Global E-COM

Should be works

[jimpoo]

For maximum profit purpose, I'm thinking to build a Global E-COM business. All my website development team, order handling team, online customer service team will work at China, my merchandise suppliers are in China, my shipping process will use UPS/DHL/Fedex China (or HK), my market target is USA, and I will host my system in the USA, use cj as my third-party affiliate system, I'll offer ebay sellers dropship service ...
..
I can save 80% of the cost that running this business in the USA, then I will put some of this savings into the shipping fees to help reducing the international shipping fee from China, finally, I can still save at least 60% of the cost.
Base on this point, I can offer very competitive online price against other merhants who running business in the USA.

Anybody interested in discussing this topic?

[moneymancn]

We are already here (in China) ,my friend
MM

[edited by: moneymancn at 11:31 am (utc) on July 22, 2004]

[derekwong28]

We do this in Hong Kong, but things are not as simple as it looks. First it is possible that your customers may have to pay import taxes, and secondly the shipping may prove to be prohibitively expensive. Morover we get quite a lot of cancellations from customers who did not realize that we are in Hong Kong. There is also a matter of trust as well as customers feel more secure ordering within their own country.

There are only a limited no. of products that are successful i.e. low cost, low weight, and highly recognizable.

In China, there are a lot of products produced for their internal consumption at extremely low cost e.g. $0.25 cents for a plastic digital watch. However, often these products do not pass international safety and interference standards e.g. UL, CE and FCC approval. But of course many of them have fake certificates.

I don't think US or EU based businesses ought to worry this much. To date as far as I know, there had been only two Hong Kong based businesses who have achieved massive success on the Internet. In fact, one got so successful that it was sued jointly by Microsoft, Sony and Nintendo.

I am not saying it cannot be done as we are doing exactly this and achieved some degree of success, but there are a lot of obstacles. However, I undertand that shipping from China is much cheaper than Hong Kong.

[Leosghost]

depends where from in China ...

[JonR28]

Why not set up in mexico near the border? You could just have a runner jump the border to a USPS to ship your goods!

[jimpoo]

You know? Dell has already done this.
They accept online orders and sent to the factory in China, and ship the product to USA within 24 hours.

[Shak]

what a great thread

I am so pleased to see WebmasterWorld members from asia suceeding by shipping to the west.

derekwong28 makes some superb points.

Shak