Lecture Notes: Leveraging 1688.com for Dropshipping Business

Introduction

• Presenter: Steve
• Topic: Using 1688.com for creating a successful dropshipping business.
• Perspective: While traditionally not a fan of dropshipping, Steve highlights unique advantages of 1688.com.

Key Points on 1688.com

• 1688.com is a Chinese online wholesale and manufacturing website, part of the Alibaba group.
• Known as the Chinese version of Alibaba, it connects Chinese suppliers with buyers at wholesale prices.
• The website is in Chinese and caters primarily to Chinese audience.
• It serves as a primary database for platforms like Alibaba.com, AliExpress, and Teemu.

Advantages of Using 1688.com

• Cost-Effectiveness: Offers the lowest prices compared to AliExpress and Teemu.
  • Example: Air fryer costs 82 RMB ($11.40) on 1688, whereas it's $127 on AliExpress.
• Direct Sourcing: Buyers can source products at wholesale prices directly from manufacturers.
• Single Unit Purchases: Unlike Alibaba, allows purchase in single units for dropshipping.
• Market Opportunity: Very few are using this method, offering a competitive edge.

Practical Steps to Dropship from 1688.com

• Website Language: Entirely in Chinese but can be translated using Google Translate.
• Shipping Constraints: Only ships to addresses in China.
  • Solution: Use freight forwarders or 3PL services like zq Drop Shipping and Best Fulfill.
• Trade Assurance: Provides safe transactions using an escrow service.

Challenges in Using 1688.com

• Language Barrier: Website in Chinese might discourage many potential users.
• Shipping Time: Products shipped from China can take 7-15 days to reach the US.
• Quality Control: Possibility of receiving low-quality products.
• Need for Shipping Agent: Must have a shipping agent in China.

Market Dynamics

• Consumer Behavior: US consumers are currently driven by low prices despite high credit card debt.
• Competitor Platform: Teemu has shown success in the US with similar strategies.

Business Model Implementation

• Online Store Setup: Recommended options include WooCommerce and Shopify.
• Provider Registration: Register with a 1688 dropshipping provider like zq Drop Shipping.
• Operational Process: Place orders through the dropshipping interface and forward them to customers.

Conclusion

• Opportunities: High margins due to low costs, potential for significant profit despite some hurdles.
• Call to Action: Explore 1688.com, compare prices, and evaluate the potential for your business.
• Further Learning: Watch additional resources on using Alibaba and comparing prices.