According to the relevant statistics, most online sellers choose overseas warehouses in the first three months of 2022. And delivery from warehouse in China accounts for more than 57% of the total market. While the number of people who decide on Chinese warehouse and dropshipping is as high as 31%, more and more sellers choose DTC and locate their warehouse in China. What is the appeal of “Dropshipping” from China? Why will it become the choice of most sellers? Let’s find out.
Lower storage cost
As the world’s largest e-commerce platform, Amazon is a popular choice for many cross-border sellers. I can’t doubt that. But you must know Amazon platform storage costs stalled products processing costs are costly. In this case, many sellers have to consider third-party warehousing as a “transit station” without affecting the sales of the online shop at the same time to reduce operating costs. The Chinese warehouse has become the cross-border seller “optimal choice. “
According to industry estimates, choosing a Chinese warehouse and using the DTC model can reduce the logistics cost by 20%-50%. 55% of online sellers will use third-party logistic (3PL or TPL) as the primary shipping method. It could expand the customer base, venture into new markets, or create positive consumer experiences.
The disadvantages of building your warehouse are highlighted
The disadvantages of the “self-built warehouses,” which emerged in the cross-border e-commerce industry over the past few years, have gradually come to the fore. According to research, 63% of sellers are troubled by local policies and regulations, and 56% have headaches recruiting and managing overseas. Another 30% of sellers are worried about inventory policy and tax risks; even more, 30% are concerned at the risk of goods being sold late, in addition to the dangers of financial pressure, security of goods, and poor management. Cultural differences, policies and regulations, and temporary emergencies can all make it very difficult for sellers in foreign countries to deal with, for example, a warehouse overflowing, which can take a month or more to resolve in just three weeks at home. Negotiations with intermediaries, audits by lawyers, environmental policies, and so on can make foreign sellers feel overwhelmed, and these factors significantly increase the operating costs of an online shop.
One-stop service, Complete supply chain
If the choice is made to locate the warehouse in China, this warehouse will be close to most of your manufacturers or suppliers and also you could not worry about inventory or occasionally poor-quality products. It’s easy to get in hot products and return outdated goods when your warehouse is close to the factory.
The overseas. We provide sellers with items such as warehousing, picking, packing, and shipping, which, combined with the local logistics features of domestic warehouses, can ensure that goods reach end buyers safely, accurately, promptly, and at low cost.
We provide multiple services to deliver your products on time. Here are crucial things we can help you with: stock received and storage, quality assurance and inception, custom packaging and labeling, and door-to-door shipments.
It takes a lot of energy and time to complete the various aspects of cross-border warehousing, logistics, and fulfillment for an online business. But if you choose a quality Chinese warehouse, these problems can be solved. And you can put more energy into product development or shop optimization.
Dropshipping is a steady winner and a deep favorite
The dropshipping model has the advantages of shortening the shipping time, expanding the selection range, reducing sellers’ cross-border logistics costs, and improving the conversion rate of shop exposure. This model is deeply liked by cross-border sellers, which solves the pain point of logistics time and reduces the shop operation cost. Here at eComhub.net, we take dropshipping service as the main project and are devoted to solving complex things in your online business. No inventory, storage, and fulfillment problems bother you, and minimum order quantity and prepay is required. Dropshipping is viable for new entrepreneurs or people who want to scale their business by changing another business model.