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This is the same thing your local department store does. It sells shit it buys in bulk, much of it manufactured in China.
Dropshipping gets scammy when you start implying you produce the stuff you're selling IMO.
Your local department store has to have a physical location and stock, they're physical goods in a physical location, adding value to you by way of letting not have to travel to a bunch of different people producing the things you need. Dropshippers literally just order something to your address for a marked up price. They are adding cost with literally no value to you.
Well a lot of these bulk sellers don't sell B2C. I could start my own company to buy shit, or use a middle man.
Sellers in the EU also have to give their shit a 2 year warranty, including for dropshipped items. No such requirements for Aliexpress.
I guess I should have been more specific, I'm talking the places that literally just dropship from alibaba, aliexpress, etc. an actual middleman for manufacturer is fine to me. They're actually doing something you can't do yourself, you know, they're actually providing a service. The ones I'm referring to are just setting up online "stores" hoping to grab people from SEO to make a profit doing actually nothing
Even with Alibaba and Aliexpress, there is some marginal value-add from a middle man. Like I said, in the EU, sellers are liable for 2 years of warranty for manufacturing defects.
But any dropshipper worth their salt has other sources for their shit too. Not necessarily direct from manufacturer, but companies that provide better prices than publicly available for B2C. I hear some of them are more or less invite-only. In any case, the Alis aren't considered great dropshipping vendors at all, since goods can take very long to reach customers.
And then as a dropshipping business expands, you can have local stock for some items. Generally, a dropshipping business should fill a specific niche and not have a billion items on sale, but rather be curated. So if you've got like 4 or 5 alternatives in some specific product category and one or two clearly sell better than the rest, on a consistent basis, you can order those in bulk and ship to your customers faster. The downside here is that you have more work to do, but you'll provide more value to your customers. And if your dropshipping business is honest, you can lead times visible on the website... And customers will love seeing "tomorrow" instead of "14-21 days". Brings in more customers!