In today’s post I want to answer a question that I’ve received several times in the past few months…
“Should I dropship from China or the USA?”
Now if you’re an affiliate, you might not do dropshipping at all, so this might not apply to you. But if you do wish to sell physical products online, then drop shipping is the easiest way to go about it.
It’s easier than buying up and storing a lot of inventory because you don’t need to purchase the item until AFTER the customer has bought it from you. So if you have items that aren’t selling, it doesn’t matter too much as you haven’t paid for them anyway.
And if you make a lot of sales, you can readily dropship them to your customers, on demand, from your suppliers. In 2020, over 33% of online sales were fulfilled by drop shipping… That’s over $100 BILLION in sales.
And with all the events going on in the world, debate has become much stronger as to which is the best place to dropship from… USA or China.
Quick Pros and Cons:
China generally can produce products for cheaper and sometimes are the same quality as that of the USA.
Dropshipping from China allows you to price products lower, which can lead to more ‘impulse buy’ purchases.
Some USA suppliers, however, are higher quality than those available in China, which can lead to lower returns and refunds.
Shipping times from the USA are considerably faster than China.
There was a period of time when items were being sped across from China so fast that it wasn’t a big problem, but nowadays, those times have finished and for now it takes at least 2-3 weeks if not longer. This can lead to more refunds and panic among customers waiting for orders.
Some USA dropship suppliers get their good manufactured in China anyway, but their quality controls over what actually leaves their warehouses is usually higher.
Not to mention the faster shipping times as they are storing their items in the USA (whether made in the USA or not).
Being able to mention (shipped from the USA) and a fast shipping time, leads to higher conversion rates on orders, even if the prices are considerably higher than those dropshipped from china.
So bearing all of the above in mind, I highly recommend if you are planning on running a drop shipping business in 2021… Make sure to dropship from the USA if possible.
3 Quick Tips
1. Write unique and detailed product descriptions.
Don’t rely on the descriptions that are default from your supplier. I’ve seen conversion rates go up noticeably by being detailed.
Think of all the possible benefits of your product, and all the features and make sure they are all spelled out in your product description.
2. Consider offering a bonus
Digital bonuses don’t cost you anything but can increase the chances of closing the sale. It can cost less than $100 to get a decent digital product bonus created on Upwork, but can be all the difference.
For instance, if you’re selling a dog bowl on a pet care site, you might want to include a free report on 7 top dog food recipes, or top 7 dog behaviour problems solved, etc.
3. Test multiple products
You only need to have 2 or 3 items selling well in order to make thousands a week from drop shipping.
But you may need to test 5 or more items for every 1 item that you find sells really strongly. It doesn’t hurt to test several items at a time as you only pay for them once a customer orders them anyway.
All in all, given everything that has been going on in the world, I’m very grateful to be running an online business. If you aren’t already, I highly recommend that you get one running for yourself in 2021.
If nothing else, an online business is a lot more secure given the current economic climate the world is in.