Dropshipping is not dead? Almost
This one-to-one delivery model has been very popular in the past seven to eight years, especially for the US market. Now the US has canceled the policy of free customs duties for goods below $800. Due to this policy, the time it takes to ship directly from China has increased, and the cost has also increased. Therefore, whether from the perspective of cost or user experience, this model has become less good. So from this point of view, this model can also be said to be on the verge of extinction.
The de deminis is gone, probably forever. But options?
From the current US policy, we generally believe that this minimum tax exemption policy should not be restored. What should we do if this preferential policy is no longer available? From the current situation of our actual operation, many sellers who do not have a main body in the United States take the method of DDP transportation.Through this mode of transportation, we help our customers to handle customs affairs and pay customs duties. In this way, for the end consumer, he will feel that he has not paid customs duties, and the goods will be delivered to him as if they were shipped from a warehouse in the United States.
The DDP solution is winning?
DDP stands for delivered duty paid. In other words, this mode of transportation already includes customs clearance and duties. This model is very friendly to companies that do not have a company in the United States or do not want to handle customs matters themselves. In addition, compared with the previous express delivery, or the transportation method based on the previous minimum tax-free amount, the transportation time has not been significantly improved. Generally speaking, the fast channel can basically arrive at the user’s hands within 8 to 10 days, and the slow channel can take about 15 days. Of course, this model is not new, but compared with the past, its cost will be higher, after all, the US tariffs are still very high.
New business direction?
Why is it called a new business development direction? Because in the past, most sellers only focused on the US market, but many people did not think that such a transportation method could be suitable for many countries. Of course, this mode of transportation is from China as the departure point to other countries, such as EU countries, Canada, Australia, New Zealand, Southeast Asia, some countries in the Middle East, and some countries in Latin America. For sellers who only focused on the US market in the past, can they take advantage of China’s supply chain resources and use China’s DDP shipping method to sell their products to the world? In fact, this business model is not new, because there are already a large number of Chinese companies using this way to sell their products to the world and build their own brands.
