Dropshipping can be an extremely profitable business model for online merchants starting their own eCommerce businesses. But, at the end of the day, your supplier and dropshipping solution can make or break your business. There are few important tips you can follow to get the best out of your Chinese dropshippers and suppliers.
Working with trusted suppliers who can offer value-driven services is key to the success of your dropshipping business. It can be frustrating to find a product that you like and think will sell well, only to find that suppliers aren’t able to work with you. Dropshipping can be an extremely profitable business model when you’re working with suppliers from China. But, at the end of the day, your supplier and dropshipping solution can make or break your online store.
- Figure out with whom you are working–
As a business owner, you need to identify first with whom you are doing business. When it comes to suppliers, there are three different types of companies – an actual factory, wholesaler, and trading company. Sometimes it’s hard to tell if you’re talking directly to a manufacturer with hundreds of employees, production equipment, warehouse facilities or if you’re talking to one guy working out of his home.
- Make use of the online supplier directories–
As long as you have a right supplier, you can keep a long relationship. Generally, buying wholesale online is a streamlined process, you only need to wait orders. Therefore, choose a reputable supplier is very important. It is better to have tracking numbers to check the order status. Using online supplier directories may be the safest way to find dropshippers and suppliers in China. The benefits of that include:
- Lower risk—you’re not going to be scammed by our suppliers
- Easier searches—filter search results based on the exact specs you need
- Faster research—quickly find suppliers’ product offerings and contact information
- Sign a written legal contract–
Having a written legal business contract is the most important part of doing business in China. Make sure you get a written agreement on all your requirements, not just features or schedules. This can be used to test the product during a pre-shipment inspection. Watch out for large minimum order quantities (MOQ) when you order from China. Every Chinese vendor will have its own MOQs, which is the smallest number of units you can order.
- Request a sample–
Once you’ve made contact with a potential China dropshipper and supplier, you need to ask for a sample of the goods you are interested in. Most suppliers will charge you for sending a sample. There is usually no way around this unless you have worked with the supplier for a longer time. With more experience, the more you will learn about manufacturing that product.
- Price negotiations–
Negotiating with suppliers is an important part of manufacturing in China. Early negotiations and meetings set the tone for how the rest of the buyer-and-seller relationship will play out. Successful price negotiation is about finding the right equilibrium, where you pay the right price for the right quality, while the supplier can make enough money to stay in business and pay their owners and employees.
Agreeing to a competitive price when sourcing products is vital for your business, but it’s not easy. You need negotiation strategies and skills. When dealing with suppliers. One of the best practices for any negotiation process is to prepare data to share with the suppliers. This is as quick and easy as making a comparison table.