I’m planning to build my store through shopify dropshipping soon. I found a few potential suppliers from Alibaba (haven’t contacted them yet). My primary niche would be fitness, mainly basic fitness equipment that would be light to ship. It’s going to be under my brand with a logo. The first product I would love to sell is the resistance band. I did quite a few research on the dropshipping business model and gained a lot of knowledge. However, there are still some important questions to take into consideration to which I couldn’t find the answers.
My biggest concern is the shipping incoterm. Since resistance bands should be light for transportation, I eliminated the shipping by sea of my options. I think shipping by air would be more suitable. Although, I don’t know if the same incoterms apply for air as it applies for sea (EXW, FOB & CIF). I would love to have any guidance on the best shipping incoterm for my store.
Also, I would love to attend any events or meet anyone from shopify in Montreal to get useful and professional advice on building a shopify store. I would appreciate any kind of information.
We are OneExperts from OneCommerce and we’re here to help your business grow.
Welcome to Shopify and congratulate you on your new business. For your question,
the Incoterms (International Commercial Terms) can be used for both air and sea transportation, however, the specific responsibilities and obligations of the buyer and seller may differ slightly depending on the mode of transportation. In your case, the best Incoterms would be:
EXW (Ex Works) - This Incoterm is best suited for dropshipping businesses that want to keep costs low and have the flexibility to arrange their own shipping. Under this term, the supplier is only responsible for making the goods available at their premises, the buyer is responsible for all costs and risks associated with the transport of the goods from the supplier’s premises to the final destination.
DDP (Delivered Duty Paid) - This Incoterm, the supplier will take on more responsibilities, such as arranging and paying for the transportation of the goods, handling customs clearance and pay for any import duties and taxes. This term would be suitable if you want to have more control of the delivery process and have fewer responsibilities.
Friendly reminder for you, when using the DDP term, the supplier will be responsible for all the costs associated with the delivery of the goods to the final destination, including the import duties and taxes.
If you need any further support for your business, please don’t hesitate to contact us via julia@onecommerce.io.
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