Let’s start with the question you came here for: What is a dropshipping agent?

A dropshipping agent is an alternative to a dropshipping supplier It’s a person that will source, store, pack, and ship products for your dropshipping store.

In that sense, a dropshipping agent is identical to a dropshipping supplier.

The key difference between a dropshipping agent and a dropshipping supplier is that a dropshipping agent is a middleman and can offer you more services.

I will talk about those services later, but first, let’s go over why a dropshipping agent is a middleman:

Well, when working with a dropshipping agent, you contact him or her with a product that you are looking for.

Then, your dropshipping agent will search for suppliers for that product and negotiate the best prices. After that, he or she proceeds to sell those products back to you and ships them to your customers.

This is pretty different from directly working with a dropshipping supplier , as in that case, you are limited to the products in that supplier’s catalog.

A dropshipping agent can be self-employed or work for a fulfillment warehouse company.

Having access to a fulfillment warehouse is crucial for a dropshipping agent. To offer their dropship clients fast shipping and quality control services, dropshipping agents can’t afford to let the supplier ship the products to your customers directly.

After building a relationship with a dropshipping agent (which is done by ordering from them consistently), most agents will pre-order your products and store them in their warehouse beforehand.

In that case, they will be able to ship the products out within one or two days of you sending the agent your list of orders.

Side note: Wondering if there’s a difference between a dropshipping agent and an AliExpress agent?

But that’s not everything that a dropshipping agent does. Just like I promised, continue reading to find out which kinds of services a dropshipping agent can perform for a dropshipping store:

What does an agent do for a dropshipping store owner?

A dropshipping agent does more for a dropshipping store owner than a typical dropshipping supplier.

Before, I told you that most dropshipping agents take product requests from you to find the products that you are looking for.

That’s already one difference between a dropshipping agent and a supplier.

But there’s more. Here’s a list of all tasks that a dropshipping agent can do for you:

• Source your requested products by contacting various suppliers and manufacturers
• Making sure the product’s quality is good
• Negotiating the best price for the product
• Stock the products in a fulfillment warehouse
• Do quality control for the products
• Pack the orders for shipment
• Support in  branding, private labeling and white labeling
• Selecting  the best shipping methods for your target country.
• Provide help in case of shipping delays or broken products
• Update you on the latest product and shipping trends

As you can see, that’s quite a list!

Some of these tasks are rarely offered by dropshipping suppliers, which is precisely why you should consider using dropshipping agents, but I will come to that in a moment!

Do you need a dropshipping agent for your business?

To make it simple, I would say that you don’t need a dropshipping agent for your business. What I mean by that, is that it’s still possible to build a successful dropshipping store  without an agent.

However, I think that it can definitely help to partner with a dropshipping agent if you’re currently dropshipping from China.. In that case, a dropshipping agent can take your business to the next level!

A lot of dropshipping agents are based in China. For them, it’s much easier to find manufacturers for your desired product as they read and speak Chinese.

Contacting small Chinese suppliers and manufacturers is something that a Chinese dropshipping agent can easily do, but a lot of dropshippers  can’t.

This is also the reason why dropshipping agents can often offer you great prices. Chinese suppliers and manufacturers that aren’t that internationally-focused yet usually handle much lower prices when compared to Chinese manufacturers with an English website.

Most Chinese manufacturers think that westerners have a lot of money, which is why they drive up the product prices for them.

So, one benefit of using a dropshipping agent is that you will often be able to reduce your COGS (Cost Of Goods Sold), but there’s more!

Note: An alternative way to “level-up” your business if you are dropshipping from China with a supplier, is to use a local dropshipping agent or a local dropshipping supplier.

Why You Need Dropshipping Agent

There are several reasons why you need a dropshipping agent:

You don’t have to worry about inventory: One of the most significant advantages of working with a dropshipping agent is that you don’t have to worry about inventory management. This means no more stock-outs or excess inventory!

You can focus on other aspects of your business: When you outsource your product sourcing and shipping to a dropshipping agent, you free up time to focus on different aspects of your business. This could include marketing, customer service, or even developing new products!

You’ll get access to exclusive deals and discounts: Dropshipping agents often have relationships with manufacturers and suppliers that offer exclusive deals and discounts. These savings can be passed on to you, the customer!

Dropshipping is a low-risk business model: This is because you don’t need to invest any money in inventory or product development. Instead, partner with a dropship supplier who will hold the stock and ship the products directly to your customers. This means that you can start your business with very little startup capital.

Dropshipping is a very hands-off business model: Once you’ve established your store and found a reliable supplier, there’s not much else you need to do! You can set up your store and let it run on autopilot while you focus on other aspects of your life. This is ideal for busy people who don’t have the time to monitor their store constantly.

Dropshipping is also a very flexible business model: You can run your dropshipping business in your location and run your dropshipping business from anywhere in the world!

The Benefits Of Using A Dropshipping Agent?

Dropshipping agents are beneficial because they:

Save you time: A dropshipping agent will do the legwork of sourcing and shipping products for you so that you don’t have to. This frees up your time to focus on other aspects of your business, such as marketing and product development.

Offer flexibility: Dropshipping agents offer a lot of flexibility when setting up your store and choosing suppliers. You’re not locked into working with anyone supplier, which gives you the freedom to change suppliers if you find a better deal elsewhere

Provide support: Dropshipping agents can provide valuable support and advice when setting up your store and choosing products. They can also help you troubleshoot any issues during the dropshipping process.

Have a wide selection of products: Dropshipping agents usually have a wide selection of products available for you to choose from. This gives you the ability to find the perfect product for your store.

How To Work With A Dropshipping Agent

There are a few things you’ll need to do to get started:

Find a reputable dropshipping agent: This is probably the most crucial step. You want to find an experienced and trustworthy agent who can provide you with good quality products and excellent customer service.

Create a list of products: Once you’ve found a dropshipping agent, it’s time to start creating a list of products you want to sell in your store. Be sure to include both popular items and niche products so you can appeal to a wide range of customers.

Set up your store: Once you have your list of products, it’s time to set up your store. You’ll need to create a website or online store and promote your products.

Start selling: Once you’ve set up your store and started promoting your products, it’s time to start selling! Be sure to provide excellent customer service and ship items quickly to ensure happy customers.

What are the benefits of using a dropshipping agent and success of your dropshipping business?

The main benefits of using a dropshipping agent are lower prices, faster shipping times, and personalized support.

I will go over those benefits in more detail below

• Better price/quality ratio. As I already mentioned, a good dropshipping agent will have the network and skills to find the best quality version of your product at the lowest price. That will definitely help you to beat your competition!
• Faster shipping times. An experienced dropshipping agent will know exactly which shipping methods are the best for each country. Often, these will be shipping methods that typical dropshipping suppliers like AliExpress don’t offer.For example, your agent might send packages to Germany using 4PX and Austria using YunExpress, leading to  faster shipping.
• Consistent pricing. When using standard suppliers like AliExpress, your product’s price can change from day-to-day, and your product can even become unavailable. When using an agent, this won’t happen without you being aware of it, as your agent would warn you beforehand.
• Insights on the latest trends in the industry. When working with a dropshipping agent, he or she can keep you informed about things like what kinds of products are currently selling. Also, your agent will warn you of upcoming events such as Chinese New Year, so it doesn’t come to you as a surprise.
• 1-on-1 contact. Whenever you have any questions, you can easily contact your dropshipping agent through platforms like Skype, Whatsapp, or Telegram.
• Improve your product’s packaging. You can ask your supplier to include your logo, a promotional code, a thank-you letter, or your product’s manual. In other words, a great way to make your dropshipping store unique

What are the drawbacks of using a dropshipping agent?

The drawbacks of using a dropshipping agent are that you may be obligated to have a minimum amount of orders per day, pre-pay for the stock, and that it can take you more time to process orders.

Again, I will explain the drawbacks in more detail below:

• Some agents require you to have a minimum amount of orders per day. You can probably imagine that a dropshipping agent invests time to find your product and build a relationship between you both. That’s why some agents only work with dropshippers that already have a certain amount of orders per day.
• No fully automated order fulfillment. Some dropshipping suppliers offer one-click or fully automated order fulfillment. When working with dropshipping agents, you shouldn’t count on a feature like this. To process your orders, you will most likely have to send your agent a .csv file of your orders  every day.
• Trustworthiness is more of an issue. Unlike suppliers, most dropshipping agents don’t have a website for their business (or at least not an English one). For suppliers, you can easily find reviews of other dropshippers, but for agents, you can’t. That’s why you will have to trust a dropshipping agent before partnering with one.

Is a dropshipping agent trustworthy?

Let me tell you some more about that last drawback.

Actually, trustworthiness is a big hurdle when it comes to partnering up with a dropshipping agent.

When searching for one, you may come across many people who are just looking to scam you in some way.

However, it’s not fair to say that all dropshipping agents aren’t trustworthy.

I may have gotten lucky, but in my experience, a dropshipping agent has never lied to me or scammed me before.

While it didn’t happen to me, it doesn’t mean that you won’t find an untrustworthy dropshipping agent either.

Luckily, there are some ways to prevent getting lied to and scammed by a dropshipping agent.

Here are five tips for finding a trustworthy dropshipping agent:

5 Tips to find a trustworthy dropshipping agent

• If possible, ask other dropshippers first. If you know anyone that is successfully dropshipping with an agent, you should ask them for that agent’s contact details. That way, you will be sure he or she is legit!
• Ask your agent for previous tracking numbers. That way, you will be able to check their promised delivery times.
• Ask your agent for photos or videos of their warehouse. If they send it to you, you will see that they have stock and package products there. A tip is to ask for a unique sign in the photo or video (like a thumbs-up) to make sure it’s real.
• Don’t work with an agent that asks for a high setup fee or minimum order amount. This is a tip to be on the safe side. When doing this, be aware that someone could take your money and disappear. Only do it if you trust the agent 100% or are willing to take the risk
• Schedule a video call. By doing this, you will be able to get a better feeling with that agent and judge if they are legit or not.

How Do You Find A Dropshipping Agent?

There are a few different ways to find a dropshipping agent. You can search online for companies that offer drop shipping services or contact manufacturers directly and ask if they have any dropshipping partners. You can also attend trade shows and meet with manufacturers to discuss partnering up.

Once you’ve found a few potential dropshipping agents, you must do your research and ensure they’re reputable and reliable. Be sure to read online reviews and check out their social media accounts to get a sense of their customer service. It’s also a good idea to talk to other businesses who have used their services before making your final decision.

You can also use a dropshipping agent to source products from multiple suppliers, saving you time and money. This is especially helpful if you’re starting and don’t have the time or resources to work with various suppliers independently.

When you’ve found a dropshipping agent you want to work with, the next step is to sign a contract. This will outline the terms of your agreement and what happens if either party breaches the contract.

Conclusion

Today, you (hopefully) discovered what dropshipping agents are and how they can help you to scale your dropshipping business.

In my opinion, dropshipping agents can be  a great alternative to dropshipping suppliers.

However, like always, there are some drawbacks.

For instance, it can be pretty challenging to find an awesome dropshipping agent for your business.

I can imagine that if you made it this far, you are very interested in finding out more about dropshipping agents.

In that case, I recommend checking out this part of our blog with a lot more articles around this topic!

For now, that’s all I have for you today.

I wish you the best of luck with your dropshipping business!