Drop-shipping born in nature with long shipping time and hard to turn it to long term valuable business. But drop-ship is extremely good for 1 thing, test new products. And a reasonable solution is utilizing drop-ship to test new products and local storage for better shipping time. But this way has extra cost of local warehouse. My seller customer save cost by sea shipping. If everything drop-ship from China, the shipping cost is 50% to 80% of total cost.
Actually experience seller use the strategy for years. Oversea storage and drop-shipping combine The long shipping time is by nature a problem of drop-shipping. So experience do drop-shipping to find out potential products, and do sea shipping with hot sell product to get better profit margin. And, the package would be better protective if by container. Drop-shipping is a method they search for new “winner”; By combine drop-shipping and local storage they got better profit margin and customer experience.
Paste customer question and my reply. 1. Delivery / packaging customer: this is something what needs to be improved as soon as only possible. All all packages should arrive in a high quality cardboard box and not wrapped in a foil. The exception is for electrical items and products made of glass - here you should definitely use a protective film, but the product should arrive in a high-quality carton either way.
Dropshippers, before scaling any product might have potential, the first thing you need to is figure out product cost. In most case, sell price should be at least Besides product cost, the price have to cover profit margin, online traffic, international shipping and whatnot. Let’s do a price research. I’ll randomly pickup a product at Amazon as below. 16$ for 3 pack, lets find out product cost from 1688 supplier. Cost as below table:
China is a big country, take days for domestic shipping if factory locates far from the border shipping center. Factory tend to manage bulk order over small retail order, small number need to wait to next batch. No storage. Factory hate storage as much as you. Nobody wants cashflow to be taken by storage. So some factories will manufacture after get order. Holiday.
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