There are lots of reasons why you should choose reverse dropshipping over regular dropshipping. In 2020, China purchased $99.9 billion-worth of goods and services from the US.
If you’re asking yourself: “Is dropshipping worth it?” the answer is yes. You can decide if you’ll leave the shipping costs with the customers, or pay them yourself. Your manufacturer will be in charge of distribution. Then, you forward the order to your manufacturer and pay the wholesale price, keeping the rest as profit. The wealthy customer will order a product from your site and pay your price. You’ll need to set a price that will cover both the dropshipping supplier’s price and marketing costs, and bring you profit.įor example, if a product you choose to sell costs $30 when bought wholesale, you can display it in your store for $75. You will be responsible for advertising your offer and finding customers.įor example, you can choose a product available on eBay, Etsy, or some other eCommerce platform and sell it on your site. On your website, you will create a gallery with the products, set the price for them, and manage the inventory. They will be responsible for manufacturing and storing products, packing them, and distributing orders to your customers. The only thing you need to have in mind is that reverse dropshipping involves expensive and high-quality products produced in Western countries that are sold to rich Asian customers.Īs an owner of a dropshipping company, you will collaborate with domestic dropshipping suppliers. Generally, if you know how regular dropshipping works, you won’t have any problem understanding the concept of reverse dropshipping. We introduced the basics of reverse dropshipping, meaning that the next thing we will explain is how it works. Hence, when it works, reverse dropshipping comes with much higher margins. Instead of obtaining lots of poor-quality stuff that comes at a lower cost, reverse dropshipping companies procure top-notch, artisanal products. Reverse dropshipping is a business model similar to regular dropshipping, with one significant difference. If we want a more precise reverse dropshipping definition, we would say that a reverse dropship means buying high-quality products produced in the West, and selling them to wealthy, primarily Asian customers through your eCommerce website. Therefore, Chinese consumers, especially the rich ones, must find other ways to buy products that would satisfy their expensive taste. The result of China’s high-production level is lower quality for most domestically made products.
Many Chinese consumers are seeking fine products, but finding them inside their own country is difficult. If you are wondering why an industry giant like China is a hotspot for reverse dropshipping sellers, there’s a logical explanation. Products sold through reverse dropshipping are made in the US, UK, or other countries which usually outsource their mass production to Asian countries. Reverse dropshipping is a business model in which online sellers procure high-quality products for customers whose countries usually house mass-production sites, like China, Indonesia, etc. So if you’re wondering “What is reverse dropshipping?” that’s the next topic we’ll cover in our SmallBizGenius guide. When it comes to reverse dropshipping, it’s an even newer business model and as such, unfamiliar to many online sellers. Basically, your role is to list a wholesaler’s product on Amazon, eBay, or your own dropship website and find the right audience for it. You probably already know what dropshipping is, but just in case you are not familiar with this type of business, here’s a short explanation: Dropshipping is an online business model that enables you, as a seller, to sell products without the obligation to ship them or stock the products on your own.
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