Dropshipping from China – Complete Guide

With the rapid growth of e-commerce, dropshipping has become a popular choice for many entrepreneurs and small businesses. This business model allows sellers to fulfill customer orders directly through suppliers without holding inventory, thereby reducing capital and warehousing costs. In recent years, Hong Kong has increasingly attracted global dropshipping sellers due to its unique geographical location and convenient business environment. According to data from the Hong Kong Census and Statistics Department, Hong Kong’s total import and export volume reached HKD 5.5 trillion in 2023, with trade infrastructure ranking among the best globally. Additionally, data from the Global Shipping Association shows that Hong Kong’s port ranks in the world’s top ten in terms of cargo throughput, ensuring efficient logistics and global distribution for dropshipping businesses. So, is Hong Kong really the right place to start a dropshipping business? Let’s explore the pros and cons to help you make a better decision. Unique Advantages of Dropshipping in Hong Kong Strategic Location and Market Advantages Hong Kong is strategically located in the heart of Asia, bordering mainland China, making it not only a hub for convenient supply chain connections but also a global center for freight and logistics. This is crucial for Dropshipping sellers as it translates to faster shipping times and lower shipping costs. Hong Kong is close to major Chinese ports such as Shenzhen and Guangzhou, offering a range of flexible transportation options, including air, sea, and land transport. This logistical advantage enables Dropshipping sellers to deliver products to customers in different countries in a shorter amount of time, making Hong Kong an attractive choice for those looking to expand into the Asian market. Developed Logistics Network Hong Kong’s logistics network […]

In the field of cross-border e-commerce, the Dropshipping model is highly favored by small and medium-sized sellers because of the advantages of “zero inventory” and low cost. However, the lifeblood of this model – international logistics and tariff policy – is in unprecedented turmoil due to frequent changes in the Trump administration. In February 2025, the US tariff policy on small parcels from China was “changed on a dime”, which not only exposed the vulnerability of the global supply chain, but also sounded an alarm for Dropshipping practitioners relying on direct mail! So, what should sellers do next to deal with such policy changes? Is there a way to avoid the risk? How to maintain competitiveness without being dragged down? This article will give you some advice. Policy “Rollercoaster”: From Tax Increases to a 72-Hour Pause   Core Changes in Tariff Policy February 1st: Trump signed an executive order to cancel the “minimum threshold” tariff exemption for Chinese packages under $800 in value and imposed a 10% tariff on Chinese goods. February 7th: Due to a customs system breakdown and domestic pressure, Trump urgently halted the new policy, announcing the restoration of tax-free treatment until the U.S. establishes a “sufficient tariff processing system.” Chain Reactions of Policy Impact Logistics Breakdown: Within just three days of the new policy, over 1 million packages were backlogged at New York’s Kennedy Airport, forcing customs to release detained goods. The U.S. Postal Service even temporarily suspended receiving packages from China and Hong Kong, only to retract the decision within 24 hours. Cost Surge: If the policy continues, the tariff cost per package may increase by 25%-30%, directly squeezing the profit margins of dropshipping sellers. How […]

In April 2025, U.S. President Donald Trump announced a series of tariff policies dubbed “Liberation Day.” He claimed these tariffs would boost American manufacturing, protect jobs, and imposed additional duties on goods imported from dozens of so-called “worst offenders,” raising tariffs on Chinese products to as high as 125%. At the same time, these measures are having a profound impact on businesses operating on platforms like Shopify and on the broader cross-border e-commerce landscape. The steep rise in import costs has fundamentally reshaped the e-commerce environment, forcing sellers to embark on a quest for new supply chain solutions. In the following sections, we’ll dive into the latest developments and explore the far-reaching implications these changes hold for online businesses. Tariffs: What They Are and How They Work Simply put, tariffs are taxes you pay when buying goods from another country. In most cases, tariffs are calculated as a percentage of the product’s value. For example, if an item is worth $10 (roughly £7.59) and the tariff rate is 25%, you’d need to pay an additional $2.50 (about £1.90) in tax. Now, if a 125% tariff is applied to goods imported from China, that means a $10 product would incur an extra $12.50 in tax. So who pays this tax? It’s the companies that bring foreign goods into the U.S.—the importers. They’re the ones responsible for paying the tariff to the government. When is the tax paid? Right when the goods go through U.S. customs, the tariff has to be paid. Of course, businesses often have their own strategies. They may choose to pass on some or all of that added cost to consumers, making shoppers ultimately bear the burden. Overview […]