products is less than local Australian manufacturing. You can also get products customized for a POD (print-on-demand) business, usually at no extra cost. Furthermore, many manufacturers print your labels and pack accordingly to help you offer branded products to your consumers.

Final Words

To sum it up, while there are challenges, the benefits of dropshipping from China can be substantial with the right approach. Streamlined shipping, responsive customer service, and efficient inventory management can transform your business. What you need is to find a reliable and professional dropshipping supplier from China who offers fast shipping and dynamic customer service. You can get in touch with Wefulfil to find out how you can improve your business when dropshipping from China.

Mr. Still Zhu
Mr. Still Zhu

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