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Ship To China: What Is Reverse Dropshipping?

Blog, eCommerce Insights | July 5, 2021

Dropshipping model has been prevalent; however, shipping goods from China to the United States has become increasingly costly since shipping cost has increased on significant level, making it more competitive especially for new comers.

 

Believe it or not, there is a demand for expensive imported high-quality American goods, just as we do for imported Chinese goods. This demand has increased since retailers from North America and Europe tend to offer more cutting-edge products.

 

The term “Reverse Dropshipping” is most commonly used to describe the shipment of high-quality USA-made items into China. However, it can apply to any high-quality goods manufactured in Western countries and shipped to countries known for exporting.

 

Reverse Dropshipping – China As A Dropshipping Market

China is the most populous country in the world, with a population of 1.4 billion people!

 

Not only is this figure astounding, but China is also one of the most technologically advanced countries. As a result of this technological zeal and the Chinese love of online shopping, the country has surpassed the United States to become the world’s largest online shopping market in 2019.

 

The country now accounts for more than 44% of all global e-commerce. However, China is a very different market than many others due to the popular technologies that they use or do not use. Because Google is blocked in China, you must concentrate your marketing efforts on popular Chinese search engines such as Baidu and Taobao.

 

So, before you begin dropshipping in China, you must ensure that you can support the customers you acquire, but this market thrives with many positive developments.

Hot Products In The Chinese Market

With a 300 million-strong middle class growing rapidly, there are plenty of opportunities to sell products to Chinese customers. Here are the hot products that are currently popular among Chinese customers:

1. Technology

Chinese consumers import many foreign technology and electronics, making this a substantial segment of the Chinese eCommerce market. Apple is one of the top ten most popular brands among Chinese millennials, and many of its competitors are also popular. They are at the forefront of new technologies, including wearable technology, so these products tend to sell well.

2. Fashion

Foreign fashion brands are top-rated in China, especially among younger consumers. Non-Chinese fashion brands are becoming more popular among Chinese millennials. It is becoming more common to see international brands marketing their products on Chinese social media, and these foreign fashion brands are becoming increasingly popular among young people.

3. Food

Foreign food products sell well in China, and eCommerce is an excellent platform for selling them. Formula powder, diet supplies, chocolates and candies from international brands are trendy among young people.

4. Beauty

Beauty eCommerce is an excellent way to break into the Chinese millennial and Gen-Z markets. Young Chinese women are flocking to foreign beauty brands. Korean products, or K-beauty, account for a sizable portion of the market, and luxury beauty brands are also popular. Other international and non-luxury brands, on the other hand, are still making good money selling into China via eCommerce.

5. Health supplements

Foreign health supplements are generally prevalent in China. Vitamins and dietary supplements are commonplace, and young Chinese people take them very seriously. After increasing direct sales to China, the Australian vitamin brand Blackmores recently doubled their full-year profits to a staggering $100 million, and this trend will undoubtedly continue for other foreign shopper brands.

6. Homeware

Homewares are especially popular among this young Chinese consumer base. Foreign furniture and decorative items are currently in high demand among younger Chinese buyers. This means that selling high-end home accessories in China can be a harrowing experience.

Exporting To China Isn’t Always Easy

Millennials in China are driving the eCommerce market, and foreign products are big business. These are the most popular products, focusing on quality, luxury brands, technology, and aesthetics.

 

How To Make It Work?

While the risks of exporting to China are undeniably high, the potential rewards may be as well. Exporters should identify and cultivate opportunities while developing a risk-mitigation strategy.

 

Chinese officials strive to promise economic reforms that will give foreign investors greater market access and protection. Still, these announcements are met with skepticism due to a lack of details and timelines. Investors also point to inconsistencies in regulations, rising labor costs, licensing and registration issues, a shortage of qualified employees, insufficient intellectual property protections, and a lack of transparency.

 

Conclusion

As China continues to develop by exporting goods to other countries, the demand for imported goods is only going to increase. So, according to you, if the benefits of exporting to China outweigh the drawbacks, there is no harm in jumping into reverse dropshipping. Well, well, well! You do not necessarily have to do it alone. Local allies or the right suppliers can help you.