Is dropshipping from China in 2021 still worth it? Is it a good idea to start a dropshipping business right now? Well, you may have heard a lot of people saying that dropshipping is going down right now. With the new normal in view and abundance of daily eCommerce transactions, maybe you have the ground to think it is true. But wait. Before you take any decision, let us discuss and take you through the good and bad sides of dropshipping from China in 2021 and let’s see how profitable it will be.
What is Dropshipping?
Dropshipping is an e-commerce business model in which you don’t have to keep your products in stock but will rely all the fulfillment process on suppliers or manufacturers, as well as the shipping process on a third party. Your job is to focus on marketing, sales to get more orders and transfer them to a third party for processing. It does not involve setting up a physical store or a warehouse which will be all replaced by an online platform where you display your products and everything.
This is a brilliant model since it’s simple but profitable and everyone can do it. In fact, e-commerce in general and dropshipping in particular has become more and more dominant nowadays. But dropshipping from China in 2021? Where else in the worth can you buy all kinds of products at the cheapest price and greatest diversity? It must be China. Dropshipping from China must be the best. But let’s see what it is like in details in the next sections.
Dropshipping from China in 2021
Advantages of Dropshipping from China in 2021
China should be a perfect destination for retailers and dropshippers for some reasons:
- First, China is known for its large-scale machinery companies and low labor cost. That’s why most manufacturers and suppliers in China can offer you a competitive price on their products as well as a wide range of every kind of product you need. If you are looking for an affordable option for your store, don’t hesitate to go for Chinese suppliers. They got everything you might need for your store at a surprisingly reasonable price.
- There has been an evolvement in business capabilities and technological sophistication in the last few years, which has improved the quality standards and efficiency of the products they produced. So you don’t have to worry about its products since they can compete with any in the market.
- Shipping from China is another advantage. China is a large country which is bordered by 14 countries with a great logistics network of land, marine, and air transportation.
- Chinese manufacturers are the best in the production, packing, and shipping methods in business. They can save you issues you might have with your dropshipping business. That means you can focus your time and effort on other business activities like marketing, sales, development.
Dropshipping from China in 2021 is not full of benefits only. It has some disadvantages at the same time. So let’s see what they are.
Disadvantages of Dropshipping from China in 2021
Dropshiping from China in 2021 could be great, if you get prepared for below risks:
- It does not mean that every product in China is of high quality, especially electronic products. So, make sure you have chosen reliable manufacturers for your store, and have checked their product quality before you decide to buy from them.
- One common problem for many Chinese manufacturers is shipping time. Shipping from China always takes much longer time and delays can happen all the time, which has been worsened by the pandemic. So be prepared for that and keep your customers updated on the shipping time, focus on your customers service, and keep track of the shipping process closely as well.
- Since dropshipping is so popular in China, you could face intense competition with other businesses.
The Coronavirus Era and Dropshipping from China in 2021
We have gone through the pros and cons of dropshipping from China in 2021, but with the outbreak of the coronavirus, entrepreneurs could be in a dilemma. Why? Since people now have a stigma for the products outsourced from China and could deliberately avoid them.
However, China has done a great job succeeding to overcome the hurdles and reconnecting its supply chains, which make all businesses become normal in a short time. So, in case you are already sourcing your dropshipping products from China, we would suggest you continue to do so. Sourcing from China will benefit you much more during the pandemic.
If you are worried that the products can carry the virus all the way from China to any place, the fact that it cannot happen. The virus cannot live that long. Many medical research shows that even if the virus even could latch onto products, it can only live for about 3 days on polypropylene plastic or steel.
At the same time, shipping from all over the world has slowed down; not just from China. But with the steady increase in online sales recently, dropshipping business has flourished with online transactions growing every minute. Reality has shown that factories are speeding up producing essentials like personal care products, groceries, household staples, and many more like never before. So that’s why it’s a great chance for you to start dropshipping from China in 2021.
The Trend of Dropshipping from China in 2021
It’s not surprising that online sales have taken over brick and mortar stores with 52% growth than earlier, partly due to the pandemic. That means dropshippers can face some serious completion in the e-commerce business. But let’s look at it from a different perspective. Dropshipping from China in 2021 will be for sure alive and even thriving more. There was a drop in dropshipping at the starting of the year 2020, but there is also a strong upward spike right after that. It is so obvious that dropshipping is definitely not going down. It’s still alive and kicking.
Still, there is something you need to note down for dropshipping from China in 2021:
First, remember to optimize your product line. You will see that a lot of products will become much more popular in 2021 like home fitness equipment and desktop accessories. Those products’ sales have increased dramatically. It is totally understandable due to the surge of remote working and quarantine restrictions in place. Besides, groceries, toilet paper, and home cleaning accessories also have increased sharply.
Second, spend more effort on your marketing strategies. Work harder to find the effect marketing for your store. It’s really important to get more customers and grow your business in a competitive business like this.
Finally, always keep your eyes open for the trend in customer buying. That can help you to place your bulk order in some goods in advance, hence cut the cost further and result in greater profit.