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by isthatsoup 2036 days ago
Not really, drop shipping from China has 0 barrier to entry so the margin will be competed downwards very quickly.
3 comments

I wasn't quoting a hypothetical. I can look at a storefront right now and see that I am correct. What you imply here has not happened.
A perfect example of Econ 101 reasoning gone awry. It is funny how often people will deny things sitting right in front of them because "that wouldn't happen".
Two economists are walking down the street, and one says "Look, there's a $20 bill on the ground over there!"

The other economist replies "Nonsense, if there was then someone would have already picked it up by now."

You'd think so and I really doubt it's as profitable as people suggest but even just looking at Amazon you can see many of the exact same products you'd find on AliExpress for far higher prices.
If you start importing from china - you must be certain that you can unload the product. Or you are stuck with 12 000 masticating juicers ...
Dropshippers provide valuable service - I can get item in 2 days (on Amazon) versus 2-3 weeks or longer if I buy on Aliexpress. Express shipping (if available) on Aliexpress is often $100+ for item that cost a few dollars.

Also margins are getting squeezed on drop shipping. Several years ago the difference between price on Amazon and Aliexpress was very significant now it's often negligible and I just buy on Amazon.

What you are describing is not dropshipping. When dropshipping the goods come from the manufacturer or some wholesaler (but explicitly not from you).