Tag: e-commerce sellers

Cross-border fulfillment from China, or dropshipping, can help you ship direct-to-customer without running your own warehouse. The catch: you need tight control over product quality, packaging, and shipping performance.

 

The what, why, and how of dropshipping

Dropshipping from China is a fulfillment model where your products are stored near the factory base in China, then picked, packed, and shipped directly to your end customers (instead of you importing inventory first and shipping locally). Done well, it can be a good approach to distribute your product to countries that, in aggregate, don’t represent high volumes of sales.

• The what is simple: you sell online, and a China-based fulfillment team handles storage and dispatch to your customers, wherever they may be.
• The why is usually low cost and relatively short speed-to-market, especially for small, lightweight products, wide SKU ranges, or when you sell internationally and don’t want to commit to storing a lot of inventory in multiple countries.
• The how is where most brands win or lose: you need reliable suppliers, consistent packaging, clear SKU and order data, and a process for inbound checks (so you’re not caught out by quality issues).

How to get started with cross-border fulfillment from China

If you have already purchased the products from a Chinese supplier:

• Send a product sample to the 3PL’s facility.
• They align with you on requirements, packaging, and shipping options.
• Suppliers ship bulk goods to the facility, and they set up fulfillment.

If you have not purchased products yet:

• Some 3PLs can help identify suitable suppliers and source samples.
• Once confirmed, suppliers ship goods to the facility.
• They receive, check, and prepare inventory for direct-to-customer shipping.

Dropshipping from China: what your 3PL partner should provide

You’ll need a 3PL partner to assist with fulfillment. Your suppliers typically deliver goods to them within the country (before export), and their team manages receiving, checking, packing, and shipping to your customers.

Typical support services from a 3PL would include:

• Warehousing and inventory handling
• Consolidation (useful when you buy from multiple suppliers)
• QC inspections before orders leave the facility
• Kitting, simple assembly, and product testing when needed

Dropshipping FAQs

(We answer these based on how we handle customer dropshipping projects at Sofeast, because every 3PL differs)

• What MOQs can I expect?

Cross-border fulfillment from China projects typically require a minimum of 500 pieces per batch. Below that, unit cost tends to rise.

• How to get shipping lines and rate quotes?

Sofeast can recommend shipping lines and rates based on your expected monthly volume per SKU. Included destination-country quotes scale with volume:
>500 pcs per SKU per month: up to 10 country quotes per SKU
>100 pcs per SKU per month: up to 5 country quotes per SKU
<100 pcs per SKU per month: up to 2 country quotes per SKU
If you need additional quotes beyond what’s included, we can support that at the project management rate (estimated in advance).

• What are dropshipping’s pros and cons, to set expectations?

Pros:
– No need to operate your own warehouse; storage and handling are covered.
– Manufacture, inspect, pack, and ship from one location to reduce logistics friction.
– Keep inventory in China (often lower cost than storing domestically) and replenish as stock drops.
Cons:
– Shipping charges may be higher than if you held local stock in the customer’s country.
– Delivery to many Western destinations can take around two weeks, depending on the shipping method.
– With the ‘de minimis’ exemptions being removed or tightened in the USA, EU, and other places, costs may go up over time due to extra paperwork.

Before you commit, define your SKU list, packaging requirements, target countries, and realistic monthly volume per SKU; that’s the data needed for a cost-effective fulfillment plan.