In order to make a large profit when selling an item, you need to buy at a low cost so that you can offer a lower price than your competitors. When looking for items to sell, many people turn to drop shipping companies as a way to buy products for cheap. While drop shipping companies do sell items for cheaper than retail value, it is not an effective sales strategy. To receive good deals on products, one must learn how to import from China because buying true wholesale items directly from the manufacturer in China is the best option. Buying Chinese products wholesale means you can eliminate the middleman, earn a higher profit for yourself and still manage to stay competitive.
The Problem With Drop Shipping
Drop shipping used to be an easy way for people to buy and sell products for a profit. The idea behind drop shipping is that drop shipping companies do not have a storefront, but will instead order products directly from the manufacturer and ship them to you. However, with the Internet making it easy to buy directly from wholesalers yourself, drop shipping is an out-of-date practice. With drop shipping companies, you are usually charged a fee and the product is also marked up so that the drop shipping company will make money from the transaction. When you go to sell these products, you will need to raise the price to make a profit, which makes your item less competitive.
The other problem with drop shipping companies is that anyone is able to utilize them. Therefore, even if you have an item that is a popular seller, there is nothing stopping a competitor from going to the same drop shipping company and buying the product for the same price. This can lead to a flooded market.
The Solution: Buying Wholesale from China
The best way to buy products at a low price to sell for profit is to purchase them wholesale directly from the manufacturer in China. The products made in China are the same name brands sold in retail stores, only the price is much more affordable. By using a Chinese wholesaler instead of a drop shipping company, you will eliminate some of the cost, allowing you to have much more competitive prices. Chinese wholesalers can be easily found online and the best ones are listed as trusted sources at the Federal International Trade Association’s website. You will not need to understand Chinese to buy directly from China either. These wholesalers will often have English speaking representatives to help you.
Many of the items you would buy from a drop shipping company are being bought wholesale from China. When you use a drop shipping company it’s like you are paying someone else to do the work for you and allowing them to profit off of your purchases. Eliminate the middle man and go to the source directly by buying true wholesale products from China.
What do you think about this business plan? Do you think the way Chinese products are growing, it will be great way to make money ?
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Article by Harsh Agrawal
Harsh has written 1206 articles.
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{ 6 comments… read them below or add one }
I agreed with you. Is there any chance to most of the peoples like us in India without spending money to do this business..
Good Advice and I agree.
But, are there any advantages of buying from drop shipping companies rather than a manufacturer/wholesaler?
How do we know whether the company is a drop shipping company or a wholesaler?
Do you know of any other websites besides Alibaba to contact Chinese Manufacturers directly?
Nabeel
wow,never expected this topic nice way to make some profit and start a business.
But what about customer satisfaction ? Once a brand gets associated with a product, it becomes the responsibility of the brand to provide quality. Take the example of Nokia phones and their cheap Chinese counterparts. Even though Chinese phones do ok, they are eyed suspiciously. In the end it boils down to customer. Chinese products which are not associated with a brand name, are not considered good by a layman. Be it a Chinese CFL which comes for Rs. 20 (5-10 times cheaper than its branded counterpart) or a Chinese mobile.
Good advice. Like India, in Bangladesh also many people are doing such business (importing from China and selling retails).
It’s Booming Business since Chinese products are cheap. Though quality is an issue but price overrides it.
Thanks for your comment Ron.