Important Question Regarding Dropshipping (Also Tariffs)

[rusomike90]

Hi, thank you for clicking! I have a question for drop shippers:

If you’re launching a furniture product, and you have a option to find manufacturing in China which is cheaper with high profit margins but longer shipping times, or a manufacturer in Mexico offers faster shipping but lower margins, which option would you choose? (Target Area: USA)

I’m uncertain about relying on manufacturers in china because of how long ocean freight takes & due to potential tariff wars between China and the USA that are soon to come after elections. How would you approach this situation for an eCommerce product?

 

[cantonman]

The key to drop shipping is to test how good your supplier really is! People can tell you anything you want to hear, but the proof is in how well they actually perform!I suggest you try the Mexican supplier. Have someone you know place a small order, and have it shipped to them. That way you can
find out how quick they actually are, how well the goods are packaged, the quality of their product, etc. Good luck!

 

[rusomike90]

The key to drop shipping is to test how good your supplier really is! People can tell you anything you want to hear, but the proof is in how well they actually perform!I suggest you try the Mexican supplier. Have someone you know place a small order, and have it shipped to them. That way you can
find out how quick they actually are, how well the goods are packaged, the quality of their product, etc. Good luck!

Your awesome man, thank you so much!!

 

[Bruce vabg]

If your primary focus is profit margins and you're willing to wait longer for shipments, China could be a good option despite the longer shipping times and potential tariff issues. However, if you're more focused on customer satisfaction with faster shipping and possibly avoiding future tariff issues, Mexico might be the safer bet, even if the margins are thinner.

Personally, I’d consider testing both options with small batches and monitor which one gives you the best ROI while also taking into account customer feedback. That way, you can make an informed decision based on real-world data. Also, have you considered looking into warehouses or fulfillment centers in the USA? That could help with faster shipping even if you go with the Chinese option.