When dropshipping from China, how do you get past the outrageous shipping costs?

I'm just starting to get involved with dropshipping and ecommerce, but shipping from china is ridiculous, and I see competitors offereing FREE shipping on all of their products! How do I go about finding, or creating deals like this? Am I supposed to just eat the shipping cost even when it's 40% of the product price? Any tips would be GREATLY appreciated.

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