According to the news yesterday 10/16/2018, President Trump plans to pull out of the global postal treaty in his latest move against China.
Officials claimed that the current system allowed 40% to 70% discount on small packages coming from China to the US (that's ePacket right there!) which cost the US $300 million.
This move is detrimental to dropshippers that solely depends on ePacket as a way to keep cost down and trying to keep their head above water. This is where CJ Dropshipping's US warehouse will give our customers a great advantage over dropshippers who partner with suppliers that are only based in China.
Read on to find out:
- How to prepare for the peak season
- How to stock up in our US warehouse
- How to pave your way for a smoother CNY holiday
- How to get discounted rates when you warehouse your goods in the US!
The trade war against China will definitely increase the price of ePacket. As a matter of fact, our ePacket shipper carriers have already announced that they will be raising the price for the peak season in 2018. The goal behind President Trump’s decision is to nurture domestic trade. With that said, shipments going out of our US warehouse domestically will not be affected by the trade war between the US and China. In fact, when dropshippers use CJ's US warehouse, their shipping prices will not fluctuate and the package delivery times will be much shorter (2-5 days) in comparison to ePacket's 30-40 day delivery time.
As peak season approaches, the holidays will create an influx of packages going into the US, all the small packages that are shipping by ePacket will try to squeeze through on the first plane that has room so it can leave China custom. From historical figures, we see that holiday peak seasons can delay the ePacket shipments up to 2 months!
Imagine your customer waiting for that drone to give to her grandson on Christmas Day and it didn't show up on time. Now, imagine that happening at the same rate that you are scaling your ads…. is your service rep's stomach-churning yet?
Well, what if the product is already sitting comfortably in our US warehouse; the minute you place an order, we process it the same day or the next day, and it gets delivered to your customers via USPS first class or priority mail in 2-5 days.
Are you interested in using our US warehouse? There are 2 ways to go about it.
1. To use our US warehouse, all you have to do is to pay a 30% deposit on the value of the stock, and we will stock the entire stock for you in our US warehouse. This level of stock will be available instantly on your CJ platform with real-time updates so you can keep track of the inventory level. You will only have to pay us the product cost + shipping cost when you have an order to process.
We require an inventory value of $2,000 per SKU if you'd like to participate in this promotion*. Keep your cash flow for more facebook assets! We will return your 30% deposit when your inventory level depletes to $0. By the way, did I mention that we don't charge storage fees? All you pay is Product cost + Shipping Cost. Delivery time will be 2-5 days!
*Note: this inventory value is negotiable under different circumstances, please talk to your CJ sales rep at cjdropshipping.com.
2. Or you can pay for the entire stock that you warehouse in the US, and we will give you shipping discounts to ship out your goods from the US warehouse. Our application will also provide real-time inventory updates for this option, and the delivery time is 2-5 days as well.
Now that we are done with the US holiday hiccups, don't forget there's the CNY aka Chinese New Year! This holiday lasts for 2-3 weeks in order for families all over China to reunite, so that means the manufacture, shipping carrier, China custom are all on vacation, with little or no staff available to process orders or packages for those 2-3 weeks. The advantage of the pre-stock in the US warehouse means:
- Your hot-selling items will not run out of inventory even if the manufacturer is on vacation
- You don’t have to worry about packages not get delivered b/c USPS is up and running during CNY
- You don’t have to worry that your package is stuck waiting for the Chinese custom to start working after CNY.