What You Need to Know About Using International Dropship Suppliers
Prices are lower, however more expensive.
The primary advantage of using dropship providers in countries like China is that the prices generally be less high than your local provider of drop ship items. At first glance, this sounds great and could mean higher profit; however, there could be additional costs to think about.
If the dropshipping service can deliver internationally (some do not), then you’re likely to be required to pay higher shipping costs, which could reduce your revenue. It is essential to ensure that despite these increased prices, working with an international drop shipping provider is profitable.
The most recent products that have strings
Purchasing your drop-ship products internationally could give you the opportunities to obtain the latest and most innovative products to sell to your customers earlier than you can compete, giving your company an edge; however, getting the products in front of your customers could be a challenge.
To begin, the product could be subject to customs duty and other taxes, which your client will need to pay in order to get possession of their purchase. If you haven’t informed them of this, and the cost has been added into the cost they’ve paid, it could lead to an unhappy and dissatisfied customer.
To circumvent this issue, some dropshipping providers mark their packages as gifts, which does not attract taxes or duty. But, this is a fraud and could result in issues for you or, even more so, for your customers.
A bigger selection, but more problems
International suppliers that can drop-shipping products directly from the producers from China and the Far East might mean you could provide your customers with more choices of merchandise, but it’s not without risk.
What happens if the item doesn’t reach your client? It is still important to get tracking numbers via your Dropshipping Supplier to ensure that you can pinpoint exactly where the shipment has gone missing. However, there is a higher chance of your items being lost due to the many hands that international shipments need to go through.
Problems when returning a product from a drop ship
What happens if an item is damaged and must be returned? What happens if the vendor has to be able to pay for the shipping back? The customer won’t be satisfied if they have to cover the cost. Additionally, just because the products are sold internationally via dropshipping doesn’t mean you’ll be able to offer the products to your customers’ country of origin.
Different countries could cause problems with licenses for products or laws that prohibit the sale of certain drop-ship products. This could create additional issues for you or your buyers.
This article is not intended to discourage you from the idea of using international suppliers to drop-ship items; however, it can inform you of the things you should be aware of before you begin trading internationally.
Dropshipping companies located in regions in the Far East can offer greater opportunities for profit, provided you know how to navigate the potential risks. If you stay with the dropship businesses near you that offer high-quality products with high-profit potential and with no extra trouble, you’ll be able to create an effective dropshipping business.
If you’re exporting to the United States and you want to stay clear of all the hassles, consider an online dropship provider.