This ones simple, which of the two is better and has higher profit margins, Chinese or UK.

In my experince i gota go with chinese, normally there is no sign up fee, and they offer a vast aray or products. If you chose the correct ones theres profit to be made.

But it does have its bad points, being one delivery time and quality or product can sometimes be low.

UK ones are a bit expensive, normally incure sign up fees and leave small room for profit.

However the fast postage time is an advantege.

What are your views

As a UK dropshipper myself (mods: not blatent advertising!) my opinion is that it is often better to use a UK one over a Chinese one due to the possibility of import/vat issues as well as product issues such as breakages and warranties.

Far easier to arrange product issues with a UK company than a Chinese one with means of normally a quick phone call.

But, it all depends on the individual. Some prefer to work from home and others from abroad.

Shipping times from over-seas can be very good with the right courier, at the moment were using EMS speed post and there delivery time from Singapore is 3 days. Which I'm sure wouldn't be a problem for your customers.

Like what was said above if there were any problems with the product returning it would be a long and stressful procedure if your products were sourced outside of the UK.

VAT and import duties make dropshipping to eBay customers a problem. However many times you put in your item description that "you may be charged import duties" etc. there will always be the people that leave you negative feedback and won't budge. This is unless you can offer prices around 30% cheaper than your competition.

I'd look for a UK dropshipper and when you have a little more cash start buying in bulk, it will be more profitable in the long run and may not require very much money.

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They are good for different things . As far as reliability and quality of product I have to say UK dropshippers are better in that respect but are obviously more expensive.

If you find the right dropshipper in China you can have all the above , for less. Generally its very hard to find this but its definitely not impossible.

Beware of import duties and VAT though , the person you are dropshipping too may have to pay extra fees and wont be happy.

Generally, if you are only dealing with branded products, then there wouldn't be much affected concerning quality, and generally, chinese or Asian dropshipper will tend to be better in price.

As for tax, i agree that it can really hurts your buyer's wallet. Esp when they get to know that their item is being shipped from outside UK, this will affect their decision if to buy from you, because they feel that the total final price is an unknown factor due to import tax.

However this is depends on discussion with the dropshipper, for example, like we offer import tax insurance, which the dropshipper will absorb any import tax or VAT, this would hopefully provide your end buyer a peace of mind to buy from you.