The Prospect of Dropshipping Products from China

By having your products shipped directly from the supplier straight to your customer, you can save on shipping and warehousing costs, delivery time, and the hassle of managing your own inventory. Traditionally, merchants spend thousands of dollars on inventory investment. While average margins may be lower compared to other retail stores that stock their own inventory, there is no risk of a “bad buy” with dropship manufacturers.

 

At the time of sourcing a particular good or item from China, you’ll need to research the rules that you have to obey strictly. The number of regulations will depend on the type of product you’re purchasing. This is always a requisite for any sourcing of Chinese wholesale products. Not knowing the rules of sourcing products from China manufacturers is the basic difficulty most business owners find doing business with Chinese companies.

 

Maintain Effective Communication

After finding good dropshipping suppliers, forming effective communication is important. Two-way communication is at the heart of any strong business relationship. If you don’t talk to your suppliers, you can’t learn enough about them to build mutually beneficial arrangements. If your business has the resources, consider creating a communication network with your dropshipping suppliers.

 

If you can find a trusted dropshipping supplier, it is possible to launch a store without having to invest thousands of dollars in inventory in advance. You do not buy the product until a customer has made a purchase. This means low start-up costs and reduced financial risk. If you don’t have substantial capital, you can probably start with a dropshipping business. Alibaba, SaleHoo, Shopify and many other dropshipping sites come in all shapes and sizes with different pricing plans you can select.

 

Manufacturing price that sounds too good to be true might be a trap for the scammers. Inexperienced importers fall victim of the deception and select the cheapest price. They have no idea that this move is going to cost them dearly at the latter stages. Most of the time foreign importers are lured with amazing product images and unrealistic assurances by the manufacturers and the importers went on to make the deposit without visiting the factory.

 

Aliexpress has been in the dropshipping industry for the longest time. This company provides a wide variety of products available to all consumers of different types. They offer retail and wholesale products. We all know that availing products by the bulk will definitely come out cheaper but can only apply to a large scale of purchasing which is used by distributors who also wish to sell it at a retail price. They have available coupons and promos all year round both for retail and wholesale.

 

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China’s Patent & Copyright Registration Process

trademark registration in China

Trademark has value not only to the owner due to its distinctiveness but also to customers who associate this trademark with a specific product or service. Moreover, if a foreign company wants to enter into a licensing agreement with a Chinese distributor, the foreign firm has to register the trademark in China first. Most renowned Chinese distributors will only form business relationships with overseas enterprises whose trademark is registered in China.

 

Patents, utility models, and design rights

China’s Patent Law deals with the protection of rights over technological inventions, as in the UK, but it also covers utility models and designs (also known as ‘design patents’). Invention patents give protection for a maximum of 20 years, utility models for ten, and each is subject to the payment of annual fees. It may be a good idea to apply to register a product as a utility model if your invention patent is not granted.

 

Essential information for registering IP, trademark, copyright, and/or patent with China customs

  • A copy of your business license or certificate of incorporation (or another legal document confirms your company’s existence). These documents must be in Chinese or translated into Chinese.
  • A copy of the Chinese registration certificate for your trademark, patent, or copyright.
  • A Power of Attorney.
  • Pictures of the goods for which you are seeking protection and their packaging.

 

Early registration

Due to the ‘first to file system, the outcome of any trademark dispute primarily hinges on who registered it first in China. The China National Intellectual Property Administration (CNIPA) performs an ex officio examination of the existence of identical and/or similar earlier rights to the one intended to be protected as a trademark. It means that the existence of identical or similar earlier rights can prevent the registration of a trademark filed at a later stage and that the filing must be done as soon as possible. So, if you are planning to do business in China, it is important to register your trademark first.

 

Copyright owners and the obligees related to copyright may authorize a collective management organization of copyright to exercise the copyright or the rights related to copyright. The collective management organization of copyright may, after being authorized, claim rights in its own name for the copyright owners and the obligees related to copyright, and may, as a party concerned, participate in the litigation and arbitration activities involved with copyright or the rights related to copyright.

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