Importing goods from China can be both terrifying and exciting to many businesses. On one hand, China provides huge potential for making a lot of money by reselling wholesale goods purchased in China at very low prices. Chinese dropshipping offers huge profit margins, as long as you can find dropship wholesalers. But on the other hand, cultural barriers and differences in language can create many problems for sellers.
The primary issue that most people are worried about is payment: How do you pay? Will your money disappear? etc. This kind of a problem exists because most Chinese wholesalers only accept payment by Western Union or wire transfer. However, use caution with these forms of payment because they are not very secure.
The reason why these Chinese dropship wholesalers only accept payment by wire transfer is because it really is the only payment method available in China. Credit cards are extremely rare in China — heavy government regulations make it extremely difficult to get one.
Therefore, you are pretty much stuck using wire transfer and Western Union to import goods from most Chinese suppliers. In order to minimize your risk, I would advise starting with a small product order to test their reliability before fully committing. As your relationship develops over time, you can increase your product orders.
Overall, many Chinese wholesalers and dropshippers will be genuine, reliable people that really do want to establish long-term business relationships with their customers. They want your repeat business, so they don’t stand to gain much by ripping you off!
Another important thing to be aware of when using Chinese dropshipping is knowing how to communicate. It can be rather difficult to negotiate with a language barrier. I avoid this problem by asking new contacts for their ICQ or MSN screen names so that I can chat online with them. They will usually be very friendly and glad to converse in English, especially since it helps them improve their English skills.
Once you establish communication, you can then begin to ask for information like pictures of their products and minimum order sizes. After I develop a good relationship with them, I then will ask for a sample order. If a company is legitimate and genuine, this is no problem at all, and it will allow you to see the quality of their product up close. From there, I can be quite certain that the dropship wholesaler is trustworthy.
Another thing to be aware of is product quality. This is usually another concern for businesses who might have trouble trying to tell if a brand name product is real or not. In my experience, almost all brand name products that come from China are fakes or replicas.
I have found that Chinese dropshipping is best used for generic, cheap good that can be resold for much higher prices in the West. For example, some popular goods like generic electronics and scooters do not need a brand name to sell well, and are ideal for importing from China.
I personally would recommend using a reliable wholesale supplier directory, like Sale Hoo, that keeps you up to date with the best and most trusted suppliers from all over the world. You will save yourself a lot of time by not having to find and research the few dropship wholesalers you may find on your own.