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What are the Disadvantages of Drop Shipping from Chinese Manufacturer

There are many things to consider when setting up an e-commerce
business in China. Some of these include delivery arrangements, inventory and stock locations, and finding the most cost-effective and least time-consuming way to organize products. Although many companies use drop shipping for their e-commerce web sites, there are many disadvantages of drop shipping that you should be aware of. Here’s what you need to know about the risks of drop shipping.

Drawbacks of Drop Shipping
Drop shipping is the process of getting deliveries from suppliers straight to the company, instead of having suppliers send your company the products before you to send them to your customers. It removes one link in the chain and prevents the unnecessary task of receiving a delivery only to send it back out again. In additon, drop shipping has been beneficial to some businesses—when you compare drop shipping with order fulfillment, the latter wins, hands down. Here are some disadvantages of drop shipping.

Stock Shortages
Sudden stock shortages are one of the most common problems sellers have with drop shippers. If customers suddenly rush for a particular product, the drop shipper may sell out, leaving you in a situation where you have orders to fill but no products.

Increase in Cost of Goods Sold
Stocking retailers are usually paying less than a drop shipping retailer who is selling the exact same item. Stocking retailers usually get better pricing, marketing incentives, additional bonuses, inside information about the product line, access to deals, among many other advantages. This is because they have a direct relationship with the manufacturer who makes the products they sell.

Higher Fulfillment Costs
The drop shipping process requires that you pay the real cost of stocking, picking, packing, and shipping, as well as a large mark-up. This means that drop shipping costs rise as your sales grow. However, if you stock merchandise yourself, you have more control over these costs.

Increased Customer Service Issues
Although drop shipping saves your company time by removing the responsibility of shipping, it also takes a big part of the customer experience out of your control. Unless you know when your product is being shipped out, the tracking information, and the arrival time, there’s no way for you to guarantee that a product has arrived as described and on-time. Additionally, when a customer calls you to complain or ask questions about their shipments, the resolution process is much slower as you do not often have the necessary information on hand.

Outsource Your Order Fulfillment with a 3PL Provider

If your company has been considering ways to save money and time, drop shipping may have been one of the options for you. Unfortunately, considering all of the disadvantages involved, you may be looking for a better solution. Here’s where a third-party logistics provider comes in. Chinadivision. offer our clients a variety of hands-on services including e-commerce fulfillment, product fulfillment, direct mail marketing, and fulfilment solutions. We also use the best quality software systems to manage your warehouse. Thus, be sure to contact us if you’re looking for the right company,

Inventory Storage and Management of Order Fulfillment Center

China Division had received some questions from our customers (Amazon seller, eBay shopkeeper, Shopify operator, etc.) in the past two months. We found that most of them don’t know how there goods will be managed in our warehouse. So today we are going to share our inventory management method with you.

In a general way, we will create a specific storing area for every customer, which is easier to check the amount and status of your commodity, especially the dead inventory. After your goods enter our warehouse, they will be classified according to the specifications and colors. Besides, the labels and raw material cards will be affixed. Then, the fulfillment staff will record the updated data into our inventory list. It’s worth mentioning that China Division will keep the package clean and safe in our warehouse.

When it comes to the daily delivery and bestseller management, our daily inventory inspection offers not only the latest data but guideline for stocking plan. Products exceeding the inventory turnover days (the total sales volume of five-day preparations for best-selling products in advance) must be immediately stocked.

As for the changing or refunding, our customer service center will be responsible for that, you can contact them for more details if you need to change or refund. What’s more, dangerous goods that are flammable and explosive shall not be stored in our warehouse, and the cleanliness and hygiene of the warehouse will be maintained every day. In addition, our warehouse is equipped with monitoring, so it is hard to appear the goods stolen and the warehouse fire.

Are you still confused about the difference and contrast between DDP and DDU? It’s time to find an order fulfillment company, so that you can save more money and time.

How does China Division Ensure the Accuracy of Inventory Warehousing

As an Amazon seller or eBay store owner, you must want to find the best drop-shipper of shipping from china. Thus, the accuracy of E-commerce warehouse inventory can count for a lot. Today we are going to show you how we did this job.

Practical Employee Management

ChinaDivision provides systematic and professional training for employees in the \. Besides, a performance evaluation system has been established to improve their daily performance. Therefore, China Division will offer a better user experience of picking packing and shipping.

Powerful Warehousing System

The e-commerce warehousing has a strong dependence on the information system. It is difficult to ensure the accuracy if there is no complete management system to guide the operation. So China Division is available for useful warehousing system and the key functions are: bar-code application, inventory position management system, etc.

Hardware Equipment

In order to improve the accuracy of the quantity, the fulfillment center needs enough equipment matching the system. ChinaDivision uses bar code identification, RFID identification and other equipment to classify and control the quantity of the warehouse. In the sorting or inventory link, the equipment for the system review and confirmation of the picked goods, etc.

Inspection before Storing

China Division stipulates that the items to be delivered must match the quantity on the order, which is the source of ensuring inventory accuracy. Generally speaking, clothing can be divided into different colors, styles and sizes, so it is important to check carefully before storing. Our customer service team will communicate with customers timely if there are something wrong.

Regular Warehouse Counting

Monthly warehouse check is a significant work for ChinaDivision, which can help us find more problems and take actions in time.

Make Your Dreams Come True: Crowdfunding Marketing

if you…

Always wanted to design an “hip new skirt?”
Always dreamed of sharing your idea for a hot new mobile app?
Always wanted to sell your gluten-free bread?

Yes, use crowdfunding!

Whether it’s finding “the one,” starting a blossoming career, running a marathon, creating social change or traveling somewhere new, there are always ways to accomplish your dreams, no matter how big they are!

Anything is achievable with the right amount of focus, effort, and action. Of course, it’s not just about having big dreams—you need to do something to turn those dreams into a reality.

Now, if your dream is to create the next hot product or business there is a solution to making your business a reality: a phenomenon called crowdfunding marketing! Excuses of the past like not being able to raise funds are no longer a limitation.

If you can properly execute an effective crowdfunding marketing strategy, you can do make your dreams come true!

Crowdfunding, on the other hand, gives you a quick place to showcase and share your pitch with a bigger audience. The chances of success are higher due to the audience numbers and their funding.

Now visit ChinaDivision for more assistance. Chinadivision, your ideal business partner.

Openness and Cooperation Write a New Chapter for World Economy

After more than four decades of rapid development through reform and opening-up, China is not only “the world’s factory”, but also a global market. China has become the largest industrial country, the largest trader in goods, and the largest holder of foreign exchange reserves in the world. With 1.4 billion Chinese people and 400-million middle income population, China will soon become the world’s largest consumer market. In the next 15 years, China’s imports of goods and services will exceed $30 trillion and $10 trillion respectively. More importantly, China always pursues the policy of opening-up and has become the largest trading partner of more than 100 countries, providing a huge market and immeasurable opportunities for the world.

From November 5 to 10, 2019, the Second China International Import Expo (CIIE) held in Shanghai. This grand event witnessed in-depth integration of China into the world and win-win cooperation between China and countries across the globe.

The popularity of the CIIE reflects the confidence of enterprises around the world in China’s determination to constantly deepen its efforts at all-round opening-up. With the implementation of a major series of favorable policies and measures aiming at promoting opening-up at a higher level, China has constantly optimized its institutional environment. By further lowering its overall tariff level, broadening market access, shortening the negative lists for foreign investment, and promoting transparent market rules, China has endeavored to make it more convenient for various companies around the world to share its development opportunities. On October 24, the World Bank released its Ease of Doing Business Report 2020, which ranks China 31st, up by 15 places from last year’s ranking of 46th. The rise of China’s consumer market has been universally regarded as an important pillar of the steady and sustained economic growth of the country, and the primary focus of foreign enterprises to continue investing in China.

Openness and Cooperation Write a New Chapter for World Economy. More business opportunities, more development for your business. Welcome to China–Your ideal China’s Division partner.

ChinaDivision’s Experience For Your Packaging Solutions

Our experience in packaging gives you the opportunity to increase your ROI and direct the flow of your product into the marketplace. Regardless of size or complexity or your needs, our professionals are there for you . We can scale and customize our capabilities to meet your packaging requirements. At ChinaDivision, we have experience with a wide variety of packaging, which includes:

Kitting: From finished goods to aftermarket kits and more.
Shrink wrapping: Providing high quality packaging for retail products within multiple industries.
Video&photo: We offer display assembly services for a wide variety of products.
Labeling: We label your products with precise application, meeting your specifications.
Blister, skinpack, and clamshell packaging: Used for small consumer goods allowing for easy display capabilities.
Bagging: We expertly bag your products and printed materials.
Many other value-added services, including: literature kits, multi-packs, bundling, over-wrapping, and business advertisement insert.

At ChinaDivision, we can streamline your supply chain by incorporating packaging into your current distribution process. We will combine packaging with warehousing and distribution to reduce your overall costs and increase your ROI.

What Activities Can Be Outsourced

It is essential to appreciate and acknowledge that no single individual can handle all these different tasks.

So, let’s start by taking a look at some of the valid and compelling advantages businesses experience from outsourcing their tasks.

1. So they can pay attention to the core business activities.

For lots of businesses, the prime reason they outsource is so that its employees, managers, and free owners can focus their attention on more income generating activities.

2. Improves opportunities for growth.

Every day-opportunities for business growth and a desire to develop your company’s operations exist, but resources to make all these happen are lacking. Outsourcing will create some free time for numerous employees, and this could be everything you need to take full advantage of the daily opportunities.

3. Increasing effectiveness and efficiency.

In most cases, outsourcing permits access to skilled talent. Even more, outsource businesses can offer, latest technology, innovative approaches, and creative, cutting-edge solutions that otherwise are not available.

4. Generally, improves your bottom line by reducing your expenses.

A skilled firm or contractor can generally execute tasks more cheaply compared to hiring a full-time employee. This implies that the costs of employing, coaching, and maintaining workers are eliminated and so are benefits and tasks.

5. Risk sharing.

One of the most critical factors determining the outcome of your campaign is risk analysis. Outsourcing various components of your business’s processes will assist the company by shifting various responsibilities to the outsourced vendors.

Since these outsourced vendors are specialists in what they do, they’ll plan all your risk-reducing factors much better.

Regardless of these pros of outsourcing that you should consider before approaching an outsourcing vendor, it’s always wise to accurately define the importance of the tasks you are looking to outsource.

The main factors that have led to the growth of this trending tendency of outsourcing include;

The Likelihood and ability to concentrate on other essential business processes.
Lack of skilled labor in specific areas of the business processes.
Availability of discounted labor, all while not compromising the quality of output.

All these factors have specifically resulted in most outsourced partners across the world today.

That being said, below are numerous tasks you should aim to outsource as you grow your business;

Why did Amazon Fail in the Chinese E-commerce Market

This news has been a hot topic to the e-market business circle, Amazon decided to leave from China’s e-commerce market. The e–commerce market giant made two big mistakes in China. They arrived unfamiliar with the local markets and they left too early. And if they could keep staying in China’s market, the Chinese would admire that and eventually they could have turned it around.

Let’s come to the point directly: Amazon’s business trip in China was unaccustomed from its first day. But that does not mean that foreign companies cannot succeed in China, but that they must adapt to a different culture and allow them to remain open-minded and creative when they are in struggling.

If you want to be succeed in a market, every company has to face the same question: the point of the story is that to succeed in China as a business you have to establish customer and brand loyalty. That doesn’t happen overnight and McDonald’s had rocky times in the country as well, but they stayed in China, despite the odds.

Actually one player moved away does not mean China’s market is not making any profits. Now China’s e-commerce market is getting bigger and bigger, people have more choice to shop what they want , and at present, service and price are new battle field. Click this lick for more information: www.chinadivision.com

What Benefits can Artificial Intelligence Bring to eCommerce

1.Customer-centric visual search
Consumers are often disappointed with e-commerce experience because the product results showed are often irrelevant. To tackle this problem, AI uses natural language processing to narrow, contextualize and improve search results for online shoppers. Also, it allows to have visual search capabilities, finding and matching products. Also, AI enables shoppers to discover complementary products and enhance customer experience. Now, consumers may take a picture of a friend’s new shoes or new gym clothes, upload it and then AI enables consumers to easily find similar items through e-commerce stores. Sounds cool, right? Well, we have it, it is available for us! For example Amazon has this option, which allows you to point at product that you like and Amazon will identify it and give you the results you will most probably like because it will be exactly what you were searching for. I believe, that AI makes it as easy as possible for us to purchase products that we love online!

2. New level of personalisation

Now we can find a lot of AI solutions, An AI company analyzes different touch points to help the business analyse how customers are interacting online: via mobile app, web, email, etc. And AI engine is monitoring all devices and channels to create a universal customer view. So, not just one channel, but all the channels. And of course, it helps e-commerce retailers to deliver a seamless customer experience across all platforms. It will help to send relevant messages at the right time.

3. Chatbots and virtual assistants

E-Commerce is now focused on user experience. The use of artificial intelligence through the application of “chatbots” is just one way to drive the conversation in the era of conversational commerce. And it is actually more than that, chatbots can automate order processes. Also, they are an effective and low-cost way of providing 24/7 customer service and collect valuable data and track behavior. With chatbot, e-commerce sites can increase conversion rates by tailoring the online experience for the consumer.

4. Improve recommendations for customers

With AI brands can more intelligently and efficiently predict customer behavior and demand, and offer relevant and helpful recommendations. Excellent example is Starbucks, it uses AI to analyse all the data it has gathered to deliver more personalised suggestions. The algorithm takes into account: customer’s information, customer preferences, purchase history, third-party data and contextual information.

5. Intelligent agents

New intelligent agent negotiation system has become a popular tool used in e-commerce. There are 3 main use cases: matching buyers and sellers; facilitating transactions; and providing institutional infrastructure. And guess what?! Everything in an automatic way!

6. Automation

AI doesn’t mean that the robots are taking over. Nowadays a lot of people are scared that everything will be done by robots in the nearest future. No, not really! Robots offer opportunity to retailers to provide exactly what the customer wants, when they want it, by using technology and algorithms. As firms in the e-commerce industry continue to expand and that means having a growing number of customers, automation becomes a must and became one of their top investment priorities for e-commerce stores. What is more, as we know, when eCommerce business starts growing, the number of repetitive tasks grows as well. Robots can take them over; everything from publishing new products on multiple channels to scheduling sales, giving discounts to loyal customers, etc.

Benefits You can Get from a Professional Order Fulfillment Center

Order fulfillment is actually an outsourcing option. This outsourcing option is particularly attractive for merchants with only an online store that lacks warehouse and distribution facilities.

Order fulfillment centers make inventory management much easier and allow store owners more time to focus on other areas of their business. Order fulfillment centers enable ecommerce merchants to outsource warehousing and shipping. This relieves online business of the necessary physical space to store all products, which is beneficial for merchants without the capacity to directly manage inventory. Sellers send merchandise to the fulfillment center, and the outsourced provider ships it to customers for them.

There are 3 major benefits you can get from a professional order fulfillment center:

Lower Shipping Costs. No one likes to pay for shipping, so it’s a great marketing tool to offer free shipping. However, no shipper is going to send your goods to customers for free. So how do companies afford to offer free shipping? Warehouses and distribution facilities located strategically around the country significantly lower shipping costs to the point where it becomes economically feasible to offer customers free shipping. But if you’re not big enough to maintain facilities throughout the country, what do you do? Contract with an order fulfillment company that does have a regional/national/international infrastructure in place and take advantage of bulk delivery discounts that most order fulfillment companies can offer because of that scope.

Grow New Markets. Looking to expand, but holding back because you lack the infrastructure to ship overseas or even west of the Mississippi? An order fulfillment services company can extend your reach without undue capital investment. And should dipping your toes in some new market waters prove not worth getting completely soaked, you haven’t spent the same amount of money and resources you would have if you went about it alone. Your order fulfillment services partner supplies the infrastructure and scales it over time to grow as your business grows, without your commitment to high and potentially risky new overhead.

Eliminate Fixed Costs. The cost of carrying inventory rises when sales are flat or in decline, but you still pay the same rent and utilities for warehouse space. By contracting with an order fulfillment services company, your fixed cost is now a variable cost. When business is slow, your order fulfillment costs go down. Of course, they also go up when business improves, but that’s a price well worth paying and not one you need to maintain when it’s not necessary.

Category: shipping with your logo