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Drop Shipping From China

I am an online retailer and need drop shippers for an MOQ of 1-2 items. The emails I am receiving from manufacturers and suppliers do not support this need. Is there any resource where I can acquire drop shippers?  How do I submit my request for drop ship suppliers only?

If you are looking for a factory direct relationship, it is quite rare that the supplier would drop ship 1 or 2 items at a time direct, to your clients. Also, it is probably a bad idea to have your supplier ship directly to your buyers, unless you don’t mind your buyers cutting you out of the supply chain.    For the sake of discussion, let’s say that you didn’t mind your buyers knowing the factory.  You may be able to get the supplier interested in shipping small units if

1.     You place a blanket PO and give a deposit on a large order.

2.     You pay the factory a small processing fee to arrange the exportation.

You may have better luck with a China wholesaler, rather than factory direct. But you still run the risk of getting cut out of the supply chain, if your buyer knows your supplier.

The other reason that you don’t see a lot of drop shippers in PRC is because the headaches associated with export documentation and VAT rebate processing is roughly the same for a large order and a small order.  But on a large order it is financially viable for the supplier to amortize the export processing fees.

There are third parties you can use.  My firm happens to be a third party who will warehouse the bulk order in China, then drop ship smaller batches to overseas clients or clients’ buyers direct, in exchange for a service fee.   If the third party is professional, they can also organize the VAT rebate for you.  The other option is to buy in bulk and use a drop shipper in HK or your home market. If you are in a major market like N. America or EU, there are drop shippers in every major city.

Hope this information helps. Let me know if you need further support.

Question answered by Mike Bellamy, host of “Ask the Experts” at the China Sourcing Information Center.

Mike Bellamy is an Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center (www.ChinaSourcingInfo.org). He is also the author of, “The Essential Reference Guide to China Sourcing” (chinasourcinginfo.org/book) and founder of PassageMaker Sourcing Solutions (www.PSSchina.com )

 

 




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