Dropshipping was originated from China, CJ bring it out of China to the world. At present, if you are engaging in dropshipping business, it is necessary to understand that China’s Alibaba which has four major websites, including Taobao, 1688, AliExpress, and Alibaba International Station. Now we are going to analyze the advantages of them.
1.Taobao is the largest e-commerce retail platform in Asia. It has 500 million register users and over 1 billion online products. 80,000 packages were sold per minute, accounting 78% of the market share. The platform has strict policies with the sellers. Some of those sellers cooperate with the factory to get inventory, but most of them have no inventory. They import products from 1688 to their own store, when they have orders, they shipped out products through 1688 to complete the orders. The advantage of Taobao is that they have cheaper price and better service than the real stores, but the disadvantage is that the sellers are not the manufacturer, therefore the price is available for consumers but not for wholesales and dropshipping.
2.1688 is the largest and most complete purchase site in China. They have reasonable price and abundant products. Many products can get a lower price from 1688 because it is the bottom price direct from the factory. Through 1688, nearly 500,000 small and medium sellers to provide products for Amazon, Wish, ebay, AliExpress and other platforms.
In China, many companies have created a lot of hot-selling products through the advantages of 1688, creating more value and progress to the company. However, with the fierce competition, the homogenization of products is serious, and profits are getting lower and lower. It has entered a vicious circle, and the development of new products is getting slower and slower. The amount of new products are decreasing. The overall quality is declining, and the products are not under 100% quality inspection. The return of defective products is not guaranteed. The overall price is lower than Taobao and relatively, the corresponding service is also inferior to Taobao.
3.Aliexpress, in some way, it can be regarded as the international Taobao. The sellers in Aliexpress are most come from Taobao and 1688, they have cheaper price but different quality and service from each other. You can’t imagine how good and how bad of products quality in Aliexpress. The disadvantages of Dropshipping by Aliexpress is that if a package is not purchased in the same store, it will be sent separately then the shipping cost will increase. If you encounter problems, the communication is not effective enough.
4. Alibaba International Station is equivalent to 1688 in China, half of which are Chinese manufacturers. Half of them are foreign trade service providers, after they received orders, they purchase the products and sell to customers through 1688. Alibaba International Station is inexpensive but has certain MOQs and need time for manufacture. This model is suitable for big sellers who have stock in advance but not suitable for dropshipping.
5. Control of supply of products. Many sellers have a misunderstanding that they will follow the trend of selling popular products. When they find a hot-selling product, they will follow the sale. Sellers don’t take safety into account. I believe many sellers know that hot-selling products are the ‘disaster areas’ of product infringement. Many sellers who follow the sale will be warned or off the shelves because of infringement, severe situation will be closing their accounts and freezing their receipt accounts. Often only the earliest sellers can make money and late-coming sellers can hardly survive.
6. Product quality. When we talked about product quality, one aspect always neglected by many sellers. If you sell products with inferior quality, then you will have bad comments and high return rate. If you do not have a professional after-sales team, you can choose some simple and controllable products or good quality products for sale. If you have a after-sales team, you can choose some products with complex functions and high demand products. Therefore there will be more profits in product cost and pricing. Quantity can also be guaranteed. For e-commerce, product quality and customer experience are particularly important, therefore the product quality must be strictly controlled.
7. Purchase price. When you are purchasing the products, some seller are prefer to buy the product with lowest price, and this will causes anxious from suppliers. On the one hand, as seller or supplier, both side should make sure that the profits are within reasonable range. On the other hand, your supplier not sure whether you will make a big sell, then they won’t give you a bottom price directly.
8. Product delivery time. If you choose suppliers with uncertain delivery time or frequent change your suppliers, this may influence your business. For example, if you want to purchase the hot-selling products from new supplier, and your competitor have long-term cooperation with them, then the products may be arranged to your competitor first, you miss the golden time to sell the product then you lose the advantage.
Now I think you are more familiar with the suppliers of dropshipping.
As the pioneer of dropshipping business, CJ has its unparalleled advantages.
1.We are familiar with all Chinese goods supply platforms. Besides online suppliers, we have cooperated more than 1000 superior suppliers offline who offer high quality goods with quite lower price. We take strict quality controlof goods, those in bad quality will be returned to factories. And we offer instant after sales service. You personal agent is ready for you all the time.
2.Price advantage. We cooperated thousands of factories in China, so we can offer a quite low price for you.
3.We build four warehouses both in China and US, and establish our own logistics. We’ve sign a strategic cooperation agreement with DHL official, so our shipping price and shipping time will be more profitable for you. In the future, well manage to promise to refund for delayed shipping.
4.CJ has strong IT team that keeps to update the CJ app system in order to give all clients a more easier and convenient service. CJ app will be a first choice for you to choose as a safe platform.
A good product requires a good supplier. Different kinds of platforms have different advantages. How to make a good use of 1688, CJ and other suppliers decides the profit you can get from your dropshipping business.