Amazon FBA vs. Dropshipping | What Are Their Differences?

You’ve probably heard the saying: “Price = Cost × 2.” Sounds nice, doesn’t it?But anyone who’s done dropshipping knows — if you really follow that, you’ll basically end up eating dirt. This article will walk you through, step by step: where your profits actually go, and how to calculate a realistic pricing strategy to avoid the nightmare of “the more you sell, the more you lose.” The Cost Components of Dropshipping  Don’t fool yourself into thinking the cost is just what you pay on 1688, AliExpress, or Temu. The real cost = product price + shipping + fees + marketing expenses + returns/customer service + taxes + your own salary/profit expectations. Let’s break it down: Cost Item Example Data (Selling One T-shirt) Product Cost ¥20 (AliExpress cost) International Shipping ¥15 (ePacket or Yanwen small package) Platform Fees ¥5 (e.g., PayPal + Shopify transaction fees) Marketing Cost ¥30 (Facebook ad spend) Returns/After-sales Allocation ¥3 (average 1 return per 10 orders) Other Expenses ¥2 (Shopify subscription, domain, customer service, etc.) Total Cost ¥75 Note: This doesn’t include your profit expectations yet. How to Calculate Your “Bottom-Line Price”   Many people set prices on a whim: “The product cost is ¥30, so I’ll sell it for ¥60. That should be enough to make a profit.” But in dropshipping, this kind of pricing is basically suicidal. Your costs are much more than just the product price — you have shipping, advertising, platform fees, after-sales costs, and more. If you don’t calculate these clearly, you might think you’re making money on a sale, but in reality, you’re losing. So let’s get clear on a crucial concept — the bottom-line price. What is the bottom-line price?The […]

In China, dropshipping has become a significant trend in the e-commerce industry. According to statistics, in 2023, the total value of China’s cross-border e-commerce imports and exports reached 2.2 trillion RMB, with a large portion of this trade driven by the dropshipping model. Platforms like Alibaba and AliExpress allow Chinese suppliers to directly ship products to global sellers, significantly reducing their operational costs. Compared to traditional inventory models, dropshipping eliminates the need for holding stock, allowing sellers to enter the market with lower startup capital. For example, sellers can access products directly from Chinese suppliers without having to purchase large quantities upfront, making it possible to sell globally. Furthermore, China’s advantages in product cost, manufacturing capabilities, and logistics have made it a central hub for global dropshipping. What is Dropshipping? Dropshipping is a business model where you don’t need to hold inventory. When a customer places an order, you simply forward the order to the supplier, and the supplier ships the product directly to the customer. No warehouse, no inventory management, and no shipping hassles. Platforms like Dropsure make it easy by streamlining the process, so you can focus on marketing and sales, leaving the rest to us. To learn more about dropshipping, check out our What is Dropshipping & How to Start article. How to Dropship from China? Success in dropshipping is no accident. Follow these steps to get your business started: Step 1: Choose Reliable Suppliers Choosing unreliable suppliers means delays, refunds, and unhappy customers. That’s why finding a trustworthy supplier with a good track record is crucial. Using a platform like Dropsure helps you easily find verified Chinese suppliers. Step 2: Pick Hot-Selling Products Stop second-guessing your product choices. Use market analysis […]

Business Trend In today’s rapidly evolving e-commerce landscape, Print on Demand (POD) has become a popular business model for entrepreneurs and creators looking to sell custom-designed products without having to worry about inventory, manufacturing, or shipping logistics. But what exactly is Print on Demand, and why is it gaining so much traction? Let’s break it down. What Is Print on Demand? Print on Demand is a business model where products are only printed and manufactured when a customer places an order. This is in contrast to traditional retail models, where businesses need to produce large quantities of inventory in advance. With POD, you can create custom designs for items like t-shirts, mugs, phone cases, posters, and more, and only produce them when someone purchases the product. This means you don’t need to invest in bulk stock, deal with warehousing, or manage shipping. Instead, POD services handle the printing, packing, and shipping directly to the customer, and you receive a percentage of the sale. How Print on Demand Goes in Business? Print on Demand (POD) has quickly become a powerful business model that benefits various stakeholders, from consumers to suppliers and even artists. It bridges the gap between creativity and commerce, offering flexible, low-risk opportunities for both entrepreneurs and consumers. Let’s explore how POD satisfies consumer demands, creates economic benefits for suppliers, and provides invaluable support for creators.   Who Can Benefit from Print on Demand? 1. Entrepreneurs and Small Business Owners POD offers a unique opportunity for budding entrepreneurs to start a business with minimal upfront investment. Traditional retail models require purchasing inventory in bulk, which can be financially risky. In contrast, POD allows business owners to sell customized products […]