Operations Playbook
June 14, 2024
8 min

The Most Complete Cross-Border E-commerce Dropshipping Guide: Three Methods to Ship Globally Easily

What is dropshipping? When cross-border sellers talk about dropshipping, what exactly are they talking about? This article explains three dropshipping methods in detail.

The Most Complete Cross-Border E-commerce Dropshipping Guide: Three Methods to Ship Globally Easily

What is Dropshipping?

When cross-border sellers talk about dropshipping, what exactly are they talking about? I think it's first necessary to align on the concept.

In my definition, dropshipping is divided into two types: (this article will focus on the second type)

  1. Both the product range and logistics are provided by a third party. This is what many foreign e-commerce people call the dropshipping model. As sellers, all we need to do is mindlessly copy and move the product range provided by dropshipping to our site, then do operations and drive traffic. After an order is placed, we place an order with the supplier, who is fully responsible for providing the product and shipping. But this article does not discuss this content, as I explained a long time ago: Three Product Categories New Individual Sellers Should Never Touch (DropShipping)

  2. Sellers still need to select products themselves (such as through 1688 and other channels), but can complete the dropshipping action through 1) source manufacturers, 2) third-party cloud warehouse dropshipping services, 3) freight forwarder dropshipping services, thereby achieving no inventory or product purchase, meaning products don't go through our hands at all, and can be shipped overseas with just one piece.

Note: This article focuses on explaining the second dropshipping method, where sellers select products themselves but use third parties to complete shipping.

Who is More Suitable for Dropshipping? What Scenarios are More Suitable?

Dropshipping is not needed by every newcomer!

I have to say, in my earliest newcomer stage, I was also confused by various misleading leek-cutting content. Such as "I used cross-border e-commerce dropshipping to make a million a month without inventory." "How newcomers with no inventory can make US dollars with cross-border dropshipping." This kind of clickbait made me have a misunderstanding: I thought newcomers must use dropshipping when doing cross-border e-commerce, otherwise they couldn't ship.

But the fact is, the standard general overseas shipping process is: we just need to buy products from merchants and have them sent to our own home, adjust the packaging and stick the freight forwarder's shipping label, then let the freight forwarder come to pick up (or you send it to the freight forwarder's receiving place) to complete overseas shipping.

For details, you can see my previous guide: Complete Cross-Border E-commerce Independent Site Shipping Process and Money-Saving Tips (Part 1)

Who is More Suitable for Dropshipping?

When you are relatively familiar with the overall cross-border e-commerce business and familiar with the cross-border e-commerce shipping process, dropshipping can be a method to save you a bit of time and improve efficiency, such as in the following scenarios:

My site sells 10 products, and my small warehouse will stock 2-3 pieces of each product to ensure I can ship immediately after customers place orders. And when:

  1. Individual products need urgent dropshipping: One of the products' inventory is sold out. At this time, if I buy from the manufacturer to my home, it will take at least 2-3 days. So at this time, I really need the manufacturer's goods to be sent directly to the freight forwarder.

  2. Occasional long weekend holidays: You always go out to play during Dragon Boat Festival or Qingming Festival, right? What if orders come in at this time? At this time, I also really need the manufacturer's goods to be sent directly to the freight forwarder.

  3. Other special groups: International students not in China, students and renters who have no place to store goods. Etc., etc. This type of group.

  4. Newcomers who simply don't want to buy one more product to their home: Just don't want to buy one more product to put at home. These newcomers might like to spread out, listing hundreds of products at once.

Dropshipping Method 1: Direct Shipping from Source Manufacturer

This method is suitable when you are already familiar with the entire shipping process, and you and the manufacturer have cooperated for a period of time, you can communicate with them to let them help you complete the dropshipping action.

Newcomers who haven't made orders yet, please note: Please don't torture 1688 sellers at the beginning (because I used to be like this, hahaha, I didn't understand anything, just went around asking people if they could dropship, I hadn't even gone through the whole process myself, didn't understand anything, hadn't even bought their products, asking around is really annoying hahaha)

The general steps are:

  1. First communicate with the boss about whether they can help with dropshipping, mainly ask whether they can help stick an overseas version 10x10 shipping label, and the pick-up location. For example, if the boss's factory or business location is in Ningbo xxx, then you need to add Ningbo as the pick-up address on the freight forwarder's official website.

  2. After the boss agrees, we further place a logistics order with the freight forwarder (the sender doesn't need to be filled in here), and download the shipping label, then forward it to the boss.

  3. Guide the boss to stick the shipping label. Remember, you must let the boss put another bag outside the product express delivery bag, so that the domestic express delivery won't stick the domestic express label on the bag. (This is also why I say, you must go through the process yourself, be familiar with the shipping process, otherwise you can't even figure it out yourself, how can you teach the boss?)

  4. Further, you need to place a pick-up service order, select the corresponding boss's address and time, and wait for the freight forwarder's driver or cooperating express delivery to pick up the goods from the boss.

And the overall conversation between you and the boss would be something like this:

Dropshipping Method 2: Third-Party Cloud Warehouse/Dropshipping Warehouse/Transit Warehouse Services

This solution is suitable for intermediate players who don't have many SKUs and have good sales turnover. And if you have done domestic e-commerce, you should be very familiar with it. There will be many third-party cloud warehouse services in China, specially providing various e-commerce derivative services such as warehousing, label changing, labeling, and dropshipping.

What you need to do is send the goods to them, they help you stick the shipping label, and then help you send it to your designated freight forwarder's receiving place (or you schedule a freight forwarder to pick up from the cloud warehouse).

For the specific operation process, just ask the relevant service provider. (Don't ask me, I don't earn a penny, no obligation to answer you. The cloud warehouse earns your money, you go let the cloud warehouse people serve you.)

Dropshipping Method 3: Freight Forwarder's Dropshipping Integration Services

This tutorial takes a certain company as an example, no advertisement! Because it's what I use myself, I use it for demonstration. If other freight forwarders also provide such services, you can ask them yourself! (Still the same saying, don't ask me, I don't earn a penny, no obligation to answer you. The freight forwarder earns your money, you go let the freight forwarder people serve you.)

Compared with Method 2, there is a disadvantage: if you send the goods to the cloud warehouse first, and then the cloud warehouse sends them to the freight forwarder's warehouse, it will still waste 1-2 days. Wouldn't it be better and more time-saving if the freight forwarder could provide related services?

A certain company happens to provide such services, meaning you can send the product directly to their designated warehouse, where they can complete various packaging, label sticking, and even label removal actions.

More Q&A

Q: Newcomers can't make orders, how to quickly practice the entire shipping process?

A: Go find KOLs to cooperate on gift exchanges! Send products to KOLs as a practice of the entire logistics process.

Q: How to find KOLs to cooperate with?

A: Use your brain and your hands to find. Or follow me and watch my previous tutorials.

Q: I'm not reassured about dropshipping? What if there are other Chinese labels inside? Will customers care?

A: ??? If you're not reassured, just buy it home yourself, check it yourself, and send the express delivery yourself.

Q: But I don't want to stock inventory?

A: Then go drink the northwest wind. Why do e-commerce?

Q: Which freight forwarder to choose?

A: Certain companies, certain cultures, certain PX, etc. These well-known ones won't make big mistakes.

Q: Looked at the freight forwarder's quote, so expensive! Is there anything cheap and reliable?

A: Look at what you're saying yourself.

Q: Size limits, volumetric weight, cargo requirements, batteries, can xx be mailed?

A: Ask your freight forwarder, or you pay me, and I'll answer you.

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