Hi Everyone. Dropshipping is dead? This is unlikely, as far as I know. Why? You can’t believe it with the new normal and the number of eCommerce transactions that are made each day.
Is there a drop in dropshipping from China in 2021? Let’s talk about the different aspects of this. This article will discuss the benefits and drawbacks of dropshipping from China.
Dropshipping: What does it mean?
Dropshipping allows businesses to fulfill orders by removing the need to store inventory for customers to order. Dropshipping allows you to focus on other important tasks, such as sales and marketing since you no longer have to manage and hold inventory.
Dropshipping suppliers arrange for the goods and deliver to customers. This is one of the best business models in eCommerce because anyone can start a business without any capital investment.
Shopify Dropshipping Business – Start it with minimum investment from anywhere in the globe!
What is the deal with dropshipping from Chinese suppliers What has Dropshipping from China made a significant impact on the top Shopify dropshipping shops worldwide?
Dropshipping from any global supplier is possible, legally speaking. However, most people prefer to purchase from Chinese suppliers. Why?
These questions are likely to be answered by one person. Cost-effectiveness. Yes! Yes! China makes some incrediblely low-quality products.
Dropshipping from China allows you to quickly set up Shopify Dropshipping stores or websites and manage them while reducing your financial investment. Trust me, there’s more to it!
Dropshipping from China: Advantages
Dropshipping is a great way to use the popular supply chain management system. However, you need to be able to work with worthy partners. Dropshipping is very popular in China among startups and retailers for the following reasons.
- China has enjoyed huge economic success in dropshipping over the past few years. China has made important changes to its law structure, which regulates foreign trade. This means that if you want to import products from another country, you may have to go through the legal complexities and any resulting expenses.
- Chinese companies are well-known for their large-scale machinery and low labor costs. This allows them to offer lower prices on their production. If you’re looking for low-cost options to fill your Shopify Dropshipping shop, you have many options.
- China has seen a rapid improvement in its business capabilities and technological advancements over the years. The quality and efficiency of products has also improved. You can’t argue with the fact that products made in China can compete on the global market based on the highest standards.
- China has a vast product range that is almost limitless. You can access a large range of products quickly through the Chinese wholesalers and manufacturers. They have it all!
- China’s strategic location is well-known for being close to the most economically active Asian and European markets. It is also bordered with 14 countries and has an extensive logistics network that includes land, maritime, and air transport. It is easy to ship products anywhere in the world thanks to this network.
- Dropshipping suppliers from China are experts in packing, shipping, and production. This means you can focus your time and attention on developing your Shopify Dropshipping company, instead of worrying about or investing in prospects.
You will see returns on your Shopify Dropshipping store if you make smart decisions and invest in the right Chinese dropshipping company. It’s that simple! Or so you think!
Dropshipping from China is not something you should only see through rose-tinted windows. There are also some drawbacks.
Dropshipping from China: The disadvantages
You should be prepared for risks if your Shopify Dropshipping business relies on Chinese dropshippers.
- Low product quality is a risk for products manufactured in China, especially electronic items. When you launch your Shopify Dropshipping shop, be sure to carefully select the products you will be selling to customers. Products like textiles can be purchased from trusted Chinese suppliers. If you do your research and keep your eyes open, you may find more options.
- A Chinese dropshipping supplier could also cause delays and long delivery times. If backorders are placed and the supplier runs out of product, this can make matters worse. Your reputation is at risk if it takes longer for customers to receive the products they ordered.
- Your Shopify Dropshipping business could be overtaken by other Shopify Dropshipping businesses. Dropshipping from China is easy because there are few or no barriers to dropshipping and nearly everyone is doing it!
- Dropshipping from China can be costly. They also charge high commissions. If you expect high margins on sales of products through your Shopify Dropshipping company, then don’t get too excited! To make a decent profit, you might need to wait.
- If you already have a Chinese supplier, I suggest you focus more on customer support. You could be pressured from all sides to anticipate clients because of the lengthy shipping times. You will also be charged for any defective products that are returned by customers. Be careful!
Dropshipping, especially from China, is a competitive industry with a few drawbacks. Dropshipping from China is a worthwhile venture, especially when you consider the many benefits and the chance to improve your business reputation.
However, you won’t make much money with it in the immediate future. You can still keep startup costs low and build your Shopify Dropshipping business from the comfort of your own home.
Are you concerned about the latest news or myths? Dropshipping is in danger of being stopped. Dropshipping from China is suffering the worst effects of the pandemic? This business model is still viable in 2021.
Is it worth investing in a Shopify Dropshipping Business in the next few years? These are the questions I want to answer! Keep reading!
The Coronavirus Era, Dropshipping from China in 2021
Entrepreneurs like myself, including drop shippers, were caught in a quandary when the coronavirus epidemic broke out in China. Customers reacted with horror to the fact that these products were being outsourced from China.
Dropshipping is not the only option. Any company doing business with China at this time was affected.
China, being the business power that it is, overcame the obstacles and connected its supply chains. If you’re a drop shipper who sources products from China, I recommend you do so. This pandemic could be a great opportunity for your Shopify Dropshipping company.
- The virus cannot survive the journey from China. Many of my customers were concerned about the possibility of contracting the virus through contaminated goods from China. You need to reconsider. Medical research has shown that even though the virus may have attached itself to products, it can survive for only 3 days on steel or polypropylene plastic.
- Delivery times from all over the globe have been slowing down, not just from China. Online sales have boomed in recent months with eCommerce transactions growing at an unprecedented rate. Due to customs delays or other restrictions, deliveries from all countries can be delayed.
- Shopify Dropshipping stores have a shortage of essential products due to the increase in online orders in recent months. Surprised to see how much protective gear, masks, or other security gear is being imported from China, I was surprised. China is producing essentials such as groceries, personal care products, and household staples like never before.
Therefore, I believe that Shopify Dropshipping stores will benefit from the coronavirus pandemic era, particularly for sourcing from China.
Is the rest of the world following the same trend? Is China’s drop shipping industry making the most of this situation? Let’s see more.
The Dropshipping Trend from China in 2021
Researchers predicted that brick-and-mortar stores would be overtaken by online sales in the first months of 2020. It’s not surprising that online sales have increased by 52% compared to earlier.
What does this all mean for drop shippers? Shopify Dropshipping is a competitive business. This means you are likely to be exposed to serious risk.
My research shows dropshipping from China will continue to thrive in 2021.
This graph shows that dropshipping has been trending for the past 5 years. It is evident that dropshipping has declined since the beginning of 2020.
However, dropshipping’s strong upward spike is an indication that it is here to stay. It is not dead or stagnant, I would say it is still alive and well!
However, if your Shopify Dropshipping shop is looking to reap the benefits in 2021, here are some tips.
You should be aware of certain things when dealing with Shopify Dropshipping businesses, especially in 2021. These are some of them:
- Optimize your product lines are the first thing I’d ask you to do. You will see a lot niche products taking the spotlight in 2021. Yes, desktop accessories and home fitness equipment have seen a dramatic increase in sales. You wouldn’t believe that this trend would slow down with remote working and quarantine restrictions. Online sales of groceries, toilet papers, and cleaning accessories have risen dramatically.
- Dropshipping suppliers from China are not required to ship products from China. Many Chinese manufacturers and suppliers have warehouses in the USA. Check with your Chinese dropshipping supplier to see if products are possible to be sourced from nearby countries.
- Effective marketing strategies are essential for selling your products. Email marketing is a great way to promote your business, educate customers and instill loyalty.
- Dropshipping is a great way to increase your sales. You should be on the lookout for trends in customer buying. If you are able to bulk order goods, this will help you increase your profit. This will allow you to reduce costs and increase profit.
Dropshipping from China looks like it will be around in 2021. Although the business experienced a decline at the beginning of 2020, that is not indicative of its true state.
However, I would suggest to dropshippers that you put in the effort and research before jumping in.
The Reasons Dropshipping from China Is Not Worth It in 2022
Many things are changing because of global trends. While some are implemented worldwide, others only affect certain regions. Dropshipping is an area in which China has some of the most prominent suppliers. Here are some reasons to switch suppliers.
Customers value quality over low prices
Even though Chinese suppliers offer incredible low prices, this is a compromise for the quality of what you get. Customers are looking for higher quality. If a customer discovers that dropshipping isn’t good quality, they may not return to your store again. Consider these things when choosing a dropshipping supplier:
- The product’s quality
- Counterfeit issues
- Copyright issues and many more
In most countries, more goods are produced locally
Different goods are being made locally as the world moves towards technological advancement. 2022 will see many technological advances that require more productivity. Dropshipping stores should consider local suppliers as well as suppliers from other countries.
Geographical distances act as barriers to the way
The Chinese suppliers are less efficient now that there are both local and foreign suppliers. The following are the issues that arise from the entire process because of their geographical distance:
- Delivery time increased
- Shipping costs are higher
- High market competition
In 2022, it is a smart decision to choose a supplier who is more efficient and faster.
Everywhere you look, competition is growing
As we have seen, competition is growing in all possible ways. High competition is required for both the producer and the supplier. Different suppliers offer better value when there is more competition.
If you’re looking to start a dropshipping company, suppliers like Doba could be the best option. You must capitalize on the increasing competition to find the right dropshipping supplier. This will ensure that your dropshipping business is able to achieve the success it deserves.
If you feel that the above-described things are appropriate for your dropshipping company and its supplier requirements then you can decide to leave China in 2022 as your dropshipping provider.
What makes China a viable choice for dropshipping?
There are many reasons China is not the best option for dropshipping suppliers in 2022. China is still a good choice for dropshipping businesses in some instances. Here are some reasons why Chinese dropshipping suppliers can still be a great choice for your dropshipping company.
China’s products are very affordable
First, China has a very low cost for products. Dropshipping from China is a great option if you don’t care about quality.
As you don’t make large investments, there is very little chance of your investments being lost. China has many advantages. You don’t need to keep inventory and you can get products quickly because the industry is developing rapidly in China.
Perfect geographical location
Some countries have a weak local industry. China is a great choice because of its geographical location and ability to meet the customer’s needs. Dropshipping from China is an excellent option in this situation.
There are many suppliers that you can choose from for your business
China has many suppliers. China can supply hundreds of suppliers for the exact same product, something that is difficult to find locally. Instead of dealing with only a few local suppliers, dropshipping can be improved by choosing the right option from China.
When it comes to Chinese suppliers, scaleability is remarkable
China is a great choice for dropshipping suppliers because it has no problems with scaling. Sometimes, the time it takes to scale your website can be more than the time required by dropshipping companies from China. China has a world-class dropshipping service because of the improvements in this industry.
If you’re running a dropshipping company and you believe that all these reasons for choosing China to be your dropshipping country in 2022 are valid, then you should go for it. This is because your dropshipping business cannot go well if it doesn’t.
It doesn’t matter if you choose a dropshipping provider from your country or another country. It all depends on the niche you are in and other factors that could affect your dropshipping business.
Doing proper research is the best way to find out if you are interested in working in dropshipping. This will help you determine whether you require suppliers such as Doba or another Chinese supplier. It is sometimes a good idea to have a mix of suppliers. You can make your final decision only after conducting market research.