Dropshipping is a popular business model that is known as shipping products by the manufacturer itself, without involving the seller. This way, the seller only needs to display and promote the product, and the stocking and shipping will be done by the supplier.
In this article we will look at what is reverse-dropshipping, how does it work, and how can you make money out of it.
Briefly, reverse dropshipping refers to Chinese buyers seeking to buy quality products made and shipped mainly from the USA or any other developed country.
China is one of the biggest manufacturers in the world and is the centre of sourcing and distribution for thousands of dropshipping businesses. However, due to cheap prices, high production level and lower standards, Chinese consumers have now started to search for potential ways of purchasing better quality products.
The figure above shows how in 2020, China has bought a total of $99.9 billion from the USA, and in fact, its GDP will continue to grow by 2022.
That’s exactly how reverse dropshipping started to happen, and seems to be gaining a lot of attention recently.
Yes, reverse dropshipping is legal. The only factors you need to consider are related to agreements with your suppliers to ensure the quality of the product and shipment, as well as checking the legitimacy of your business in the country of operation.
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Whichever platform you will choose for your dropshipping business, you always need to carefully research the market you are going to enter and identify a gap in it. There is no other way of succeeding!
The bad side of it mostly relates to the high pricing competition within the Chinese market, as well as the long delivery times.
Language is another barrier you must consider. Apart of the language used on your online shop, you may also want to look into having Chinese written labels (including ingredients, product specification and so on).
Reverse dropshipping does not apply only to the USA, but to any country that produces quality products that can represent an interest for the Chinese buyers.