Dropshipping is a retail business in which a seller doesn’t have an inventory, instead, it takes orders from customers and sends them to suppliers. The supplier then completes the order and sends it to the customer directly. This way the product is not handled by the seller. sometimes dropshipping is the reason that you get highly demanded sales on your loved product such as Sales for iPhone
Why dropship from China?
Dropshipping from China has increased in the recent past. The products can be purchased at cheap prices due to their low production cost. According to Grand view research, the dropshipping market size is expected to reach $557.9 billion by 2025 with the help of dropshipping suppliers in China and all over the world.
What could be the possible reasons for increasing trends of dropshipping from China?
If Thousands of drop shippers are turning to China there must be some good reasons, one the reason is they make cheap products and you can find them in sales as discussed sales on MacBooks, but it is not the only reason there are other reasons as well Let’s look at them.
- Profitability
One of the significant reasons to dropship in china is profitability. Products there are cheaper than U.S. and Europe. Possible reasons for this might be the low labor costs and access to plenty of resources.
- Limited or no investment is required
Surprisingly you don’t need a high-level investment in this. The start-up cost is really low. The product is not required to be purchased and stored in bulk for taking orders. You just need to have some basic knowledge about the business and you can launch it the moment you decide. Most of the investment is required just for advertising your product.
- Doesn’t require an inventory
One of the other conveniences is that you don’t need an inventory to store the products. You don’t have to stress about renting a place for storing the product. You can run your business just through a laptop. No organization of the product is to be done. The supplier does that on your behalf.
- Easily manageable
There is almost nothing to manage. There is no hassle in managing the office as it isn’t needed. No staff is needed to manage the business as you can easily do it on your own. Shipping management is done by the supplier. So there is nothing much you have to do on your end. You just need to build a strong connection between the customer and the supplier.
- Highly scalable
Dropshipping from China is expanding because your business has a high chance of growth. A number of suppliers provide the POD (print on demand) service in order to increase their competitiveness. It means you can design the products, change the color or add the logos or anything of your wish. This helps the drop shipper to build her own brand.
How does dropshipping work?
It is a bit of a complicated method of retail business as a number of parties are involved. Simplifying the process there is a customer, seller, and supplier.