Drop shipping is a model where retailers don’t keep an inventory of the stock that they are selling. Instead, upon getting the order, they are sent to the supplier for fulfillment, and the seller receives the difference between the sale price and wholesale price.
Drop shipping attracts many retailers as they find it convenient and cost-effective. In recent years, it’s also gaining popularity. In 2016, 23% of online sales were fulfilled via drop shipping.
With the eCommerce industry growing rapidly, with a 25.7% surge in eCommerce sales in 2020, drop shipping is predicted to grow along with it. China, due to its size and role in eCommerce, is leading the eCommerce global sales and is projected to have a majority market share in terms of sales in 2021.
China is not just leading in sales; however, they are also emerging as a top drop shipping supplier. Here are four pros of working with China-based drop shipping:
1. Competitive Pricing
China has, for years now, invested heavily in machinery to automate processes and enable effective mass production. With established logistics structures and low labor costs, China offers comparatively low prices and is a great option for drop shipping if you are looking for affordable options.
2. Guaranteed Quality
Due to the industrial and technological revolution in China, China has state-of-the-art facilities and focuses on delivering top quality in terms of shipping.
Moreover, the Chinese government has recently introduced reforms in foreign policy which make it easier for investors and foreign businesses to do business in China.
All of these attempts make the drop shipping environment in China profitable and attractive for businesses.
3. Strategic Location
China has land connections with 14 countries and is in close contact with profitable markets in both, Europe and Asia. Moreover, they have an advanced and sound logistic system of land, sea, and air and provide immediate shipping anywhere in the world.
4. Diverse Product Portfolio
In a booming market such as China, you have access to many wholesalers, manufacturers, and other retailers who can provide you with a wide range of products. They can also take care of the entire shipping process so that you can focus on other aspects of your business.
China-Based Drop shipping Agent
We are a sourcing company in China that offers a wide range of services to fulfill your business’s shipping wants and needs.
For more information and to fulfill your drop shipping needs, contact us today.