What will Happen to Drop Shipping in the Future?

Over the past decade, many Chinese drop shipping agents had embraced incredible success on account of lower shipping costs and better capability. Unfortunately, COVID-19 had a ripple effect on drop shipping agent and cross-border e-commerce companies, which caused a heated discussion about what will happen to the drop shipping business in the future.

Back to 2018, American President Trump announced that the United States was pulling out of the intergovernmental body called the Universal Postal Union after claiming that China has been taking advantage of the US. One year later, UPU announced that it reached a deal with the US and it approved President Trump’s request to collect higher fees on packages from international destinations. The agreement will go into effect on July 1, 2020 and American sellers can expect significantly hiked prices on their products. Basically, ePacket, a shipping option offered by Chinese and Hongkong merchants when shopping on popular Chinese marketplaces like Aliexpress, will no longer be price competitive and many American independent sellers will, if not go out of business, dramatically lose revenue.

But it is a fact that China is the world’s largest manufacturing country and a titan in the global exporting industry, according to statistics, China had assisted over 18 countries in the work of epidemic (South Korea, Italy, Japan, Iran, Pakistan, etc). Apart from sending medical teams, China also donated $20 million to the WHO, as well as masks, medicines, protective suits and other epidemic prevention materials to relevant countries. From the data, we can figure out the capability of Chinese Government, and so do the drop shippers. The local quarantine agency said Chinese outbreak appeared to be well contained, so there will be adequate staff in the order fulfillment center to achieve fast warehousing, packing and shipping.

In brief, Chinese drop shipping is the trend of e-commerce in the future, your business can be booming with the help of drop shipping agency.

Warehouse Optimization Plan of China Division

Maybe some of e-commerce businessman are trying to find a superior Chinese sourcing agent of mask, goggles and protective hat due to the prevalence of flu virus and COVID-19. But you must be capable of picking the most cost-effective order fulfillment center, as well as a normalized third-part logistics. This blog will share our method of warehouse optimization.

  • Dampproof and Mildew Proof Work

We are intended to adopt a deoiling and dehumidifying machine with good performance, closed with plastic film, air curtain for moisture separation and air regulating storage.

  • Digitized Inventory Management

Equipped with first-class technical staff, China Division will create digitized storage and portable computer access system.

  • Fire Protection System

Three-dimensional warehouse needs to set up automatic sprinkler system to ensure enough water while the special warehouse needs to prevent the static electricity generation. What’s more, it is very important to install a lightning protection system with good performance.

  • Classified Warehousing

In order to create high-quality warehouse fulfillment service in China, there are clear regulations in China Division: The storage of dangerous goods of different types and properties shall be in accordance with the principles of division, classification, subsection and special warehouse. For example, liquid chlorine is highly explosive when exposed to ammonia or acetylene, so they must be stored in separate warehouses.

  • Regular Warehouse Inspection

We will ask the warehouse staff to inspect the dangerous goods every month for safer picking packing and shipping. Therefore, some items about to expire will be found in advance, avoiding negative comment for the online owner of Kickstarter, Amazon, Shopify, eBay, Aliexpress, etc.

Homebody Economy Brings More Opportunities for Chinese Warehouse

The COVID-19 pandemic had exerted a profound impact on people’s lives and consumption habits, so the so-called “homebody economy” gains steam all around the world, which has boosted a new consumption trends, according to a study released by Nielsen, a global measurement and data analytic company.

“Although home quarantine restricts people from going out, it makes staying at home a new way of life and thus boosts the ‘homebody economy’,” said Justin Sargent, president of Nielsen China, adding that consumers have quickly adapted to the situation in order to meet daily needs such as staying safe or for shopping, as well as for personal leisure.

In addition, with the advent of 5G, AR and artificial intelligence, Chinese warehousing will embrace more and more opportunities and benefits, so do their customers—the brand owner or shopkeeper of online store.

From the perspective of the e-commerce century, Amazon and eBay sellers are trying to fulfill better webstore performance and customer satisfaction, so it is time to collaborate with a drop shipping company for faster delivery. We are convinced that the tide turns on crisis. As the famous saying goes that the opportunity is for those who are prepared. You can start with fulfillment center service and you will meet more profit in the field of cross-border e-commerce.

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.

Why more and more E-commerce Participants Love Fulfillment Center?

With the rapid development of e-commerce, online shopping has flooded into every family, people can even purchase their daily fruit or vegetable online. Therefore, many stores have been gradually transformed from stores into web-store.

Nevertheless, some online stores(such as KickstarterAmazonShopify, eBay, AliExpress, etc.) need to find a money-saving warehouse to store your inventory, especially household appliances, fitness equipment and daily necessities. In order to help you save more costs, the one-stop Chinese fulfillment center of warehousing, packing and shipping came into being. Next, we will share their advantages for you from the following aspects.

Firstly, China warehousing brings faster distribution for you. Generally speaking, it is too busy to deal with all the orders if your store is in promotion. Take Christmas for example, you may communicate with countless customers in one day, and someone may ask you to sent the item immediately, which is a tough question for you. In this case, you can select a Chinese warehouse to sent the goods for you.

Secondly, drop shipping service can save the cost of renting warehouses, decoration, truck purchase and staff recruitment. You need to create a professional team if you rent a warehouse, but if your employee makes an application to leave, you have to bear the poor store credibility caused by the shortage of staff.

Thirdly, it is hard to be affected by the off-peak season if you choose China Warehousing. Many eBay and Amazon stores were closed for the poor performance during COVID-19, they cannot afford the high rent and staff salary without enough orders. If you had chosen a drop-shipper before COVID-19, you can avoid this problem easily.

Fourthly, less delivery problems will happen with the help of a Chinese fulfillment center. It is because the are well-trained and experienced. So you can get rid of the anxiety caused by price increase notification or training your employees.

Last but not least, the market analysis staff of the fulfillment center can quickly find the problems and solve the difficulties, so you can enjoy a better logistics distribution service in the fickle market.

Three Reasons of Fulfillment Centers Start a Business in Shenzhen

As a cross-border e-commerce entrepreneur, you will be surrounded by many choices when finding the warehouse address. However, you will take many detours on the way to your cheapest fulfillment service. What’s worse, some Amazon sellers have been very confused about global ecommerce fulfillment owing to the Amazon warehouse fire and COVID-19.

To tell you the truth, Shenzhen warehouse plays an inportant role in the international orfer fulfillment. A latest study concerning Chinese warehouse location indicated that 75% warehouses come from Shenzhen. Here we have summarized three reasons as shown below:

As you can check in Google Maps, Shenzhen is near the international parcel processing centre——Hongkong, which provides more convenience for picking, packing and shipping. Take Amazon ePacket tracking as an example, Shenzhen warehouse can sent the items directly if your customer has ordered successfully from your webstore. That is to say, you don’t need to manage your own warehouse or distribution center.

Shenzhen is the birthplace of China’s reform and opening up, where many foreign trade enterprises and drop-shippers had been created. So they have more experience in the field of warehousing and shipping for e-commerce, and it is hard to find disorderly shipping and wrong delivery. In this way, you can reduce business risk and increase customer satisfacton.

During COVID-19 pandemic, the majority of e-commerce sellers want continuous selling on AliExpress, eBay and Amazon. Therefore, it is essential to reduce the chance of infection with COVID-19, whether it is warehouse or transportation staff. The number of people diagnosed in Shenzhen is cleared on May 21. Additionally, the government insists on strict pandemic prevention work, requiring everyone in Shenzhen to measure body temperature every day, especially warehouses and catering staff, mask wearing and hand washing are indispensable work.

All in all, you can get a fully automated with less money and time if you choose the most suitable order fulfillment center, and Shenzhen is a competitive choice.

Tips for Faster Delivery during African-American Parade and COVID-19

Still confused about how to ship your e-commerce order in a faster way? Maybe this article will help you out. We are going to introduce a competitive chinese shipping center called China Division for you. Here we have listed their advantages for your reference.

  • Convenient location

Located in Shenzhen, we can reduce more transit time since it is near the international parcel processing centre——Hongkong. Therefore, you will not only improve your user experience of china warehousing, but attract more customers to sent orders to you.

Isn’t this the best way to ship board games?

  • Professional visitor reception and customer service

China Division has created an experienced service team for better Customer satisfaction, you can share your problems and suggestions with them, they will spare no effort to help you. Besides, you can check our order fulfillment case show of KickstarterAmazonShopify, eBay, AliExpress, etc.

  • Good order fulfillment performance

China Division will pay special attention to every details Whether it is a sample order or an order from our old customer, covering receiving product, retaining QA (Quality Assurance) product samples, rotating stock, etc. Our warehouse teams, in conjunction with our customized warehouse management system, handle all of these processes and help you manage your inventory worldwide in time.

  • More discounts

Taking advantage of our volume discounts for domestic and international shipping, our combined customer orders enable us to leverage our purchasing power for steep discounts. You can share the savings with your customers or use it in other ways.

  • Abundant delivery channels

The following picture shows our various delivery channels, you can communicate with our customer service team for more details.