What factors need to be considered in the choice of warehousing outsourcing?

Nowadays, many e-commerce sellers prefer order fulfillment center, but what factors need to be considered when choosing your new warehousing partner? Here we have listed some major factors for your reference.

  • Charging Standard

The charge standard of fulfillment center can be divided into two categories:

The first category is to carry out the charging standard according to the actual operation volume (warehouse receiving, delivery, storage, return, etc.). And the other type is based on the cost of resource consumption and development contract (the total area of the application warehouse, the total number of staff, equipment depreciation, consumables, etc.)

  • Process Control and Management Data

It is necessary to carefully investigate the process optimization documents of your potential warehousing partner to evaluate its standardization and work ability. For example, you can obtain a general idea of them through website visiting. You can also pretend to be a new customer to test them. Generally speaking, the will show you some files about their enterprise profile and fulfillment performance, which cover their process control and management methods.

  • Execution Capabilities

In addition to the marketing plan, the execution ability is also a very critical part. It is necessary to fully grasp the work flow of third-party warehouse and outsourcing enterprises, especially the steps at the level of purchase, marketing, accounting supervision, etc. A qualified warehouse should work out the practical plan.

  • Humanized Marketing Plan

Customized business planning of a Chinese order fulfillment center is an indelible aid. You can evaluate its professional skills and value according to their marketing plan. Furthermore, a fulfillment center with strong market sensitivity will create a more valuable plan, which means they can provide more benefits for you.

In a nutshell, China fulfillment services is appreciated by more and more e-commerce companies, especially the Amazon and Shopify seller. Therefore, detailed investigation is a wise choice for everybody who wants to find an ideal expert of drop shipping, packing, china sourcing, third party logistics, etc.

Dropshipping is Not Dead, Follow China to Step in

The United States has increased the shipping rates for packages arriving from other countries, including China. The good news is that the changes are likely to be less severe than initially thought when the US government announced it was leaving the Universal Postal Union (UPU).

BUT, that doesn’t mean that dropshipping as a business model is dead. 

Far from it. In fact, these changes might open up more opportunities for dropshippers in the United States. But at a special meeting in September, the UPU voted to allow member countries to effectively set their own foreign postal rates. This move has been viewed as a compromise to keep the US happy and keep them in the UPU.

So you can expect that shipping packages from China to the US is going to increase. But as we know, Dropshipping will continue to be a viable business model, despite the likely increased cost of shipping from China. 
Even if you’re using Chinese suppliers, there are things you can do to prepare your dropshipping business for the changes.
Here are 5 strategies you can use to prepare your dropshipping business for higher shipping costs from China to the US.

1. Use Chinese suppliers that have US warehouses

Here’s a little known fact. You don’t have to ship products from China to work with Chinese suppliers. Many Chinese dropshipping suppliers and manufacturers have warehouses in the US now. Companies like AliExpress are stocking up warehouses in the US with bulk products and setting up a fulfillment service to compete with Amazon FBA. This was done so that Chinese suppliers could offer US customers faster shipping. So it’s definitely possible to dropship products within the US using Chinese suppliers. However, not all Chinese suppliers have inventory and order fulfillment in the US, so you’ll have to do some digging. I expect this will become more common, especially if shipping from China becomes more expensive. If you do decide to dropship from a US warehouse, don’t expect prices to be quite as cheap as you’re used to.
You’ll be absorbing the cost of shipping products to the US and storing them in warehouses. But prices will still be competitive, and you’ll have the benefit of offering your customers faster shipping. You can start by simply searching “USA warehouse” or “US warehouse” on AliExpress and making contact with suppliers in your niche. Or when you search for a product you can choose to filter products by where they are shipped from.

2. Renegotiate deals with Chinese suppliers

If cheap shipping from China really is over, but you’re still set on using Chinese suppliers, you should try and negotiate a better deal for yourself.
Chinese suppliers will be keen to hold on to valuable customers and may be open to dropping prices to account for higher shipping costs. Here are some tips for negotiation with suppliers. Basically, you want to try and get the per unit price down so the increased shipping costs don’t eat into your profits too much. This might be tough to pull off for low-cost items, but you may be able to cover shipping costs entirely by negotiating better rates for high-ticket products.

Being in business is all about being adaptable and responding to change.
Dropshipping is here to stay. Visit Chinadivision, find out more.

What Can You Look for in a Fulfillment Warehouse

Whether you own an eCommerce operation or run franchises, you’ll be responsible for shipping orders to the right destination. That’s easier said than done most days. Your team has to take care of packaging and branding, all while executing a complete distribution strategy. 

Partnering with a fulfillment professional can help streamline all these efforts, but not all warehousing companies are created equal. 

Make sure you do your homework before signing a service contract with just any fulfillment partner. Here’s what you need to pay attention to:

Services Provided

The first thing to do is to make sure your potential partner can actually handle all the things your store requires. Most fulfillment companies offer a basic set of solutions (warehousing, order fulfillment, and shipping), but the best professionals are those who go the extra mile. Work with a fulfillment company that also provides printing and branding support. The right partner can easily adapt to any obstacle that interferes with the goals of your fulfillment strategy. 

Pricing

An affordable service doesn’t mean settling for a cheap fix. You want to work with a professional who provides honest and quality work, but when it comes to pricing, it’s best to hire a firm that won’t break the bank. Ask for quotes and get details about service fees and financing options. Study each offer carefully and keep your eyes peeled for hidden costs. Give each company an idea of your budget so they can tailor a solution to your finances.

Location

The closer the facility is to your customers, the shorter the distance your goods have to travel. Look for a fulfillment center that is centrally located in a high-traffic area. This can help shrink the delivery and get orders fulfilled much faster. If you own a business that ships products across the nation or on a global scale, you’ll want to partner with a fulfillment company that has multiple warehouse units. 

Availability

Customer service is one of the most important things when cultivating a working relationship. If you run an eCommerce store, you’ll need to provide around-the-clock customer support in case something goes wrong with a customer’s order. The same goes for fulfillment companies. Find out how to get in touch with your partners and when they’re most accessible. The best companies to work with are those with emergency response hotlines. This ensures that someone is always available to help in case something disrupts your distribution. 

Shipping Specialties 

Working with a larger fulfillment center introduces you to special shipping rates, which can help you save a fortune on all distribution efforts. Lower shipping prices leads to more products stocked and more money to set aside for other areas of the business. In addition, you’ll want to collaborate with a company that has a reputation for meeting deadlines, while delivering products in a quality fashion.

Branding Options

It’s one thing to ship your products to a physical location, but if you don’t have a brand that resonates with people, then good luck making a sale. A third-party fulfillment (3PL) provider should lend a hand in your branding efforts. The best partners can print custom labels. Do your research and find a partner that can deliver authentic packaging on a variety of materials. 

How To Get Traffic for Your Web Store

Want to eliminate the need to pay for costly marketing and advertising materials? Get more free high-quality traffic for your online shopping site using any of these methods. Selling products and services online needs traffic combination of quality and quantity.

1,Advertise and submit your website to social media, online directories, blogs, and search engines to bring more traffic to your website. This is an excellent way to increase viewership and leads.,
2,Get started on content marketing. Create articles that are fun, creative and personalized. The best way to entice your readers to another level is to add infographics and images. Images are also effective in getting people interested in your brand.
3,Pay attention to SEO. The rules are simple to find the right keywords your website will use. Always think about words that have low competition. Never go for the high competition keywords. Consider the length and how it is being used in the content. Optimize your page, use breadcrumbs, do internal and backlinks.,
4,Don’t forget to start a list for your email campaigns. Create email campaigns that are relevant and original. So your readers will come back for more. Even though email marketing is traditional, they are powerful and have the potential to increase your traffic.
5,Analyze the traffic coming in and out of your website. Every aspect of your websites like the pages, comments, and content engages your customers in different ways. Optimizing your pages including your comments helps your website rank better on search engines.
6,Use video in your email marketing and content. Hold your audience attention creating unique and fun videos that go well with your brand.

Is dropshipping really so profitable

As a business entity you need to rely on third party to fulfill the order. That’s the biggest challenge with dropshipping. It’s extremely difficult for find the right drop shipping vendor/ partner for your establishment.

First thing when you plan to start dropshipping you need to fathom the idea that the success purely depends on your online strategies. It’s not an easy task to compete with every brand that tries to dominates the search engine and still trium in terms of getting a higher visibility. You need to have a fair idea of who to target and which target market to penetrate.

If it’s a new website then it becomes a bit hard to compete with the well established brands in terms of branded keywords. I didn’t said its impossible. It’s just that you need to come up with a good SEO strategy to outsmart the competitors. I most cases the people tend to give up with in the first fe months. Let me remind you ROME is NOT build IN a DAY. You can only succeed if you put your heart and soul to it. You need to follow the best standard set in the industry.

Besides, we still want you to know and can make your own decision:

Advantages of Dropshipping

  • No need to maintain a big team
  • Can start with the least investment
  • Don’t have to muddle with inventory management
  • Sell a product and then earn the commision/ profit margin
  • The hard work you put into SEO will be a long term investment
  • Can scale up at anytime and convert the online store into an exclusive store.
  • Can list multiple products on the same platform and give the user an opportunity to select the best.
  • Cans start at any time (only hassle is to find the right dropshipper, and agree on the profit margin.

Disadvantages of Dropshipping

  • Digital marketing will consume a good amount of resource
  • If not monitored and managed, the business model will create confusion among customers
  • You will be the sole point of contact when comes o the product, since the customer placed the order on your platform.

How to Reduce the Outrageous Shipping Costs of Big Item

Shipping is part of running most business where selling of physical products are involved. In order to lower these outside costs, you have a few options to try and lower them (if you can).

Negotiate with your supplier on the product and/or shipping. If you can show them the cost of shipping is becoming prohibitive for you to do business with them, they may lower the product price OR they may have better relationships with carriers which they can leverage to get you better shipping rates.
If coming from China, ask your supplier to ship the product to you. Many of these large companies in China (and other parts), ship huge amounts and thus get extremely competitive shipping rates. Instead of setting up your own shipping, let them do it.
Use a shipping broker, either one from China or your country. They ship large volumes and get extremely competitive shipping rates. Most business owners think they can negotiate better rates, but if you don’t have big volumes, especially when starting, you will never enjoy low rates.
Use a freight forwarder, who consolidate multiple shipments into one and ship in bulk which lowers the rate for every businesses product on that shipment. Again, they like the brokers, have terrific relationships with carriers and enjoy much lower rates.
Buy more and ship in volume, which will lower the shipping cost per item shipped. If you buy 30 chairs as opposed to 10, the cost to ship per items is naturally lower when you ship a higher number.
Gang up with other businesses who ship from the same source or supplier and ship together and split the costs.
Use ChinaDivisiohttps://www.chinadivision.com your professional B2B order fulfillment and logistics service provider. You can trust us!

Why You Need a 3PL Fulfillment Service

Imagine that you run a small business selling customized iPhone cases to customers. It’s a small business — you’re the sole proprietor — and you spend a good deal of time reaching out to prospective customers, podcasts, guest bloggers, and other means to drum up business. You also spend time dealing with product improvements and customer support.

Your excellent work has led to a tremendous spike in orders… except now you have to somehow process 10–20 orders per day in addition to doing all the other things you were doing.

You have three options:

  1. You can fulfill the orders yourself and spend the extra few hours a day handling this fulfillment… time that will come out of efforts to grow and sustain your company.
  2. You can hire someone internally to fulfill these orders and pay them to store and process inventory, pick and reconcile order forms, and then either arrange a carrier pickup (e.g. FedEx) or take them to a distribution center for shipment.
  3. You can outsource fulfillment with a 3PL, and they will do all of this for you.

Obviously, option #1 isn’t particularly great, because it involves compromising your company’s growth at a pivotal time.

Option #2 isn’t bad… but it is usually quite costly.

Option #3 — using a 3PL Fulfillment center — is a fabulous option in many cases, because it will be cheaper than hiring an associate in terms of absolute-capital outlay, but you’ll also very likely benefit from shipping costs due to a fulfillment center being able to operate with economies of scale (excellent ones ship millions of packages a year and thus have access to the very best shipping rates).

The services a 3PL Fulfillment center will vary based on the place, but over at ChinaDivision, we offer the following services (this list is not exhaustive):

  • Warehousing: your product has to sit somewhere. Sheds, storage units, and living rooms are options for some… but a fulfillment center has extensive warehouse space and can warehouse your products for you.
  • Inventory/Order Management: When an order comes in from a customer, a great fulfillment center will automatically adjust the available inventory and reconcile the order against current inventory levels.
  • Integration: Fulfillment centers should be able to integrate their software with your shopping carts across every channel. So it doesn’t matter if your customer came to you through Amazon, your Shopify site, or your eBay store — all stores should be integrated with your account through the fulfillment center.
  • Shipping and Handling: Printing out shipping labels, affixing them to boxes, building the boxes themselves, and then taking all of the units to be shipped… this takes time, money, and effort. Fulfillment companies can handle this easily and turn a 2 hour job into a 15 minute one.
  • Special Kitting: Do you have a subscription box that requires assembly? Are you trying to prep your packages for FBA? An exemplary fulfillment center will be able to accommodate any and all of these requests.

What Make a Fail Drop Shipper?

Lack of Unique Value Propositions

A value proposition is an important part of any business model. When you create a value proposition, you force yourself to think about why a customer should make a purchase from your business. Without a proper value proposition, you’ll struggle with your marketing efforts and conversion efforts.

Remember that value propositions are meant to be defined “from the outside in.” Meaning that they should not focus specifically on products and services you offer, but more on what benefits you can provide to your customers.

Here’s what makes a good value proposition:

  • Clarity. Make it easy and simply to understand.
  • Properly communicates what a customer will get from your products.
  • Explains how your offer is superior to your competitor’s.
  • Does not include hype, buzzwords, or business jargon.
  • It can be understood in 5 seconds or less.


Delayed Shipping

Amazon continues to shape the shopping habits and behaviors of customers. Delivery expectations may have experienced the most change over the last decade. Today, 54% of consumer identify delivery as the defining factor when choosing who to shop with.

Poor Customer Support

Failing to offer reliable, friendly customer support is a common reason dropshipping businesses fail. When a customer comes to you with a question or concern, this is often times their first interaction with you and will shape their first impression of you and your brand. Invest in developing your customer support to meet your shoppers were they are with unrivaled support.

It isn’t realistic to offer customer support at every point possible, but you should establish one to two different channels where you can respond to customer inquiries in a consistent fashion. Here are the most popular customer support channels:

  • Email
  • FAQs/Guides
  • Phone Support
  • Live Chat
  • Social Media

No Social Media Presence

Being an independent e-commerce retailers comes with what feels like millions of different responsibilities and tasks. It’s easy to forego an aspect of your business that seems unimportant, like social media. However, social media presents an opportunity to reach your customers in a unique, valuable way. Failing to establish and build your social media presence will eventually cost you sales in most cases.

Simply put, your customers are on social media. Whether it’s Reddit, Twitter, Instagram, Facebook, or another channel, you should position your brand where your customers are. It’s important to note that your competitors are likely already established on different social media channels, so you can’t afford to not bet.

Social media requires a lot of time and dedication to regularly updated content, but with some creativity, you’ll find it easy to create and share content your audience will love. For example, if you’re selling pet toys and treats, your content can be centered around pet health, tips for raising pets, and information for new pet owners.