chinese dropshippers, who is legit?

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hey guys, so i'm about to start my first dropshipping adventure, got my site almost fully sorted and I just need a supplier to populate it with! i'm a sole trader and not vat registered, no business address so i've not yet got a hold of any trade account with any good UK suppliers, so i'm turning to the chinese to make some headway.

so far i've scouted a few sites, removed a few that had outright bad reviews, then there are some with mixed or little feedback which i will list below:
Wholesale Products from Chinese Wholesaler - China Wholesale
Wholesale Online Shopping for Video Game ,Electronics, Car Kits, Watch - Each wish one Mall
Wholesale Electronics - Dropship from China
Best China Electronics Products Online Shopping Store - Free Shipping & High Quality
Wholesale - Buy China Wholesale Products from Chinese Wholesalers on DHgate.com

anyone been dropshipping with any of these guys or recommend me something better? they will be my sole supplier so it will be kinda essential for them to not mess around with delivery and products, hard to know when they are all overseas. i'm also not sure if their express fedex,dhl etc deliveries will live up to the claimed 3-7 day delivery.

i've also tried checking alibaba and aliexpress and they seem to have dropshippers, but no clue how to see who is good

many thanks fellow dropshippers, help me and i will do my best to return the favor
#chinese #dropshippers #legit
  • Profile picture of the author Importexport
    Hi qashkai,

    You are entering choppy waters. I am not a dropship reseller and in fact I teach small scale importing direct from manufacturers if you want to make worthwhile profits.

    I do know about safe sourcing and I know that I would avoid most of the places you are looking at. Here's my take on the places you have referred to:
    • One illegally declares all dropship shipments as gifts.
    • One offers a whopping 11.5% discount. How can you make a profit after selling costs?
    • Two have received nasty reviews. You need to check again.
    • All compete directly with you, so how can you beat them?
    I suggest you do some research on WF on the subject of sourcing sites. Look for Alibaba, AliExpress, DHGate, MadeInChina.com and others.

    Don't forget that you will be totally reliant for your business on people you do not know delivering the right product at the right time, and to back them up.

    Also think about your customers' reactions when they find they have to pay Duty and VAT. Not all will have to but the UK has one of the lowest duty free thresholds in the Western world.

    Sorry to be a party pooper, but you asked for help and I am trying to help you avoid problems, as well as suggesting you consider more profitable alternatives.
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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 qashkai
      Originally Posted by Importexport View Post

      Hi qashkai,

      You are entering choppy waters. I am not a dropship reseller and in fact I teach small scale importing direct from manufacturers if you want to make worthwhile profits.

      I do know about safe sourcing and I know that I would avoid most of the places you are looking at. Here's my take on the places you have referred to:
      • One illegally declares all dropship shipments as gifts.
      • One offers a whopping 11.5% discount. How can you make a profit after selling costs?
      • Two have received nasty reviews. You need to check again.
      • All compete directly with you, so how can you beat them?
      I suggest you do some research on WF on the subject of sourcing sites. Look for Alibaba, AliExpress, DHGate, MadeInChina.com and others.

      Don't forget that you will be totally reliant for your business on people you do not know delivering the right product at the right time, and to back them up.

      Also think about your customers' reactions when they find they have to pay Duty and VAT. Not all will have to but the UK has one of the lowest duty free thresholds in the Western world.

      Sorry to be a party pooper, but you asked for help and I am trying to help you avoid problems, as well as suggesting you consider more profitable alternatives.
      i know what you say is true, but this is the only suppliers i could find with prices low enough to have decent margins.

      it doesn't seem to me that there is anyone in the UK with the same low price chinese android tablets, or if there is i simply cant find them..i have no contacts, starting from nothing, and yes i have been looking for a while.
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      • Profile picture of the author Importexport
        Originally Posted by qashkai View Post

        i know what you say is true, but this is the only suppliers i could find with prices low enough to have decent margins.

        it doesn't seem to me that there is anyone in the UK with the same low price chinese android tablets, or if there is i simply cant find them..i have no contacts, starting from nothing, and yes i have been looking for a while.
        I know that dropshipping in the UK presents problems. There are a few dropship suppliers there but I have seen some bad reviews on the bigger ones.

        Be alert to the fact that if a product looks like a brand name item, or uses the same patented technology it will be regarded by HMRC as a knockoff and will be seized.

        If you search this forum you will find numerous adverse posts regarding dropshipping from China. I have never used wholesalers or dropship suppliers, but even if I did I would never consider an overseas one.

        Chinese dropship suppliers have swamped the UK eBay market with extremely low priced items, and they benefit from government subsidized cheap postage, so competing with your own suppliers will be an uphill battle. Many Chinese businesses are on eBay UK pretending to be based in the UK.

        Sorry I can't help you more, but I can only recommend buying small quantities direct from the manufacturers overseas. I would also avoid electronics.
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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 misshang
    Have you tried alibaba?
    there is an english version, and most of them do drop shipping upon request.

    Manufacturers, Suppliers, Exporters & Importers from the world's largest online B2B marketplace-Alibaba.com
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    • Profile picture of the author Importexport
      Originally Posted by misshang View Post

      Have you tried alibaba?
      there is an english version, and most of them do drop shipping upon request.

      Manufacturers, Suppliers, Exporters & Importers from the world's largest online B2B marketplace-Alibaba.com
      Before you try them you might like to type Alibaba into the search box at Ripoff Report | Scams, reviews, complaints, lawsuits and frauds. File a report, post your review. Consumers educating consumers.
      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 Danny10
        Originally Posted by Importexport View Post

        Alibaba is not a scam site. They are a platform that brings together manufacturers and people/companies that want to source products. Having said that, there are a lot of scammers, so you need to be able to filter out the honest companies from the scammers.

        I'm not going to go into it here but there is tons of information you can Google about "How to source safely from China".
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        • Profile picture of the author Importexport
          Originally Posted by Danny10 View Post

          Alibaba is not a scam site. They are a platform that brings together manufacturers and people/companies that want to source products. Having said that, there are a lot of scammers, so you need to be able to filter out the honest companies from the scammers.

          I'm not going to go into it here but there is tons of information you can Google about "How to source safely from China".
          You are absolutely right Danny, Alibaba is not a scam site. The problem is they do not do anywhere near enough to keep scammers and unreliable or unethical suppliers off their platform. This is why people who have had a bad experience with suppliers found on Alibaba or other sourcing platforms blame the sourcing platform..

          They all make much of "verifying" suppliers. The verification process is so basic that all it does is establish that the business really exists. Gold or Premium suppliers are no better than ordinary verified suppliers, it is just that they have bought that Gold or Premium status. The same applies to almost all the popular sourcing platforms. They do almost no checking of their manufacturing capabilities, their reputation, their reliability etc. etc. unless the suppliers pay more money. Sometimes that extra payment gets them a "Credit Check". All that does is tell you the paid up capital of the business.

          Good luck to anyone who heeds your advice about Googling how to source safely from China. In the first 3 pages of search results, apart from a few adverts from businesses wanting to sell you their sourcing services, there is one entry that might be useful. Much of what I see offered for sale in the China sourcing field is downright wrong or very risky.

          I continually see misinformation posted on WF about sourcing suppliers from China. I know it is misinformation because I first started visiting China as an exporter in 1978, and then as an importer in 1987. I have lost count of the number of visits, and I have long-established friendships there, not just good business relationships.

          I know how Chinese business people think, and I know how business in China operates. Just 4 examples:
          • Yes can mean maybe, probably, perhaps, no, or sometimes it means yes. This is not dishonesty. Chinese culture does not like to say no. They feel that it is impolite to refuse a request or to say that they cannot or will not do something you want them to do.
          • They want to impress you. In Chinese culture, wealth is considered not only a sign of success, but also of diligence, hard work, and intelligence as well as being an indicator that they must be good to do business with. This is why they will sometimes take visitors to fabulously expensive restaurants. It explains why many business people carry two cellphones and make sure that you know it.
          • They don't like to haggle. This misconception stems from tourist visits to Hong Kong, Singapore etc, where shopkeepers haggle simply because it is expected of them and the tourists enjoy it. Try haggling in a serious business transaction and you will lose their respect.
          • They love family life. If you want to make a huge impression when visiting China, take one of your children with you, age 8 up. They will open doors that would otherwise stay firmly shut.
          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 qashkai
            so i've tried taking your advice and googling for the manufacturers of these tablets, most contact details don't work or their mailbox is full.

            I got one reply and it seems really fishy to me, the person claims to be the CEO??? replying to a support query seems pretty odd. This is for 'Maixin' who sell 'MaPan' brand tabs, I see they are on Alibaba too but that doesn't mean anything.

            In my email I said who I was, what I do, and if I could get some details about a product and just enquiry about test order.

            Isn't Western Union also definitively associated with scammers? or is it the standard payment method for the chinese manufacturers? I'd never feel safe using it

            Email:

            Dear,Mr. ,This is MAPAN tablet pc price list

            thanks for your email.

            you can tell me your order quantity?
            and tell me which model MaPan tablet pc do you want ?
            the MX710A Cheap is very old model , you can order some new model in our price list .

            i have send the Newest price list to you in this email .you can check it now .all price excluding shipping fee
            After you decide your order quantity ,you can tell me ,then we can tell you shipping fee and total payment .
            we accept the WesternUnion payment way and the Bank transfer payment way .

            This is jacky lin from Maixin Group(China) Co.,Ltd . i am the CEO of MAIXIN GROUP . Happy to cooperate with you together.
            We're professional manufacturer and exporter of tablet PC. MaPan is our tradeMark.we have many different good quality tablet PC ,

            i sure the Mapan Tablet PC is the best china Tablet pc , why ? you can visit: www.maixin-china.com/why-buy-from-us.asp
            For more product infomation ,you could view our offcial website: www.maixin-china.com & www.maixin.co .
            Video website: www.Maxin-china.net/video
            Bigger MaPan order from the world : http://www.maixin-china.com/order.asp
            MaPan Tablet PC Repair Factory video : http://www.maixin-china.net/Factory
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            • Profile picture of the author Danny10
              Originally Posted by qashkai View Post

              so i've tried taking your advice and googling for the manufacturers of these tablets, most contact details don't work or their mailbox is full.

              I got one reply and it seems really fishy to me, the person claims to be the CEO??? replying to a support query seems pretty odd. This is for 'Maixin' who sell 'MaPan' brand tabs, I see they are on Alibaba too but that doesn't mean anything.

              In my email I said who I was, what I do, and if I could get some details about a product and just enquiry about test order.

              Isn't Western Union also definitively associated with scammers? or is it the standard payment method for the chinese manufacturers? I'd never feel safe using it

              Email:

              Dear,Mr. ,This is MAPAN tablet pc price list

              thanks for your email.

              you can tell me your order quantity?
              and tell me which model MaPan tablet pc do you want ?
              the MX710A Cheap is very old model , you can order some new model in our price list .

              i have send the Newest price list to you in this email .you can check it now .all price excluding shipping fee
              After you decide your order quantity ,you can tell me ,then we can tell you shipping fee and total payment .
              we accept the WesternUnion payment way and the Bank transfer payment way .

              This is jacky lin from Maixin Group(China) Co.,Ltd . i am the CEO of MAIXIN GROUP . Happy to cooperate with you together.
              We're professional manufacturer and exporter of tablet PC. MaPan is our tradeMark.we have many different good quality tablet PC ,

              i sure the Mapan Tablet PC is the best china Tablet pc , why ? you can visit: www.maixin-china.com/why-buy-from-us.asp
              For more product infomation ,you could view our offcial website: www.maixin-china.com & www.maixin.co .
              Video website: www.Maxin-china.net/video
              Bigger MaPan order from the world : http://www.maixin-china.com/order.asp
              MaPan Tablet PC Repair Factory video : http://www.maixin-china.net/Factory
              This one seems to be a scam as they are asking for payment through Western Union and the links you provided doesn't even work.
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              • Profile picture of the author qashkai
                Originally Posted by Danny10 View Post

                This one seems to be a scam as they are asking for payment through Western Union and the links you provided doesn't even work.
                Wow, the website was literally there a day ago. Which is the sort of trusted and standard payment method a real supplier would use?
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          • Profile picture of the author Danny10
            Originally Posted by Importexport View Post

            You are absolutely right Danny, Alibaba is not a scam site. The problem is they do not do anywhere near enough to keep scammers and unreliable or unethical suppliers off their platform. This is why people who have had a bad experience with suppliers found on Alibaba or other sourcing platforms blame the sourcing platform..

            They all make much of "verifying" suppliers. The verification process is so basic that all it does is establish that the business really exists. Gold or Premium suppliers are no better than ordinary verified suppliers, it is just that they have bought that Gold or Premium status. The same applies to almost all the popular sourcing platforms. They do almost no checking of their manufacturing capabilities, their reputation, their reliability etc. etc. unless the suppliers pay more money. Sometimes that extra payment gets them a "Credit Check". All that does is tell you the paid up capital of the business.

            Good luck to anyone who heeds your advice about Googling how to source safely from China. In the first 3 pages of search results, apart from a few adverts from businesses wanting to sell you their sourcing services, there is one entry that might be useful. Much of what I see offered for sale in the China sourcing field is downright wrong or very risky.

            I continually see misinformation posted on WF about sourcing suppliers from China. I know it is misinformation because I first started visiting China as an exporter in 1978, and then as an importer in 1987. I have lost count of the number of visits, and I have long-established friendships there, not just good business relationships.

            I know how Chinese business people think, and I know how business in China operates. Just 4 examples:
            • Yes can mean maybe, probably, perhaps, no, or sometimes it means yes. This is not dishonesty. Chinese culture does not like to say no. They feel that it is impolite to refuse a request or to say that they cannot or will not do something you want them to do.
            • They want to impress you. In Chinese culture, wealth is considered not only a sign of success, but also of diligence, hard work, and intelligence as well as being an indicator that they must be good to do business with. This is why they will sometimes take visitors to fabulously expensive restaurants. It explains why many business people carry two cellphones and make sure that you know it.
            • They don't like to haggle. This misconception stems from tourist visits to Hong Kong, Singapore etc, where shopkeepers haggle simply because it is expected of them and the tourists enjoy it. Try haggling in a serious business transaction and you will lose their respect.
            • They love family life. If you want to make a huge impression when visiting China, take one of your children with you, age 8 up. They will open doors that would otherwise stay firmly shut.
            I'm not saying it's not risky, on the contrary it is very high risk but there are honest sellers on Alibaba. People have had great success purchasing from sellers on Alibaba, although once they find a good supplier they keep it secret.

            Things to look out for would be not to pay anyone through Western Union. Use letter of credit instead.
            If paying to a bank account, make sure the account name is under a company name and not a persons name. Do not believe them when they give you some story about how the accountants away or whatever and they have to take the payment in their own name.
            Check their address details on Google maps to see if they are located at the address they have supplied to Alibaba with street view etc etc.
            Have a trustworthy third party based in China visit the premises to see they actually exist and also to oversee production and do an inspection and report of quality of the finished product before shipment.

            In my opinion, the best way is to learn the culture of the Chinese people. Then find companies you may be interested in through these platforms and go to China personally to inspect their facilities and build relationships with suppliers you are interested in.
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            • Profile picture of the author Importexport
              Originally Posted by Danny10 View Post

              I'm not saying it's not risky, on the contrary it is very high risk but there are honest sellers on Alibaba. People have had great success purchasing from sellers on Alibaba, although once they find a good supplier they keep it secret.

              Things to look out for would be not to pay anyone through Western Union. Use letter of credit instead.
              If paying to a bank account, make sure the account name is under a company name and not a persons name. Do not believe them when they give you some story about how the accountants away or whatever and they have to take the payment in their own name.
              Check their address details on Google maps to see if they are located at the address they have supplied to Alibaba with street view etc etc.
              Have a trustworthy third party based in China visit the premises to see they actually exist and also to oversee production and do an inspection and report of quality of the finished product before shipment.

              In my opinion, the best way is to learn the culture of the Chinese people. Then find companies you may be interested in through these platforms and go to China personally to inspect their facilities and build relationships with suppliers you are interested in.
              If you are happy buying lottery tickets to make your fortune then the approach you recommend is fine.

              There are much easier and much lower cost ways to avoid those risks.
              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 qashkai
                Originally Posted by Importexport View Post

                If you are happy buying lottery tickets to make your fortune then the approach you recommend is fine.

                There are much easier and much lower cost ways to avoid those risks.
                obviously you are quite knowledgeable on the subject, and nobody is going to go around giving their hard earned knowledge for free but, even a hint into the right direction would be so useful!
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                • Profile picture of the author Importexport
                  Originally Posted by qashkai View Post

                  obviously you are quite knowledgeable on the subject, and nobody is going to go around giving their hard earned knowledge for free but, even a hint into the right direction would be so useful!
                  Hi qashkai,

                  True I don't give away 22 years experience for nothing, and I think $97 is merely a nominal sum when it can save people losing thousands, but I do publish a lot of information for free on WF, and there is some more below.

                  I know that most people who read my posts will never buy my book, so I do try anyway to guide them on WF sufficiently to prevent them making some serious blunders.

                  I have been asked why I don't just name the sites that I consider to be very safe to use. Some have asked: “Is it just so people will buy your book?” Well – yes and no. Of course I want people to buy my book, but I also don’t want to be responsible for people losing heaps of money, and that can happen if finding suppliers is seen as the most important part of online marketing of physical products.

                  Also, there is a lot more to the sourcing and importing process than just searching a site for suppliers. I see too many people on forums like this who jump in at the deep end without doing adequate research. If I just gave out the names of a couple of safe B2B sites, some warriors, maybe even a lot of them, would go there, be delighted with the trustworthy suppliers they find, and start placing orders.

                  It is not uncommon for people to go off half cocked knowing almost nothing about what is involved in buying overseas. In effect they treat the overseas buying process as though they were buying from the corner store. Some even turn to me for help after they have ordered goods without knowing what to do about actually getting the goods delivered to them.

                  I have on my files tales of woe that include one who ordered a large shipment of bulky goods. Great price! The problem was, this person discovered that freight was going to cost several time the value of the goods and by the time she came to me for help she had already paid for the goods. I find it hard to believe how careless some people can be with their own money.

                  If someone intends going it alone without obtaining some guidance, they should at least think carefully about the project from start to finish. Here is a very brief outline. Intending importers should at least complete the first two of the following steps before even starting to source products.

                  1. Market research. What to sell, how to sell it, are you sure you will be able to sell it, and what prices can you confidently expect to sell it for. That confidence must be based on thorough research, not just checking sold prices on eBay.
                  2. Determine what maximum landed cost is affordable in order to be competitive, making sure you take into account all selling costs.
                  3. Search for suppliers using a safe sourcing site. Don't just go to any site casually suggested on forums, because on some of them everything is not what it appears.
                  4. Avoid suppliers falsely claiming to be manufacturers. Some popular B2B portals have big lists of suppliers claiming to be manufacturers, but they are not.
                  5. Avoid middle men falsely claiming to be wholesalers.
                  6. Conduct due diligence on the chosen suppliers.
                  7. Get quotes. Don’t forget freight.
                  8. Negotiate payment terms. Beware of W.U., and Telegraphic Transfers.
                  9. Ensure that all costs to your door are covered and that you have them in writing.
                  10. Obtain sample/s. Beware of freight ripoffs in this part.
                  11. If satisfied, place a small order crossing every t and dotting every i.
                  12. Pay deposit.
                  13. Pay balance as negotiated, preferably after the goods have landed.
                  14. Check the goods.
                  15. If all is well to this point, you are in business. You can do your test marketing and be ready to place another order.

                  Some may think I have set out everything they need to know, but what I have written is not exhaustive because it takes me 83 pages to set it all out in detail for those new to importing. I hope this helps, but I also hope it makes readers think twice about going it alone.

                  Overseas buying requires special care and is nothing like buying locally.
                  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 mediamarket
    Tip: never buying any brand products from china to resell, just stick to non brands
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    • Profile picture of the author Danny10
      Originally Posted by mediamarket View Post

      Tip: never buying any brand products from china to resell, just stick to non brands
      This is a really important point. It seems that most brand name items are fake or don't have overseas warranty. Stick to non brand or OEM etc.
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    • Profile picture of the author Dennisknows
      Wow that was a good article... Really good. Learned a lot and found some good looking suppliers.

      Thanks for sharing
      Signature
      "May the optimism of your tomorrow fuel your drive for today"
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      • Profile picture of the author TheGreatDress
        I would love some info on Chinese manufacturers for baby clothing, I have some great designs. And this article has clear up some of my concerns, a lot to feed in to getting started.
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        • Profile picture of the author Importexport
          Originally Posted by TheGreatDress View Post

          I would love some info on Chinese manufacturers for baby clothing, I have some great designs. And this article has clear up some of my concerns, a lot to feed in to getting started.
          @TheGreatDress, you will see from my post of 08/28 in this thread that I try to be helpful, but I do worry about simply pointing people in the right direction and removing the blindfold.

          Other importing "experts" will do this, suggesting that is is as simple as going to Alibaba or AliExpress, finding suppliers in your product category and voila! ... you are in business as an importer.

          To begin with, I never recommend Alibaba without very serious reservations, and I would never recommend AliExpress.

          Does the idea of dealing with "Gold Suppliers" sound safe? Few people seem to be aware that Alibaba sell Gold Supplier status for $2,999. They are no more thoroughly checked than any other "verified" supplier. To verify them, Alibaba check to confirm that the business actually exists. Not very reassuring.

          Other big B2B sourcing sites operate in a similar way. One of them charges $5480 in order to convince unsuspecting buyers that they are more reliable and trustworthy than ordinary verified suppliers.

          Recently Alibaba discounted their Gold Supplier fee to $299 in order to increase the number of Gold Suppliers and consequently attract more buyers.

          If the high status suppliers choose to pay more, they are visited and in some cases that may involve confirming that they actually have manufacturing facilities. I have visited China more times than I like to count, and have been in a huge number of factories.

          It is important to understand how factories operate in China. Apart from the very big organizations, most factories operate in multi-story buildings that in many cases are like apartment blocks. I liken them to rabbit warrens. Signposting is minimal, and some factories appear to have no signage at all.

          Under these conditions it is very difficult, even for the locals, to be sure who is operating which factory. This is compounded by the fact that most businesses trade under at least three names and often a lot more than that.

          To be certain that the business actually operates a particular factory, the process requires much time and effort. I only know of one website that does such careful investigation, and it even extends to establishing whether or not the factory complies with international fair trading practices.

          So, should I simply say "Go to such and such website and you will find manufacturers of baby clothing"? If you go to Alibaba you will find a large number who will claim to manufacture baby clothing, and you might be lucky enough to find one that really does. The same applies to most B2B sourcing sites. If you go to AliExpress all I can say is there are many posts on WF that tell sorry tales about suppliers on that site.

          Just a word of caution about having items made to your design. The process is painfully slow. Ensuring that your instructions are understood is not easy. If your designs are good they will be copied, and may be on the market long before you receive your first shipment. Sample costs are usually reasonable, but as you will probably need several consecutive samples before you are satisfied, freight costs can be very high by the time you are ready to place your first order.

          Now just in case people see this post as negative, I must add that I operated an importing business for 22 years before retirement, and I had franchisees in 4 countries. Although there was a large number of orders going back and forth every week, there was only a tiny number of problems and they were readily resolved. A big percentage of the orders were for products to our design.

          My trading experience with China has been very rewarding and I can recommend it to anyone who is willing to prepare thoroughly and not just rely on forum posts.
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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 kenslog
    Almost electronic product...Yeh, China is the only choice
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  • Profile picture of the author kite6w
    I have done dropshipping and my advice to you is that if you want to start dropship business. It is best to use US dropshipper first. Finding a "good" US dropshipper is hard enough, but finding a foreign dropshipper is even harder and there are many "more" issues, fraud, etc...associated with foreign dropshippers (I am not saying there is none with US dropshipper). Just learn first before spending a dime IMO.
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    • Profile picture of the author KatPD
      Over the years I have used Aliexpress successfully to buy one off items for personal use. About half the time the item looks different to the images or very different to what I was expecting but as it is for personal use it didnt worry me but to put that my reputation and faith in a few suppliers for my whole business. Something I would spend a lot of time doing due diligence and sampling.

      My 2 cents worth on electronics - sure all the major brands have manufacturing plants over there but they is high on site quality control. I bought some no name brand electronics as samples and they broke within a few uses. Maybe I'm unlucky but don't like the track record. Tread carefully.
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  • Profile picture of the author jtiger
    Reading through this thread sounds like sourcing from China is more hassle than it's worth--yet, in China, everything is produced and at great prices.

    As China has matured, there have emerged legitimate and reliable manufacturers. The biggest hurdle, in my experience with China, is the cross culture communication and understanding between businesses in China and the foreign market.

    (I lived in China, originally from US, from 1999 to 2001; and I just moved back a week ago to see what opportunities are here to source products for myself, it's not necessary to go that extreme but it helps)

    With that said, there are many manufacturers moving directly online (they understand the opportunity), margins for sourcing agents have been plummeting and there is a trend of direct from factory-to-foreign vendor selling.

    For instance, there are companies (some may call them drop ship sources) that are providing service for manufacturers to reach foreign markets directly, one example is JMWant JMWant | Global Drop Ship, eCommerce Product Sourcing, and China Manufacturing Solution they are the online gateway to products from over 1000 factories in China. It's just in the past year that JMWant has moved toward services directed at the overseas business market, their Chinese website, which has been successful for sometime is: Jiemai

    [on the flip side of the above there are major moves by foreign companies to sell online into the Chinese market, the best example being Export Now China E-commerce Solutions, Selling on TMall made easy ]

    Additionally, if you want something specific, JMWant will do their best to find it for you. The interesting thing though about their business model is, their parent company is 4PX, which is a shipping and logistic company, so JMWant makes their money on shipping not on being a sourcing middle man or otherwise.

    Global commerce changes rapidly and JMWant is on the cutting edge of the china wholesale product sourcing because of their business model. They are also confident enough to provide new sellers a sample item for free shipping included (to anywhere in the world) so you can get a feel for their service. That is a rare offer even from Western fulfillment companies like Doba.

    On the other hand, the real big wins in product sourcing for an online store come when you produce your own product. It's not as complicated as it once was and there are classes, like the one linked below that walk you through the most important parts of the process.

    Manufacturing: Design Source and Manufacture
    Manufacturing: Design, Source and Manufacture Your Product Idea - Skillshare

    To conclude, there are more legitimate options than ever to dropship products globally, communication costs have dropped to zero, manufacturers are more sophisticated and having third party quality control is essential. Do your homework, talk directly with your supplier and do a few test runs, then--if you've found a quality item with market demand--you can make good to great money if you've got the chops to market like madman and deliver the over the top customer service to your buyers.
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    • Profile picture of the author Importexport
      Yes, jtiger, sourcing in China can be a huge hassle, but only for those who don't know what they are doing. Most seem to just read a few posts on forums and rush in to source supplies on one of the B2B sites suggested.

      That is bad enough when looking for products to import for inventory, but can be disastrous if dropshipping is the business model chosen. JMWant may be able to provide low cost shipping, but many Chinese dropship suppliers offer free shipping.

      Like most Chinese dropship suppliers they still only offer wholesale prices AND they compete with their own customers just like most of their Chinese competitors do.

      Dropshipping is highly popular as a business model, but in my opinion that is only because the average reseller does not know that they can buy small quantities direct from the manufacturer at genuine ex-factory prices. By buying a small inventory they can take control of their own business and not be at the mercy of a dropship supplier.

      They can also enjoy massive profit margins by buying where the dropship wholesalers buy instead of slaving away trying to make money at the pathetic margins dropship suppliers allow them.

      I quite agree with jtiger when he says "the real big wins in product sourcing for an online store come when you produce your own product. " It has certainly become easier, but the warning I gave in my post of 9/26 should not be forgotten. A safer alternative can be private labeling. This can be arranged for surprisingly small quantities.

      I know because in the course of running my former importing business I and my franchisees had hundreds of orders private labeled and sometimes bar-coded and packed in retail point of sale display packaging.

      It all comes down to finding good manufacturers to work with. Unfortunately most people don't find them because they look on the popular sourcing sites where the overwhelming majority of suppliers are wholesalers or traders pretending to be manufacturers.

      I have launched hundreds of small entrepreneurs into the high profit world of direct importing and none of them will ever again contemplate dropshipping.
      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 jtiger
    Hi Importexport, I'm 100% in agreement with what you've said.

    Especially the part about the manufacturers in China competing with their customers on platforms like eBay and Amazon.

    I've experienced this, though I didn't know it at the time, being here in China now, I've visited a few companies and seen them having full time employees listing items on eBay.

    Usually there is a small window of opportunity, if you check the suppliers frequently, where you are the sole seller of a product. It can be a hassle but there are big wins to be had--even though the time frames are shorter. Though it's a thankless task to keep up if you don't have systems in place, and you're always running to stay ahead of the wave of other sellers before the price drops from competitors.

    I haven't done private labeling. But, like you said, as I'm finding out here on the ground. I wouldn't say all drop shipping has "pathetic margins" but most and it seems to be trending into super pathetic margins.

    "I have launched hundreds of small entrepreneurs into the high profit world of direct importing and none of them will ever again contemplate drop shipping."--@Importexport, how did these entrepreneurs do fulfillment, did they get their own warehouses or have a bunch of product in their garage. Thanks.
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    • Profile picture of the author Importexport
      Originally Posted by jtiger View Post

      Hi Importexport, I'm 100% in agreement with what you've said.

      Especially the part about the manufacturers in China competing with their customers on platforms like eBay and Amazon.

      I've experienced this, though I didn't know it at the time, being here in China now, I've visited a few companies and seen them having full time employees listing items on eBay.

      Usually there is a small window of opportunity, if you check the suppliers frequently, where you are the sole seller of a product. It can be a hassle but there are big wins to be had--even though the time frames are shorter. Though it's a thankless task to keep up if you don't have systems in place, and you're always running to stay ahead of the wave of other sellers before the price drops from competitors.

      I haven't done private labeling. But, like you said, as I'm finding out here on the ground. I wouldn't say all drop shipping has "pathetic margins" but most and it seems to be trending into super pathetic margins.

      "I have launched hundreds of small entrepreneurs into the high profit world of direct importing and none of them will ever again contemplate drop shipping."--@Importexport, how did these entrepreneurs do fulfillment, did they get their own warehouses or have a bunch of product in their garage. Thanks.
      Hi jtiger,

      The situation concerning manufacturers in China competing with their customers on platforms like eBay and Amazon is worse than a lot of people realize.

      Many eBay sellers are Chinese dropshippers in disguise. They set up accounts in the target countries, most notably the US and UK and show that the items will be shipped from some address in that country. With the cheap rates from China, they ship orders daily in bulk to their front man or woman who then opens the bulk pack and ships to the local customer. The smaller packages come ready addressed and invoiced, so the local front person does not even have to pack - they just ship.

      You only have to read the stories of frustration and shattered dreams written by disappointed dropship resellers on several forums to know how true it is that it seems to be trending into super pathetic margins.

      You asked about how these people"I have launched hundreds of small entrepreneurs into the high profit world of direct importing and none of them will ever again contemplate drop shipping." do their fulfillment. The answer is that many use FBA, a few use small fulfillment services and quite a lot store their inventory either at home or in a self storage unit.

      Depending on which country you live in, the postal service will in some places such as the US collect daily from your door, in other places such as the UK you call them to come and pick up. If it is convenient you can go to a post office, but that can be tedious.

      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 jtiger
        Thank for the info Importexport, I'll be picking up your book shortly
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        • Profile picture of the author Importexport
          Originally Posted by jtiger View Post

          Thank for the info Importexport, I'll be picking up your book shortly
          You're welcome jtiger.

          Maybe when you read the book you might decide to do your sourcing from home first, then go to China to finalize deals.

          I always recommend visiting suppliers if at all possible, but most people don't have the money or the time to do that. That is why safe sourcing is so important. Most of the people who buy my book need to be confident that they won't make costly mistakes when buying overseas. It is very different to buying locally.

          Even for people who speak Chinese there are many difficulties and having visited China countless times I have been able to prepare buyers so they know what to expect if they do visit.

          For example few westerners know that huge numbers of Chinese factories are like multistory apartment blocks, sometimes with many different businesses in the one building.

          They don't know about Chinese social customs, and they think "Yes" means yes. As you no doubt know it can mean: perhaps, maybe, I think so, we'll try, no, and sometimes it even means yes. What they must understand is that this is due to the social custom that makes Chinese people to always want to please, and saying no, often does not please.

          I have enjoyed dealing with Chinese people over the many years that I operated my importing business. The horror stories that we read about ripoffs are due primarily to ignorance and people rushing in blinded by the dollar signs that make them think they are going to make a killing.

          My experiences have only been good and although I am retired I still have good friends in China, and we exchange greetings at appropriate times. Some of them also keep me up to date on the business scene. This is how I know that certain types of manufacturing are gradually moving away from China - but that is another story.
          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 honestcool
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            • Profile picture of the author Importexport
              That affiliate link leads to Salehoo where you won't find any Chinese dropshippers.

              Dropshipping is the poor man's way to try to make a living. Dropshipping is highly popular as a business model, but in my opinion that is only because the average reseller does not know that they can buy small quantities direct from the manufacturer at genuine ex-factory prices. By buying a small inventory they can take control of their own business and not be at the mercy of a dropship supplier.

              They can also enjoy massive profit margins by buying where the dropship wholesalers buy instead of slaving away trying to make money at the pathetic margins dropship suppliers allow them.

              When you learn how to buy small quantities direct from genuine manufacturers, you will be amazed at the margins. Here is a cut an paste of what one of my book users wrote in an email: "Ok. From extremely skeptical to successful completion. Credit given where credit is due. I followed the book instructions you laid out. Took my time to double check everything and was able to successfully import an order from China. Not only that but it was also a "sample order" for less than 300.00. A 300% mark up has allowed to get initial investment back and I have 70% of my inventory left. Stop promoting your book. Your encouraging competition for me Many thanks." Email on file for FTC inspection if required.
              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 zennesis
    old thread, new question (importexport).

    I have a website store setup and ready for products.

    I'm from the US, but living in Malaysia now. Malaysia has some of the strictest customs, and highest import taxes in Asia. They even threaten to fine you for ordering vitamins or supplements outside malaysia (even tiny orders for personal use). Plus now they have the new 6% GST (goods and services tax), which could apply to me if I try to source products for resale. The most restricting thing, since I am not a citizen, and Malaysia rarely approves PR status, I technically cannot work, or get a business license (or bank account). I can get a long term *visitor* pass visa since I am married to a malaysian, but that only gives me the right to work here (no equal opportunity employment laws here either). I know a university lecturer that has taught at the same uni for 25yrs, and never got approved for a PR.

    That being said, direct sourcing is not a good option for me. Never mind the lack of space to store things, and the risk of a home break in if *unwelcome* people observe a lot of items arriving to my home.

    Sourcing within Malaysia presents its own nightmare. No organized B2B directory or decent web presence by businesses here, 6% gst on everything, lower quality products, and very high shipping costs with long delivery times (took 8 days for a letter that was mailed to us from someone 5 miles-8km away). The weak currency (ringgit) makes shipping international unaffordable.

    My only low risk option is dropship. I have been researching dropship suppliers for a while, and its very unrewarding. I found Tmart, free shipping anywhere in the world, but they cant even provide a data feed for their products, and I am not manually entering and tracking stock status on thousands of items. Too many chances for errors, and no stock situations.

    Dropship is my only viable (and legal) option from Malaysia. My wife works in the public sector, so if I got in trouble for violating visa-work-business laws, she could lose her job. I've had no income for 6 months, I'm budgeted safe for 1-2yrs on my savings.

    I can operate my website (same url with .com .net .org .info), and collect payment in US$, work with my bank back in the US. Technically not working or operating a business in Malaysia.

    My only problem, finding real dropshippers with a decent track record. My friend has succeeded in doing so, but with a sex toy dropshipper, not something I want to do. I dont need 30,000 items, I need reliability, and free global shipping.

    any ideas, any suggestions?
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    • Profile picture of the author Importexport
      Originally Posted by zennesis View Post

      old thread, new question (importexport).

      I have a website store setup and ready for products.

      I'm from the US, but living in Malaysia now. Malaysia has some of the strictest customs, and highest import taxes in Asia.

      That being said, direct sourcing is not a good option for me. Never mind the lack of space to store things, and the risk of a home break in if *unwelcome* people observe a lot of items arriving to my home.

      Sourcing within Malaysia presents its own nightmare. No organized B2B directory or decent web presence by businesses here, 6% gst on everything, lower quality products, and very high shipping costs with long delivery times (took 8 days for a letter that was mailed to us from someone 5 miles-8km away). The weak currency (ringgit) makes shipping international unaffordable.

      My only low risk option is dropship. I have been researching dropship suppliers for a while, and its very unrewarding. I found Tmart, free shipping anywhere in the world, but they cant even provide a data feed for their products, and I am not manually entering and tracking stock status on thousands of items. Too many chances for errors, and no stock situations.

      Dropship is my only viable (and legal) option from Malaysia. My wife works in the public sector, so if I got in trouble for violating visa-work-business laws, she could lose her job. I've had no income for 6 months, I'm budgeted safe for 1-2yrs on my savings.

      any ideas, any suggestions?
      Hi zennesis, I have abbreviated your post in the quote but will answer your questions.

      I know the scene in Malaysia well, having visited a number of times and had an excellent supplier there. The 49% owner was an expat, not even permitted to own 50%.

      I suggest that you could have a viable alternative to dropshipping. With your US connections it will be easier for you than most, although people from many countries are now selling in the US.

      The process is as follows:
      • After doing market research, source products from China or any other country where you can find a genuine manufacturer.
      • Get an Amazon USA seller's account.
      • Ship the goods direct from your supplier to Amazon FBA. (I prefer the idea of shipping to a prepping service.)
      • FBA store for you and pack and ship whenever an order comes in to your seller's account.
      • The money goes into your account.
      I have simplified the process, but this gives you the general idea. You will have seen from my previous posts that I have taught hundreds how to safely source their products, buying quantities as small as they want, and handling the importing process without having to learn the rules and regulations.
      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 chipicao
    Finding a suplier with free global shiping is not easy I guess, hope you'll be able to find one soon, good luck.
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  • Profile picture of the author zennesis
    I do have an amazon seller account, but this would render my website idea useless for the most part. While I could try to source from china, and have amazon stock it, this could consume too much of my budgeted savings for an unknown amount of time. I'm not sure if I am comfortable tying up my finances like that. I could conceivably go 3 yrs with what I have saved, while I promote a no-cost website store, and start up a little quiet laptop repair operation from home.

    I guess with a friend that already has a sex toy website with a dropshipper handling stock & shipping, I was hoping to accomplish the same (with different merch).

    I know a lot of people in malaysia, some good contacts, and I was hoping to have a dropshipper that offers free shipping, so I could promote my website in malaysia, without actually operating a merchandise business in malaysia.

    Amazon is a great company to work with, but there is a LOT of competition that already sources from china (selling to US, UK, etc), and extremely few amazon sellers will ship to malaysia. Given my finances, I would have to find a golden nugget of an item, a single item, and try to sell it. Ebay is flooded with china sourced products already.

    I'm not out to make the biggest profit margin ever, and I'm willing to research dropshippers til my eyes and fingers bleed if need be. I have 4 website urls, all the same name (craftyitems) with com, net, org, info... which I can use for free, and hosting that pays for itself from web work I have done/maintain. I have the IT experience to do all the design and customization, I just need something to sell.

    My friends call me the king of online searches, cuz I find things when they cant. I sourced outdated computer parts for 19yrs, to support a fossil of a point of sale system for a group of pizza restaurants. I know I can find a dropshipper that is decent and reliable, but I like to ask experienced people first.

    I appreciate the effort to steer me toward a better profit, and more genuine business model, but I have to protect my savings, avoid restrictions-limitations brought on by malaysian laws, and use the resources I have available to me.

    I will continue my research, and welcome more suggestions from anyone on this forum.

    If I find any good info, I will gladly come here and share it.
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