Mobile Phone Dropship - The Evolving International Mobile Phone Supply Chain and Market

PR Log (Press Release) – Jun 18, 2009 – Despite big product releases from large name brands mobile phone dropshipping services selling unbranded mobile phones have become increasingly popular.  Mobile phones have always proven difficult to manufacture with consistently high quality.  The high failure rate quickly filtered out which companies could compete in this industry, but the entrepreneurial tenacity and multitude of engineers here in Southern China are causing big changes.  One of the biggest changes is in how new mobile phones are being sold.  The sales channels of these phones are much broader and less established than the sales channels of branded phones making feature packed multi-media mobile phones much more accessible and affordable to the general public than in years past.

The advances in Chinese manufacturing and new mobile operating systems are revolutionizing the global mobile phone supply chain.  For many years there has been a domestic mobile phone manufacturing base in China, but because of a high defect rate and antiquated feature sets the products never gained mass market appeal.  With the introduction of a reliable, flexible and low cost chipset solution from Taiwan’s Mediatek Chinese manufacturers were able to get in the mobile phone game.  The abundance of electric engineers and ambitious businessmen has created a plethora of new phone suppliers and designs.  This growth has in large part been motivated by the growing acceptance and demand for these products from overseas markets.

Consumers all over the world are becoming familiar with China's mobile phones, but there are few high end sales channels for these products.  Many of the phones support all 4 GSM frequencies making them suitable for usage worldwide.  Since the local electronics shops overseas typically don’t carry unbranded phones overseas consumers are turning to the internet to purchase the newest models and get the best prices on unbranded China mobile phones.  With the increase in small volume purchases directly from China many viable shipping solutions have emerged to send small goods to all over the world for a low cost.

Just as there is massive competition within the domestic China market for sales, the competition is just as fierce for the export market.  Selling direct from China is now a highly competitive business model, and everyday new online shops are popping up on the internet, but very few earn long term customer trust.  The biggest problem comes from a cultural void.  The Chinese don’t know how to work with end customers in other countries and the difference in service expectations causes end customers to get frustrated and feel cheated.

Dropship distributors are taking another approach to the traditional online sales model.  Instead of dealing with the end client, dropship distributors are working with overseas dropship resellers who handle the customer service instead.  Dropship distributors are like mini-distribution companies who send off products on a one by one basis to customers all over the world on behalf of their dropship resellers.  This allows both the dropship distributor and the dropship reseller to focus on their respective strengths and delivers the customer an enjoyable online buying experience.