If you want to skyrocket your import business using Dropshipping agent, then this is a must-read guide for you.
It explores all the vital aspects you need to know about Dropshipping business.
Keep reading to learn more.
- What Is Dropshipping Agent?
- What Does A Dropshipping Agent Do?
- How Does A Dropshipping Agent Work?
- Who Should Consider Dropshipping Agent?
- When Should I Hire A Dropshipping Agent?
- What Are The Benefits Of Dropshipping Agent
- What Are The Best Items To Dropship With An Agent?
- Can I Dropship Branded Products With A Dropshipping Agent?
- How Do I Get An Agent For Dropshipping?
- How Do Dropshipping Agents Charge For Their Service?
- Can I Lose Money Dropshipping With An Agent?
- How Do I Negotiate Prices With A Dropshipping Agent?
- What Are POD (Print On Demand) Agents?
- What Is The Difference Between POD agent and Dropshipping Agent?
- How Does A Dropshipping Agent Conduct Product Quality Inspection?
- Do Dropshipping Agents Have A Minimum Order (MOQ) Requirements?
- Can A Dropshipping Agent Help Me Source A Private Label Product?
- What Are The Considerations For A Good Dropshipping Agent?
- Can I Use Dropshipping Agent Service If I Lack A Reseller’s License?
- Who Pays For Duties And Taxes If I am Dropshipping With An Agent?
- Do Dropshipping Agents Take Liability Of Goods During Dropshipping?
- What Are The Risks Of Working With A Dropshipping Agent?
- Do Dropshipping Agents Offer Warehouse Services?
- How Long Does A Dropshipping Agent Need To Process My Order?
- Can Dropshipping Agents Recommend Best Selling Products?
- Do Dropshipping Agents Offer Branding And Customizing Service?
- How Does Dropshipping Agent vs. Sourcing Agent vs. Purchasing Agent Compare?
- Do Dropshipping Agents Ship Internationally?
- Are Dropshipping Agents Middlemen In International Trade?
- Is There An Alternative To Having A Dropshipping Agent?
- What Is A Blind Dropshipping Agent?
- Do Dropshipping Agents Offer Credit?
- What Are The Basic Steps A Dropshipping Agent Takes To Get Packages Through Customs?
- How Many Dropshipping Agents Do I Need For My Business?
- Do I Have To Order My Products In Bulk When Using A Dropshipping Agent?
What Is Dropshipping Agent?
Dropshipping is defined as a retail strategy wherein the store is not obliged to store the products.
However, what happens is that the store obtains the products from a third-party supplier.
How it works is that when a client places an order on your site.
The order details are sent out to the supplier.
The supplier then delivers the product to the buyer’s address.
Note that the supplier supplying the goods to the buyer is known as a dropshipping agent.
It is imperative to ensure that you select a dropshipping agent that works in your niche.
What Does A Dropshipping Agent Do?
A dropshipping agent is a professional who helps their client to find the best products at an affordable price.
The agent also helps in product fulfillment and arrange the shipment.
Besides, the good thing about using a dropshipping agent is that it allows you have extra time to focus on other elements such as marketing.
How Does A Dropshipping Agent Work?
Basically, by using a dropshipping agent, all you need is to offer them the product details.
Once the agent receives the details, they immediately look for manufacturers who provide quality products at an affordable price.
Once you agree to the terms laid out by the dropshipping agent, you can make your payments.
Note that you will be required to pay some extra cost to cater for the service.
The good thing about using a dropshipping agent is that you do not manually send in the customer details.
For you to make the whole process easy, it is best to use a CSV file each week that contains your customer’s information.
You can also request the dropshipping agent to stock up products that are on demand.
Who Should Consider Dropshipping Agent?
People who often benefit from using a dropshipping agent are store owners.
There are store owners who enjoy managing their stores.
However, a large group of people is turning to use agents to help manage their stores.
When Should I Hire A Dropshipping Agent?
There are a few factors that will help determine if you need to hire a dropshipping agent.
Here are some of them:
- Assess how efficient your store is. If you notice that you are spending a lot of time managing your business; as a result, you may end reducing your profit. This is because of the time you spend managing your business, you can ultimately use it in other departments.
Therefore if you have a large volume of orders, it may be of help to make use of a dropshipping agent.
It gets better as the dropshipping agent will help in product fulfilment and labeling it.
- Assess the kind of control you wish to have over your business.
Surprisingly, making use of a dropshipping agent helps you have more control compared to managing the business by yourself.
By using a dropshipping agent, you will get an explicit command of your inventory.
Having adequate information on your inventory will offer you a good picture of the products you ought to tap into to help you get profits.
- Do you need to improve on your customer experience- Making use of a dropshipping agent will enhance your relationship with your customers. Ideally, most clients like it when they know what is happening with their order.
The good thing about using a dropshipping agent is that they will with tracking the order.
Every order shipped by the dropshipping agent has a tracking number that you can easily track.
This action helps reduce any human errors.
This will help you become a reliable source.
Evaluating these factors will help you determine when you may need to hire a dropshipping agent.
What Are The Benefits Of Dropshipping Agent
Here are the benefits you will profit from using a dropshipping agent.
- Take advantage of affordable prices- One primary function of a dropshipping agent is negotiating the prices.
Making use of a dropshipping agent is like buying products in bulk.
Anytime you purchase your products in bulk, you are likely to obtain a discount.
- Making use of a dropshipping agent helps you obtain the best delivery time-In most cases; anytime you wish to ship some products, it tends to take long. On average, the shipment might take as long as two to three weeks or even more depending on your supplier.
Hence, to avoid any complaints from your clients, it is best to use a dropshipping agent.
A dropshipping agent helps ensure that the goods are delivered within a period of seven to twenty days.
Also, by using a dropshipping agent, you are certain the follow-up on your package’s information is accurate.
- You are not limited to repackage your parcels- One element that is highly appreciated by most people from using a dropshipping agent is that they allow their clients to repackage their products.
There are various information you can add while repackaging your parcel. It includes:
- You can add your logo to the parcel.
- If the packaging was not ideal, you could decide to improve and repackage the parcel.
- You can add a promotional code to the package if need be.
- While repackaging, you can as well include a word of thanks to the client.
- Finally, if you forgot to include the instructions on how to use the product. By repackaging, it offers you the chance to include the omitted information.
There are a few shipping companies that allow repackaging of the parcel. However, if the order is in bulk, most, if not all, shipping companies do not allow it.
- Quality control- A dropshipping agent often counter-checks to ensure that the products are of quality.
They act as a representative for you when obtaining the products from the supplier.
By using a dropshipping agent, you are confident that the products you will receive adheres to your company’s requirements.
- Save on time and effort- By using a dropshipping agent, you are sure that you will not go through the process of finding the right supplier.
Obtaining aid from a dropshipping agent will help you have an acquired free time.
You can use the newly acquired time to focus on other elements to boost your business.
What Are The Best Items To Dropship With An Agent?
Before highlighting some of the products, you ought to dropship with your agent.
It is best to highlight some of the elements to assess that will help you choose the right product.
- Choose products that are under 10$ that are useful or beautiful.
In most cases, by choosing these products, you are certain that they will sell fast.
The items include smartphone covers, keychains, pet products, jewelry, and stuffed toys.
- Choose rare products to find- Choose rare products to find on various online shopping platforms.
In most cases, most shoppers tend to compare the prices with other online shopping platforms.
Hence it will be of benefit to have products that are hard to find.
- Pick useful products- Make sure that you choose products that most consumers will find very useful.
With these factors in mind. Here are some of the products you ought to dropship with an agent.
- Water shower filter
- Mirror alarm clock
- Magnetic charge cable
- Neck phone holder
- Mirror lamp
- Desktop punching bag
- Wireless charger
- Electric flea comb for puppies
- Roller elliptical massager
- Legs for drones
- Organic tea
- Waterproof floating phone cases
- Portable mini air conditioner
Can I Dropship Branded Products With A Dropshipping Agent?
In most cases, dropshipping agents are not allowed to dropship branded products.
Drop shipping services
How Do I Get An Agent For Dropshipping?
There are a few methods you can use to help you find a reliable dropshipping agent.
The approaches include:
- You can utilize the internet to search for a dropshipping agent.
This is a straightforward approach to use as you do not have to leave the comfort of your house.
Making use of the internet to look for a dropshipping agent is relatively inexpensive.
This is because all you need is a smartphone or a laptop and a working internet connection.
Ensure that you are cautious while using this method.
This is because it is relatively easy to contact a con artist.
- Use YouTube to search for a dropshipping agent- While using YouTube, ensure that you make use of specific keywords to help you find the right dropshipping agent.
Ensure that you watch the videos for you to have a good understanding of what you are getting yourself into.
- Utilize Alibaba- The good thing about Alibaba is you can use it to find any product or service. There is a list of dropshipping agents on Alibaba.
- Make use of trade shows- If you wish to get in touch with a reliable dropshipping agent, then it is best to make use of trade shows.
How Do Dropshipping Agents Charge For Their Service?
It is imperative to understand that a dropshipping agent’s charges tend to range between $2 and $5 or more.
However, the total cost is often determined by the size of the order.
Also, the complexity of the order has a significant influence on the total charge.
The other factor influencing the total cost you will pay the dropshipping agent is the number of orders you have.
If the orders are quite many, you are likely to pay more compared to one whose orders are few.
Can I Lose Money Dropshipping With An Agent?
There are various ways that you can lose your money while dropshipping with an agent.
Dropshipping has a low-risk fulfillment structure; however, this does not mean that dropshipping with an agent does not have its own risks.
Here are some of the areas that you are likely to lose money when dropshipping with an agent:
- Refunds- In most cases, dropshipping with an agent tends to take a while. This can be pretty annoying for the client who urgently needs the product. Once the product is brought to the client, most of not all will request for a refund.
The refunds will eventually eat in your profits.
- Returns- In some cases, some clients tend to order the wrong sizes when dropshipping with an agent.
When this happens, the client will definitely request a return.
When dropshipping with an agent, you will be required to cater the returns by yourself. This will reduce your profits.
- When using an agent to dropship your products, while the clients are placing the orders, they will only rely on the photos published on the site.
There are cases where the client might receive products that are not the same as those they saw on the site.
If this happens, the agent will not be liable for the poor quality of the products.
Instead, you will be required to cater to the returns if necessary.
- Using an agent to dropship products has become quite a popular method that more business owners use while shipping products.
However, there are risks to it.
When using a dropshipping agent, you will be required to pay an upfront fee.
There are cases when you may pay the upfront fee, and the agent disappears with your money.
If this transpires, you will lose your money.
How Do I Negotiate Prices With A Dropshipping Agent?
There are a few guidelines you can make use of to help you negotiate the prices with a dropshipping agent.
Here are some of the guidelines:
- You should familiarize yourself with the prices set by the different dropshipping agents.
This will be of help while coming up with negotiations.
Understanding the industry’s practice will help you create a sensible offer.
- Often than not, you are likely to obtain discounts if you order in bulk.
You could share your past order records for the dropshipping agent to deem you as a serious buyer.
By buying in bulk, it will be easy for you to negotiate with your dropshipping agent.
- Negotiate outside the price- You may come across a dropshipping agent who is unwilling to lower their price range.
If this is the scenario, you may try to negotiate on other elements to help you get discounted prices.
The elements you can negotiate on are; packaging, product fulfilment, and mode of shipping.
- Talk to multiple dropshipping agents to create a bidding competition. Informing the dropshipping agent about the competitor’s quote will improve your chances of obtaining a discounted offer.
What Are POD (Print On Demand) Agents?
A print-on-demand agent offers custom orders to their clients.
This comes in handy for buyers whose clients preferred customized products.
Print on demand agents are growing in the market.
They provide a variety of products such as electronics and apparel.
Drop shipping business model
Both print-on-demand agents and dropshipping agents tend to offer inventory management.
Both agents offer product supplies and deliveries for the orders placed by the clients.
It gets better as both POD agents and dropshipping agents do not require you to rent out a warehouse.
The working of a POD agent is quite similar to that of a dropshipping agent.
This is because they make it possible for clients to access international products.
What Is The Difference Between POD agent and Dropshipping Agent?
The main difference between a dropshipping agent and a POD agent is that the dropshipping agent cannot offer customized products, unlike a POD agent.
POD agents often attract businesses that need to sell apparels that have unique designs.
Dropshipping agents require the buyer to pay for their stock.
However, a print on demand agent will request you to pay for the stock only after selling it.
POD agents do not offer customer metrics; this makes it hard for you to know the customer’s needs.
This is not the same case when using a dropshipping agent as the customer metrics are available.
The profit margins with print on demand agents are relatively high compared to dropshipping agents.
How Does A Dropshipping Agent Conduct Product Quality Inspection?
Before items are shipped, the dropshipping agent conducts a product quality inspection.
Total quality control
The agent inspects the product to ensure that everything is functioning.
The inspection ensures that every part is intact.
Also, for products such as electronics, the dropshipping agent conducts some running tests.
The test helps ensure that the products being shipped function properly.
During the quality inspection, the dropshipping agent provides that the labelling of the products is correct.
Also, the dropshipping agent makes sure that the shipment has the right amount of orders.
Do Dropshipping Agents Have A Minimum Order (MOQ) Requirements?
There are a few dropshipping agents that have an MOQ requirement.
Some of the dropshipping agents who do not have a MOQ often request the buyer to make use of a bestselling product.
While placing the orders, the buyer ought to place an order of at least ten products.
This is a factor can work great for you as the dropshipping agent can stock up the products; this will help reduce the order processing time.
Can A Dropshipping Agent Help Me Source A Private Label Product?
Yes, a dropshipping agent can help you source a private label product.
A dropshipping agent will help you look for a factory or supplier who can quickly provide the private label product.
They will also inquire about the MOQ for you to have a more comprehensive knowledge of the company.
What Are The Considerations For A Good Dropshipping Agent?
Here are some considerations you ought to be on the lookout for while choosing a dropshipping agent:
- Communication skills- Only settle for a dropshipping agent with excellent communication skills.
Remember how the agent performs will significantly affect the kind of reviews you will receive from your clients.
Hence to avoid frustrating your consumers, ensure that you choose a dropshipping agent with a prompt support system.
- Ensure that the dropshipping agent has a functioning full automatic application that will help with the workflow.
Most business owners prefer using CSV files; however, CSV has a number of disadvantages to it.
For you to have an easy time managing and to track your order ensure that the agent uses an automated dropshipping application.
- Avoid using dropshipping agents that ask for an upfront fee. This is a huge warning sign as the dropshipping agent might not be reliable.
- Check to see if the dropshipping agent can offer private label dropshipping services.
This kind of service will come in handy because it will help increase your brand identity.
- Ensure that the dropshipping agent understands your niche.
With this, it will be of help to pick a dropshipping agent who is familiar with your business.
This is because it will be easy for them to pick the right products that will help boost your firm.
Can I Use Dropshipping Agent Service If I Lack A Reseller’s License?
You can proceed without a reseller’s license; however, your business will not seem as legitimate.
A seller’s permit is required anytime you are dropshipping from your supplier directly to your consumer.
Most suppliers will not make a deal with the client if they do not have a seller’s permit.
This is because the reseller’s license is required to obtain a dealer account.
Also, having a seller license can be of benefit to you as you will not be required to pay taxes for every order you place with the supplier.
Who Pays For Duties And Taxes If I am Dropshipping With An Agent?
There are various factors that influence who pays the duties and taxes when dropshipping with an agent.
These factors include the three parties’ location; this is because different states tend to have dissimilar rules on who ought to pay when dropshipping.
The taxability of the goods; remember that all goods have their own taxing rules.
Finally, the last factor affecting on who pays the taxes is where the supplier and the seller has nexus.
Note that often than not, the clients pay the sales tax to the seller.
Do Dropshipping Agents Take Liability Of Goods During Dropshipping?
In most cases, dropshipping agents do not take the liability of goods during dropshipping.
This is why it is best to purchase a dropshipping insurance cover, as it will come in handy if the goods get ruined.
What Are The Risks Of Working With A Dropshipping Agent?
There are a few risks you are likely to encounter from using a dropshipping agent. They include:
One big risk of using a dropshipping agent is that other firms will take control of your business supply chain.
Therefore, your business’s survival is in the hand of other companies who may care less about your business.
In most scenarios, you will not have control over the product’s quality being brought into your business.
Therefore to ensure that you do not have any regrets, ensure that you work with a trustworthy dropshipping agent.
Reliance on other People’s Stock
One perk of using a dropshipping agent is that it allows you to offer new products.
However, the downside to this perk is that if the supplier runs out of stock, the dropshipping agent will have nothing to offer you.
This may make you lose clients or have a longer lead time.
Poor Customer Service
If the supplier fails to deliver the right goods, the blame will be on you.
The risk of using a dropshipping agent is that you will not have a bond with the supplier.
Also, you will not have the chance to quickly solve any customer issues as you do not have the inventory at hand.
Do Dropshipping Agents Offer Warehouse Services?
Yes, dropshipping agents offer warehouse service.
This is a benefit for businesses that buy products in bulk as they do not have to go through the bother of searching for a warehouse.
How Long Does A Dropshipping Agent Need To Process My Order?
Note that processing time starts when a fulfillment request is received to when the client obtains a tracking number.
In most cases, dropshipping agents tend to take between two to three days.
Understand that if the processing time is longer, the order might take longer to get to the client.
Can Dropshipping Agents Recommend Best Selling Products?
Yes, a dropshipping agent is allowed to recommend best-selling products to their clients.
Do Dropshipping Agents Offer Branding And Customizing Service?
Yes, a dropshipping agent can help with branding and customization services.
If you need this kind of service, it is imperative for you to communicate in advance.
All you are neccesitated to do is send in the designs, and they will take care of the rest.
How Does Dropshipping Agent vs. Sourcing Agent vs. Purchasing Agent Compare?
A dropshipping agent who helps their client sourcing a product, quality inspection, warehousing services, branded packaging, labeling, and order fulfillment.
A sourcing agent is a professional who helps locate sources of products and supplies at a low price.
A purchasing agent is a professional who offers to buy goods or property on behalf of their client.
The main difference between a dropshipping agent, a sourcing agent, and a purchasing agent is in their roles.
Both purchasing agent and a sourcing agent do not offer warehouse, packaging, labeling, and order fulfillment, unlike a dropshipping agent.
The huge similarity is that the three agents help in the negotiation of prices.
The agents also help in locating products for their clients.
However, a dropshipping agent has responsibilities they offer to their clients.
Do Dropshipping Agents Ship Internationally?
Yes, dropshipping agents ship internationally.
However, this element varies with the agent.
Hence it would best to check if they offer such a service before setting a contract with them.
Are Dropshipping Agents Middlemen In International Trade?
A middleman is an individual who buys goods from manufacturers and sells them to a retailer or a consumer.
In international trade, a dropshipping agent can act as a middleman.
This is because the dropshipping agent will help you access a reliable manufacturer who has attractive rates.
Always ensure that you make use of a reliable dropshipping agent.
This is because their reliability will come in handy while interacting with the international manufacturer.
A reliable dropshipping agent will only buy quality goods from a reputable manufacturer.
Is There An Alternative To Having A Dropshipping Agent?
There are a few options you can use as an alternative to using a dropshipping agent.
Using Tools that can Help Automate your Dropshipping
The good thing about using this approach is that it is an efficient method.
For the reason that you have control over the tool.
Simply you have the power to filter out what you do not need.
Moreover, it is quite easy to find the best-selling products.
More or less, the tools perform the same functions as the dropshipping agent.
For the reason, once the order is placed, a tracking number is automatically sent to your client.
Using Aliexpress for Dropshipping
Unlike other marketplaces, Aliexpress has a unique structure that helps support dropshipping.
It is quite easy to locate the products you need and directly converse with the supplier.
The downside of making use of these alternatives is that you may end up using a lot of time trying to find a reliable supplier.
This, however, is not the case when using a dropshipping agent as they take care of everything.
What Is A Blind Dropshipping Agent?
This is a kind of dropshipping where the shipment is sent directly to the customer.
However, in blind dropshipping, the customer is not aware of the supplier’s identity.
How it works is that once the customer places the order, you pay directly to the wholesaler, who later sends the parcel from the warehouse.
Ideally, the blind dropshipping agent will use a special type of dropship packaging.
Most business owners delight in using this approach as it protects the interest of your business.
Also, blind dropshipping provides faster transit times.
This can work in your favor as clients will deem your business as a reliable one.
One major downside of using a blind dropshipping agent is that you have little control over the freight shipping rates.
This, therefore, denotes that you will have to charge your customers extra charges to cater to the shipping fees.
The other downside of using a blind dropshipping agent is that you have no control over your products.
Therefore the customer may receive damaged products, or they may have missing components.
This may, in turn, ruin your brand.
The other disadvantage of using blind dropshipping is that the process is quite complicated; this, in turn, may result in a longer shipping time.
Do Dropshipping Agents Offer Credit?
Most dropshipping agents do not offer credit.
This is because most dropshipping agents tend to have a monthly subscription.
Additionally, when dropshipping, the suppliers will require your credit information for them to process your information.
The good thing about using a dropshipping agent is that their prices are quite favorable.
Hence you are certain that buying from them will save you on cost.
What Are The Basic Steps A Dropshipping Agent Takes To Get Packages Through Customs?
Here are the steps that a dropshipping agent takes to get packages through the customs:
- The custom officer will go through the paperwork presented by the dropshipping agent- Note that if the shipment is International, the agent ought to present a commercial invoice.
The document contains the information of both the supplier and the receiver.
The document also holds the description of the parcel and its value.
- The next step is the customs officer will check if any taxes or duties apply to the parcel.
Note that this will depend on various factors such as the law of the importing country.
Also, the value of the goods greatly affects what your taxes fee will be.
Once these factors are assessed, the customs duty will check if you need to pay for the taxes or not.
- The other step is the customs officer will request for the payment of the taxes and duties if they haven’t been paid.
It is best to pay the taxes in advance, for you to have smooth delivery of goods.
It is best to advise your dropshipping agent to choose the deliver duty pay for you not to incur unexpected charges.
The benefit of using this option is the prices are fixed.
However, if you wind up using deliver duty unpaid, you may end up paying more as there are no fixed prices.
- Once the customs officer confirms that the taxes and duties are paid for, the officer later releases the package to its final stage.
How Many Dropshipping Agents Do I Need For My Business?
There is no definitive number on the number of dropshipping agents you ought to use.
You can use as many as you want.
However, note that it can be rather expensive to use multiple dropshipping agents.
Do I Have To Order My Products In Bulk When Using A Dropshipping Agent?
This element is entirely dependant on the requirements of the dropshipping agent.
Hence it is best to ask about their minimum order quantity.
This is because it will help you have a better understanding of the number of products to order while using the agent.
When importing from China, BanSar can help you find the right Dropshipping agent.
Contact us today for a custom solution when importing anything from China.