Branded / Un Branded Drop Shipping Questions..

Discussion in 'Ecommerce Forum' started by mrka, Dec 1, 2020.

  1. mrka

    mrka UKBF Regular Free Member

    157 5
    Hi. Currently brain storming a few ideas and been doing a ton of research online over the last week for drop shipping. I already run a business which sources from China, but it's not drop shipping, I sell services in Europe and use factories in China to manufacture. Anyway just to lay the groundwork that I understand how China works.

    I have been learning research techniques for identifying good drop shipping products, so just found a company selling 'product X' who sell a bundle item of 2 for £22 'free postage'. I looked over their website. They appear to be UK based but I could be wrong. I put in a UK address and it said 3 to 5 days postage. so clearly not posted from China. I put in an address for Cyprus and it said around 5 days shipping.

    So they can't be traditional drop shipping from china as it would take 20 days shipping.

    What are they doing here? Buying in bulk and shipping from UK? I don't see how international shipping costs would allow them to be profitable with 'free shipping'??

    I am just trying to decipher backwards how they are working and able to stay profitable?
     
    Posted: Dec 1, 2020 By: mrka Member since: Jul 11, 2013
    #1
  2. mattk

    mattk UKBF Newcomer Free Member

    2,499 915
    It's been a long time since I was involved in dropshipping, but back in the olden days nothing was sent directly from China. Everything was bought in bulk by wholesales who would then dropshop, from the UK, for a price which gave them a margin.

    Nowadays, the margins look razor thin. I tried to spec out some products for a niche motorsports website I ran and people were selling goods on eBay for the same price as they were being sold and using the P&P as their profit margins. This just seemed bonkers to me.
     
    Posted: Dec 1, 2020 By: mattk Member since: Dec 5, 2005
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  3. mrka

    mrka UKBF Regular Free Member

    157 5
    It's bugging me now because I just ned one question answering.. i can't see how posting an item that takes 15 to 25 days to arrive to the customer is a good business.. and not only that but when they get the packet or parcel it will have Chinese labels all over it with the Chinese invoice inside?!

    What am I missing here?
     
    Posted: Dec 1, 2020 By: mrka Member since: Jul 11, 2013
    #3
  4. mattk

    mattk UKBF Newcomer Free Member

    2,499 915
    People shop by price. If you're paying pennies, then you expect things to take longer to arrive. Likewise, if you want next day deliver you buy from Amazon.
     
    Posted: Dec 1, 2020 By: mattk Member since: Dec 5, 2005
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  5. IWW Limited

    IWW Limited UKBF Contributor Full Member

    52 8
    Look at Aliexpress or Alibaba, people will wait if it's significantly less than buying elsewhere. You can get companies on here to totally unbrand, the biggest risk with d2c is boarder control tax.

    We deal with a few resellers and they bulk hold stock and ship, also FBAmazon is an option > China > FBA
     
    Posted: Dec 1, 2020 By: IWW Limited Member since: Oct 16, 2020
    #5
  6. mrka

    mrka UKBF Regular Free Member

    157 5
    Yes but the whole point of drop shipping is that you don't hold stock.
    So like someone who sets up a quick website, starts drop shipping say dog leads, they might use social advertising, then get orders on their website.. then what, some of these companies can offer 5 day shipping internationally, how??
     
    Posted: Dec 1, 2020 By: mrka Member since: Jul 11, 2013
    #6
  7. IWW Limited

    IWW Limited UKBF Contributor Full Member

    52 8
    I wouldn't always presume that China is the only dropshipping source.

    I think there are two key dropshippers; manufacturers (predominately China) and distributors who often buy in bulk and provide drop shipping.
     
    Posted: Dec 1, 2020 By: IWW Limited Member since: Oct 16, 2020
    #7
  8. mrka

    mrka UKBF Regular Free Member

    157 5
    Yes but the profits usually come from China.. alixpress and baba..
     
    Posted: Dec 1, 2020 By: mrka Member since: Jul 11, 2013
    #8