Archives November 2018

1688 cross-border market aimed at inventory free mode for small business dropship from China

1688 transforms the goods and capabilities of China\’s traditional industries with supply chain gatherings from offline aggregation to online precipitation, becoming a digital supply chain that is readily available to all cross-border e-commerce merchants wholesale and dropship from China. Wang Hairu, vice president of Alibaba Group and general manager of Alibaba\’s China Domestic Trade Department, said on 2018. In his view, the global digital supply chain innovation is imperatively based on the traditional B2B, B2C market.

In August 2018, the 1688 cross-border dedicated team went to Thailand and Vietnam to inspect and found the international dropshipper group. The Chinese people in South East countries order goods from China 1688 and sell on Lazada, eBay, Shopify and Facebook to the people in South East countries as well as consumers in the EU and North America.

Liu Wei, general manager of the 1688 cross-border department, said that when he actually went to Southeast Asia, he discovered that in the countries and regions along with the “Belt and Road”, China\’s supply chain system and e-commerce infrastructure became a business language, connecting global consumers. It helps small and medium-sized sellers in countries along the route, or SME (small and medium-sized enterprises) to obtain profit opportunities via dropshipping or wholesale.  For example, they visited a local raincoat manufacturer in Vietnam and found that their raincoat fabrics were purchased from 1688. They even purchased the finished umbrella products directly on 1688, and then retail or wholesale via e-commerce.

“There was a saying that moving China’s manufacturing industry to Southeast Asia might pose a threat to China,” Liu said. “However, the entire supply chain and value chain are not as worried, or you earn, or I earn. Instead, we link Chinese fabrics to local factories in Vietnam by digital means.\”

So, what are the cross-border business groups selected on the 1688 platform? Liu Wei said that it is mainly divided into two categories:

One category is large traditional cross-border sellers operating on platforms such as AliExpress and Lazada. Every day, they explore products according to the behavior of consumers in various countries, and put hundreds of goods on the e-commerce platform for money measurement and sales. It is a very efficient organization form of supply chain and business opportunity mining.

The other type is the 90s (even after 95) entrepreneurs with diversified and more extreme business models. Most of these people are able to serve overseas consumers through Facebook, AliExpress, Lazada, etc., and earn a net profit of $1,000 a day.

Digital supply chain empowerment small business dropship and wholesale from China 1688

Liu Wei said that for these small and medium-sized businesses doing cross-border business or dropshipping, if they are Taobao sellers or Tmall sellers, you can find the source offline. But cross-border goods, they can not find the source of goods offline like Taobao sellers, because China does not have a wholesale or dropshipping market to sell cross-border sources, their supply chain system has three core pain points:

Firstly, the traditional logistics methods based on shipping and land transportation are too slow in delivery. For example, AliExpress sellers need a very efficient small parcel network to enable Chinese goods to appear at the doorstep of overseas consumers for 2-3 days. Therefore, Cainiao International and Ali Platform are building a global intelligent logistics network for this purpose, and empowering the whoelsale and dropshipping merchants in logistics delivery.

Secondly, the wholesaler and dropshipper overseas cannot be effectively coordinated with factories and suppliers in China. Today, Taobao and Tmall have a complete set of flexible supply chains and collaborative networks. When the Taobao seller saw the clothing of the influencer live broadcast, they can re-design and remodel sampling within one week, and the Taobao on-line sales within two weeks. With this domestic foundation, the 1688 cross-border exclusive supply will also provide China\’s supply chain e-commerce adaptation and flexible production for overseas small b merchants, and ensure that products comply with 3c certification.

It is worth noting that there is already a “global factory” project on the 1688 cross-border supply market, and more than 20,000 factories have completed deep certification, such as whether to do OEM or custom for global brands, whether it has been overseas Brand and overseas store services. In addition, the 1688 cross-border exclusive supply will examine the strength of the factory, including whether the manufacturing capabilities match, whether the product quality meets the European standard or the American standard, and whether it is a cross-border seller on the fast-tracking service.

Thirdly, currency circulation is difficult between countries. The seller received the US dollar in the AliExpress platform. In the past, it realized the settlement of foreign exchange through TT, money order and international bank transfer, thereby purchasing and paying logistics costs. But today, cross-border payment and settlement infrastructure needs to be upgraded. Therefore, the 1688 cross-border exclusive offer launched cross-border payment service to help sellers purchase directly on the 1688 platform in US dollars.

In addition to solving these three most important pain points, we also have a variety of technical services, functional tooling services to facilitate cross-border e-commerce businesses, so that businesses can put more energy on the service terminal consumers. \”Liu Wei added.

The data shows that so far, there are 50 million digital goods per day on the 1688 platform, maintaining fast, real-time updates. In addition, the 500,000 sellers on the platform are selling, obviously not for the Chinese consumers. For wholesaler and dropshipper overseas who buy these products, 1688 is not just a source platform, but an integral part of the digital supply chain.

So what does the digital supply chain mean?

Liu Wei said that the sellers who dropship or wholesale on 1688 used the “photo search” function very frequently. They would go to Vietnam and Thailand to directly compare the prices with the price on 1688 and then purchase them. During the field trip, it was found that the supply price on 1688 was basically 1/3~1/2 of the wholesale market in Thailand and Vietnam, which is very attractive for small and medium-sized merchants to dropship or wholesale on 1688.

“The digital supply chain sounds very advanced technology. The practical application is to take a photo with a mobile phone. It is so simple to find a Chinese factory in the Ali terminal market with “photo search” function, and it is so simple to purchase at a Chinese factory. However, this has changed greatly. The way small and medium-sized merchants do business and the way they buy goods.\” Liu Wei explained.

For example, last year, based on the digital supply chain, 1688 cross-border special supply has been tested and successfully tested the first global inventory free model. American consumers buy a necklace at AliExpress. The seller does not need to put the necklace in the warehouse and does not need to send the parcel. Instead, the 1688 cross-border exclusive factory directly ships to the US consumer to realize the online digital operation.

In addition to serving Taobao, Tmall, and Alipay offline stores, 1688 also serves a large group of cross-border e-commerce sellers, wholesale and dropshipping merchants. In 2017, 1688 specifically set up a cross-border channel for globalization and the rapid development of cross-border e-commerce. With the help of the digital supply chain, Alibaba will further deepen cooperation with AliExpress in 1688 in 2018. The 1688 cross-border exclusive “Orange Wind Plan” can better integrate Chinese commodity supply chains and merchant selections.

On the one hand, 1688 and AliExpress share the platform data. Wang Hai said, \”We hope to build cross-border logistics supply chain capabilities with Cainiao and AliExpress, let 1688 goods directly spread to the AliExpress platform, reduce the operation of merchants on AliExpress; also hope that in the near future Let AliExpress merchants really do inventory free business like the merchants doing Taobao business.\”

On the other hand, 1688 launched a cross-border financial product that supports cross-border. Sellers can purchase directly with US dollars on the 1688 platform, no longer need to remit money to China to pick up goods. In addition, the other financial support and rights for the business will be further opened.

In fact, in the past year, the 1688 cross-border market and AliExpress cooperation are more biased towards strategic cooperation and offline docking. Until May of this year, 1688 completed the docking with the AliExpress system. Liu Wei said, \”In the next 3-6 months, the 1688 cross-border exclusive supply will be linked to AliExpress and Lazada to build a local supply chain network to help digitize overseas businesses and even help Chinese sources and Chinese supply chains go to the overseas market.\”

He said that now AliExpress sellers can see 1688 cross-border special offers in the AliExpress background based on their business categories and consumer behavioral insights, recommending 1688 cross-border products for them. In October of this year, sellers can complete the one-click distribution in the AliExpress background; at the end of October 2018, the 1688 cross-border exclusive supply market will provide joint sales support for AliExpress sellers.

\”In fact, the 1688 cross-border exclusive supply market and AliExpress work together, is to change 1688 from an open market to AliExpress\’s own business opportunity market.\” Liu Wei said that now AliExpress sellers in 1688 cross-border The options have changed from the previous open market to personalized matching or private docking.

For example, AliExpress sellers can see the first-hand source of the 1688 factory through live broadcast, and these sources have not even appeared in the open market. He said, \”This will be the most powerful weapon for the AliExpress platform and sellers in 1688. The cooperation does not affect sellers of other platforms to buy in the 1688 open market.\”


5 Benefits apply reliable 3PL Chinese fulfillment service for shopify dropshipping

Shipping plays a vital role in the shopify dropshipping supply chain. When you dropship from Aliexpress or 1688 you could sell the most amazing product to the world, but if you don’t meet customer expectations for fulfillment and shipping, your dropshipping business could be restricted in the long term running. Shopify order fulfillment doesn\’t come into play during the sales process, but it\’s arguably one of the most important aspects of maintaining loyal customers. Because if an order ships late or you don\’t communicate well with the customer, they\’re probably not coming back.

How many steps involved the shopify order fulfillment when you dropshipping from 1688 or Aliexpress?

  • Communicating with the customer about the order
  • Managing the products in Aliexpress or 1688
  • Pack the product
  • Shipping it off to the customer
  • Sign package and got payment

Although there are 5 steps each of them contains many procedures, how many people you can hire if all done by yourself? The good news is that you don\’t necessarily have to do all of this yourself. In fact, some shopify sellers opt to outsource the entire process to reliable Chinese 3PL fulfillment agent service when they dropship from 1688 Taobao as well as other Chinese online shopping websites.

What\’s Chinese 3PL fulfillment service?

Traditional rrder fulfillment companies offer warehousing and shipping solutions for shopify sellers. They buys their inventory in bulk from a manufacturer or wholesaler on 1688 and Aliexpress. While the shopify seller knows they can sell all the inventory they bought, they don’t have the infrastructure in place to handle the logistics of so much inventory. Rather than limit the amount of inventory they buy and sell, the retailer enlists the help of an order fulfillment company to store, pick, pack, and ship their inventory. A Chinese 3PL fulfillment service can do far more better, it  allows shopify sellers to outsource the entire shopify ecommerce fulfillment process, including sourcing, purchasing, quality check, inventory management, picking, packing, and shipping orders from China to overseas countries.

86Deal dropshipping fulfillment services include:

Sourcing. 86Deal could help shopify dropshipper source reliable suppliers who offers exactly the same style goods with better quality and lower price on 1688 Taobao.

Bargain. 86Deal could help dropshipper compare different suppliers and bargain the best price based on the order to meet the seller budget.

Purchasing. Once confirmed the goods quantity, price, color, size, stock, shipping terms and fee, 86Deal with place order on 1688 to get the goods ship to 86Deal warehouse in 3 to 4 days.

Quality Check. Once goods arrived 86Deal warehouse, the staff will check the goods quality and packaging, and pick out the goods with flaws return to 1688 suppliers.

Warehousing. After Quality check, the goods will be listed on the warehouse shelf await for shipping. 86Deal offers 2 months free warehousing service for shopify dropshippers.

Printing order. 86Deal staff will print orders once the goods ready for shipping after the shopify dashboard integrated with our system via shopify app.

Consolidate order. After orders being printed, staff need to pick up different goods on the shelf then consolidate them in one package for shipping.

International Shipping. Once the good packed and stick printing order, it is ready for shipping. Due to the ePacket countries restriction, 86Deal can only dropship from China to 37 countries in the Asia, EU and North America.

Upload tracking. Once China post pick up the packages, 86Deal will upload the tracking number to shopify dashboard, meanwhile, the clients will get an email notification.

Label and packaging customization. For private label sellers, 86Deal also could help them customize label and packaging with their own brands for marketing purpose.

Difference between fulfillment service and dropshipping

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However, when you dropshipping from China a fulfillment service could make your shopify business more simple and cost effective.

5 Benefits on Chinese 3PL fulfillment service

The shopify seller apply reliable Chinese 3PL fulfillment service at least have the following benefits:

  • Greater control over inventory. You purchase and own the inventory. This means you should always know exactly how much inventory you have. You will never sell a product that is out of stock.
  • Better Margins. Wholesale on 1688 will typically have better margins than dropshipping from Aliexpress because they are assuming more risk by buying the products in bulk, up-front.
  • Faster shipping. The shorter the distance your products have to travel, the quicker they can arrive. In a world where consumers increasingly demand same-day delivery, reducing your shipping times is critical.
  • Storage and staffing expenses are flexible, not fixed. By essentially renting storage space and shipping capabilities you can adjust your expenses to meet your sales.
  • Upfront storage and staffing expenses are reduced. If you’re business doesn’t have the capital to launch its own warehousing operation, or wants to commit the capital to another opportunity, this an affordable alternative.

The main benefit of applying a Chinese 3rd-party fulfillment service is time and money cost. You free up all sorts of time to spend on things like marketing, sales, web design and more. In addition, these companies can usually integrate with systems like Shopify and Bigcommerce etc. Each time an order comes in the logistics company sees it and gets to work. Therefore, you don\’t have to do anything but focus on your store marketing.

Of course, apply a Chinese 3PL fulfillment service also have costs. There are many costs for the other fulfillment service overseas, for example, Amazon FBA, its cost include onboarding costs,inventory receiving costs,inventory storage costs,order pick and pack costs,packaging costs,kitting costs and shipping cost. As a Chinese fulfillment agent focuses on shopify dropshipping business, 86Deal only charge fixed service fee include sourcing, bargain, purchasing, quality check, warehousing, order printing, order consolidate as well as tracking upload services and ePacket international shipping fee. In addition to Shopify sellers, 86Deal also serves Wish, eBay, Amazon, Lazada, Magento, Woocommerce, Shopee, Shopyy sellers dropshipping from China 1688.

 


difference between fulfillment service and dropshipping

[[\”\”,\”Order Fulfillment Services\”,\”Drop Shipping\”],[\”What is it?\”,\”-Order inventory to the fulfillment center vai 1688 in bulk\\n\\n-When your customer purchases a product you tell the fulfillment company.\\n\\n-The fulfillment company then picks, packs, and ships the order to your customer. \”,\”-You list and sell products that you do not own but that are instead owned by a manufacturer or wholesaler.\\n\\n-Customers place orders with (and pay) you. \\n\\n-You place a duplicate order with (and pay) the manufacturer or supplier on Aliexpress.\\n\\n-The manufacturer or supplier on Aliexpress picks, packs, and ships their product to the customer. \”],[\”Key Differences\”,\”-You are buying inventory upfront, in bulk on 1688 for lower price.\\n\\n-Order fulfillment company is not the manufacturer or supplier of the product.\”,\”-You are buying inventory only after customer places an order. \\n\\n-Drop shipper is typically the manufacturer or wholesaler of the product.\”],[\”Who is it right for?\”,\”-Shopify seller with the capital to invest in large upfront inventory purchases.\\n\\n-Shopify seller that are confident the product will sell at a margin. \\n\\n-Shopify seller who do not want to invest in the space, manpower, and logistics of their own warehouse.\”,\”-Shopify seller who does not want to maker a large capital investment in inventory. \\n\\n-Shopify seller that want to test out selling certain products or marketing strategies.\\n\\n-Shopify seller who do not want to invest in the space, manpower, and logistics of their own warehouse.\”]]


Advantages and disadvantages for shopify seller dropshipping from Aliexpress VS 1688

The reason why dropshipping so popular in the ecommerce business mainly because it is easy to start with low risks. According to research, 33% of the worldwide ecommerce industry is using drop shipping as a primary inventory management model and China has emerged as the top dropshipping supplier. By dropshipping from China, you can quickly get your ecommerce website up and running while lowering financial investment. Aliexpress or 1688 ,which platform source is better when dropshipping from China? Lots of shopify sellers ask me the same question once we launched 86deal as a Chinese dropshipping fulfillment agent. Once you know the advantages and disadvantages for shopify seller dropshipping from Aliexpress VS 1688 you will know which source is better for you to dropship from China.

1688 focuses on the wholesale and procurement business in the Chinese market, through professional operation and comprehensively optimizes the business model of enterprise e-commerce. At present, 1688 has covered 16 major industries such as raw materials, industrial products, clothing and apparel, household department stores and small commodities, providing a series of supply services from raw material procurement-production and processing to wholesale dropshipping. On April 12, 2018, Alibaba 1688 held a summit in Guangzhou and launched its cross-border exclusive market platform, the first time the transcript was disclosed, as of the end of March, nearly half a million SMEs passed the 1688 cross-border platform. Providing services to AliExpress, Amazon, Wish, eBay, Lazada and other platforms in 220 countries and regions; within one year, the transaction scale and buyers of cross-border exclusive markets have grown more than 4 times.

Aliexpress is another subsidiary of the Alibaba Group which mainly focus on the overseas market. It launched in 2010, it has become the destination one of the fastest growing eCommerce platforms for users outside of China, it caters more to the international market and is available in English and 15 other languages. In addition, this platform differentiates itself from the B2B platform Alibaba by selling items in smaller quantities as opposed to selling in bulk.  Aliexpress acts as a marketplace for sellers, consumers and dropshippers. They use this site to list products from Aliexpress sellers to their own shopify websites. In this way, each product that the reseller lists on their own website is being marked up by a percentage from the original wholesale cost.

What\’s the advantages and disadvantages for shopify seller dropshipping from Aliexpress VS 1688?

Pros dropshipping from Aliexpress

Easy to start. Aliexpress provides 16 languages which is easy to understand and there\’s no legal requirements for dropshipping. Which means you can sell worldwide at home no matter where you are.

Little or no starting cost. With Aliexpress you don’t have to pay any entry fee to dropship, and no additional payment required of you in the whole process of dropshipping. It is easy for startups.

No inventory required. Shopify seller do not have to stock goods for sell, once got orders buy from Aliexpress and ship to clients directly with free shipping to earn the difference price.

Customer care. Aliexpress customer services your store offers gives it an additional value and help build reputation and trust among your customers.

Trending Product Ideas. Aliexpress updates hot sale goods regularly based on its platform data in different countries, with it shopify sellers can easily find trending products and related goods for their stores.

Cons dropshipping from Aliexpress

Inventory Issues. With no inventory, investment and cost, you will find many competitors doing the same.

Supplier Errors. If the supplier doesn\’t ship on time, the customer is gonna scream at you, not at the supplier.

Shipping & packaging error. A consignment if not packaged well and handled with care leads to high returns. And high returns rate is detrimental to any business.

Quality issue.  Since all products on Aliexpress are sourced and shipped from China, it becomes a real hassle to return your customer’s order to the original seller if there has a quality issue.

Pros dropshipping from 1688

Lower goods cost. As a shopify seller you can always find goods at lower price on 1688 compared to Aliexpress, and you can get even lower price once you wholesale from 1688 which could help you have more profit margin.

More goods categories. Basically 1688 have at least 10 times bigger goods inventory than Aliexpress, you can have more wider choices for your shopify store.

Better user experience and customizable branding strategy. The 1688 agent offers different dropshipping fulfillment service to help shopify seller improve user experience with quality check as well as branding customization service.

Less efforts on dropshipping. Once shopify sellers choose 1688 agent to help them fulfill the orders they only need to focus on marketing to increase traffic and convention rates to improve the sales, the rest job can be done by the dropshipping fulfillment agent which will improve the efficiency and lower down cost greatly.

Cons dropshipping from 1688

Moq requirements. when shopify seller dropship from 1688, it may have MOQ requirements if the supplier doesnt support cross border dropshipping;

Fulfillment cost. The shopify seller may have language, payment and shipping issue when dropship from 1688, the dropshipping shipping fulfillment services cost extra.

Delivery takes longer time. Due to the 1688 supplier need to ship to fulfillment agent warehouse, it may takes longer time for agent ship the packages to clients, but the delivery time can be cut by many measures.

After we compared the pros and cons shopify seller dropshipping from Aliexpress VS 1688, we may know the difference includes:

Languages. Aliexpress have more than 10 languages while 1688 only in Chinese. It is easier to start with Aliexpress;

Payment. Shopify seller could place order directly on Aliexpress via paypal or credit card, but they cannot pay directly on 1688;

Shipping. Aliexpress supplier can ship directly with ePacket, DHL as well as other courier service while 1688 need to ship to clients via agent.

Cost. Alixpress is cheaper for shipping while 1688 need to include fulfillment agent service fee, however, 1688 is cheaper if shopify seller work stable with the agent for large volume orders.

User experience. The fulfillment agent could help shopify seller check goods quality before shipping which could lower down the goods return rates with less disputes. Meanwhile, the agent could help shopify seller customize packaging and labels for better user experience.

In all, dropshipping from Aliexpress is better for shopify starters, while dropshipping from 1688 is better for professional shopify sellers who already have daily orders and good profit margin.

86Deal dropshipping fulfillment services include:

Sourcing. 86Deal could help shopify dropshipper source reliable suppliers who offers exactly the same style goods with better quality and lower price on 1688 Taobao.

Bargain. 86Deal could help dropshipper compare different suppliers and bargain the best price based on the order to meet the seller budget.

Purchasing. Once confirmed the goods quantity, price, color, size, stock, shipping terms and fee, 86Deal with place order on 1688 to get the goods ship to 86Deal warehouse in 3 to 4 days.

Quality Check. Once goods arrived 86Deal warehouse, the staff will check the goods quality and packaging, and pick out the goods with flaws return to 1688 suppliers.

Warehousing. After Quality check, the goods will be listed on the warehouse shelf await for shipping. 86Deal offers 2 months free warehousing service for shopify dropshippers.

Printing order. 86Deal staff will print orders once the goods ready for shipping after the shopify dashboard integrated with our system via shopify app.

Consolidate order. After orders being printed, staff need to pick up different goods on the shelf then consolidate them in one package for shipping.

International Shipping. Once the good packed and stick printing order, it is ready for shipping. Due to the ePacket countries restriction, 86Deal can only dropship from China to 37 countries in the Asia, EU and North America.

Upload tracking. Once China post pick up the packages, 86Deal will upload the tracking number to shopify dashboard, meanwhile, the clients will get an email notification.

In addition, 86Deal also provide add on service such as label and packaging customization service,  furthermore, we could push daily financial report to shopify seller to show every penny of the dropshipping cost. Please feel free to contact us if you are interested in dropshipping from 1688 with fulfillment agent service.