There are many friends who are doing foreign business often meet the question from foreigners that if they are offering the dropship service. And many people will ask: What dose dropship mean? Frankly speaking, dropshipping is a method of supply chain management, the retailers do not need to inventory, they just send the customer orders and shipment details to wholesalers. And the wholesalers will send products to the final customers directly. During this process, retailers can earn from the price between wholesale and retail.
In another words, as a retailer, it means you have no need to backlog a large number of inventory, even none inventory. When the order coming, you can transfer this order to suppliers or manufacturers, then ship to the customers who are specified by the retailers.
In the field of e-commerce, dropshipping is widely applied by a large number of e-retailers, some of the biggest shopping website also using dropshipper to supply goods.
Then we also want to ask: how to operate Dropshipping? Basically, there is no different from the general wholesale business. When using dropshipping, the retailers always require you to send 10 items to 10 different customers. In this way, on your side the shipping cost will make a big difference. What’s more, a single goods usually directly send to the final customers.
For foreign trade business, if you use the dropshipping way to deliver goods directly to final customers overseas, then the end customer may face the problem such as tariffs. However, you are no need to deal with this, you only need to deliver goods according to the requirement of the retailers. America does not charge tariffs on small parcels.
The advantages of dropshipping are apparently clear. As a supplier, the other side sometimes require you to provide dropshipping service, maybe you think it is just a piece of cake and ignore it, but always spend many time and money to compete with other suppliers in several big orders. 90% buyers all over the world, especially those small and medium-sized buyers, maybe never find suppliers through Alibaba or Trade Fair. So dropshipping through the provision of the services, you can do business with a large number of small single buyers, and its profits are far beyond the one or two big business.
Thank you for you time and attention. Have a nice day.