Downsides of Working with the Chinese Suppliers for Dropshippers
When starting a dropshipping business, you will need to find one or a few of the best dropship suppliers USA based, preferably. After all, you can’t sell anything if you don’t have a quality catalogue and a reliable supplier to deliver them. You’ll find paid and free dropshipping suppliers on the internet willing to serve you, and ready with their dropship websites to offer their services. But how do you know if they are the right suppliers for you? Obviously, you can’t trust their tall claims and you have to be very vigilant when doing your research.
Before we get into the details, let’s talk a bit about dropshipping. In simple terms, dropshipping means that when a customer places an order on your website, you contact your supplier to ship the item for you directly to your customer. You don’t need to undergo the hassle of worrying about the inventory, packaging, or shipping.
Suppliers and drop shippers are essential parts of your supply chain. The major elements like your company’s reputation and customer satisfaction ride on your drop shipper’s service. Selecting the wrong dropshipping supplier can turn a customer service request into a nightmare.
New dropshipping businesses always fall into the trap of not considering that the American markets may not want to buy from the websites that ship from China or any other offshore location for that manner.
Therefore, eCommerce businesses must ensure that they understand the online shopping market thoroughly and well before choosing their dropshipping wholesalers and suppliers. In this article, we will discuss the downsides of working with the Chinese suppliers to drop-shippers who target the U.S. market and how you can overcome these barriers.
Dropshipping from China
Did you know that back in 1874, way before e-commerce even existed, the United States and 21 other countries formed the US Postal Union (UPU)? The Union had made shipping from one country to another affordable and hassle-free. It became easy for several other countries including China to ship goods to the U.S. at cheaper rates.
In today’s age, this makes dropshipping from China to the U.S. much cheaper. It also made dropshipping from China very much popular among e-commerce businesses.
However, over time, many businesses in the United States realized the downsides of dropshipping orders through Chinese suppliers superseded its benefits, leading them to reflect on whether choosing offshore vendors or Chinese suppliers for their eCommerce store was worth it.
Downsides of working with China-Based Suppliers for Drop Shippers in the U.S.
One of the various reasons why businesses opt for Chinese suppliers as their drop shipping solution providers is low manufacturing costs. Lower manufacturing costs can result in higher bottom-line profits, enabling the entrepreneurs to have more free cash to grow and scale a business.
However, in the long run, these entrepreneurs have to overcome many issues related to shipping times, product quality and refunds et al that can hamper the businesses that sell to the U.S. residents in many ways.
With many benefits an entrepreneur can derive by outsourcing their products from China, here are numerous disadvantages as well that they can face:
1. Longer Shipping Time
When it comes to online shoppers, they want their orders delivered in as little time as possible. Shipping and deliveries within a few days’ deliveries are now a typical expectation of buyers in the United States.
Amazon has indeed raised the bar, and while that might be bad news for some drop shippers, it is a fantastic opportunity for new entrepreneurs to take advantage of and differentiate themselves by providing fast deliveries by strictly working with the suppliers within the United States.
The average time is taken by the Chinese suppliers to ship products ranges from two to six weeks depending on the suppliers and their shipping services. These long wait times in shipping and deliveries can and usually do reduce the chances of repeat customers. Based on their delivery experiences, your hard-earned customers may shop from another website that provides them with faster delivery next time they are shopping online.
2. Lower Product Quality
3. Hassles in Returns
Imagine you are buying a product online and receive something else that doesn’t meet the description mentioned on the website. In such a scenario, customers initiate an instant return or replacement request that takes 2-3 more weeks by your supplier from China to get processed. The return shipping cost will be borne by you and not your dropshipper. The whole process will be time-consuming and also a major hassle in terms of added expenses that your business has to incur.
Now imagine if you’re working with some of the best dropship suppliers in the United States. Not only do you minimize the chances of a wrong shipment, but they often handle the returns for you.
4. Difficulty in Customer Retention
Longer shipping time, quality and returns, etc. issues propel some customers to face bad shopping experiences. With bad customer experience, it is difficult to convince customers to repeat purchases. Customers tend to be brand switchers nowadays.
They can easily switch to another website for online shopping. Attempting to acquire new customers in such a situation to make up for the lost customers proves expensive due to cost per customer acquisition. It will resultantly impact your business growth.
5. Customer Service Issues
Customer service is hardly a priority of suppliers from China in most cases. Ample time, money and energy go into addressing customer complaints to resolve such issues. This can distract your business from your focus on long-term goals like branding and marketing.
6. Lower Profit Margin
By choosing a China-based supplier for dropshipping, you initially enjoy enough profit margin. Manufacturing cost and shipping from China significantly remain low than shipping from your home country therefore high profits.
However, once you expand operations, it may become difficult to keep up with the additional expenses due to returns or defective products. The hassle of such unexpected expenses will eat up your profits to leave you at the cash crunch.
Other downsides of choosing a China-based supplier, if not having a warehouse in the United States may include the customs clearance, difficulty in inspection and cultural differences et al.
we suggest you read this article : Dropshipping Profit Margin
"US-Based Suppliers" Is Your Answer
If you look for other factors besides cost, US-based suppliers should be your pick. Choosing the American suppliers may become slightly expensive than what you pay to any China-based supplier. But, there are many upsides to working with the best US-based dropshipping suppliers. For faster delivery, better quality and return policies to customer service, we recommend US-based suppliers who are ideal options.
Choosing Shop1 Your All-In-One Dropshipping Platform
Shop1 provides its customers with a seamless shopping and delivery experience. Our all-in-one dropshipping platform automates your e-commerce operations for you to enjoy a smooth experience. From your e-commerce website to order fulfilment, we’ve got it all covered. We understand why having US suppliers for dropshipping assures faster deliveries, packaging and quality assurance.
Our platform facilitates trouble-free experience for the customers. We enable the entrepreneurs to focus on long-term goals like scalability, growth and expansion. Boost your e-commerce business with our dropshipping platform.
In the customer-centric environment, good quality products and ensuring fast delivery are essential to achieve long-term business goals. If you are an entrepreneur seeking low-cost sourcing of products, then you may prefer Chinese suppliers.
However, if you understand drop ship lifestyle with quality assurance in the U.S., focus on the best dropship suppliers and products in the US.