What is reverse dropshipping?

Reverse dropshipping? Would you like to know more about this? Then scroll down we have explained it in a very simple way.

While declining shipping patterns are popular, cheap shipments from China to the United States are becoming increasingly saturated even after China has begun to increase transportation costs.

Believe it or not, just as they demand cheap imports of Chinese goods, they also have to demand expensive imports of high-quality U.S. products.

Demand for this has also increased as manufacturing standards in Europe and the United States have increased significantly. Rich people in countries like China are fed up with unreliable and even dangerous products. Take the milk scandal from baby melamine powder.

What is reverse dropshipping?

Reverse delivery is most commonly used to describe shipments of high-quality items manufactured in the United States entering China. However, it can be applied to high-quality products manufactured in Western countries that are shipped to countries known for export.

Complications of inverse reduction

This is good. We don’t export $20 in plastic waste, so the competition is much lower and certainly a higher ticket. Does it have to be the perfect niche?

Well, there are good reasons why the whole world doesn’t try this. It’s hard.

Shipping products to China is very difficult both logistically and, of course, language barriers.

When doing business in China, it is restricted in almost every way except the Chinese. It is almost impossible without contact with Chinese companies that cooperate with you.

That doesn’t mean it’s not feasible. This means that China is far from simple enough to give up shipping to the United States. This requires serious work.

Do you need to give it a try?

Absolutely if you can say Chinese or work hard to establish a connection so that it can be used logistically.

It is an almost untapped niche market that can be used to make huge profits.

There are hordes of rich Chinese. More than anywhere else in the world, they don’t want to buy cheap Chinese products with quality control problems.

Demand for imported goods will continue to increase as China continues to export to other countries. The Chinese government has significantly limited these efforts to avoid forcibly saturating the market.

We have money there for those who are hardworking enough and willing to go through all the obstacles that can be thrown at them. But with all the complications, unless there are certain benefits, your efforts may be better put elsewhere.

Reverse Billing:

Generally speaking, the supplier of goods or services is responsible for the payment of consumption tax. However, in some cases, such as imported goods, the recipient is liable under the reverse complaint mechanism. Reverse claims involve the obligation to pay taxes to the person receiving the goods/services, rather than to the person providing the goods/services for the specified supply category.


Reverse GST billing also applies to services and products.

The liability under the reverse claim is absolute and the recipient cannot be exempt from liability even if the vendor pays taxes based on the advance payment.

Pursuant to the provisions of the second 16 to 18th GST Act, beneficiaries may obtain a supported tax credit based on the amount paid under the reverse claim to be eligible for ITC.

The offer must be taxed on the basis of consumption tax, and if the offer is waived from the consumer tax law, the taxpayer will not pay the recipient.

The recipient must be in the taxable area

Under reverse claims, the value tax will be paid at the rate applicable to its products and services.

There is no threshold limit that applies to reverse billing. This is a mandatory registration under section 24 of the law.

Reverse billing documents:            

The registrant responsible for paying taxes to you(s) 9(3) or 9 (4) will invoice the goods or services, or invoices received by suppliers that were not registered on the date of receipt of the goods or services.

Registrants responsible for paying taxes to you (9(3) or 9 (4) must issue vouchers when making payments to vendors.


 In the case of the supply of goods, the supply time is the earliest –

The date on which the goods were received;

The payment date is based on the debit date of the bank account book or bank account, or

The date 30 days after the date the invoice was issued or another similar document.

In the case of the provision of services, the time of supply is the

The payment date is based on the debit date of the bank account book or bank account, or

The date is 60 days after the date the invoice or other similar document was issued.

If the delivery time cannot be determined by the previous method, the delivery time is the date of entry into the recipient’s books.

close button