Dropshipping from China to USA

You may ask:” Why drop shipping from China to the USA?

Well, drop-ship products from China have never been CHEAPER. Dropshipping from China to the USA gives you the WIDEST product variety. You’ll be able to choose for your niche market. 

We’ve compiled all the information based on our decade of experience to make your life easier. You quickly jump-start your dropshipping business from China to the USA. We also include tips to scale your business up to 5 figures! 

Let’s get started!

How to Start Dropshipping from China to the USA?

Running your dropshipping business from China to the USA can be easy. But, you need to know some points to gain more profits. 

1. Find Dropshipping Suppliers

Speak with your Chinese dropshipping suppliers first before you purchase. It helps you differentiate between the good and the poor suppliers.

Rely on Dropshipping platforms like Aliexpress to start a store. They don’t have MOQ and good services for beginners. Later on, you should upgrade to private agents or sourcing companies. Most of them only accept if you have consistent daily orders. Their pricing is slow, and they also offer packaging customization. 

If you are unsure about their statements, repeat your questions. Otherwise, language barriers might cause ongoing miscommunication and other issues. 

2. Delivery Time

Your supplier should support claims to deliver faster than the estimated delivery times. It is because timely delivery INCREASES customer satisfaction for your business.

In this case, you confirm by asking the suppliers for tracking information. For instance, the tracking numbers on recent deliveries made to particular nations. Knowing how the provider would handle late delivery times also save your hassles.

Once you are satisfied with the deadlines, you can include it in your shipping policy.

3. Buy Sample First

Remember to always include samples in your start-up costs. It enables you to GUARANTEE product quality and FAST shipping times. Besides, the package condition and the quality of any extra branding are also crucial.

As a result, you’ll be able to enhance your customers’ buying experience. Check the product thoroughly and later on import it to your store. Set up your automated ordering system through apps in Shopify. 

4. Customer Service

The order tracking page reduce the number of post-order inquiries you receive.

Not only that, but you should do your best to respond right away when clients contact you. Make sure your level of customer service sets you apart from your rivals. Your business could STAND OUT among those who sell the same things as you.

5. Ensuring Your Legal Protection

Once your e-commerce store is operational, consider your legal responsibilities. It gives you peace of mind without worrying about legal issues.

You don’t need to set up a business to trade in some nations or states. But it is still better to consider it to ensure compliance with the law.

Dropshipping from China to the USA Pros & Cons

Dropshipper getting their product from Chinese companies are earning HIGHER profits. Interested? Now, look at the pros and cons of dropshipping from China to the USA.

Pros

1. Low-Cost Product

It results from China’s low labor cost and easy access to resources. The same product from a US supplier costs more than 30% to 50%.

2. Low Capital

You pay for products only when a buyer purchases from you. It means fewer risks as you need not invest large capital.

3. Do Not Hold Inventory

When dropshipping, you are only the intermediary. There is no need to keep inventories and worry about warehousing. It reduces your expenses and saves you time. You won’t have to spend time managing all the operations by yourself. 

Cons

1. Slow Shipping Time

The global pandemic and changes in US trade accords with China cause some changes. It puts many dropshippers in a difficult position. As a result, it led to longer estimated delivery dates last year.

2. Poor Product Quality

Chinese-made products might have a negative reputation. It is caused by retailers’ focus on the lower pricing rather than product quality.

3. High Competition

Your competitors might undercut your sale price. It could drive up the Cost-Per-Click (CPC) of your online advertisement. Also, Marketing costs get high if the market gets saturated. Keep exploring new winning products, and don’t oversell them. 

Suggestions to Get Started with Dropshipping from China

Interested in kickstarting your dropshipping business? We have compiled some tips that you need to scale your e-commerce business. 

1. Find Chinese Suppliers who have US warehouses.

Here’s an interesting fact. Working with Chinese vendors does not require you to export products from China. Companies like AliExpress stockpile bulk products in US warehouses. Some also establish a fulfillment service to compete with Amazon FBA.

If you choose to drop ship from a US warehouse, don’t expect the pricing to be as low as you’re used to. You bear the extra cost of delivering products to the US and storing them in warehouses. But your prices remain competitive, and you can give your consumers faster shipping. I only outsource from US warehouses if it’s still profitable. US warehousing kills profit, so be careful. 

You might search AliExpress for “USA warehouse” or “US warehouse.” Then, you contact suppliers in your field.

2. Expand your market.

The US is indeed a large market. Yet, you should also consider selling in foreign countries. Selling in countries like the UK, Europe, Australia, and even Asia could be profitable.

After the US explores the UK, Canada, and New Zealand markets. Start dropshipping there if you know any European language. Germany is also a huge market in Europe. 

You can experiment with Facebook advertisements by targeting groups in those markets. It will buy you some time (and money) while you figure out how to alter your operations in the United States. By doing this, you accommodate for higher shipping expenses. 

These markets also have LESS COMPETITION than the US. Your marketing expenditure should be lower, and conversion rates may be higher.

3. Re-negotiate deals with Chinese suppliers

Chinese suppliers will be eager to keep valuable customers. They are willing to lower prices to compensate for rising transportation expenses. 

Consider REDUCING the per-unit pricing. So that the extra transportation expenses do not significantly reduce your revenues. 

It may be challenging to pull off low-cost items. Still, you may cover shipping costs by negotiating reasonable prices for high-ticket items.

Feeling confident about starting up an e-commerce store? Continue reading below. 

What Is Import Duty from China to the USA?

The import tax exemption has increased from $200 to $800 since March 2016. It changed when former US President Obama signed the Trade Facilitation and Trade Enforcement Act of 2015. It is referred to as the de minimis value.

Thus, Chinese products brought into the US that cost more than $800 are subject to import taxes.

Import taxes include:
– Import duty (the majority of them)
– the MPF (Merchandising Processing Fee)

– the HMF (Harbor Maintenance Fee)

– Federal Excise Tax on items like alcohol and cigarettes.

The import duty accounts for the vast bulk of the total import tax value. The import duty rate paid on your dropshipping products is determined by two factors:

• The cost of the import products(s);
• The product’s HS (or HTS) code;

Lowering product costs means either less import duty or no import duty. Also, the state’s sales tax implies depending on the customer’s residence. 

Note: importing products like alcohol, perfumes, cigarettes, or cigars will always be taxed. The tax is applicable even if the value is less than $800.

Suggested reading: China Import Agent

Suggested reading: Import Tax From China To US

Method to Get Fast Dropship Delivery from China to the USA

To scale your business, you need FAST drop ship delivery. It is so that your customer won’t be pissed at you for not sending their items in time. Here are some tips that you look for to get a faster shipping process from China to the USA.

1. Hire Private Chinese Dropshipping Agents

Private Chinese dropshipping agents source products from their network of suppliers. They send them to the United States via speedier shipping lines. Hiring a private Chinese agent allows you to ship faster than your competitors. 

Some private agents have warehouses in the United States. The European Union and other nations can ship from those locations faster.

2. Get Third Party Logistics(3PL)’ Help

You get storage, repacking, and delivery services from 3PL. That is the ultimate goal of dropshipping! You may need upfront costs, unlike the Dropshipping model. Outsource and store inventory in those warehouses. It could lead to own brand building. 

They may even assist you with the private labeling of products. Also, you receive a faster shipping time of 1-3 days with 3PLs.

3. Find AliExpress Suppliers With US Warehouses And USPS Shipping

Aliexpress suppliers providing this form of Aliexpress shipping makes your life easier. You may identify suppliers with this feature using the “filter” option on Aliexpress.

Check the shipsellers’ shipping options. Some provide 7-13 days of shipping from the USA warehouse.

Now contact the Aliexpress sellers. Explain to them that you wish to drop ship products that can only be transported from the United States. As a result, you reduce a lot of shipping times and gain better customer satisfaction. Conversely, their outsourcing and shipping costs are higher than Chinese warehouses. 

FAQs about Dropshipping from China to USA

What’s Next

So here is the COMPREHENSIVE guide to kickstart your dropshipping business journey. 

Dropshipping is a relatively simple business model. All you need is a TRUSTABLE supplier with QUALITY products and a FAST delivery courier. Also, read this article to get POINTER to scale your business to a new height. 

Want to set up your dropshipping store? Leeline Sourcing has a decade of experience in sourcing for dropshipping businesses. Talk to us today if you need guidance with your business.