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Shipping and handling solution from the US (product origin China)?

by Big0ne
9 replies
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Hey guys!

We are currently selling some products, using classic drop shipping method. We place orders in China and products get shipped to end customers mainly from the US.

There are several problems with the current set up. Long shipping period, quality check, refunds/returns and sometimes bad product handling.

To avoid everything from above, I am wondering if somebody knows any service or a person/team who could handle product shipping directly from the US.

Thank you so much!
#china #handling #origin #product #shipping #solution
  • Profile picture of the author Splatterfox
    Originally Posted by Big0ne View Post

    Hey guys!

    We are currently selling some products, using classic drop shipping method. We place orders in China and products get shipped to end customers mainly from the US.

    There are several problems with the current set up. Long shipping period, quality check, refunds/returns and sometimes bad product handling.

    To avoid everything from above, I am wondering if somebody knows any service or a person/team who could handle product shipping directly from the US.

    Thank you so much!
    Fulfillment by Amazon is a reliable fulfillment service that operates in many countries. For sure there are tons of local alternatives in the US (as well as there are here in Germany). But you are on the right track, if you want a longterm business get away from the AliExpress China dropshipping model as soon as possible
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  • Profile picture of the author Importexport
    Your problem is really that dropshipping from China is one of the most unsuccessful business models. It is being heavily promoted by clever marketers whose income is not in any way dependent in your success.

    Their income depends on large numbers of people buying their program that teaches how to dropship from China. If you search the forum you will find numerous negative posts about dropshipping from China.

    Using a fulfillment service won't work if you persist in the idea of placing orders in China after you receive an order.

    This is how fulfillment works:
    • You place an order with a supplier and ship that order to your fulfillment service in the US.
    • You get orders from your customers.
    • You send the order details to the fulfillment service. This can be automated.
    • The fulfillment service ships the product to your customer.
    That process is very different to dropshipping.

    • You have to buy inventory. (Easy to buy small quantities direct from Chinese manufacturers once you learn how.)
    • You need to have sufficient money to buy inventory.(I have had some of my students start with only $300 and build a profitable business.)
    • You have to arrange shipping to your fulfillment service. (Also a simple procedure for those who know how.)
    The huge profit margins you can get will be more than you have ever dreamed of. I have taught hundreds in countries worldwide how to safely source small quantities and import them the easy way.

    You might like to ask me some questions on my AMA thread: Ask Me Anything About Product Sourcing And Importing For Profit. ― Veteran Importer Here.

    Walter Hay
    Provenchinasourcing.com
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    Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author DWaters
    I strongly suggest you listen to Walter's advice.

    As soon as I heard what your business model was I knew that it is not a process that is not going to work well.
    Personally I am a big believer in using the Amazon FBA model for many reasons. Amazon (in the US) builds many warehouses that are strategically placed all over the country. When a customer goes to their site to purchase (and it is THE site for the majority of online shoppers) the order gets fulfilled from the closest warehouse to them. Customers have very high confidence in Amazon and they end up getting the item very quickly.
    Having the item drop shipped from the other side of the world is pretty much the exact opposite.
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    • Profile picture of the author Importexport
      Originally Posted by DWaters View Post

      I strongly suggest you listen to Walter's advice.

      As soon as I heard what your business model was I knew that it is not a process that is not going to work well.
      Personally I am a big believer in using the Amazon FBA model for many reasons. Amazon (in the US) builds many warehouses that are strategically placed all over the country. When a customer goes to their site to purchase (and it is THE site for the majority of online shoppers) the order gets fulfilled from the closest warehouse to them. Customers have very high confidence in Amazon and they end up getting the item very quickly.
      Having the item drop shipped from the other side of the world is pretty much the exact opposite.
      Amazon is a great selling platform, as is obvious from the information that I found in the link in DWaters' signature, but I would also recommend setting up your own eCommerce store.

      I would do that as soon as possible after starting to sell on Amazon, in case you innocently do something to upset Amazon and get banned as a result.

      I think that from his own experience DWaters could probably advise you how to make sure that doesn't happen.

      Walter Hay
      Provenchinasourcing.com
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      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author dave_hermansen
    Walter Hay is definitely the guy to listen to when it comes to buying light or even large bulk from China and then using a fulfillment service. He did not mention one of the most important reasons for doing it that way instead of dropshipping from China - you get to see and test the quality of products. Once you know the product is good, you have much more control over the shipping of the product and, of course, how much quicker customers get it. And, as Walter says, most of the time the wholesale price is a little better than what you can get from dropshipping (although in some niches, EVERYBODY dropships, so there is no bulk wholesale cost advantage).

    There are disadvantages to the stock and ship/FBA model, though. You cannot sell nearly the variety of products, there is more of a financial investment involved and more risk. Those are the reasons that many people choose dropshipping. If you are going to dropship; though, find a supplier in the country you are shipping to, preferably the brand, itself, or one of their authorized distributors.
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    • Profile picture of the author Importexport
      Originally Posted by dave_hermansen View Post

      Walter Hay is definitely the guy to listen to when it comes to buying light or even large bulk from China and then using a fulfillment service. He did not mention one of the most important reasons for doing it that way instead of dropshipping from China - you get to see and test the quality of products. Once you know the product is good, you have much more control over the shipping of the product and, of course, how much quicker customers get it. And, as Walter says, most of the time the wholesale price is a little better than what you can get from dropshipping (although in some niches, EVERYBODY dropships, so there is no bulk wholesale cost advantage).

      There are disadvantages to the stock and ship/FBA model, though. You cannot sell nearly the variety of products, there is more of a financial investment involved and more risk. Those are the reasons that many people choose dropshipping. If you are going to dropship; though, find a supplier in the country you are shipping to, preferably the brand, itself, or one of their authorized distributors.
      I would agree completely with Dave's suggestion about finding local dropship suppliers. If I wanted to start in dropshipping Dave would be my first contact.

      He seems to me to be one of the few who really understand dropshipping and works on building his own successful dropship businesses, so he is well qualified to teach others how to do it.

      Walter Hay
      Provenchinasourcing.com
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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  • Profile picture of the author Splatterfox
    I have to fully agree with Walter and Dave.

    Besides all the negative aspects already mentioned, you wouldn't believe how many people get their business closed out of nowhere because paypal and big payment processors don't like the dropshipping game. It's not unusual that on one great day you go from 30 sales a day to nothing because suddenly your customers can't pay anymore and you cannot access your earned money.
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    • Profile picture of the author dave_hermansen
      Originally Posted by Splatterfox View Post

      I have to fully agree with Walter and Dave.

      Besides all the negative aspects already mentioned, you wouldn't believe how many people get their business closed out of nowhere because paypal and big payment processors don't like the dropshipping game. It's not unusual that on one great day you go from 30 sales a day to nothing because suddenly your customers can't pay anymore and you cannot access your earned money.
      Frankly, every major website out there dropships - Amazon, WalMart, Wayfair, Home Depot, etc. None of those companies inventory every single thing on their website and they have no problem with payment processors.

      Although not allowing dropshipping is part of every payment processor's agreement that I have read (including PayPal), we have never had a problem with any of our sites being closed down because we are dropshipping - and we've built more than 100 eCommerce dropshipping websites.

      #1 - Don't mention you are dropshipping.

      #2 - Handle customer questions, shipping problems, etc in a courteous and timely manner. Otherwise, if your payment processor has to get involved, you are asking for trouble.
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      • Profile picture of the author Splatterfox
        Originally Posted by dave_hermansen View Post

        Frankly, every major website out there dropships - Amazon, WalMart, Wayfair, Home Depot, etc. None of those companies inventory every single thing on their website and they have no problem with payment processors.

        Although not allowing dropshipping is part of every payment processor's agreement that I have read (including PayPal), we have never had a problem with any of our sites being closed down because we are dropshipping - and we've built more than 100 eCommerce dropshipping websites.

        #1 - Don't mention you are dropshipping.

        #2 - Handle customer questions, shipping problems, etc in a courteous and timely manner. Otherwise, if your payment processor has to get involved, you are asking for trouble.
        I know that dropshipping itself is nothing bad. I've built successful dropship stores as well. I'm just pointing to the pure China dropshipping sites that don't give a damn about having at least ePacket in order to get tracking codes and making it a little more bearable for the customer. And yes, if you don't deal with customer complaints directly you are playing with the devil. Rather offer a refund by yourself than challenging PayPal or whatever to do one for you.
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