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    1. Paul9876 is offline

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      #1

      Risk of dropshipping from China

      I own a business in PA and am looking into sourcing some of my products from China, as it’s much cheaper. However, I understand there’s an equal amount of risk involved when dropshipping from many foreign companies and China is no different.

      My question is - how do I minimize my risks? It’s hard to know what’s a good deal and what to run from when you don’t speak the language and are so far away.

      Any help at all is appreciated.
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    2. Robin_texas is offline

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      #2
      Much of the business world is riddled with risk these days and dropshipping from China is no different. Choosing a factory is especially daunting because it’s a partnership you’re going to want for the long run. If you keep in mind the following, however, you’ll be better able to guard yourself and your business from serious financial ruin.

      • Do proper research

      o Check if the company’s contact information is honest (proper domain names, landlines vs. mobile phones) and if the company has been in any recent trade shows. Make sure the company is registered with their local Chinese government. Get user reviews via discussion forums or other credible sources.

      • Contact them

      o When you’re ready to send an email or telephone the company, be prepared to give them enough info to show you mean business. Suppliers get a lot of offers, so make yourself stand out by letting them know your long-term plan in specifics and having your business’ website or eBay storefront readily available. Most will want you to pay a fee for seeing their prices (to keep the general public from trader secrets), but don’t pay until you have their full price list.

      • Shipment and payment options

      o Doesn’t hurt to make sure the company’s shipment provider is also credible. Also, know that a lot of dropshippers in China use Western Union as their pay option—this is not uncommon and does not necessarily mean the company is not legit. However, you must be careful in matters of payments. Start small and build the trust.

      • Get a translator

      o If you don’t speak the language well, hire a trustworthy translator. There are people who work freelance or third party companies you can employ. The cost is well worth it as business negotiations get very complex.

      • Get samples

      o Depending on the product, many factories will send you samples to evaluate. Just make sure you are very specific about what you’re looking for.

      • Plan a factory visit

      o After you’ve picked a supplier, pay them a visit. Meeting the management is critical and they should be happy to show you around if their factory complies with all regulations. If you cannot go, employ a local agent to inspect the factory on your behalf.

      • Understand importing regulations

      o Failure to understand and comply with US and international trade law can halt your shipment at the border, delaying your order and costing you greatly. Consult a customs broker or check out the Customs and Border Patrol website for information.

      • Have your own landing cost estimate

      o Before placing your order, figure out the estimated cost it will be to get your product from them to you. Landing cost includes: the cost of getting the goods on the transport, transport costs, import duties, and cost of any inspections or agents needed in the process.

      • Damage control

      o Find out what will happen if you decide to cancel, or if you receive damaged or malfunctioning goods. What is their return policy? Don’t put in more money than you can lose.

      Be on top of these main issues and you should find yourself a trustworthy supplier in China that you’ll work with for years to come.
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    3. Ginni's Avatar
      Ginni is offline

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      #3
      Excellent info here.

      Research is definitely vital. Ask other retailers about dropshippers from China too—people in the business typically know about it.

      Also be weary of the company that sells brand name items, since many such companies sell fake brands. Only authorized distributors have true brand names.

      Happy hunting!

    4. Paul9876 is offline

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      #4
      Perfect. This is exactly what I needed to start with. Thanks a million.

    5. Gideon is offline

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      #5
      Please require your supplier do transaction by E-bay. They can ensure your right.

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