A Guide on Drop Shipping Operations From China

Why drop shipping is a good idea

A good business idea is any business idea that stands to make you money. By this definition, drop shipping is immensely a good idea. Walmart is a testament to how profitable this idea is. The giant retailer is minting billions of dollars annually by utilizing this mode of supply of goods. Having realized this, many people have turned to it, all to their delight. They are making millions in profits.

The concept is rather simple and easy to master. It involves trading wholesale or retail goods directly from China without necessarily coming into contact with the goods themselves. To explain further, you sell goods to customers while the goods are in the manufacturers’ or wholesalers’ storage facilities.

The Appeal of Dropshipping in an Unstable Economy

We are well aware of the biggest economic recession of this millennium that gripped the world around 2008 to 2010. The effects of the recession were far and wide, casting a dark shadow on the global economy.


During the recession years, a pattern emerged. Although the global economy was in the doldrums, spending habits did not dwindle to a crawl. On the contrary, spending the remained upbeat and in some market niches, it improved. The final piece of the emerging spending habits is that consumers were more value conscious, looking for better deals rather than going for brands blindly. Products that offered real value at lower prices emerged as competitive products.

Five years or so have passed since the recession-plagued era in the global economy. The economy is performing considerably better, but there are austerity measures all around to curb public spending. As the global economy emerges stronger, people are much more comfortable and are willing to spend more than yester years. Nonetheless, old habits in die hard. People are still looking for value in the products they purchase.

As much as branding may play a role in influencing consumption of goods, there are people willing to stick their necks out in the look for the best value for money products in the markets. Any business savvy individual will recognize this for what it is – an opportunity of a lifetime.

This is where drop shipping comes in. It accords online retailer the opportunity to provide genuine high-quality goods to customers while at the same time keeping the prices considerably low. So how do you getting around this new phenomenon and start a successful business? Herein is the steps to starting a successful drop shipping business?

Conduct market Research On Possible Goods To Sell

The best place to start your venture is to research on possible goods to sell. Amazon and eBay provide the best clues regarding products that are fast selling and doing well.

Finding Manufacturers and Wholesalers

The next step is to find manufacturers who are willing to make and sell an unbranded version of their products, at a lower price. One of the best places to start your endeavour is dhgte.com, where you can find numerous companies that offer drop shipping. If you are looking for wholesalers, a good place to start is Alibaba.com. Wholesalers’ directories and manufacturers’ directory can also come in handy in finding your suppliers.

Creating Legal Agreements With Suppliers

Creating a business agreement is the best way to protect yourself from scams and the best way to avoid unnecessary disputes. There are numerous business agreement templates on the internet that can be used. For a comprehensive agreement, you should consult a lawyer.

Create A Virtual Store

This is a website that forms the basis of your operation. It advertises your goods, shows prices, creates a personal portal for customers, collects shipping information, processes payment and helps your customer track their product.

For retailer sites, you can use Yahoo! Small Business or research an online store platform which helps you to make the site as well as host it. For wholesale operations, you can use Alibaba.

The final step is marketing your goods. Internet marketing and social marketing come in handy in this part of the operation. The better your marketing strategy, pricing and quality of goods are the better your chances of retaining loyal customers.

Topics: Export Concept and Sales & Marketing
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