| Dropshipping is a booming business all over the world | | | | payment rules are very simple. Do not pay until one |
| these days, and China is a leading exporter for | | | | is very sure of the on-time delivery and the ordered |
| several kinds of goods and electronic toys and | | | | product quality. |
| materials. Staying ahead in the export industry, China | | | | It has to be made sure that comprehensive |
| dropshipping is a great business these days. Goods | | | | agreements of OEM with each individual manufacturer |
| are directly exported to different places from the | | | | has to be made. Many small and medium sized |
| place of manufacturing. This saves a considerable | | | | businesses do transactions via a straightforward |
| amount of time, effort and a place of store and cuts | | | | purchase order. But this is wrong as it protects the |
| down several unnecessary charges. | | | | manufacturer only. A company's protection depends |
| Moreover, risks are part and parcel of increasing | | | | on it having the written agreement of OEM. Such an |
| business volumes. There are problems, not just in | | | | agreement should be with each and every Chinese |
| China source but also in several other developed | | | | manufacturer with whom the company works. It |
| nations and these shall continue to grow even for | | | | should ideally take care of all the issues discussed |
| China with the increasing proportions of China source. | | | | above and in addition also the basic legal issues like |
| Safe sourcing is the responsibility of both, the buyer | | | | dispute resolution and jurisdiction. Such an agreement |
| and the supplier. But, it is the buyer who has to keep | | | | should also be in both Chinese and English languages. |
| a caution while choosing the sourcing partner as the | | | | With these issues in mind, it is quite safe to plunge |
| supplier may hardly change the product mix or quality | | | | into the China source market. These issues cover |
| for one single buyer. The companies which source | | | | almost all the anticipated risks involved in China |
| their goods and raw materials all the way through the | | | | source. So, addressing them will surely make your risk |
| global sourcing are required to have sound supply | | | | of diving into China source, a successful effort and |
| chain mechanism in place in order to ensure the levels | | | | will surely make a name for your company in the |
| of quality are as per their requirements. | | | | international trade. |
| There are several ways in which the risks of the | | | | The ease with drop shipping is that the retailer can |
| business can be reduced to great extent. In Chinese | | | | post the list & description of products online which |
| dropshipping, if a company wishes to have | | | | can even be viewed by rural people and thus making |
| confidentiality and non- competition protection, then a | | | | easy for them to order the product online instead of |
| written agreement is really a boon especially for small | | | | searching for a local retailer. And for this even the |
| and medium level companies. The written agreement | | | | retailer doesn't hold much stock. |
| should preferably be in both Chinese and English. The | | | | So, it makes convenient deal for both the parties. |