Views: 385 Author: Site Editor Publish Time: 2021-07-09 Origin: Site
In the past decade, the dropshipping business from China has achieved incredible success. Its success mainly lies in competitive product prices and capabilities and lower transportation costs. These benefits help independent suppliers obtain considerable profits from product purchases and resales through AliExpress. However, with the development of this kind of business around the world, China's drop shipping business seems to be in a trough. However, what difficulties and challenges are facing this once profitable model? How will drop shipping suppliers and drop shipping business develop?
The Influence of Global Political Factors
President Trump announced in 2018 that he had withdrawn from an intergovernmental agency called the Universal Postal Union. A year later, the UPU announced an agreement with the United States and approved President Trump's request to charge higher parcels from international destinations. The agreement will take effect on July 1, 2020, and US sellers can expect a substantial increase in the price of their products.
Basically, ePacket is a transportation option provided by mainland Chinese and Hong Kong merchants when shopping in popular Chinese markets such as AliExpress. It will no longer be price competitive, and many independent American sellers will greatly reduce their income. Shopify dropshipping and amazon drop shipping are relatively mature platforms.
The Impact of the Epidemic on Dropshipping Suppliers
Western suppliers want to buy products from China before the changes in shipping costs take effect, but the COVID-19 crisis has put this problem into trouble. Since the outbreak of the epidemic, international logistics have been affected, international express services and freight have been interrupted, transportation routes have been closed, and production facilities have been stalled for several months. Therefore, the standard shipping services provided by most sellers on AliExpress will bring impressive delays.
However, the "potential delay" is causing a serious backlog after careful inspection. Consumers complained on social media that they were waiting for months of packages, and communications with customer service were reduced to talking to chatbots instead of support agents. The buyer's order not only takes a long time to arrive, but it is also automatically updated instead of being cancelled and refunded.
Current Status and Development of Dropshipping 2021
One user pointed out that considering the COVID-19 outbreak, delay is not a problem, but he has a "blatant false advertising" problem, that is, "your order should arrive within 32 days." According to him, an AliExpress-sized company should have "basic courtesy" to include actual shipping time. Other users emphasized that these long delays have nothing to do with COVID-19, because Chinese sellers on eBay and Amazon do not have this problem.
In view of the current situation, it can be said with certainty that, even if the current declining drop shipping business model is not killed by COVID-19, President Trump’s tariffs and changes in shipping rates have been severely disrupted. If the company wants to keep operating, they will have to drastically reduce profit margins to compensate for these problems. Unfortunately, most of the small and medium-sized enterprises that make up the majority of the US economy will also suffer huge losses and have a real possibility of bankruptcy.
Now how should we deal with dropshipping business on platforms such as eBay dropshipping and apa arti dropship? Welcome to contact our professional dropshipping platform consultant.