Academy Why

CEO Interview: The Secret Behind the Rising of CJdropshipping

To get closer with our customers and express our deep appreciation to all the people who are using and trusting in CJ, Andy, the CEO of CJdropshipping came here to share the story behind CJdropshipping and gave the answers to the questions that are mostly concerned by CJ users.

We collected all the questions and answers in this article, also you can go to our youtube channel to check the entire interview with Andy anytime.

Check the whole interview here:

Part one: Stories behind CJ

1. When did CJ establish?

A: CJ first stepped into e-commerce in 2015, starting from an AliExpress store.

2. The opportunity of entering dropshipping supply industry.

A: When I was running my AliExpress store, a winning product was selling very well in the store. Then a client of mine was found placing orders for this winning product but shipping to a different address. After I found out about this client who was running a Shopify store and placing orders from Oberlo, I realized that this is exactly the dropshipping business.

3. The reasons for choosing to develop CJ’s own platform.

A: Firstly, we found there were three pain points for dropshippers:

a. AliExpress can not combine orders;

b. The price is higher than sourcing directly from 1688 and factories;

c. The shipping and packaging can not be guaranteed by AliExpress.

To solve all the problems at one time, was born. It combined the features of both AliExpress and Oberlo, providing a one-stop solution for dropshippers. To check the product quality and combine orders for the sellers, we owned warehouses overseas and in China.

At the same time, many featured services like print on demand and photography services were added for dropshippers.

4. What’s the secret behind the developing speed?

A: One crucial point is “focusing”. CJ focuses on the need and difficulties that dropshippers are facing all the time. At that time, a lot of dropshipping suppliers might just change to doing business with the end customers eventually, which was much easier. But CJ is still focusing on one thing, which is helping dropshippers. There were a lot of difficulties with dropshipping supply, CJ aimed on solving them day by day. Eventually, we are here as the best one in China.

Part two: Q&A Time

1. How will CJ improve the inventory updating?

A: CJ has a plan on this and the inventory updating will definitely be better.

Firstly, understanding how the inventory works is quite necessary: CJ, as a dropshipping platform, we do not produce directly. When we receive orders, we will purchase them from manufacturers. The manufacturers do not only supply to CJ but also sell to different platforms, which makes the inventory very flexible.

Meanwhile, CJ has half a million SKUs running now. Every day, our purchasing team checks the inventory for products as well as with the suppliers, but the product amount is too huge to get an accurate update in real-time from the suppliers and manufacturers every minute for every single SKU.

We are working on the solutions. The first one is we are creating a new feature which to show the supply ability of one product on the product description page. This function will come into use in one or two months. CJ users can use this to filter manufacturers with stronger supply ability. To have more reliable inventory data, CJ will also work on data analysis and check with the top manufacturers.

For the second one, we are working on AI purchases for the winning products. In the future, CJ is going to use big data technology to predict what kind of product the customers will purchase and stock in advance.

What’s more, purchasing the private inventory is also a way to solve the inventory updating problem. When there’s a winning product in the store, the user can purchase the private inventory in CJ’s warehouse with no storage fees but a lower bulk purchase price. By doing this, the processing time can be also greatly shortened.

2. How will CJ improve the sourcing function?

A: We can’t deny that some objective elements do affect the sourcing result. The first thing that needs to be aware is CJ can not sell customs forbidden, or infringement products since they are illegal. The second thing, like what is mentioned in the inventory question, the product sometimes may go out of stock.

CJ is also finding ways to solve the sourcing issues. The sourcing success rate will be higher and higher in the following months.

3 . How will CJ improve the shipping and processing time?

A: Actually there are two types of dropshippers. One is to sell single-product and the other is running a general store. Dropshippers who are running general stores are likely to list a lot of products to their store, even by hundreds or thousands sometimes. And this strategy for general stores is really challenging to the supply chain.

Because many problems are easy to happen while you are purchasing different items from different suppliers at the same time. Not like a one-product store, we can pre-stock the winning products to save time. Hence, it is quite difficult for our platform to prepare all the products and ship them out together if your client ordered too many things from your store at one time.

On the other hand, CJ is doing something to improve our shipping now. The first one is we are making a more powerful shipping team. In the future, our shipping team will connect with more shipping companies and better shipping agents so that CJ’s shipping services will be much better than before.

Secondly, in the future, for the winning products, our customers can pre-stock their private inventory both in our overseas warehouses and China warehouses. CJ will process them within 24 hours. You will see more and more products that we can ship them directly from our overseas warehouses, with even lower shipping fees but much faster shipping time.

What’s more, CJ has a domestic supplier program. We also aim to dropship from worldwide to worldwide. If the supply company locates overseas and they have the ability to supply domestically, then they can stock in CJ’s warehouses and list on our platform. In this way, the dropshippers can dropship from the domestic supplier directly. All the ways mentioned above will greatly shorten the turnaround time.

4.  How will CJ improve the process of returning a product?

A: CJ is growing while solving the issues, so now we are updating our WMS system to improve the return process. In the future, CJ will also open the return service for our overseas warehouses.

What’s more important, CJ always values the feedback from our users. We are open to our customers all the time, and willing to accept all the useful opinions and suggestions with a sincere heart.

5. The future of dropshipping.

A: The future of dropshipping is very bright since we have thousands of newly registered customers every day.

Nowadays, social media development is going drastically, the new business models are many, such as TikTok and other traffic channels, and live streams, many people use them to sell products, so they can use dropshipping model.

As long as you have the traffic and you are influencers, everyone can use dropshipping to do eCommerce.

6. CJ’s future plan.

A: CJ will never stop improving itself.

We will solve the issues not only in sourcing, processing, inventory, shipping, etc. But also other aspects like the packaging. CJ will also put more effort into product quality inspection. We promise you that all of you will see our moves for sure.

Meanwhile, CJ will keep focusing on finding more winning products to help our customers to grow their business.

My suggestion for all of our users is just insist on working on your business and never give it up so you will have a day like CJ.

Maybe you will be much more powerful than CJ in the future, and that is also what we would love to witness with you together and we will try our best to provide support as always.

Just do not hesitate and contact us if you have any questions, CJ will always get back to you in the first place.