The role of the Chinese in drop shipping is limited to suppliers. They are rarely consumers of products in this way. In fact they have been able to keep their trade deficit in control by exporting far more than they import. That leaves a net surplus that they can always lend to struggling Western democracies such as the USA. The merchant has to be aware of these dynamics before effectively joining the “China dropship” business model. That way they will not be surprised when the competition is getting stiffer. They might also create a niche that is conducive for their future success.
Using the Chinese supply chain
It would be very brave for a merchant to ignore the Chinese supply chain. They have an economy that is accelerating at a pace that is historic in its speed. This market can literally produce anything. It would be foolish to discount the benefits that can accrue as a result of a unified approach to selling products. They are also one of the best sources of products. For example the products from the so called “China wholesale” need little introduction. They are the bread and butter of drop shipping.
One would naturally assume that merchants have the express aim of maximising their profits. This objective can be achieved if they get products from areas that offer minimum costs. There is no better place to earn these benefits than China. It is the Mecca of manufacturing at the moment. Once they are able to get into the car and arms industry, their dominance will be complete. The drop shipping merchant can be part of the success story if they take the time to find the right products from this market. They can then present these products in such a way as to give maximum benefits for their clients.
A principled approach to the Chinese market
Merchants have to be disciplined in the way that they approach the Chinese market. They have to ensure that they are always at the forefront of all efforts to reduce costs but they should never let the quality suffer. This is a market that is already struggling with a reputation for poor quality products. The major players have to ensure that they break this cycle of poor product management. The key is to communicate with all the supply chains and raise issues of mutual concern so that they are not put on the back burner.