It does not take much effort at all to set up your own online business. Budding entrepreneurs can start with a dropshipping business. Increasingly, this sales model is being linked to the distribution of goods of Chinese origin. Is dropshipping from China really a good and profitable solution?
There is no denying that the principles themselves and the operation of dropshipping are very simple. An entrepreneur setting up a business on such terms does not have to worry about shipping and delivery of goods. This part of the process is done for him by the wholesaler, from whom the seller purchases the goods. It is also profitable not to have to store the assortment, because the dropshipping seller only has it in a virtual form - the material goods never reach his hands. Once the customer has made a purchase, the wholesaler automatically dispatches the goods to the indicated address. If you want to start an online business, there may be many questions related to, among other things, logistical issues. When looking for an idea on how to run your business, in addition to dropshipping, you should consider partnering with a logistics company. Check out the principle behind Subscriptions for companies"
Dropshipping can be carried out either by a company or by a non-business person. In the latter case, the matter is difficult as wholesalers are reluctant to cooperate with customers purchasing goods in negligible quantities. Another complication is the limit on the amount of monthly income of 50 per cent of the gross minimum wage for the year (in 2020, this is PLN 1,300 gross). Once the amount is exceeded, the owner is obliged to set up a business, which entails significantly higher business costs.
In this sales model, it is most profitable to distribute a cheap, small assortment on which a large margin is imposed. Goods of Chinese origin are therefore ideal for this activity. More and more dropshippers are trading assortments purchased on Aliexpress or Alibaba. So how do you dropshipping from China? And is it a profitable business?
Dropshipping from China - what do you need to know?
The entire order process follows the same principles as for the distribution of goods in Poland:
- The seller displays the goods in his online shop,
- The buyer purchases the goods from the seller's website,
- The seller buys the goods from the manufacturer's website, providing the details of the final buyer for dispatch,
- The manufacturer sends the purchased items to the final customer.
The difference, however, is the price. As is widely known, Chinese manufacturers usually offer products at very favourable prices, which are easy to sell in Poland with a higher margin. However, one should remember to inform the buyer about the long waiting time for the goods - usually their shipment takes about a month, while Polish products reach the buyer within a week on average.
Dropshipping from China also involves more risk than buying from a wholesaler located in Poland. Every parcel has a very long way to travel. Therefore, a shop owner using dropshipping has to reckon with the fact that the parcel may get lost and never reach the buyer. In addition, he or she does not have the opportunity to see the goods before they are delivered to the address indicated.
Dropshipping and customs duty
There is another problem at the shipping stage. Usually, in order to avoid additional charges, Chinese distributors send the goods marked as 'gift'. However, when the consignment is stopped at the border, the need to pay customs duty and VAT falls on the buyer (that is, in the case of a chain transaction, on the final customer).
The shop rules should therefore clearly state that webshop , merely acts as an intermediary with the Chinese distributor, and thus additional charges may be incurred for imported items. Unfortunately, most e-stores operating on this basis do not inform potential customers of this. This practice is illegal.
InPost cooperates with Aliexpress
As of 2019, shoppers on the global shopping platform Aliexpress can benefit from delivery of their purchased products to one of the InPost parcel machines located in Poland. Considering the fact that more and more Poles are buying on Aliexpress, by becoming a strategic partner of the Chinese e-shop we wanted to increase the security and convenience of the entire delivery process. Thanks to us, the delivery process is quick and efficient and does not generate high costs.
In order to be able to select the InPost parcel machine delivery option, you need to make purchases over $5. Once you have found the products, simply select the Polish version on the website and choose delivery to Poland. In your Aliexpress account settings, you will need to enter your shipping details and select the Parcel Machine to which you want the goods to be delivered.
Delivery with InPost is a great alternative form of shipping, especially for those who order goods in large quantities - i.e. for those using dropshipping! Benefit from clear rules and a fast delivery process and give your customers the opportunity to pick up their goods wherever and whenever they want!
Choose InPost Subscriptions for businesses and send parcels at a fixed price.
Take one minute to leave your contact details and start sending parcels from as low as 11.89 PLN*.
- One contract for courier and Paczkomat shipments
- Free courier pickups
- Express delivery
- Price guarantee for the duration of the contract
- Fuel surcharge included
- Dedicated post-sale support
* Net price per Paczkomat shipment in the Subscription 600 plan.
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