New US Crackdown Just Killed Dropshipping - What Sellers Must Know

[@mywifequitherjob]

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[@jonhutto580]

Good changes.. Amazed Biden would do that, but happy. As for drop shipping. The reason people do it, is that it is cheap. To start a brand, and grow a business with inventory costs tens of thousands or hundreds of thousands to get off the ground. With drop shipping people can (for near zero dollars) shotgun 1,000 products and hope 1 makes a mint.

[@Zomeone]

Amazon is definitely behind this

[@IAMONELUVNOW]

They are stopping me from liking this video

[@Anonymous------]

Haha, the sellers only need to send just one email to bypass this obstacle. 😂

[@dominicalvin]

Good riddance kekw

[@pcs9518]

90% of the stuff on Amazon is literally the same AliExpress cheap junk at quadruple the price

[@garyhooper1820]

Takes awhile to get here ,But your right about the savings , I've been buying from Ali Express for over 6 years , I hope this doesn't affect buying direct .

[@LikaLaruku]

Unfortunately the same is true for Etsy.

[@michaelmoorrees3585]

@@LikaLaruku - and eBay.

[@constanciokurdapio541]

yeah, but i rather buy a product, say an SSD or even a usb dock, from a reputable source than buy fakes or a product that may cause a fire in my home.

[@D.von.N]

Not shopping on Scamazon much. Defo not electronics.

[@SophiaSummers-z5e]

Amazon has allowed so many Chinese sellers to be 3rd party sellers in America.

[@CharleneChristie]

Right?! And now it has backfired. I've been a third party seller on Amazon for decades and most of the items that people private label and sell come from China.

[@michaelmoorrees3585]

There's a lot of crap from China, that some company advertises as the latest and greatest tech, "that US Seal Team doesn't want you to know about !" That way, they can mark it up, even higher, than from your typical Amazon seller.

[@atwitchyferret]

My problem with this is that when I search up a product I wanted to be from the official seller, not just some random guy they had the cheapest price on the product. I've had several occasions where I thought I bought an official product and it turns out it was third party and I got scammed.

[@hectorg362]

This is what america has always been. Using others for their own gain

[@worldpeace1822]

You mean people dropshipping for the cheapest investment through Chinese questionable sources

[@LikaLaruku]

Me hoping this means Etsy goes back to being a place where artists & crafters sell handmade items that can't be found on Amazon, Alibaba, AliExpress, Shien, Temu, or Wish, but also knowing it won't effect the increasing amount of people selling AI generated prints.

[@XavierAncarno]

Nah, they will just buy the garbage upfront from china and ship it from their homes. There still profit to make from penny garbages

[@DivineStride]

The cheap shirts should be affected by the law. It'll be more expensive to do so.

[@jazilzaim]

This is a good shift. Dropshippers have been putting customers at risk at times and pushing marketplaces like Amazon to get full of junk goods. I think we may see a shift in this with more premium focus with some dropshipping niches.

[@johnc3525]

Yes, but it also affects people like me who buy directly from Aliexpress, less than 200 dollars a year. Now I'll have to pay 3-4 times more to Amazon for the same product.

[@tonymouannes]

But their wasn't any issue when the junk was only on Amazon. It's only when chinese companies like Temu decided to cut Amazon off that the government stepped in.

[@DaxSudo]

@@johnc3525 Good because you’re part of the problem

[@PLANETWATERMELON]

Mmmm. Think Amazon had any influence with these changes? Pretty obvious yes.

[@vueport99]

It'll also hit Amazon. Notice how many Amazon listings show 'Shipped from China'?

[@jmg9509]

Vuewport69 true, but in the end amazon will ultimately be stronger because competition like at Temu and Shein will be crushed to dust as their entire business models relies on the De minimis rule. They have to evolve or die to turn a profit.

[@geoda83]

Amazon lobbyist i suspect

[@IanBrown808]

​@jmg9509 TEMU operates sales at a loss. PINDUODUO (TEMU parent company) makes $$$ selling consumer data.

[@chynawall8500]

@@geoda83oh hell yes

[@tony-so1fl]

Temu etc are already building domestic warehouses to get around this and transit times. Admittedly the products will need to be safe which is a good thing and they will cost more but it ain't getting killed off anytime soon

[@MakerMark]

Totally not the same thing

[@lesleyegbert4807]

The products won't be safe, they'll just lie on the paperwork. They know we can't test all of it, and when they do get caught, the fine will be a slap on the wrist.

[@s7r49]

@@lesleyegbert4807 Not necessisarily, now if they lie and get caught whoever is managing those warehouses is going to be accountable, it wont go well for them if the managers of their warehouses are taken to court with potential jail time

[@neilkurzman4907]

They’ll also need to be have to pay the tariffs and taxes because they can’t say it’s under the deminimus price anymore

[@Elementaldomain]

@@lesleyegbert4807BS. BS. BS. I only buy from TEMU, probably ten times a month….small items, construction items, etc. In three years I have returned ONE item. Stop with this China bad cr@p

[@user-wd3po8sd7k]

So instead of the government helping the consumer keep cost down, they are in a sense helping companies like Amazon keep the cost up for consumers?

[@rustyneuron]

You got it. Amazon lobbied hard I'm sure. They want everyone to buy from them. If everyone has the opportunity buy from China then Amazon no longer get to be the middleman. The advantage of scale and the ability to buy wholesale is completely eroded when everyone can get the same price whether they buy 1 or 1,000,000, price is the same. Traditionally the more you buy the cheaper the cost and large retail companies have trapped lots of wealth by being the economic gatekeepers. Temu takes away their advantage. The internet has taken microeconomics to a whole new level. The democratization and decentralization of trade allows wealth to start gathering in new places and disappearing in others. Amazon won't go quietly.

[@theadventurebiker]

So why wouldnt these new laws apply to sellers in China who sell their products on the Amazon US site as well? Why wouldn't they have to pay fair shipping rates and customs duties to bring their products here as well? ​@rustyneuron

[@FluffFashion_21]

Sad part is it all comes from china

[@theadventurebiker]

@@FluffFashion_21 Yes but China has been ripping us off hand over fist and there are things our governement can do to level the playing field and greatly reduce this. And in doing so will create more opportunity for American business and manufacturing.

[@FluffFashion_21]

@@theadventurebiker well please explain when the United States out sourced every thing to china to get cheap labor and now that people wanna cut out the middle man it’s a problem. If you think they are gonna balance anything keep waiting…

[@HotarusLens]

I would suggest that Amazon's appeal sales have fallen over the years not only because of Temu and Shien, but because Amazon is flooded with low quality Chinese brands that many consumers (including myself) don't want. I have young Children and if I search for something like "boys belt" or "girl's dress", almost all of the results are Chinese brands with their made-up, improperly capitalized names! Also, some major brands like Nike doesn't sell on Amazon so all you find is third party vendors with very marked up pricing. Amazon really transformed away from what made it attractive years ago.

[@jewellui]

I would say that's been the case for at least a decade already, possibly closer to two but over time there have been higher quality brands appearing.

[@Andrew-rc3vh]

If they want to legislate then I'd say a better way is to make it compulsory to give the origin of manufacture, and so if you want clothes made in the US you could filter on that condition. That's more free market as more information is always better.

[@cemstrike]

I sell very high quality products that are from china. I despise the stereotype that all Chinese manufacturing is bad. It depends on the manufactURER

[@radicalrick9587]

*The fact is a lot of Chinese manufacturers offer equal or better-quality products than many U.S. manufacturers.*

[@xbman1]

It’s the Western importers who imports the cheapest quality products to their countries.

[@bretebey]

high quality producst from China is an oxymoron

[@bretebey]

@@radicalrick9587 lol

[@jwiki1]

Absolutely! I agree.

[@tofuyam7361]

I saved thousands from buying "aliexpress junk" vs overpriced American junk with middleman

[@musicworldtreasures]

Amazon has sellers that buy from China and now the shipping is taking forever!

[@HeinRichKocHPretoria]

I sell many AliExpress products on my website. Everything has always been good quality.

[@joeyghostx]

@@musicworldtreasures Yeah, like the Prime sticker got abused so bad that having the Prime bonus is actively making me put in extra work.

[@KSlivinghappy]

😂😂 It’s all junk to you

[@Unduplicatable]

Most Amazon products are from China…

[@katyjay3165]

I understand the rationale behind rules limiting dropshipping since it significantly affects American manufacturing. However, if people want to purchase inexpensive goods directly from Chinese sellers for personal use, there shouldn’t be restrictions in place. Many of these consumers are lower-income and cannot afford higher-priced American products. I question whether the government’s concerns are really about health and safety. The fact American companies must alter baby formula ingredients for export to make them healthier indicates a double standard regarding the safety of our own people. Many Americans struggle with metabolic conditions linked to our food system and the government allows these companies to continue to poison us. Ultimately, it seems the government is prioritizing corporate interests, like those of Amazon, over the needs of everyday people.

[@mywifequitherjob]

To be clear, there aren't any restrictions for personal use. You just have to provide your information. It's mainly drop shipping that is affected

[@Escape_The_Mundane]

That's because of the strict EU laws, they aren't actually more safer, they are just different. In eu to sell a car you need to pass a super strict safety test. They don't even have that in america

[@Le3ktrill]

@@Escape_The_Mundane Please clarify as your statement contradicts itself.

[@Escape_The_Mundane]

@Le3ktrill instead of usa would you go to germany, China, India, or japan? Where would you go?

[@frostfree7]

Dropshipping makes everything more expensive because you are paying a middleman to ship it to you.

[@devinmillermedia]

The comments are interesting, I don't see anybody talking about bringing these items back to the US. Do we really need so much junk? The answer is no.

[@antilogism]

Very, very often other countries are the *only* source of what you need. Car companies often stop making parts so it's either scrap the car or buy the 3rd party parts internationally. In the US too many people are scrap-happy, keeping cars for only 2 to maybe 10 years so no one bothers to make parts for the tiny population of used cars. I needed rear springs (one broke) and it had to come from Latvia since no one has them here. The spacer seemed to be sourced only from Lithuania, probably since drivers in the US are obsessed track racing so they want their cars lower. I also needed a crankcase vent. Local chain store wanted >$230 for a Chinese made and I could get a Taiwanese made one for < $100 off the bay---the choice was simple.

[@thisisyourtransmission]

8:17 This is not the main case. The main reason is because America is loosing in manufacturing. Not all Chinese stuff is cheap junk. In a free market, the people decide what to buy and what not to buy.

[@hh0686]

Only as if this were a free market. Obviously this very market currently is NOT and is ruled by a certain perspective of someone.

[@nunyabidness3075]

@@hh0686”Someones” you mean? The international trade nonsense is just that. The only goals of trade restrictions should be national security and punishing predatory trade practices. Instead, we still have millions of people on the planet doing nothing but skimming funds at borders as though they were actual robber barons.

[@hh0686]

@squibbelsmcjohnson those TikTok shops are nothing but agents on behalf of the manufacturers

[@jacobheinz8236]

You’re from LaLa land? Where on planet earth is a “free market”? Seriously? It exist in an economic 101 text book !

[@hh0686]

@@jacobheinz8236 probably he or she has read too much of Disney 😂

[@johnbratmon6385]

This should have been titled "New US crackdown just killed Chinese product supplier drop-shipping". If your product suppliers are US based companies, it has no effect...

[@mywifequitherjob]

Yes. I address that in the video. These days on the Internet, people refer to drop shipping in relation to China

[@DominequeTaylor]

Someone didn’t watch the whole video.

[@johnbell1810]

@@mywifequitherjob The OP is pointing out the the CLICK BAIT title. Otherwise, I feel you do give some good advice about testing waters and aiming to seller better quality and real value to consumers.

[@ibsintesab7297]

Thanks, you just gave me a great Topic to write a blog.

[@ThisisFerrariKhan]

Yeah but your US supplied products are also 10x the price wholesale and therefore, 20 to 30x for the retail price, thus impacting YOU the US citizen purchaser/consumer. It 1000% still affects you.

[@singanddance-q9b]

I'm so happy. I really hate drop shipping. Everything is so cheaply made now, and there was this really blatant obvious shift in the last 7 years where products look really reputable or the look similar to the real deal, but it's fake, cheap or crap. It pissed me off for the longest time.

[@radicalrick9587]

*FYI, the top few big businesses have been doing this forever-killing small businesses, that is. For example, patent office laws are purposefully written to benefit big businesses and stifle small businesses with mountains of legalities and fees. These are costs most small businesses can't afford but have zero effect on big businesses with deep pockets.*

[@marcfavell]

Actually small businesses have been killing themselves 🤷

[@stellviahohenheim]

That's Joe Biden's America for you

[@neilkurzman4907]

Patent laws existed at the start of the country. Just like copyright laws, they exist for a reason

[@RaynaGrimm]

​@@stellviahohenheim wasnt much better under trump, after all trump did remove all the policies and protections so now we are having food recalls every other week cause trump didnt think they should be held to American standards anymore, trump decided we should use china low quality standards. cause you think we should have as low standards as china

[@Truth_Spoken]

I still don’t understand why China is considered a developing country with the Universal Postal Union. That’s how they get the cheap shipping rates - we all pay for it.

[@jaspiness]

It sounds like charity to me.

[@AgentOffice]

Americans pay high or low doesn't matter

[@johnathin0061892]

Now the government needs to put an end to the obscene "e-packet" rate that costs the USPS a fortune. My American business got 2 MAJOR rate increases on top of a "holiday" surcharge and another new surcharge based on ZIP code. How is it defensible that Chinese companies pay a small fraction of what it costs American businesses like mine to ship domestically?

[@thefryingpan951]

bc chinese companies dont have "minimum wage"

[@loganmedia4401]

The Chinese government also subsidises postage.

[@Truth_Spoken]

It’s because China is considered a developing country with the Universal Postal Union

[@jaspiness]

Does China need the charity???

[@Trace-l7k]

Since Raygun, they have actively been working to privatize the postal service. This means we have Dejoy in charge. He has made the postal system as dysfunctional as possible. It’s ridiculous that he’s still there and able to impact the country in this way. Prices are probably another way to influence people to privatize the system. It’s disgusting.

[@EdersonEdwardWilliam]

Hey, I want to start investing but don't know where to begin. Any advice or contacts for help?

[@FsfgFsfggsd]

It's wise to seek professional guidance when building a strong financial portfolio due to its complexity.

[@GioohFydss]

Talking to an expert like Liam watt to reshape your portfolio is a smart move.

[@Henry-fm9ym]

Investing $15,000 and received $174,000

[@Fg-oq7mr]

YES!!! That's exactly he’s name (Mr Liam watt) so many people have recommended highly about her and am just starting with him 😊 from United States

[@OsademeFrieda]

Please who is this Mr Liam This sounds so good andI would like to be a party to this, is there any wayl can speak with him?

[@MrRiley-Is-Not-Amused]

Good. Tired of people on Ebay and Mercari listing fake/knockoff products as genuine that get dropshipped from Chinese websites.

[@shotelco]

Easy to bypass (if these changes ever take place at all of or are ever enforced, which I doubt): IMMEX + Section 321. Ship from China to the port of L.A.> Truck to TJ Mexico > Repackage/assemble/re-badge/brand by local TJ prep company > Drop ship from Mexico to customer. Zero Tariff/Duty.

[@IndependenceCityMotoring]

Ok and how much more in transport and handling costs will that add?

[@shotelco]

@@IndependenceCityMotoring Good question. All-in, about 17% if one plays their cards right (worst case 26%). Also important, for this type of product, its typically a $100+ U$D price point for the end consumer. Plus, massive Chinese manufactures are not "Intellectually challenged". Many have spent the last 7 years recreating production facilities in other areas of SE Asia, Africa, and Central/South America.

[@jacobheinz8236]

Lol, it’s funny you’re not working in Government, huh?

[@KylePandapatan]

Maybe keep that a secret so it doesn’t get a crackdown too? Explaining too much can give others the chance to rob you of power.

[@Kara-z9b]

This is way too much extra for a small dropshipper. The key in dropshipping is to test a product relatively fast (under 1 week) the process you are describing takes several weeks

[@mrwebbofficial]

Sounds to me like just another law passed in favor of a giant corporation to crush small business.

[@kwaddamage8286]

ripping people off is not a "small business". straight up scammers

[@KayDejaVu]

Could be. The things is, few may actually follow the rules. The onus is on the actual shipper as well.

[@richpaul4083]

That's what they do. Morons think the government defends us from corporations. Like hell they do. The government is the Mother of All Corporations .... and she loves her babies. That's why the more they regulate, the poorer we get.

[@trythis2821]

You know the administration that did this.

[@Kara-z9b]

@@kwaddamage8286dropshipping is not ripping anyone off. Every single business buys their products for cheaper or buys the parts of their products for cheaper and sell it to you for a higher price. Dropshipper or not.

[@MehdiSyed456]

So here is my question, what is stopping Temu, Shien and other Chinese drop shipment companies from setting shop in Mexico and shipping from there?

[@mywifequitherjob]

Because it applies to all international shipments

[@Ricardogs]

Also Mexico require a RFC (tax regrist) since october 2024, both countries moved at the same dirección to stop the dropshiping loop holes

[@keybgbeez5713]

Honestly, drop shipping can be really scummy so I don't mind the crack down on the over saturation of drop shippers

[@RaynaGrimm]

trashy lazy scalpers and scammers the lot of them. selling you stuff at a disgusting upcharge from websites you didnt want to but then unknowing support all cause of them

[@johnc3525]

Drop shipping itself is a scam. It's hiding the fact that you can actually buy directly from the supplier while dressing up the product as more than it actually is. The essence of drop shipping isn't the product, it's marketing and advertising.

[@keybgbeez5713]

@johnc3525 true, most drop shippers follow product trends if they're trying to ride the popular train. Then you got thousands of people marketing the same products

[@simonbelmont1986]

common people: finally a job i can get into! government: i felt hope coming from the people, let me fix that.

[@terirea7743]

Common people: I found a great price on this thing that I really don't need! Government: I saw a price scam coming at the people, let me fix that.

[@simonbelmont1986]

@@terirea7743 eh, oh well no more easy money. i tried buying something from temu once and it was a fake product so if this'll fix that from happening then its a lose i'm willing to take

[@mansanayanaranjado]

It's because of scammers. The government is trying to protect consumers from being sold crap. Nothing is really changing that much. You can still buy from drop shippers at much lower cost. Just not the extreme low cost. There has to be a way to pay for agencies to monitor scammers. The people that would do it don't work for free. Do you work for free?

[@mansanayanaranjado]

​@terirea7743 you may pay lower cost, but I can't be bothered buying 3 items if 2 are crap and 1 works.

[@jakegunning61]

Drop shipping is not good for anyone

[@labklaw]

This smells funny it sounds like Amazon and politicians are working together

[@johnbell1810]

Welcome to corporate America

[@richpaul4083]

Of course they are. Always have been. The government does not regulate the corporations, it creates the corporations. And then the corporations regulate the government.

[@FredericiasChannel]

@labklaw That was my first thought, but then wouldn't Amazon also have to collect social security numbers and file the safety reports? And I think they are already set up for the import fees, because whenever I order from Amazon US, they take care of the import fees and just charge my card for them, so I don't have to deal with them when the order arrives here in the EU.

[@trythis2821]

Harvey Norman an Australian small appliance and white goods retailer petitioned the government years ago and got goods and services tax added to low value imports. Before that anything under AUD $1000 was exempt from this tax. Big business sure does know to kick consumers in the guts.

[@thefryingpan951]

well yes thats why lobbying in this country is legal... is this a surprise to anyone lol

[@thefryingpan951]

video starts at 3:44

[@southofhollywood4199]

I think another problem is that the same Chinese suppliers that drop-ship also sell directly to the US consumer. I sell LED flashlights from China on Ebay but lately I've seen "shipped from China" listings selling the same product for less than my cost.

[@Automedon2]

I used to have a brick and mortar store selling leather jackets. My Pakistani wholesaler used to sell t on Ebay at below my wholesale cost.

[@southofhollywood4199]

@@Automedon2 That's tough. What helped me was offering super fast same-day shipping. What happened to your business?

[@factsmatter1172]

eBay started that in 1999 and messed all the little guys up. I don't know why they didn't just leave it like it was where we all buy from them and sell on our marketplace. They basically shafted America and Americans. I still can't believe we haven't had a good Samaritan put up a site like eBay where suppliers aren't allowed?

[@Automedon2]

@@southofhollywood4199 closed after 18 months

[@Peteytube5000]

Time to just take the risk yourself amd stock your product

[@CharleneChristie]

Does this apply to all non-Us countries? I dropship from India and Vietnam and the goods are very high quality.

[@karlbodmer4368]

You just need to know that winning products are the backbone of this business. So I have to ask if you would include products from winnerzila in your videos? Or maybe you could do a review of their service? I don't know if you have heard of them, but they have really good deals currently (especially the lifetime access plan is a great value). The best thing is that you don't just get product recommendations, but also photos, gifs, descriptions as well, which is really great. It's pretty much everything you need to start your store.

[@BigDrewski1000]

0:48 And that, sadly, is the chief reason drop shipping is being so cracked down on. SO many scams,and such cheaply made junk, often times made with dangerous materials (i.e. lead paint in things like toys), put out with limited, or even non existent quality control. Now,it'snot like that always, or even mostly, but honestly, stop and think back on how many videos you've seen on poor or even fake products from sites like AliExpress, Wish, and Temu.

[@tobyswesternwear]

Chinese sellers will just send their products to be warehouse in another country just to avoid these rules.

[@nardog10]

Exactly I predict mexico

[@sandrahiraldo-zb7df]

that´s a good thing for delivery time

[@neilkurzman4907]

@@nardog10 it’s not going to Help. The loopholes are different

[@Shadowyartsdirty3]

I just saw an ad for Drop shipping while watching this video talking about how cheap it is, the irony.

[@terirea7743]

Gee, I remember HOW FUN it was to buy some deceptively described crap from China while the seller claimed to be in AMERICA. When that stuff arrived and WAS NOT what it claimed to be, I was scoffed at by the CHINESE support because returning the items would be far more costly than just eating the scam price. Go LINA KHAN!!!

[@Zypherfox1]

🙄 that's BS, this just looks like corporate greed. if they didn't artificially inflate prices ppl would stop shopping on those other sites

[@lawrencehalpin6611]

Electronic components for old radios is outrageous in Canada. If I could not buy cheap parts from ali express I could not afford my hobby.

[@AndrewDIY]

About freaking time. Now get rid of EPacket, what a scam, was lobbied by eBay. USPS subsidized the cost.

[@williamjacobs]

Badly underrated comment. EPacket is the backbone of Chinese competitiveness.

[@nimbuskhannk627]

Deminus rules are not in place to help people buy cheaper goods. They are in place because, from an investment vs.returns, from a human resources perspective, the exponential number of workers needed to be contracted by governments to charge deminute import taxes not only does not compensate but also risks bringing the whole duties excise machine to an halt.

[@1500runner357]

You nailed it!

[@geo7660]

Tariff's are suppose to level the playing field so that foreign business can't under cut American businesses.

[@funstuff7674]

no they are supposed to destroy you and you love it

[@Kara-z9b]

@@geo7660 all american businesses import from china

[@chongkt6469]

Instead of buying direct from the seller, now they ship it to an American seller who will sell you the same thing at 4 times the price. If you're OK with this, I am happy for you.

[@neilkurzman4907]

@@chongkt6469 And the American Shipper will actually have to pay for the shipping. Not the American taxpayer. Additionally, if they bring the items in in bulk, they’ll have to pay the tariffs.

[@WayOfTheZombie]

But this screws us 3 times for one win. In the short term Americans will pay hard

[@Cointelpronoun]

Deminimus exists so if you are on a day trip to Canada and buy some deodorant or candy bar and have it in your purse when you come back, its not smuggling or tax evasion. Billion dollar corporations are calling a whole ass jumbo cargo vessel "deminimus" to completely circumvent all regulations and taxes.

[@jogb9515]

So it's not just dropshipping, anyone with a brand that ships directly out of China will be hit with this, right?

[@neilkurzman4907]

No, there’s two things not paying tariffs because it’s done on a per package basis And not getting American subsidized shipping from China None of those ever affected large companies

[@mikeg3810]

Once again. The small biz owner is the one to suffer. The large importers and businesses will profit.

[@KieranMullen]

Everyone needs to pay custom duties.

[@gotyoutriggered.8644]

​@@KieranMullenThe issue us they can buy and import in bulk saving money. Less competitora

[@HeinRichKocHPretoria]

South Africa has also similar new laws.

[@softwaremediaguru]

Democrat's way of fueling inequality.

[@inadad8878]

make your own product. drop shipping is parasite behavior

[@Its_Wine_Thirty]

I'm confused - are you saying the place the goods are sent from has to physically be located in China and sent direct to the USA for this to apply?? Or if i buy something from China, have it sent to New Zealand, then send it to the usa, I'll still need to obtain the buyers social security ID? 🤔 Because if that's the case, hasn't the usa effectively passed a law that none of their residents can buy anything from outside their own border without paying additional fees and giving up sensitive information??

[@AscendentStonks]

Does this affect FBA sellers the same way? Since we also import stuff from alibaba

[@Krush0-0]

Meanwhile when foreign sellers ship bulk to FBA, does AMZN provides the importer EIN? What about the future certificate of compliance? Does AMZN fill it on behalf of the foreign sellers?

[@mywifequitherjob]

Your freight forwarder does all of that. Once all tariffs and duties are paid, it's not an issue

[@Krush0-0]

Thank you!

[@ttrev007]

no way in hell that i would give a SS number. that is a insane requirement

[@zkurucso]

Thank you 🙏 Useful & realistic info

[@jeptoungrit9000]

China is taking advantage of the Universal Postal Union program to subsidize shipping costs from third world countries. China is the second largest economy in the world so how do they qualify to utilize this program?

[@Raelven]

I don't even put my SSN on job applications, until I have a written offer letter. No way I am giving it to a drop ship store.

[@antilogism]

Same here! You can get an EIN as a sole proprietor if there's no other way to get the parts/materals you need. I had one years ago with a partneship. No big deal.

[@JohnDoe-t3h]

what i hear is the wailing sound of many sellers on several online shopping applications from a certain country, because they can no longer exploit loopholes in the usps system, to deliver goods without paying shipping costs, playing stupid games, win stupid prizes. some people had to close their warehouses because they were proven to have used the loophole (happened in texas, more to come, hopefully soon), no one wants to work without getting paid, and now, this seller, using a loophole in the usps system, is promising $0 usd to get your goods (free shipping) to be delivered to your door, you can blame the fools who wrote the coding in the usps system so that there is a backdoor that hackers can use to create "high tech orders", but to me, this situation clearly shows the true face of citizens of a certain country in asia who want to gain profits at all costs. but yes, anyone who reads my comments and condemns my comments means he or she is willing to work for free, without wages or insurance.

[@gaiustacitus4242]

Drop shipping has been a solid model used by small companies selling information technology equipment for decades. There are companies that rely on small businesses to market their product lines, allowing them to handle fulfillment, service, and returns. Why would the federal government restrain drop shipping? Or is it just placing restrictions on goods shipped from China?

[@johnc3525]

I would say it's different, those companies actually provide a service, they select and build equipment. Drop shippers are parasites, they take advantage of ignorance to oversell a product that costs a fraction and can be bought the same way if people knew Aliexpress exists.

[@junhong7616]

I haven’t heard anything about having to collect SSNs, only the basic info. Are you sure about this change?

[@sajalnaskar4711]

there's a book called whispers of manifestation on borlest , and it talks about how using some secret tehniques you can attract almost everything in life it's not some bullshit law of attraction, it's the real deal

[@Krlowanigu-mg6eg]

Scam!

[@Krlowanigu-mg6eg]

Scam!

[@Krlowanigu-mg6eg]

Scam!!!

[@queenbee9581]

Manifestation is demonic.

[@ScottHogue]

Avast lists this site as having malware. STAY AWAY!

[@catherinepham3999]

Very clear explanation. Watch it if you're dropshipping from US

[@thallonhenry4210]

Definitely wouldn’t say it’s defined as “unfair”. They’re utilizing the laws of business to expand and heighten their profits. That’s exactly what every single large corporation does here in the states at the expense of the environment at the expense of peoples health at the expense of the consumer. Isn’t that, capitalism 101?? Temu sounds like the one company that’s actually giving a break to the consumer. That’s why these US corporations are really mad because they’re so used to making their shareholders and themselves the most important while crapping on everyone else.

[@loganmedia4401]

Yes, I find it funny when people talk as though US companies don't have a long history of making bad quality and dangerous products.

[@mijmijrm]

I think it's a Western capitalist thing. Folks within the Western capitalist system have a sense of superiority. So, if they're beaten at their own game it must be by cheating. Check "overcapacity" for another example.

[@srsh12345]

Thank you for the breakdown. Learned a lot watching your video.

[@Taki-d1v]

Thank you for this information

[@geniferteal4178]

So just to understand this correctly, because it's dropshipping, all of this extra paperwork falls on the buyer, the customer, the person purchasing from timu. If it wasn't drop shipping, the customer would be the business you're purchasing it from. They would handle all the paperwork, getting it from china. Is that correct? The end result will be products will still be available. They will be more expensive, and they will have to be warehoused here by the selling company. Very few of those companies will likely exist in the long run.

[@mtphotoutah]

As a business who makes products in the US and now having to compete with TEMU and SHEIN, which is impossible. I support this action. Alot of our products are ripped off on TEMU and its hurting our sales. How can we compete when they get discounted shipping and are able to sell the item for less than our costs? It needs to be fair for american companies.

[@RoleyChiu]

forcing drop shippers to become private labellers, which is the ultimate model anyway :P

[@TamaraTee]

😂😂

[@WayOfTheZombie]

The corporations will be standing right in your way

[@carolynbm]

Aliexpress, temu, shein, are the reason small business in America have gone out of business

[@GDISinc]

NO!! Greed put themselves out of business! China isn't greedy that's why they sell stuff CHEAP! America are slobby people always looking for more never happy just living life!

[@leaguefixesyourmatches8259]

Not Amazon?

[@jaspiness]

I thought it was Walmart?

[@carolynbm]

Amazon and Walmart did affect the business but temu, shein, and aliexpress completely destroyed it.

[@greener8116]

It was the demand of American consumers who wanted every item cheaper. So Walmart complied. Then Jeff Bezos found a way to do it cheaper than Walmart. Then Temu found a way to do it cheaper than Amazon. Capitalism is a two-edged sword.

[@UnlockingWonderland]

I am so happy I came across your content at the beginning of my career!

[@pingadol1555]

Thank you for the breakdown.

[@jayjayquest4958]

Steve, will this apply to drop shipped products from other countries like Japan, India, Viet Nam, etc., or just China?

[@mywifequitherjob]

It applies to any foreign country but most likely to be enforced for China. Time will tell

[@Kara-z9b]

@@mywifequitherjobsection 301 is only for products from china, so it doesnt apply to every country?

[@EricPetersen2922]

Is there a hard implementation date for the new rules?

[@AccidentalScience]

Is this gonna affect shipments from the EU too?

[@KellyAnderson-d1e]

Thanks for this. I am happy to see that there is a now a way to stop the influx of dangerous cheap junk from overseas.

[@radicalrick9587]

*I got news for you, most of all that stuff in Walmart is cheap stuff from China with huge mark up.*

[@georginajovanovic]

How do you know is the same, without having handled the item? Did you ask for a sample? Fabric, quality, stitching, and colour

[@krachr1]

Thank You!! Excellent report!!

[@medusax4883]

The problem with drop-shipping is that your item isn't checked for defects. We have shopee here in my country and I once bought a mini-fridge from a seller that had tons of good reviews but obviously used drop-shipping. One of the details said and I quote: "There is a small likelihood that your fridge might not work. Please check your fridge as soon as you receive it and contact us immediately if there are defects. We will help you immediately. We have to apologize to you in advance because there is a chance that this might happen to you." LOL Luckily, my mini-fridge worked upon arrival.

[@DanielAde-oz7zy]

Because in my opinion, social security number shouldn't be just handed out.Whoever needs wants to know the number.The government doesn't need to get in our damn business

[@danamoore1788]

Oddly a former company I worked for did tons of drop shipping. We repaired commercial printers and sold parts for them. There are several companies that do this. Another company has a customer with a printer not normally in their service wheelhouse. They send a parts order to us, we would ship the part(s) directly to the customer in the original company's name. Cutting down on service delivery time. So we did not ship to the other business, then they shipped to the customer. Drop shipped. We also partnered with some Italian manufacturers and sold their products in the US. If we had to include EIN in shipping we would lose more than half our business. As the salesman at another company would just have to tell the customer he could not get the product through them. Us needing to provide a SSN when a customer ordered something? You may as well not have international business. We shipped to the UK, what are their SSN?

[@Kirby_kinetic]

Do you know how Mexican drop shipping would likely be influenced? Would there be special NAFTA loophole? Great content brother, i share a lot of your videos. Im a small US seller getting crushed by US tax payer subsidized shipping and de minimis... We will see what happens, but an overall great move i believe

[@debbieharry4452]

Good question. I want to know as well.

[@victorolvera6482]

same

[@brianhitchcock5911]

Sanctions will fix that problem.

[@soulfulsunflower4328]

Will this effect POD as well? I've been wanting to expand my shop's catalog and have been testing out products from a few POD companies in China as they have so many more unique options than the US companies. I've been highly impressed with the quality from a few of these companies and am in the process of getting these items listed (bags, clothing, and home decor items designed with my art). I'm hesitant to do it now tho as POD (print-on-demand) is a form of dropshipping.

[@radicalrick9587]

*New twist to; "If you can't beat them, join them." to "If you can't beat them, make laws to put them out of business.*

[@ani1344]

This is not a new twist, sadly

[@pamelasplayroom]

Hi Steve. Just wondering if this will affect someone operating a drop shipping operation / web shop in another country like France or the UK and someone in the USA orders something and it’s drop shipped from china into the USA. As the sellers web shop is not in the USA would the same rules apply. Thanks for the info.

[@JoeCosentino]

So Amazon can sell the same crap at 4 times the cost

[@ninaj.4885]

Bingo

[@leaguefixesyourmatches8259]

​@@ninaj.4885double bingo. Amazon super happy

[@sernik_z_rodzynkami]

Amazon still has to pay new extra taxes (like everyone else). I see it as a good change. It's crazy for me that it's cheaper to transport stuff from Shenzen to New York than from New Jersey to New York. At the same time CCP gets more and more hostile against USA. Why would USA give them any favors?

[@neilkurzman4907]

Yes, and Amazon will have to pay for the shipping and the tariffs also. Did you forget that part?

[@ninaj.4885]

@@neilkurzman4907 But they pass the cost onto their customer so they pay more and so will you. I don't know how people got the idea that companies just eat the cost. They just raise their prices and its the consumer that eats the cost. Also the majority of the items sold on Amazon are sold from third party sellers. Amazon gets a cut of their sales.

[@truckerron]

THANK TEMU for the change!!

[@MYK-jd6uz]

All the big companies will do is begin purchasing warehouses in the states to ship to domestically and fulfill/sort the packages for shipping from the warehouse. I've seen so many new huge warehouses being built around the country already..

[@bonanderson9398]

Thank you so much for breaking down these commerce subjects!

[@MissBabalu102]

Is this why my PO Box and stamps cost so much money now? Our US post service is going broke.

[@leahweinberger583]

Louis dejoy has been gutting it for years.

[@CelticEarth]

Do you know if this change will affect printful orders since a lot of that falls under textiles? The company is based overseas but they have fulfillment centers in the US, so I'm not sure what the law says about that kind of setup.

[@Ryan_Booker478]

I’ve bought stuff from Ali Express that was actually better than real stuff. 😂

[@poollife777]

Yeah right I'm going to believe somebody who uses stupid emojis.

[@balsalmalberto8086]

@@poollife777 Somebody with poo in their name surely is mature to have a logical criticism.

[@Ryan_Booker478]

@@poollife777 lame, everyone uses them keep up.

[@williamgabriel6041]

But if you’re paying the import tariff, why do you need to give a SSN to qualify for an exemption you’re not taking?

[@natamar24]

This has been the norm in Europe for a very long time

[@harrylarry8330]

So sad for people in Europe.. Higher prices for daily needs..

[@vueport99]

​@@harrylarry8330not true. Europe does have higher tax but shipping cost from China to EU is faster and cheaper

[@Kara-z9b]

What? No it hasnt, I am from germany and never heard about anything like this. The sales tax is just higher

[@Dianawales]

I am having an exercise product manufactured in China and then using a distribution company there in China as well. Will my products be similarly affected?

[@BenLin-t5c]

Drop shipping is for ppl who don’t have 200-500 minimum a month to buy stock but have a lot of time

[@donzell1738]

Explain yourself? I don’t get your logic.

[@BenLin-t5c]

@@donzell1738 u don’t need any money at all for drop shipping I start up money at all

[@larrybrinley8222]

Do you honestly not have the time to spell out people ?? 🙄

[@harry486]

@@larrybrinley8222 Alot of ppl are doing this nowadays

[@ColinMcMahon1337]

Aliexpress isn't all trash like you mention. There are real manufacturers on there with stellar products. The bad actors absolutely exist, but if you do your due diligence, you can find really good products.

[@brianhitchcock5911]

You are right! Only 99% of Chinese products are junk.

[@NetflixForeign]

Agreed. A number of people buy emulation handhelds from there, controllers, hall effect sticks to replace in their controllers, portable screens and screens to patch up. I saw an AMOLED portable screen there more reasonably priced than on Amazon. Some of the Amazon OLED screens selling there aren't even AMOLED for the same or more.

[@LoriAnneBrown]

How do you think this will affect wholesale companies with factories in China but US warehouses? Most of my suppliers fall into this category, so they ship from the US even thought the goods are made in China. I'm wondering if the tarrifs will increase when they restock containers from the factories?

[@mywifequitherjob]

This should not affect you. They should already be paying taxes and tariffs

[@stuartist]

Was the legislation passed?

[@mc333777]

PROS: US government benefits with every penny that US customers spends to purchase JUNK or NO JUNK from China. - Amazon & eBay's sales is likely to go up. With Amazon & eBay, buyers don't have to provide their SS number to China. CONS: - Consumers will have to pay 3X-10X to buy junk or no junk of the same item. - US is making life more difficult for those who could barely make ends meet. - Less purchases by consumers, means less revenue on both sides. US buyers already pays taxes at check-out with every purchase from Ali, Temu, $ Shein , these taxes goes to US, and SOON, US will collect even more fees at the cost of consumers.

[@brianhitchcock5911]

If you are barely able to make ends meet you don't need the cheap non-essensial Chinese garbage anyway.

[@RaynaGrimm]

​@@brianhitchcock5911 depends what you are getting. the shower heads, shower head holders, and door rack i got have made life a bit more bearable since that improved shower quality, AND WE ALL NEED TO TAKE SHOWERS LOL so you have to get that stuff fixed asap and cheap is faster sadly, and the door hangers save more space than a coat rack and holds keys so you dont lose em, the phone purse has been a life safer for not breaking my phone screen with the inevitable accidental drops meaning i wont have to spend extra to fix my phone, and i saved so much compared to going to the home depot, and they are still going strong after a year or so of use. but maybe im just more gentle with my junk. maybe lead is raining down on me but meh we live in a hel hole anyway if its not the lead it will be something else. like all the food recalls lately, then my own greedy country rolling back food safety regulations can take me out before the temu lead does

[@Daniel15au]

Will these changes affect people that buy stuff online from international stores (not drop shipping)? Or is it just for bulk drop shippers?

[@MizAmeliaTv]

Because people are to broke to buy inventory. Smh you should know this. People are literally working paycheck to paycheck. Most of us are not looking to dropship forever but to officially be able to buy the inventory or similar that we’re shipping. What you’re doing is insensitive and you’re gloating about the fact that the doors being closed behind you

[@othername2428]

What on earth are you yapping about Karen? He even stated "Dropshipping is not a good long-term business model." Pay attention. And it's too, not to. 🙄

[@MizAmeliaTv]

@@othername2428the people who have liked my comment and agrees says something different so stfu 🤫

[@asramezz]

Exactly I’m sorry that I’m trying to start a business and I don’t want to live paycheck to paycheck

[@squozyshop]

@@othername2428 Othername2428 There are 14 yearolds making more money a month then your entire pathetic brokie life.

[@user-ov4wr5yu4r]

Does this only affect China? What about "bundles" from Mercari Japan?

[@RipDon7]

A whole lot of fluff overall. This new rule will just give new opportunity to large importers who can turn around and offer their services to dropshippers in USA. If anything, this could lead to even more 3PL type businesses linked with importers selling junk via individual dropshippers on Amazon and such...

[@okramra]

How did you connect the link to a word?

[@altitudemonk2290]

BINGO!!

[@fictionaddiction4706]

Do those laws apply to only China or can we import from other countries? (the compliance, tariffs, or social security thing?)

[@natashakemp5164]

Thank you

[@ivanmorales2200]

¿Does this apply for both ecommerce and dropshipping?

[@joeorton1218]

I guess thats why temu open shop in the states so.im guessing they found a backdoor

[@Shirodx]

Won't affect dropshippers from Canada right?

[@hussein-g5k]

Finally they are doing something against these dropscammers