However, the US is now free to impose a "self-declared rate" on the distribution of mail from all foreign countries, including China . The agreement goes into effect on July 1, 2020, and you can bet that prices for shipping from China will go up significantly! While the exact shipping price hasn't been announced, the US and Trump got pretty much everything they wanted with the deal. The pricing changes will apply to most international shipments weighing less than 4.4 lbs , which applies to almost all AliExpress dropshipping transactions. Take my word. From July 1, 2020, AliExpress direct sales will no longer be profitable. If you're thinking about this business model right now, it's already counting down to its demise. Other effects of ePacket disappearance.
Electronic Packet RIP Higher international shipping rates from China will cause huge ripples in the e-commerce industry, which is expected to benefit both consumers and sellers . Today, most counterfeit sales from China are possible thanks to cheap ePacket shipping. As fax List a specific example from the Atlantic, a man named Mike DeVries used to sell wheel bearings on eBay for $5 to $8 each for a certain brand of lawn mower. But Chinese sellers started selling a pack of 20 wheel bearings for $10 , essentially putting him out of business. This is the kicker. Mike cost more to ship the bearings to the US than it would cost a Chinese seller to ship these bearings from China to the US ! Currently, thousands of Chinese sellers on Amazon and Ebay are using ePacket to sell cheap, lightweight items directly to U.S. consumers.
In theory, the increase in international shipping costs should reduce the amount of junk we see merchant fulfilled on Amazon and Ebay . Also, companies like Oberlo that promote AliExpress dropshipping on Shopify will become less attractive . What about other forms of direct selling? direct sales While AliExpress dropshipping may die out, that doesn't mean regular domestic dropshipping is going away anytime soon. Today, a large number of retailers rely on direct sales to fulfill orders directly to customers without carrying inventory.