Dropshipping refers to an intermediary business. As a rule, it is aimed at creating conditions for the activity on the delivery of goods. The entrepreneur in this case acts as an intermediary between suppliers and customers. However, there is no need to invest equity. Also dropshipping results in a profit.
This article details the organization of dropshipping from China.
Dropshipping features with China
This method of trading is popular with both novice businessmen and large entrepreneurs. Certainly, to date, the main advantages of dropshipping include:
- customers and suppliers are responsible for the costs of sending and receiving products;
- the ability to independently determine the value of products;
- income generation (profit is the difference between the price of goods and wholesale cost);
- no need to invest equity.
Two versions of goods delivery:
- Prepaid (minimal risk). In this case, the client transfers material assets for the purchased product to the business owner. After that, the entrepreneur transfers the necessary funds to the supplier. Also dispatch of goods is the responsibility of the supplier.
- Payment to the supplier (high risk). After the transaction the business owner transfers the buyer’s data to the supplier. After this, the funds are transferred from the client to the supplier. The entrepreneur makes profit from the supplier. In this case, the dropshipper is very risky. It is recommended that you contact trusted suppliers, otherwise an unpleasant situation may arise.
Dropshipping with China
Also in most cases, manufacturers of Chinese products give preference to customers who purchase products in bulk. The organization of activities is carried out in the following order:
- creation of a point of sale (using the Internet, social networks and other resources);
- the choice of the principle of organization of work for suppliers;
- selection of the assortment of goods, also their quantity and volume of orders;
- search and verification of suppliers;
- thorough study of products, job reviews, terms of cooperation, cost of goods;
- organization of work with suppliers, conclusion of mutually beneficial cooperation agreements;
- placement of products in retail outlets, also providing the necessary information (cost, photo, detailed description of the goods);
- product promotion through advertising;
- making contact with customers;
- receiving funds from customers when purchasing products;
- transfer the required amount to suppliers. You should also send
- customer contact information. They will be needed when sending goods. Operations for
- delivery must be handled by the supplier.
This article details the idea of dropshipping. Also it involves the search for profitable offers for the sale of goods from China. Firstly buyers are guided by experience and recommendations. Because positive feedback and experience is a guarantee of quality. In order to organize a successful business, it is necessary to pay special attention to the choice of suppliers of products. Also the experience and reliability of the supplier is the key to a profitable business. But it is very important to organize a convenient supply chain. It will allow regular sales of goods in accordance with all requirements.