Lower prices, but higher costs
The main benefit of using dropship suppliers in places like China, is that their prices will tend to be lot lower that your local supplier of drop ship products. On the face of it, this may sound great, and might mean bigger profits, but there could be additional costs you need to consider.
If the dropshipping company will ship internationally (some of them won’t), you are going to have to pay larger shipping fees, which will eat into your extra profit. You need to make sure that even with these higher costs, working with your international dropship supplier is still going to be profitable.
The latest products, but with strings attached
Sourcing your drop ship products internationally may provide you with an opportunity to get the very latest products for your customers before your competitors, giving your business an edge, but getting them to your customer can be fraught with problems.
For a start, the item will probably be liable to customs duty and taxes, which your customer will have to pay before they get hold of their purchase. Unless you’ve already made them aware of this, and it’s been factored into the price they’ve paid, it could mean a very disappointed and annoyed customer.
To get round this, some international free dropshipping suppliers mark their shipments as a gift, which doesn’t attract duty or taxes. However, this is actually fraud, and could lead to problems for you, or worse, for your customers.
Bigger choice, but potentially more headaches
Dealing with international suppliers who can get you drop ship products direct from the manufacturers in the Far East might mean you can offer your customers a lot more choice of products, but it’s not without potential headaches.
What if the product doesn’t get to your customer? You should still get tracking information from your Dropshipping Supplier, so you can find out where your shipment went missing. But there’s a greater chance of items getting lost with all the different hands international shipments have to pass through.
More trouble with returning a drop ship product
What happens if the item is faulty and needs to be returned? Will the supplier pay to have it sent back? You customer won’t be very happy if they’re expected to foot the bill. Also, just because products are available for international dropshipping, doesn’t mean that you’ll be able to sell them in your customers’ country.
Different countries might mean issues with product licenses, or even laws prohibiting the sale of certain drop ship products, which could cause even more problems for you, and your customers.
This information isn’t meant to put you off using international suppliers for your drop ship products, but it will hopefully make you aware of the factors you need to consider before you start trading internationally.
Dropshipping businesses in the Far East can offer greater profit potential, if you can navigate around all the potential pitfalls. But if you stick to the dropship companies on your doorstep, who offer quality products with good profit potential, and without all the extra hassle, you should still be able to build a successful dropshipping business. If you are shipping to the United States and you want to avoid all these troubles, try a local drop ship supplier.