Dropshipping Agent Service

A dropshipping agent is a middleman between you and suppliers in China.

They act as a sourcing agent, quality control, and fulfillment company, all rolled into one.

While they act as a middleman between you and manufacturers, they also provide services themselves, such as quality inspection and order packing & fulfillment.

Generally speaking, a dropshipping agent offers a better service than suppliers on AliExpress. Suppliers on AliExpress are restricted to slower shipping options, and are often more used to dealing with consumers than businesses.

However, if you are completely new to dropshipping then AliExpress is a great way to start because you can order one product at a time, after each customer places their order on your store.

You need a dropshipping agent to reliably scale your e-commerce business past beginner levels. The reason for this comes down to speed and reliability.

A few orders a week while using AliExpress to fulfill them is unlikely to cause you any issues, but things change as soon as you start making 10 orders a day consistently. That’s because there’s a higher chance some of your customers might start complaining, or worse, issuing charge-backs via their banks.

An experienced dropshipping agent will make sure you always have product in stock to fulfill orders reliably, and use the best shipping couriers to speed up delivery.

Shipping from China via a dropshipping agent is much faster than AliExpress shipping. That’s because a dropshipping agent partners with various shipping couriers to select the best shipping route for each country.

As such, you can expect shipping times of 5-12 calendar days on average, with some countries being faster. For example, shipping to the UK via YunExpress is 3-7 days, whereas to the US it is 3-10 days.

A standard dropshipping agent offers the following services:

• Product Sourcing

• Branding

• Quality Control

• Warehouse Management

• Order Fulfillment / 3PL Services

• Aftersales Support

A dropshipping agent’s services are not free, but they charge via fulfillment fee per order (or sometimes per product), instead of charging for their initial sourcing service.

A dropshipping agent’s pricing structure varies from agent to agent.

The most transparent pricing model is separated by product cost, shipping cost and fulfillment cost. The dropshipping agent charges a fulfillment fee, whereas they just pass the product cost and shipping cost onto you.

Another, less transparent model, is where the dropshipping agent charges you a fixed price per order. There is a fixed price for each country and quantity of items in your order. This usually turns out to be slightly more expensive because they need to give themselves enough room to compensate for shipping price fluctuations.

The least transparent pricing model, charges a fixed fee per product, where the shipping rate is essentially doubled for each product that is added to an order, even when the order is shipped in one package.

These are common pricing structures dropshipping agents use:

• Fixed Total Fee per Order

• Fixed Fulfillment Fee per Order + (Shipping + Product Costs)

• Fixed Total Fee per Product

• Fixed Fulfillment Fee per Order + Sourcing Fee + (Shipping + Product Costs)

The service cost of using a dropshipping agent is the price of their fulfillment fee, which can range from $0.80 to $3 per order.

On top of that you have to pay for the product & packaging, as well as shipping costs, which are not fees a dropshipping agent charges, but are costs they pass onto you (from the manufacturers and couriers).

To start dropshipping with an agent you need to do the following:

1. Find a reliable dropshipping agent & discuss your requirements

2. Receive a price quote for the product you are selling

3. Accept quote and establish payment terms

4. Connect your Shopify (or other) store to their fulfillment system

5. Make first payment

6. Review product sample + Order first batch of product

7. Authorize order fulfillment

8. Sit back & relax! (then go and focus on growing your business)

A private dropshipping agent usually has an MOQ (Minimum Order Quantity), whereas a dropshipping agent platform such as CJ Dropshipping does not have MOQs for their products.

The minimum order quantity of a private dropshipping agent varies from agent to agent, and is based upon your average daily or monthly order volume for a product.

Some ask for a minimum of 10 orders per day, others ask for a minimum of 50 orders per day, per product.

To find a dropshipping agent search “dropshipping agent” on the following websites or platforms:

• Facebook (groups)

• AliExpress/Alibaba

• Upwork/Fiverr

• YouTube

For a more in depth article, read: How to Find a Dropshipping Agent

We also provide a dropshipping agent service, so just scroll back up to the top of this page to learn more!

Dropshipping agents are capable of sourcing products from any niche, as long as the product is available in China.

If you’re looking for an agent that is already in a particular niche because you currently have no orders, then a dropshipping platform such as CJ Dropshipping might be your best bet.

You can also search for dropshipping agents on Facebook groups, as some of them don’t require MOQs. Just be cautious when dealing with these prospective agents, as some of them may not be who they say they are.

To get a private dropshipping agent to work with, you need to prove to them that you’re capable of getting consistent orders on a daily basis.

This can be done by either showing them screenshots or videos of your current or previous stores, or giving them (restricted) staff access to your Shopify store.

If you haven’t found a dropshipping agent yet, then see How Do You Find a Dropshipping Agent?

Selecting the right dropshipping agent for you depends on a variety of factors, but the most important ones are as follows:

• MOQ - If their Minimum Order Quantity is too high for your situation then you might want to look for other options.

• Price - Are they giving you a good & realistic total price quote? The total price should include product cost, shipping cost, fulfillment fee and packaging costs.

• Service quality - A good proxy for this is communication style if you haven’t started working with them yet. Do they communicate with you promptly & clearly during the discovery process?

• Shipping options and location - Are they offering you the best shipping options for your product and target country? Certain types of products are best shipped from Shenzhen.

It’s difficult to identify a reliable dropshipping agent without having worked with them before. If they have a website then you know they are serious about and fully invested in their business.

You can also take client reviews into consideration, but be aware that some may be fake.

The best way is to pay attention to how attentive they are to your initial requests. If they answer all your questions adequately and in enough detail, then you may just be onto a good’n!

As mentioned above, identifying a reliable dropshipping agent that you can really trust and that fits your business can be a daunting task.

After all, in many cases they will be in charge of your entire supply chain process from sourcing your product to shipping it. Even if you’re the one making key decisions, they’ll still be a huge part of your business!

Here are some questions you can ask to help make your decision easier:

1. What is your minimum order quantity / MOQ?

2. How much does one order of one unit of my product cost?

3. Can you store my product in your warehouse?

4. Do you have any warehouse fees or receiving fees?

5. What are your order processing times? (time taken to fulfill an order)

6. What are your shipping times?
   (Ask for more than one option to compare speeds & prices)

7. Do you offer a quality control service?

8. Do you offer a branded dropshipping service?

9. Do you offer after-sales support?

10. Where in China are you located?
    (Shenzhen is the best for shipping options, and Yiwu for shorter lead times)

11. Will you manage inventory for me so that I never run out of stock?

If a dropshipping agent exhibits the following red flags, then be on high alert and ask more questions before working with them:

• They charge a total fee per product instead of per order, which means they are likely to charge double the shipping fee for each product that is added to an order. This is a red flag because shipping two products separately is more expensive than shipping two products in the same order.

• They don’t have a Chinese phone number or WeChat, which would indicate that they’re not in China.

• They’re slow to respond to questions and do not offer pro-active advice regarding potential issues.

• They have no proof that they are a dropshipping agent, whether it be in the form of a website, reviews, or photos & videos.

The difference between a private dropshipping agent and a dropshipping platform comes down to the size of their client base and the types of clients they attract.

A dropshipping platform is great for new dropshippers because they have no MOQs. As such, they attract vast quantities of dropshippers who are new or testing products.

Whereas a private dropshipping agent focuses on a smaller client base. Their clients range from dropshippers who have just started to gain traction, to other well-established ecommerce brands with large order volumes.

E-commerce Companion

E-commpanion is arguably one of the best private dropshipping agents in China.

• Flagship Services
  Sourcing & Order Fulfillment

• Positives
  Client focused, fast shipping & automatic order fulfillment

• Negatives
  Above zero MOQs

AliExpress

CJ Dropshipping is considered as a dropshipping agent by some, and a dropshipping platform by others.

The owner of CJ Dropshipping was initially an AliExpress seller, and started to build CJ after realizing there was a huge demand from business-level buyers.

Now-a-days they run a large scale business that accommodates every dropshipper willing to use their platform, including beginners.

• Flagship Services
  Sourcing & Order fulfillment

• Positives
  No MOQs, fast shipping times

• Negatives
  Lacks focus on each individual client, expensive, sometimes don’t replenish stock

There are a few different kinds of dropshipping agents, which can be confusing when deciding which one fits the current stage of your business.

So, we’ll quickly dive into each of them so you understand how they differ.

Standard Dropshipping Agent

A standard dropshipping agent will perform the following duties:

• Product Sourcing

• Branding

• Quality Control

• Warehouse Management

• Order Fulfillment / 3PL Services

• Aftersales Support

They may also have a product list which they have developed over time after sourcing products for clients and through their relationships with manufacturers.

Dropshipping Agent Platform

A large dropshipping agent/platform such as CJ Dropshipping does all of the things a standard dropshipping agent does, but boasts a large team of client support staff and offers a huge catalogue of products for you to choose from.

Identifying Factors

• Large product list

• MOQ = 0

• Huge client base

Advantages

Two of the biggest advantages of using large dropshipping platforms are their lack of MOQs and the fact they have local warehouses in countries outside of China (for certain products).

Their business plan is to essentially do what AliExpress does, but better. That means faster shipping times through their own logistics lines, and in-house warehousing and fulfillment solutions.

Disadvantages

Due to the sheer number of clients however, the large teams created to service them are more akin to the kind of customer support you’d expect in a B2C business. When issues arise they will do their best to help you, but there is only so much they can do in the grand scheme of things.

The large number of products to choose from is great for businesses who are getting started, but should your business start to see some success, you’ll quickly notice increased competition for your product, and if they were to have limited stock or run out of said product, your orders may not necessarily be prioritized.

Additionally, you’ll often see higher prices from these mass-market dropshipping agent platforms compared to those offered by a private dropshipping agent.

Private Dropshipping Agent

A private dropshipping agent is specialized in working with a select few clients, providing a premium service with tailored solutions to suit each client specifically.

Identifying Factors

• No Product List

• MOQ > 0

• Small-medium size client base

They provide all the services a standard dropshipping agent does but they will rarely provide a list of all the products they are currently warehousing for their other clients. This is so as not to expose your current winning products to other businesses and create enhanced competition.

While they may be smaller in terms of clientele than some of the larger options, private dropshipping agents are usually more agile than their slower moving counterparts.

Any issues that arise are dealt with quickly, as you are connected to the decision makers directly. In fact, in many ways you become the decision maker. You decide how you want to run certain aspects of your supply chain, while they take care of the day to day operations.

A private dropshipping agent will often have an MOQ or minimum quantity of orders as a requirement to work with them. The barrier to entry is placed to ensure they have the capacity to onboard new clients while continuing to provide a premium service to their current clients.

If you are looking to be treated like a business and not a consumer, then a private dropshipping agent may be for you. Once integrated into your business, they become an extension of your team, allowing you to make important decisions while they communicate with you and your team on a daily basis.

Dropshipping Agents Outside of China

Private

A private dropshipping agent based outside of China offers the same services as a dropshipping agent in China, but may add additional services such as ecommerce education to help improve their clients’ likelihood of success.

When it comes to the actual dropshipping agent services however, they often outsource work to a dropshipping agent in China behind the scenes. This is true for direct to consumer fulfillment from China, at least.

The advantage of working with these non-Chinese dropshipping agents is that communication can be done in their native language, as they tend to be located in non-English speaking countries, with clients in the same country as them.

They also may have their own local warehouse for faster delivery in the country or region they are based in.

The disadvantage of their direct to consumer delivery from China is that to earn a profit, they need to charge a fee on top of the Chinese dropshipping agent’s service.

Aggregators

These are businesses that offer dropshipping agent services, but behind the scenes work with a range of dropshipping agents from China at the same time.

This model allows them to field multiple offers and pick the best one for their clients.

The main downside to this is that because they earn their money from charging extra on top of the original price, the final fulfillment fee is higher than if you just work directly with a China-based dropshipping agent.

Yes, a dropshipping agent can source products from 1688.com and Taobao. In fact, this is where a lot of AliExpress suppliers source their products from as well.

The two main barriers to entry are language and payment method.

A certain level of Chinese fluency is required to be able to navigate these websites and communicate successfully with suppliers. On top of that, you’ll need to have access to Chinese payment methods, which are inaccessible to entities outside of China.

This is where a dropshipping agent who is based in China comes in. They can expertly navigate these websites, find the best suppliers, negotiate with them, and place orders for products on your behalf.

Generally speaking, a dropshipping agent can help you private-label a product for Amazon FBA, but it would not be considered their flagship service. Some will provide the service, others won’t.

Usually it’s a sourcing agent that specializes in sourcing for Amazon FBA as a standalone-service, and they charge a % based fee. Some dropshipping agents also provide this service in their repertoire, but not all.

If for example you have your own Shopify store which has orders fulfilled by your dropshipping agent, then they’ll be more likely to help you organize private-labelling and bulk shipping to an Amazon fulfillment center, as an extension of the current service they’re already providing you.

That said, some dropshipping agents do provide standalone private-label sourcing services, but in that case they’re acting as a straight up sourcing agent.

Yes, a dropshipping agent can fulfill your eBay orders for you.

In fact, because of eBay’s policy against fulfilling orders from other retailers or marketplaces, a dropshipping agent is the perfect solution to get the best from both worlds.

Most dropshipping agents can connect to your eBay store with fulfillment software. As new orders come in they fulfill them for you automatically. However, depending on the kind of dropshipping agent you use, you may need to order inventory in advance for faster fulfillment.

Working with a traditional dropshipping agent, who does not store inventory for you in their warehouse, is not a profitable model in the long-run.

That’s not the case when you work with a modern dropshipping agent who fulfills orders within 24 hours, and brands your products & packaging, while using fast shipping lines.

That way your customers have a great experience with your brand, so you can scale reliably.

If you’re ready to start scaling your business by working with us, then the first step is to get a free product service quote.

Have you ever considered what it would look like to handover your entire supply-side workload? No more negotiating with suppliers, manually fulfilling orders or worrying about slow, unreliable shipping.

Hi there, I’m Niall from E-commpanion. Our team supports scaling dropshipping & ecommerce businesses by providing a complete supply-chain solution. Would you like to see how much our service would cost for your product?