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Local vs International Dropshipping Suppliers, Which Should I Choose?

Local vs International Dropshipping Suppliers, Which Should I Choose?

 

There are many advantages and disadvantages that balance each other when choosing between local and international suppliers for your dropshipping product, so it is important to understand the cause and effect underlining each point in order to choose your dropshipping supplier with intent.

 

Making the closing decision when choosing a dropshipping supplier for your e-commerce store, largely comes down to your product’s non-negotiables which is vital in order to persist your brand’s value and expectation. Understanding your products essential criteria and what your product must-have is a great way to limit the decision-making process so you can choose a supplier confidently. However, there are many pros and cons between choosing local and international suppliers, so which is more suitable for your dropshipping business?

 

Local Supplier

 

A major difference between local and international suppliers is location. Local dropshipping suppliers are usually distanced within range of accessible travel, giving you that proximity advantage that has multiple benefits such as effective communication, quality control, shipping advantages and more. Let’s unpack the pros and cons of choosing a local supplier for your dropshipping product…

 

Pros

 

Product Quality 

The proximity of a local dropshipping supplier is an influential allure when differentiating between suppliers as it gives you the advantage of engaged product quality control. Because you can physically visit the facility, you are able to test the performance, quality and longevity of your product before verifying your ideal product.

 

Customise and Communicate with Ease

Communication with your supplier is key. Having that connection in presence is a good way to build strong and effective communication with your drop shipping supplier meaning less unexpected results and a clear understanding of your business goals and KPIs. This can also benefit in future product expansion such as getting modifications made to your product, quickly.

 

Faster Shipping and Relief from complex Tax and Import Laws

Having your supplier domestically based means faster handling and shipping times. Local suppliers usually use domestic delivery services for optimal handling and open options to schedule delivery pickup’s for faster shipping times. They are typically more reactive than international suppliers, therefore, there is a faster turnaround time which is great for customer service and customer support as business owners.

 

Local Economy 

Local suppliers can help reduce carbon footprint as they are less prone to mass production. This does not mean their products are ethically sourced but the damaging effects it may have on your local economy compared to international supplier operations are lessened. 

 

More Business Opportunities in the Long Run

Having a valued connection with a local supplier can help with a future business you may want to pursue. If you wanted to expand your dropshipping business from a one product store to a general store or say you want to invest more attention into your product’s design, having a supplier that is acquainted with your brand plus a present, physical interaction can help significantly with this development.  

 

Cons

As you can see there is a lot of advantages to choosing a local dropshipping product supplier, but at what cost? Let’s find out.

 

Low-Profit Margins

Local suppliers are less prone to mass production and help reduce the carbon footprint, which does drive up manufacturing costs. This means the purchase prices are increased in order to cover these expenses, compared to sourcing internationally who use low-cost country sourcing (LCCS) and are generally cheaper. Higher product prices for you as a store owner can mean less profit margins which is something to be aware of.

 

Lesser Stock Availability

There tend to be limited resources locally available as the material and market benefits are limited compared to international suppliers. Facilities typically carry products that are of quality as there is less warehouse space to store products meaning lesser stock available. Depending on the mass of your dropshipping business, you would need to take this into account.

 

 

International Supplier

 

The most notable advantage of an international supplier is the inexpensive product prices they offer due to low-cost country sourcing (LCCS), which could help you achieve a greater return on investment for your online store. But what’s the catch?

 

Pros

 

Affordable Prices

There is no doubt you can find cheaper prices with an overseas supplier. There is a wide range of international suppliers to choose from that offer different attributes for products, so you are able to negotiate the lowest price possible amongst vendors and differentiate quality and the non-negotiables of your product in order to source the highest quality product for the lowest price possible. In doing this you are able to earn a greater return on investment for your ecommerce store.

 

Develop your Dropshipping Brand with White-label Products

If you are looking to produce unique, White-label Products to develop your dropshipping business into a long-term brand, International suppliers would be ideal. With years of experience, they understand your need for supply which compliments their advanced market for manufacturing products, streamlined services and white-label product range, giving you the opportunities to create your desired outcome.

 

The World is Yours! 

International suppliers are usually more advanced in their title so they know how to successfully supply for a dropshipping model like yours. With affordable ePacket services, they are able to ship your product(s) anywhere in the world, for free or at a very inexpensive price. This gives you the full advantage to operate from anywhere in the world and sell globally without having to supervise this process.

 

Access to Unique and Hard to find Products in your Locality

With the more advanced technology and product market of an international supplier, you are able to source new products that are unique and recent in trends. This is a great advantage as it gives you access to trendy products that are sure to sell which local suppliers may not yet have access to yet.

 

Increase Supplying Capacity by Sourcing Similar Product from Multi-vendors

With a broad range of international suppliers in the market, you are able to source products from multi-vendors. Depending on your products criteria and non-negotiables, you can differentiate between higher quality products from one supplier and cost-effective products from another. This is also great if you are wanting to drop ship a product within your niche from other suppliers your current supplier may not have. This helps increase the supply capacity and attend to the greatness of your business.

 

Cons

 

Health & Saftey Executive 

International suppliers usually use low-cost country sourcing (LCCS), which is where products or materials originate from countries with exceptionally low labour/unfair wages, unethical practices, and increased carbon footprint productions all for a modest, cheap, wholesale price. 

 

Quality Compromised

Because you are not able to physically visit an overseas warehouse like you could with a local supplier, your product may not be exactly as advertised on the supplier’s listing. So before making a defined commitment to choosing a product and supplier, it might be a good idea to pre-order the product you desire to not only test & trial it but also experience receiving and handling your potential product from a customer’s experience.

 

Communication Challenges

Communication with international suppliers may cause delayed responses that can affect business operations as there are different language barriers, time zone differences and other communication challenges. This may also affect turnaround orders as they may have already been processed in the suppliers time zone before any further action can be applied. 

 

Long Shipping Times

With your product being produced overseas, it equates to long shipping times, usually ranging from a couple of weeks up to a month, which can be detrimental to your business. ePacket is the main shipping source for international suppliers as it benefits from international trade and returns the cheapest shipping rates possible, however, it is a very prolonged shipping service compared to the shipping matters domestic delivery services offer. 

 

Overall…

Choosing a dropshipping supplier is not a clear-cut decision but one that requires time, thought and investment as it can determine the longevity and development of your dropshipping business. Knowing your product goals and brand mission can help balance the advantages and disadvantages when choosing between a local and international dropshipping product. It’s important to take into account the benefits between the two options intent with your product and choose considerately.