From 2017 onwards, dropshipping market in Asia like Hong Kong, Mainland China, Malaysia, and Taiwan have skyrocketed. Some surveys indicate that consumers spend about 3.6 hours a day online, which surely contributes to the popularity of dropshipping itself.
Studies are yet to determine how much of that time goes to online shopping. But one thing’s for certain, more and more people in Asia are social shoppers who rely on social media recommendations for their purchases.
This trend came as a result of the super-busy lifestyle and other socio-economic reasons. If you want to expand or start your dropshipping, Asia should therefore be on your radar.
The Meaning of Dropshipping
For those just starting out, dropshipping is actually a fulfilment method for online retailers. This means an online store doesn’t store the product it sells. But how does the model work then?
When a shopper purchases an item, the online store orders it from a third-party manufacturer or vendor. The item then gets shipped directly to the customer and the online store usually doesn’t need to deal with dropshipping logistics.
The added benefit is that there are now a bunch of dropshipping resources and e-commerce platforms which automate the entire process. Therefore, it pays to take a closer look at some of the most popular options.
If you want to try dropshipping by becoming a seller in existing online marketplace, Amazon and Ebay are a popular choice with heavy customer base globally. However, there are some tricky aspects to conquer for first-time dropshipper. Amazon and Ebay’s users are accustomed to speedy shipment, hence you would have to arrange this with your suppliers. There is an option to use Amazon’s fulfilment services called Fulfilment by Amazon (FBA), where you can store your products in Amazon's fulfillment centers around the world, including Asia. Upon customer purchase, your product will be packed and shipped by Amazon fulfilment center directly to them. The same concept applies for Ebay fulfilment services.
Dropshipping Management Platforms
If you want to try dropshipping by setting up your own website, below are your options to manage your e-commerce site. Each platform offers different features from order management, payment integration, built-in analytics, to product listing management like rating and reviews.
Dropshipping in Asia
Certain Asian regions stand out from the rest since they are showing market interest and/or resources for e-commerce. These are the areas you should pay attention to.
When it comes to dropshipping, Hong Kong is a prime example of a thriving city. With the internet and smartphone penetration rate of 87% and 85% respectively, it is among the most connected cities.
This makes for a frictionless shopping and business experience encouraged by a fierce competition.
Kuala Lumpur is the city that stands out for dropshipping in Malaysia due to the technology adoption rate of 96% as a business hub.
Shenzhen and Yiwu stand out as some of the best places to look for reliable suppliers. For instance, if your niche is in consumer electronic, Shenzhen has become the global mecca. Yiwu, on the other hand, dominates the household products market and offers one of the most varied suppliers you can find.
In terms of dropshipping, Taiwan also has become the go-to place to look for suppliers. The country supports top payment gateways like 2Checkout and PayPal. Plus, the cost of logistics might be lower than in some other areas.
Are You Ready to Start Dropshipping?
The booming Asian economy and the adoption of western business practices allow for pretty seamless dropshipping. There is no better time than to start your venture now.