What Is Reverse Dropshipping And How To Start?

Are you ready to flip the dropshipping game on its head? Enter reverse dropshipping—a lucrative model that’s gaining traction but remains shrouded in mystery.

What if you could turn the usual flow of goods upside down, selling premium products where they’re least expected?

Curious to learn how this works and what it could mean for your business? Dive into my guide and uncover the untapped potential of reverse dropshipping!

Key Takeaways

• Reverse dropshipping involves sourcing high-quality products from developed countries and selling them in markets where such products are rare, effectively reversing the typical flow of goods in traditional dropshipping.
• The e-commerce market in China is expected to reach $1,478 billion in 2024, with a growth rate of 9.94% annually from 2024 to 2029.
• US-China trade in goods totaled $47.9 billion in January 2024, with US exports valued at $12.1 billion.
• Reverse dropshipping requires purchasing inventory beforehand, unlike traditional dropshipping which involves no inventory holding.
• Focuses on premium, often scarce products in the target market, such as advanced electronics or high-end fashion.
• Some of the top suppliers for Reverse Dropshipping are AutoDS, BrandsGateway, and Zendrop, known for their diverse catalog and custom packaging, with express shipping options.
• The steps to Start Reverse Dropshipping are Market Research, Supplier Selection, Product Selection, Building an Online Store, Establishing Shipping and Logistics, Marketing and Sales, and Customer Service.

Build your dropshipping business with the right guidence

In just 7 days you will have everything you need to start & scale a life-changing dropshipping brand

Get started for free

What Is Reverse Dropshipping?

Reverse dropshipping is an e-commerce business model in which high-quality products are sourced from countries that import them and sold in countries where they are exported.

As a result, let’s take an example: If low-quality products are being produced in Asian countries, with reverse dropshipping, they would be produced outside these countries but sold within them.

So this means with reverse dropshipping, a high-quality product would be sold, for example, in China but not produced there. One fact before I jump in: The E-commerce market in China will reach US$3 trillion in 2024

How Does Reverse Dropshipping Work?

Let’s first take a quick look at how dropshipping works. With dropshipping, you ship the product directly from the supplier to the consumer.

The profit you get from this is the between the price of the supplier and the price from the customer who bought this from your online store, additionally calculating the marketing costs.

In dropshipping, you are just the middleman of the supplier and the customer. However, in reverse dropshipping, things change up.

Here, you buy items before the time of selling them, so of course, you’ll need more money than you do in regular dropshipping.

In dropshipping, you don’t need to buy items; you can fulfill orders without holding an inventory.

How about Reverse Dropshipping?

Reverse dropshipping is a variation of the traditional dropshipping business model, with a significant twist in the direction of product sourcing and sales.

In traditional dropshipping, retailers typically source low-cost products from suppliers in countries like China and sell them to consumers in higher-income countries at a markup without ever handling the products directly.

With reverse dropshipping, you are shipping from the USA or any other country to China.

Here’s how reverse dropshipping differs:

➡ Higher-Value Products

Instead of focusing on cheap items, reverse dropshipping often involves selling high-quality, often more expensive products.

These products are sourced from developed countries and are targeted towards markets where such high-quality goods might be rare or in demand.

👉 Learn about High Ticket Dropshipping: A Step-By-Step Guide To Succeed + Products Ideas.

➡ Target Market

The target markets in reverse dropshipping are usually in developing or less economically developed regions, where consumers are looking for premium products that aren’t readily available locally.

➡ Supplier Relationship

Retailers in reverse dropshipping typically develop deeper relationships with suppliers in developing countries who produce high-quality goods.

This can involve more detailed agreements concerning product quality, customization, and shipping.

➡ Pricing Strategy

Because the products involved are of higher quality, the pricing strategy also differs. So, you can charge a premium, but they must also consider the purchasing power of the target market.

➡ Logistical Challenges

Shipping high-value items across international borders to less developed markets can pose more significant logistical challenges, including higher shipping costs, longer delivery times, and more complex customs regulations.

➡ Market Differentiation

This model allows you to differentiate yourself in a market saturated with low-cost, low-quality goods by offering unique, high-quality options.

Why Start With Reverse Dropshipping?

Reverse dropshipping offers a compelling opportunity for entrepreneurs looking to carve out a niche in the crowded eCommerce landscape.

This model is particularly appealing given the shifting dynamics of international trade and the robust growth of online shopping.

Therefore, here’s why you should consider starting with reverse dropshipping:

✅ Growing Exports From US To China

In January 2024, the total value of the U.S. trade in goods with China was approximately $47.9 billion, with U.S. exports at about $12.1 billion and imports at around $35.8 billion.

This highlights the vast amount of goods entering the U.S. from China, which not only shows a heavy reliance on Chinese manufacturing but also the potential market saturation with similar products.

So, you can offer products from the U.S. (or other developed markets) to other regions, potentially reducing direct competition with Chinese exports.

✅ Growing eCommerce Market

Sales in the eCommerce market in China are expected to hit $1,478 billion in 2024.

Over the next five years, from 2024 to 2029, the market is predicted to grow at a rate of about 9.94% each year. By the end of 2029, it’s estimated that the total sales will reach $2,374 billion.

These figures suggest a rapidly expanding digital marketplace where high-quality, differentiated products can command premium pricing and capture significant market share.

✅ Increasing Consumer Base

The number of eCommerce users is projected to rise to 1,360 million by 2029. This growing consumer base is becoming more sophisticated, seeking quality and authenticity over mere price competitiveness.

Thus, you can serve this demographic by offering high-quality, unique products not readily available in their local markets.

✅ Higher Profit Margins

While traditional dropshipping often competes on price with thin margins, reverse dropshipping allows you to leverage the quality and exclusivity of products from developed markets.

You can sell these products at a premium price in emerging markets, where consumers are willing to pay more for superior products, thereby significantly boosting profit margins.

✅ Unique Market Positioning

By focusing on higher-end products from developed countries, you can position yourself uniquely in the market.

This differentiation helps build a brand associated with quality and reliability, a stark contrast to the common perception associated with traditional dropshipping sources.

✅ Less Saturated Segment

Many emerging markets are flooded with cheap goods but lack access to premium products.

Reverse dropshipping addresses this gap, jumping into an underserved segment that desires quality and is not the primary focus of traditional dropshippers.

9 Best Examples and Practices for Shipping From The USA to China

Many products made in China aren’t of the best quality, so many of the locals living in China will avoid purchasing them there. Therefore, here’s my advice if you are using the reverse dropshipping model.

1. Choose Reliable Shipping Partners

When you’re shipping from the USA to China, it’s crucial to partner with reliable shipping companies like FedEx, UPS, or DHL.

These folks know their stuff when it comes to international shipping.

They’ll handle everything from logistics to customs with expertise, giving you peace of mind and ensuring your package arrives safe and sound.

2. Navigate Customs Smoothly

Now, let’s talk customs. It can be a bit of a maze, but don’t worry, I’ve got your back. Make sure you understand Chinese customs regulations inside out.

Provide all the necessary documentation, and be honest and accurate with your declarations. This will help your package breeze through customs without any hiccups.

3. Packaging Like a Pro

When it comes to packaging in the reverse dropshipping business, think sturdy and secure. Your products are going on a long journey, so they must be well-protected.

Use plenty of cushioning for fragile items, and don’t forget to label your packages clearly with both English and Chinese addresses. Trust me, a little extra care here goes a long way.

Many sellers in China are putting English labels on products so they can sell them more easily.

With reverse dropshipping, your content and labels should be in Chinese since not everyone can speak English. Furthermore, you have to be considered a reliable supplier.

For example, Zendrop is a dropshipping supplier that offers custom packaging. So, you can order your packages however you want.

4. Understand Tariffs and Duties

Ah, tariffs and duties – every shipper’s favorite topic! Ensure you know the tariffs and duties that apply to your goods in China.

You can use tools like the Harmonized System (HS) code to determine what you’re dealing with. Remember to factor these costs into your pricing strategy—nobody likes surprises at customs.

5. Build Relationships and Cultural Understanding

Let’s not forget about the human side of shipping. Building relationships with your Chinese partners or customers is key.

Take the time to understand Chinese business culture and etiquette.

A little cultural sensitivity goes a long way in smoothing out the shipping process and building trust.

For example, here are the China’s seven major holidays, which are as follows:

1. New Year’s: January 1st to 3rd
2. Spring Festival (Chinese New Year): January 31st to February 6th
3. Qingming Festival (Tomb-Sweeping Day): April 3rd to 5th
4. Labor Day: April 30th to May 4th
5. Dragon Boat Festival: June 3rd to 5th
6. Mid-Autumn Festival: September 10th to 12th
7. National Day: October 1st to 7th

6. Take Advantage Of Their E-commerce Platforms

In today’s digital world, e-commerce platforms are your best friends.

So, consider leveraging popular Chinese platforms like Alibaba or JD.com to reach your customers directly.

These platforms often come with built-in logistics support, making your job a whole lot easier.

7. Forge Local Partnerships

Want to take your shipping game to the next level? Consider partnering with local distributors or logistics companies in China.

They know the lay of the land like the back of their hand and can provide invaluable insights and support.

8. Embrace Technology

Let’s talk tech! Embrace technology to streamline your shipping processes. Cloud-based logistics platforms can work wonders, helping you manage inventory, track shipments in real-time, and automate pesky paperwork.

Comparatively, the demand for high-quality goods manufactured in the US is growing day by day in China.

For example, ShuLogistics provides comprehensive cloud-based solutions tailored for businesses in China.

With ShuLogistics, you can manage your inventory seamlessly, track shipments in real-time, and automate complex paperwork—all from a single dashboard.

Many entrepreneurs are already thinking about reversing dropshipping.

Without a doubt, product descriptions and marketing tactics should be localized, but reliable distributors in China can indeed build a business out of this.

💡  LEARN: What Does Shipped Mean In Dropshipping?

9. Translate Your Online Store In Chinese

If you’re thinking about starting a reverse dropshipping business in China, translating your online store into Chinese isn’t just a good idea—it’s essential.

When you adapt your store to your target market by using their language, you show that you understand their culture.

Also, you show that you’re serious about providing excellent customer service. It’s all about building trust, and trust leads to higher profit margins.

Look at Nike, for example—they’ve translated their store to make it easier for Chinese customers to explore their premium products and make confident purchases.

When you switch from the traditional dropshipping model to a reverse dropshipping model, you need to consider more than just finding reliable suppliers.

You’ll also need to do some solid market research to understand your target market and choose high-quality products that cater to local preferences, like organic beauty products or smart home devices. This approach not only aligns with what’s in high demand but also helps manage shipping costs better.

Plus, choosing reliable shipping partners ensures smooth international shipping, keeping your customers happy and boosting your brand recognition.

By focusing on these details, you’ll be on your way to building a successful reverse dropshipping business that thrives in emerging markets.

How To Start a Reverse Dropshipping Business in 2024? [Step-By-Step Guide)

Here are some methods you can use for reverse dropshipping:

Step 1- Choose a Niche

Go to any of the sites mentioned above and pick your dropshipping niche. Since you are doing reverse dropshipping, it is good to check the most demanded products in China.

Google Trends is a good way to help, but you can also visit the top categories of the dropshipping site you choose to visit.

So, for example, let’s say I want to dropship electronics. Thus, I will type in the keywords in Google Trends, set the location, and check if these products are in demand.

Each dropshipping site should have its own way of filtering, so you will need to find out how to do it.

Step 2- Find a Product

Interestingly, this sounds very easy to do. If we are talking about reverse dropshipping, it is easy to do since your competition in China shouldn’t be as high.

Many of the products are fake and won’t be able to compete with you as easily as they would if you did regular dropshipping.

For instance, I use a product research tool like Intelligynce to find winning products. This way, I can check on their prices, sales, and profit margins, and see whether these come from reliable suppliers.

Step 3 – Pick Your Selling Platform

If you’re thinking about starting a reverse dropshipping business in China, the first decision you need to make is how to get your products to your customers. One way is to set up a Wholly Foreign-Owned Enterprise (WFOE).

This involves choosing a unique company name, leasing office space, applying for a business license, opening a local bank account, and completing any additional registrations required, like environmental assessments or import/export licenses.

It’s a bit of a process, but it allows you to operate and sell directly in the Chinese market legally.

However, if that sounds too complicated, no worries! You could sell on Tmall Global instead. This platform lets you reach Chinese customers without having to start a local business.

Remember, Tmall Global has some costs, like a $25,000 deposit fee, an annual service fee between $5,000 and $10,000, and a 2-5% commission.

Another great option is taking advantage of Shopify’s partnership with JD.com.

If you already have a Shopify store, this is an easy way to start selling on JD.com’s marketplace with a commission fee of 2-8%.

Step 4 – Secure an ICP License

After you’ve chosen where to sell, you should consider getting an ICP license (Internet Content Provider license).

This license is pretty straightforward to get and lets you set up a Chinese website or online store, giving you more flexibility with your business.

While you don’t need an ICP license if you’re selling on platforms like Tmall or JD.com, having one can help you establish a more professional presence in the Chinese market.

Plus, it’s always a good idea to be prepared and have the option to expand your online footprint later on.

Step 5 -Find a Reverse Dropshipping Supplier

In short, you can find any reliable dropshipping supplier from SalesHoo, AliExpress, Doba, Home Depot, Walmart, etc.

For example, I am personally using the Dropshipping.com supplier directory to find suppliers for my dropshipping hats business. Thus, their directory has over 2000 reputable suppliers.

Later on, I will explain how to use it.

4) Build A Dropshipping Store

First, it’s important to set up your dropshipping store. Make sure that your landing pages are not only visually attractive but also user-friendly.

Luckily, there are plenty of website builders out there. In my experience, Shopify stands out as the best option for dropshippers.

For me, Shopify is the best option. It provides an intuitive interface and a variety of appealing themes, available in both free and paid versions, tailored for your dropshipping shop.

Additionally, it offers numerous customizable options. The drag-and-drop editor on Shopify makes it simple to create and adjust your shop with ease.

Shopify also integrates well with multiple dropshipping apps, allowing you to automate the supply chain operations of your business fully.

However, I found myself an even better option. With DSCOM Shopify AI Generated Store, all I had to do is give the team my requirements, I got a ready-made store for only $1.

5) Promote Your Dropshipping Business

Promoting your store is crucial, since that is how you will make your business visible to others.

Therefore, begin with tactics like search engine optimization (SEO), social media marketing, email marketing, and paid ads.

Then, enhance your sales by using strategies such as  cross-selling and up-selling, offering discount codes, referral programs, and more.

Additionally, consider incorporating  video marketing into your strategy. Videos can showcase your products in a dynamic manner and explain their usage, features, and advantages.

Finally, consider automating your marketing efforts with tools. For example, check out the  16 Best Marketing Apps On Shopify

👉  Learn How To Convert Asian Size Chart to US Size for Dropshipping.

How to Use Our Free Dropshipping Suppliers Directory?

Our free dropshipping supplier directory is composed of thousands of suppliers across the globe.

Furthermore, once you are on our supplier directory tab, you will see different categories available.

From these categories, you can filter your search and make it simpler. For example, you can narrow down your search based on supplier location, shipping costs, dropshipping niche, product costs, etc.

Whichever country you are thinking of dropshipping from, the short description will usually show where the supplier operates when you click on the “more” button.

You can see in-depth information about a supplier once you click on the “More” button. Hence, this platform provides you with insights about supplier location, shipping costs, MOQ requirements, average order processing time, product costs, contact information, and more.

Since I mentioned the USA, here is a short list of some recommended suppliers you can contact from our directory:

• MDS Fulfillment is located in Milwaukee, Wisconsin. It provides extensive e-commerce order fulfillment services, including packing, kitting, packaging, shipping, and mailing operations for B2B and B2C ventures.
• Vitalabs – a private labeler of health supplements offering a custom formulation, which means the product is exclusively made for your company.
• RCC Wholesale – a wholesale distributor of liquidation merchandise. Firmly, they supply individuals and businesses with overstock and closeout products.

However, you shouldn’t be limitedto these suppliers. Hundreds of high-quality suppliers are in the directory, so have fun searching!

Best 10 US Suppliers For Reverse Dropshipping

1. AutoDS

AutoDS is more than just a typical USA dropshipping supplier. It’s a cloud-based platform that streamlines order management, communications, and even handles cancellations and returns for your dropshipping stores.

This tool includes a default template for quick responses and a dashboard to monitor your performance, making the sourcing process easier and more secure.

The suppliers of AutoDS are located across multiple countries including the USA, China, UK, France, Italy, Spain, Germany, Canada, and Australia, providing global shipping options.

This network enables AutoDS to offer faster shipping times and enhanced product quality.

Additionally, AutoDS connects with leading global suppliers such as Amazon, AliExpress, Wayfair, CJDropshipping, and more. It also allows partnerships with private suppliers to ensure excellent customer service and quicker deliveries.

The platform supports a variety of USA-based dropshipping suppliers in numerous niches like toys, home goods, outdoor equipment, electronics, apparel, and more.

Shipping times with AutoDS can range from 2-21 business days, depending on the supplier. However, they offer a fast shipping option that promises delivery within 1-3 business days.

Lastly, AutoDS provides various pricing tiers depending on the platform you use. For instance, Shopify users can choose plans ranging from $19.90 to $49.90, with custom quotes available upon request. This flexibility makes it an appealing choice for those involved in reverse dropshipping.

2. Brands Gateway

If you want to start reverse dropshipping, BrandsGateway serves as a vital link that connects dropshippers and wholesalers around the world with renowned brands.

. They offer a vast selection of products from over 100 brands, including high-profile names like Armani, Calvin Klein, and Gucci, ensuring a varied and appealing inventory.

Their product lineup extends beyond just apparel and footwear, also encompassing jewelry and accessories, providing a comprehensive range of options.

 Also, BrandsGateway offers fast international shipping that only takes 1-7 days, utilizing trusted carriers such as UPS, FedEx, or DHL. Shipping starts at €15 per order, and they provide a 7-day return policy.

Additionally, BrandsGateway integrates smoothly with major dropshipping platforms like Shopify, WooCommerce, Wix, and Shift4Shop. This integration supports automatic order processing, one-click product import, and real-time inventory updates, simplifying operations for dropshippers.

👉 Check out my in-depth review of Dropshipping with BrandsGateway: Review, Comparison, Pros & Cons, How-to Guide.

3. Sunrise Wholesale

Sunrise Wholesale stands out as one of the leading USA dropshippers, known for offering some of the market’s most sought-after items.

This provider seamlessly integrates with major online marketplaces like Amazon and eBay, enhancing your ability to sell their products.

They also offer specialized research tools to help you select and compare products effectively for your dropshipping business.

They boast a substantial inventory of around 20,000 products, ranging from electronics and tools to home décor and toys, ensuring a wide selection for your store. Located in California, their warehouse processes orders typically within one day, allowing for swift customer service.

However, it’s important to note that Sunrise Wholesale is not a free service. Access to their features comes at a cost of $49 per month.

They do offer a one-week free trial, but after that, you must subscribe to continue using their services. This setup makes Sunrise Wholesale a robust choice for those involved in reverse dropshipping.

4. Zendrop

Zendrop is a USA dropshipping supplier and e-commerce platform that links trustworthy dropshipping companies with online retailers.

It boasts a diverse catalog of over 1 million products spanning categories like fashion, home and kitchen, beauty and personal care, electronics, and sports, among others. Zendrop stands out by offering custom packaging for any product in its lineup.

Most products on Zendrop are shipped from China, but they also provide US-based suppliers for quicker delivery options. Shipping times vary by destination; for example, shipping to China takes 3-4 days.

• Economy Shipping: Costs $1.50 to the USA and $3 to other countries.
• Regular Shipping: Costs $2 in the USA and $3.50 internationally.
• Express Shipping: Charges $6 for items under 450g and $9 for those over 450g.

Zendrop offers three pricing plans: a free plan, and two paid plans at $49/month and $79/month. This flexibility makes it a strong platform for those engaged in reverse dropshipping.

5. Ashcroft Furniture

Ashcroft Furniture specializes in modern and contemporary furniture. It offers a wide array of items, from sofas and chairs to beds and TV stands. Its products cater to both mid-level and high-end tastes.

Known for their excellent track record and outstanding customer service, Ashcroft Furniture provides their items at competitive prices, allowing for potential sales margins of up to 50%.

For a deeper look into their offerings and feedback from both customers and dropshippers, make sure to check out our detailed review of Ashcroft Furniture. This review can help those involved in reverse dropshipping make informed decisions.

Check out my detailed review of Ashcroft Furniture.

6. BryBelly

BryBelly stands out as one of the top USA suppliers for reverse dropshipping! They offer a vast range of products including beauty items, toys, games, home decor, kitchen essentials, party supplies, and athletic equipment.

One of the best features of BryBelly is that it’s completely free to use and doesn’t require a monthly membership. This makes it an excellent opportunity for you to connect with suppliers without the stress of a recurring subscription.

Additionally, BryBelly is located in Indiana, and they typically process orders within 1-3 days. This quick turnaround helps in maintaining efficient operations for your dropshipping needs.

7. Brands Distribution

Brands Distribution stands out as a prominent American dropshipping supplier specializing in luxury clothing and accessories. They are recognized as one of the global leaders in B2B fashion distribution.

This supplier caters to customers globally, not just within the United States. They handle around 500,000 orders annually, featuring top brands like Nike, Michael Kors, Gucci, and Adidas.

👉 Discover how to start dropshipping luxury products!

Additionally, Brands Distribution utilizes Bdroppy software to manage sales efficiently from a single dashboard. This enhances their operational capabilities.

These US dropshipping suppliers boast robust warehouse logistics, ensuring that orders are processed typically within 1-3 days. This level of efficiency is ideal for businesses engaged in reverse dropshipping.

💡 Tip: Learn How to dropship with a US warehouse!

8. Buy2Bee

Buy2Bee is a US dropship supplier specializing in men’s, women’s, and children’s apparel. Their products are sourced mainly from Los Angeles and Milan, Italy, but they ensure quick delivery across the United States, making them a reliable choice for fast dropshipping.

They charge about €9.90 per purchase for shipping, with delivery times ranging from 3-6 days.

Additionally, Buy2Bee is a dropshipping supplier for Shopify, utilizing either its API or the Shopify app to seamlessly sync all product information and photos.

While their shipments can arrive at any of their warehouses in Milan or Los Angeles, all returns must be sent to the company’s headquarters in the United States. This structure is particularly useful for businesses involved in reverse dropshipping.

9. Tasha Apparel

If you run an online store focused on women’s clothing, Tasha Apparel in Los Angeles could be your ideal supplier. They keep up with the latest fashion trends and offer worldwide shipping.

Their products are priced between $3 and $150, with an average order processing time of 4-7 days. Tasha Apparel has expanded its services to include dropshipping for both bundles and single-piece items.

Moreover, they provide the newest clothing at prices up to 80% below wholesale. They also allow the use of free images and are highly responsive across all their contact platforms, making them a strong option for businesses involved in reverse dropshipping.

10. National Dropshippers

National Dropshippers is one of the top USA dropshipping suppliers, known for shipping a variety of items like baggage, telephones, mugs, and kitchen utensils.

While their monthly subscription isn’t free, they occasionally offer coupons and discounts.

They provide several flexible membership plans, each costing about $20 per month, available through various payment methods.

National Dropshippers is renowned for its quick delivery times, making them a preferred choice for fast shipping dropshipping suppliers that also offer high-quality service.

One of their biggest strengths is that many of their US dropshipping suppliers offer very fast shipping, competitively low price plans, and a wide range of products to browse, which is particularly beneficial for those involved in reverse dropshipping.

Top 6 Products To Offer With Reverse Dropshipping

When considering reverse dropshipping from the US to China, certain products stand out for their high demand and excellent profit margins.

Thus, here I will list the top six products you might want to consider:

1. Smart Home Devices

Smart Home Devices have seen a surge in popularity due to ongoing technological advancements.

Products like modern security systems, remotely operated house locks, and smart lighting bulbs, especially from brands like Phillips, are in high demand.

The supplier price range for these items can vary from $30 to $100, while the retail price range in China could go as high as $100 to $300.

This gives you a potential profit margin of about 50% to 100%.

The reason for dropshipping smart home devices from the US is their advanced technology and reliability, which are features highly valued in the Chinese market.

For example, Google Trends’ results show that these devices are in high demand.

2. Fitness Trackers

Fitness Trackers, such as those from Garmin and Fitbit, are increasingly sought after as more people aim to lead healthier and more active lifestyles.

These devices typically have a supplier price range of $50 to $150 and can retail in China for anywhere from $150 to $300, offering potential profit margins of around 40% to 70%.

Dropshipping these items from the US is advantageous due to their superior quality and brand recognition, which are big selling points. Plus, based on Google Trends, the demand is growing.

3. Branded Fashion Products

High-end Fashion items like sunglasses, wristwatches, and branded jewelry from luxury brands such as Ray-Ban, Rolex, and Tiffany & Co are also ideal for reverse dropshipping.

Supplier prices usually range from $100 to $1000, while retail prices can soar as high as $300 to $3000 in China, depending on the item. This offers a profit margin of approximately 50% to 100%.

The appeal of dropshipping high-end fashion from the US to China lies in the exclusivity and prestige associated with Western luxury brands.

4. Eco-Friendly Beauty Products

Eco Friendly Beauty Products are another excellent choice for reverse dropshipping. With an increasing number of consumers looking for chemical-free beauty solutions, organic products stand out.

These can be sourced for around $10 to $50 and sold for $30 to $150, yielding profit margins of 80% to 100%.

The trend towards organic ingredients in skincare and haircare products makes this an appealing sector for Chinese consumers interested in premium, safe beauty options. Plus, based on Google Trends, these are always in high demand.

5. Designer Shoes

Designer Shoes from top brands like Gucci, Prada, and Louis Vuitton are perennially popular.

These products generally have a supplier price range of $200 to $1000, with a retail price potential in China of $600 to $3000, translating into profit margins of 60% to 100%.

The draw for dropshipping designer shoes lies in their unique designs and premium quality, which are highly coveted in the Chinese market. Plus, they are always in demand.

How To Start Reselling Shoes: 2024 Guide To Reselling Sneakers.

6. Gaming Consoles

Gaming Consoles also represent a significant opportunity, especially considering the vast number of online gamers in China. Brands like PlayStation, Xbox, and Nintendo Switch are particularly popular.

With a supplier price range of $200 to $500 and a retail potential of $500 to $1000 in China, the profit margins can be quite attractive, around 50% to 70%.

The rapid growth of the gaming industry in China makes this a lucrative dropshipping option. Plus, based on Google Trends, these products are in demand.

Top Shipping Provides For Dropshipping From US To China

When you’re considering dropshipping from the US to China, choosing the right shipping provider is crucial. So, here’s some advice on selecting the best option for your needs:

1. USPS– Affordable and Reliable

USPS is often the most affordable choice if you’re looking to save money on shipping costs. It’s perfect for packages weighing under 70 pounds and less than 108 inches wide.

They offer several expedited options like USPS Priority Mail International, which is competitive with other carriers.

For instance, Priority Mail Express International can deliver your packages in just 3-5 business days, while Priority Mail International takes about 6-10 business days, and First-Class International Service ranges from 11-20 business days.

2. UPS– Best for Larger Shipments

UPS excels in handling larger, heavier shipments. With UPS, you can ship packages up to 150 pounds and 165 inches wide. UPS is well-established in China, ensuring efficient and reliable delivery.

Their Paperless through Shippo feature is particularly helpful, as it allows you to send packages without a physical customs invoice, which can speed up the customs process.

UPS Worldwide Expedited service takes 2-5 business days, while Worldwide Saver takes about 6-10 business days.

3. FedEx-Top International Service

FedEx is a top choice for robust international shipping services

They accommodate packages up to 150 pounds and dimensions up to 108 inches long and 130 inches in girth.

FedEx is known for facilitating the customs clearance process effectively, with services like International Priority and International Economy delivering in 3-5 and 6-10 business days, respectively.

4. DHL– Quick and Efficient

DHL specializes in international shipments and is known for its quick and efficient service

It’s a great option if you need to ship packages up to 150 pounds and 118 inches wide, with International Express service delivering in 3-6 business days.

When it comes to costs, the prices vary depending on the carrier, package dimensions, and weight.

For example, shipping a small parcel from New York to Shanghai might cost around $42, with USPS and $47 with UPS.

It’s important to weigh the cost against the delivery speed and the value of the service provided by each carrier to find the best fit for your business needs.

Is Reverse Dropshipping Legal?

Yes, it is, although don’t forget to ensure high-quality products and fast shipping.

In fact, you also have to validate your legitimacy in the country in which you are trying to do business (in this case, China).

Also, find out if Dropshipping Is Legal in general.

Biggest Downsides of The Reverse Dropshipping Model

Below, you will find some of the biggest disadvantages associated with reverse dropshipping.

❌ Unreliable Shipping Partners

In short, this is probably the biggest issue many have when thinking of reverse dropshipping in China.

Whenever a customer buys a product, the online store owner will never see the product, as the supplier will ship it directly to the customer.

❌ Expensive Shipping

As a result, this can occur when you are using a drop-down delivery model. For example, let’s suppose you ship mobile accessories and use 2 different suppliers to store your products.

Additionally, if your customer ordered from both of these suppliers, you will have to pay for both of the shipping costs. This may accumulate to lots of expenses.

Furthermore, it wouldn’t be a good idea to pass these expenses to your customer either. They may start abandoning carts and leave as fast as you can imagine.

❌ Language Barrier

Without a doubt, you will have to be writing labels in Chinese and not English.

As I mentioned above, not everyone in China speaks English.

❌ Difficult to Market

Sometimes, it may be difficult to sell winning products abroad. Occasionally, not every market is the same. What may work in the US, may not work in China and vice-versa.

Before entering any market, you should have some essential knowledge of that market.

Otherwise, you may get into contact with Chinese influencers (Learn more about Influencer Marketing for Dropshippers) or someone who may know the Chinese market and can help explain the culture and tradition of Chinese people or any other Asian country you are aiming to reverse dropship in.

Benefits of the Reverse Dropshipping Model

✅ Low Inventory Management

Of course, this is still dropshipping and this means you don’t have to hire anyone to manage your inventory.

Your inventory costs will be zero compared to setting up a retail store, where you have to manage a lot of inventory.

✅ Low Startup Costs

In short, because you don’t need a warehouse for your products, your overall startup costs are low.

Overall, the business model of reverse dropshipping has a low-budget barrier to entry, making it impossible not to enter with a low budget.

✅ Broad Options

Generally speaking, this business model allows you to offer a wide variety of products in comparison to a small physical store or even a regular dropshipper.

Since you are shipping high-quality products, your competition is going to be lower than doing so in regular dropshipping.

✅ Higher Profit-Margins

Comparatively, with reverse dropshipping, you can make higher profit margins than with regular dropshippiing.

Most classic dropshippers are offering low-quality products and shipping, hence, this is how they are harming their overall dropshipping reputation.

✅ Flexibility

This business model allows any brand to do business across the globe and offers many different types of products.

Additionally, sales offers can easily be changed if market preferences are changed too.

✅ Low Competition

In short, reverse dropshipping is considered a niche market, so there’s a lot of room for competitors to take market share.

Instead of competing with a bunch of other dropshippers, you will only compete with a few. Additionally, these businesses may not even have the necessary experience.

Furthermore, this makes you stand out more easily.

Here are our top picks from the best UK Dropshippig suppliers (General & Niche).

Conclusion – Is Reverse Dropshipping Worth It?

To summarize, Reverse dropshipping is a dropshipping strategy in which products are shipped directly from the manufacturer to the customer.

The only thing the seller may do is market the product, whereas the supplier will handle the rest.

Whenever you are getting involved with Reverse dropshipping, you are listing high-quality products and trying to sell them in a market where the quality of the products is not that high. Right?

Products will usually be from US suppliers or other Western countries, and these products will be sold to exporting countries like China.

Comparatively, I would say reverse dropshipping is definitely worth it. It has lower competition than classic dropshipping, and if you do it right, you can be a step away from setting up a luxury brand!