Drop shipping – haven't heard of, don't worry it's simple. Dropshipping is a special kind of business wherein the seller doesn't keep any stock of goods but directly sells them to the buyer by sending the details of the buyer to the wholesale supplier. These retailers keep their commission while they make the sales and make good profits. It is a good business as it requires only little amount of investment or at times no investment at all.

In China, dropshipping is very wide spread business option which caters to the varied demands of Chinese people ranging from electronic items to toys to automatic toys and even imported products. The products that are in demand and which have a market through dropshipping are as follows:

Mp3 player, mobile phone, shoes, furniture, motorcycle, satellite receiver, mp3, car, evening dress, laptop, fabric, machines, textile, scooter, mp4, plastic, fashion goods & accessories, glass, motors, sugar, jewelry, food, mp4 player toys, cell phone, digital camera bag, led, USB flash drive, ps2, cement, lingerie, ipod, clothing, steel, watches, clocks, nokia, kart, trailer, solar panel, photo album, handbag, paper, clothes, linen, search all suppliers, hair products, beauty products, computer parts & peripherals, toys, etc.

The few companies offering dropshipping in China are:

"asia-product.com"; "chinavasion.com"; "made-in-china.com"; etc.

-DropShipping - Advantageous For China

Dropshipping is an advantageous way to fulfill the demands of Chinese people, because, firstly it is an industrial economy which means it produces a lot of products which need to be consumed and secondly 70% of China's population lives in rural areas. So to bridge this gap of demand & supply (i.e. demand from rural people) it needs a good supply chain management and what better than dropshipping.

-Building Customer Trust

There are few retailers involved in Drop shipping who have their outlets just showcasing the product range giving the customer a hint or knowledge of how the product would be.

This helps to build trust and the customer is more willing to buy the product after checking a sample product.

Every business has some risks involved so does dropshipping. At times the clients do not take the products after they have been ordered. At times there are double charges charged for shipping and orders too may get cancelled. Delay in delivery is again a great issue which has to be taken care of.

For example, back ordering may occur when a seller places a shipment request with a wholesaler, but the product is out of stock. Back ordering may be accompanied by a long wait for a shipment while the wholesaler waits for new products, this may create a bad impression for the retailer. Also if there is a sub-standard quality product or mis-handled product provided to the customer by the wholesaler, then it also creates a bad impression for the retailer, as retailer is unaware of the quality being provided to the customer.

-Trust Factor

And not to forget that this business involves high degree of trust on part of customer towards retailer and of retailer towards wholesaler & courier service provider.