Dropshipping Agent 101: Who are They? How They work? How They charge?

With the rapid development of e-commerce, online trading market will become larger and larger, many people have heard of a dropshippping shop, do not need to keep stock and a single can also not worry about the trouble of shortage of goods, which is very suitable for beginners and small business. So, is that true or not?

Today, I sorted out 7 buyers’ most concerned and confused questions about dropshipping and gave you the most objective answers.

1. What is a dropshipping agent? What do they do for your store?

A dropshipping agent is more likely a “middle man” with a one-stop service offered. They can help you source, order, pack and ship directly to your customers.

AliExpress might be your best option if you are new to dropshipping business. But when you have a lot more orders per day and want to scale up your business, it’s time to consider a dropshipping agent. They not only help you handle all the stuff but also help you find the most competitive prices. In this way, you’ll have plenty of time to focus on your marketing.

2. Who needs a dropshipping agent?

1) New to dropshipping

If you are a beginner and think the price of AliExpress is expensive, in addition, you do not know how to find factories and forwarders and do not know what kind of shipping way is the best for your product. It is better to find an agent to help you, who will help you calculate the price and transportation cost. They will also recommend the best mode of transportation for you based on your target market and your budget. With them accurately calculating the price for you, you won’t have the risk of losing money when you set the price.

2) Experienced in dropshipping

If you’re getting a steady 5-10 orders or more per day, it’s time to find a Drop Shipping Agent. You just send your product to them and ask them to help you find the most competitive price, because the prices on AliExpress are too expensive, and ask them to help you find the most favorable transportation price, so that your cost will be reduced, and you can use this money to do advertisements to attract more customers.

3. What services do dropshipping agents provide mostly?

In order to better understand this concept, you can imagine them as real estate agents. From the moment you make an inquiry to them, they will try their best to meet any demand you put forward. Similarly, as a Drop Shipping Agent, no matter you want to find a good factory or shiping forwarder, customize product or packing, they all can provide these services. That is also why many agents say that they provide one-stop service.

Below is a list of what do dropshipping agents exactly do.

1) Source products based on your requirements

2) Check with many suppliers to get the best price and good quality product

3) Collect sample for quality checking

4) Purchase the product and stock the products in their own warehouse

5) Do quality control for the products

6) Pack the orders for each shipment

7) Support in branding, private labeling

8) Choose the best shipping way for your target country.

9) Provide help in case of shipping delays or broken products

It’s not said that dropshipping agents are due to provide the full range of services. The work scope depends on the agreement/consensus reached by both sides.

4. How does dropshipping agent charge?

1) Charge by orders quantity/per day

They charge based on how many orders you place each day. The more orders you place each day, the less you charge for each order. Conversely, the fewer orders you place each day, the more you charge per order. Here is an example from one dropshipping company for your reference

10-20 orders per day: 2 USD / order
20-50 orders per day: 1.5 USD / order
50-100 orders per day: 1.25 USD / order
100-500 orders per day: 0.85 USD / order
>500 orders per day: 0.5 USD / order

2) Charge service fee based on order amount

They will set a MOQ. For example, you must buy $500 of goods in one time and put them in their warehouse. In this case, their service charge is $100, but for more than $1000, the service charge is 5%-10% of the product value.

For example, if you buy $800 goods, you need to pay $100 for service, if you buy $900 goods, you still need to pay $100 as service fee,  but if you buy $1100, the service fee will be $1100*0.1=$110

PS: This service charge does not include any packing accessories and freight.This is an estimated calculation

Looking for a dropshipping agent? Contact us now

We do not set up any moq for your product and no moq on the service fee, no matter how much

you purchase, we only charge 5% of the total product value.

5. What are the benefits and drawbacks of using a dropshipping agent?

1) Benefits

You can save a lot of time and money by using the Dropshipping agent. They also offer customized service, such as for certain products, you want to customize your customer’s LOGO for each product, such as mouse pad, lamp, phone case, etc. Or if you want to order the packaging and the thank you card or discount card with your company logo, the agent can help you, but the premise is that the customized service needs to have certain orders, such as 20+ order per day. But if you only have several orders per day or not stable, then the price will not be competitive.

2) Drawbacks

The drawback of using a dropshipping agent is that they will mostly set the MOQ for an order, or the MOQ for service charges. They are not able to serve you when your orders are less than their moq or they will charge a high service fee when your order amount is less than their moq either. Either way, it’s not a good deal for you.

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

The reason why some agents will set the daily order quantity is that they will spend a lot of time and energy to check with many factories in order they can help you obtain a very competitive price. If you have only a few orders a day, then the agents will not make much money and waste a lot of time. This is why most dropshipping companies/agents prefer to work with clients who have a steady orders on a daily basis.

6. Is a dropshipping agent trustworthy?

Whether you are looking for a factory or an agent, trust is one of the biggest issues.Some agents do not have an English website, in this case, you have no way to measure the reputation of the agent or worrying about cooperating with them, worried about money fraud, or worried that the agent is irresponsible, unable to deliver the goods to you on time or they won’t help you solve if there are any quality problems.

Although some agents are not nice, but it does not mean you can not find a trustworthy d ropshipping agent. Below are five ways to help you find a trusted DropShipping agent.

7. 5 Tips to find a trustworthy dropshipping agent.

Before you decided to cooperate with your agent, it is better to know as much information as you can about this agent. You can learn from the following aspects.

1) Ask the agent to provide the contact information of a client that they are cooperating with at present if possible so that you can know what other customers say about them.

2) Ask the agent to provide pictures of the office and warehouse, and try to take a video and say hello or thumbs up to you in the video  to make sure it’s real.

3) Ask the agent to provide the previous delivery record, so as to check whether the agent really helps customers deliver goods  if their shipping time is promising

4) Try not to cooperate with an agent who sets a high amount or MOQ at the beginning, so as to avoid them disappearing after receiving the money. When you cooperate for a long time, you can order a large number of products to get a more competitive price.

5) Make a video call so you can better feel the agent and judge if they are legit or not.

Now it’s your turn

Do you have any other questions about dropshipping agent/company? If you think this article helpful, share it with your friends and share your ideas in the comments section. If you want to find a China drop shipping agent, you can contact us, we are one of the leading China dropshipping companies.

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Looking for high-quality Products from Chinese Factories?

As for the best sourcing company in China, we offer one-stop service, help you find factories, get the best prices, collect the sample, follow up bulk, do quality inspection and manage the shipping out.

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