6 Reasons to Use a Dropshipping Agency for Your Online Store
You found a product on AliExpress, but:
- How do you know if you're getting it at the best price?
- How do you know if a seller will use the fastest available shipping method?
- And, if your product arrives to your customer damaged, will the seller issue a refund?
Fortunately, there is some good news; dropshipping agents can help.
A direct selling agency takes over several key responsibilities of your business, freeing you to focus on other important tasks.
This article will explore six reasons why an agency can help take some of the stress out of you and help you succeed with your online store.
Additionally, it will discuss how to find the right dropshipping agent for your business so you can have a hassle-free experience.
What is a Direct Selling Agency?
Dropshipping agents are an alternative to dropshipping suppliers. This is the person who will source, store, pack and ship products for your dropshipping store.
As you can see, a dropshipping agent acts as a middleman between you and the dropshipping provider.
You can send a product request to your dropshipping agent, and they will search for suppliers who can provide the highest quality version of the product at the best price.
Afterwards, your dropshipping agent buys this product in bulk from the supplier and stores it in their warehouse. New orders from your dropshipping store are forwarded to your dropshipping agent, who ultimately ships them to your customers.
Between these tasks, most dropshipping agents will be able to provide you with additional services that most dropshipping providers cannot.
branding, private label and white label.
For example, direct sales agents can
- Quality checks on your products
- Support you with branding, private label and white label.
- Choose the best shipping method for your destination country
- Assistance in case of shipping delays or product damage
- Keeping you updated with the latest product and shipping trends
Sounds good, right?
6 Reasons to Use a Dropshipping Agency
So, are you ready to learn why you should use a dropshipping agency?
If so, read on because you'll find out soon!
Remember, in order to remain objective, I will also tell you about some of the disadvantages of using a dropshipping agency. Nothing is perfect.
Now let's start with the first reason why you should use a dropshipping agency:
1. Better value for money compared to dropshipping suppliers
In other words, dropshipping agents may demand lower prices for dropshipping products than dropshipping suppliers. If so, it will help you beat the competition!
A dropshipping agent needs to be able to provide you with lower priced products.
Do you already know why?
Well, if the price of the product from the agency is much higher than the price on AliExpress, then you might rather buy on AliExpress.
The direct sales agent will use his network and negotiation skills to contact multiple factories. Their goal is to find the best quality product you're looking for at the lowest possible price.
Dropshipping resellers can often offer your products at lower prices because they buy in bulk from the factory. This allows them to get discounts from the factory.
Also, the direct selling agent may find a factory that makes the same product that you are currently selling. But since it's a different factory, the quality of the product may be better than what you get from your current supplier.
All in all, these are the reasons why a dropshipping agency can provide you with better service at a lower price.
2. Faster Shipping Times
Due to their expertise and experience, dropshipping agents can often use the fastest shipping methods to reach your target customers' countries.If you are used to using AliExpress to ship directly from China, then you may recognize the following shipping methods:
- AliExpress Standard Shipping
- e-mail package
- China Post
Well, this is exactly the case if you dropship with AliExpress.
But the thing is, many dropshipping agents will be able to offer you faster shipping methods, especially if they are located in an area where these shipping methods are available.
For example, China direct selling agents are usually located in:
- Shanghai/Zhejiang (1)
- Guangzhou/Shenzhen (2)
The second location (Guangzhou/Shenzhen) in particular offers excellent shipping options to the rest of the world, partly due to its proximity to Hong Kong International Airport.
In addition to this, there are thousands of factories in the area that produce everyday direct selling products.
A good dropshipping agent will know exactly which shipping method is best for which country. For example, your agent might use 'A logistics' to send packages to Germany and 'B logistics' to Austria.
An example of a direct sales agency that can
3. Consistent Pricing
With a dropshipping agency, you don't have to deal with wild price swings.
There's nothing more annoying than using AliExpress to dropship a $36 product, only to find out days later that the price has increased to $44:
With a dropshipping agency, you will be able to enter into a fixed price agreement to ensure this does not happen to you.
Even if the purchasing agent wants to increase the price, he will remind you in advance to ensure that you can expect it.
4. Insight into the latest developments in the industry
Usually, you won't be the only client of a consignment agent.
They may partner with others who do direct selling. If your dropshipping agent works with many other affiliates, he or she will have great insight into which products are currently trending or selling well.
Since they are in close contact with the factory, whenever new products are designed, they will come into contact with them occasionally. If you are open to this, your dropshipping agent will share these latest offerings with you.
This way, you have the potential to be the first dropshipper to sell that particular product! How unique is that?
5. One-on-one contact
Another great reason to use a dropshipping agent is that you will have one-on-one contact with him or her.
Whenever you have any questions, you can easily contact your dropshipping agent through platforms like Skype, Whatsapp or Telegram.
This is very useful whenever you have questions about products, delivery issues, or anything else.
Plus, your surrogate will remind you of upcoming events, such as Chinese New Year, so you don't get any surprises.
6. Improve product packaging
Dropshipping agents can provide a variety of services to make your dropshipping store look more on-brand.For example, you can ask suppliers to include your logo, promotional codes, thank you notes, or product brochures on packaging.
Also, some dropshipping resellers will be able to place your products in custom bags/boxes.
In other words, dropshipping is a great way to differentiate your dropshipping store!
Are there any downsides to dropshipping?
Like I already mentioned, nothing is perfect.So, unfortunately, dropshipping also has its downsides!
The downside of using a dropshipping agency is that you may have to have minimum order quantities per day, prepay inventory fees, and it may take more time to process orders.
I explain each of these disadvantages in more detail below:
- Minimum order quantity (MOQ). Some agents will require you to receive a certain number of orders per day. Of course, this makes sense. A dropshipping agent takes the time to find your product and build a relationship. It is not economically viable to do this for just one order per day.
- There is (usually) no fully automated order fulfillment. For most dropshipping resellers, you must send them a .csv file of orders on a daily basis. Using it, they are able to process your order. More "modern" dropshipping agents use apps that automate the order fulfillment process.
- Credibility is more of an issue. Unlike suppliers, most dropshipping agents don't have a business website (or at least don't have a website in English. But we have pages in multiple languages to make communication even easier! ). For suppliers, you can easily find reviews of other dropshippers, but for resellers, you cannot. This is why you must trust an affiliate agent before working with one.
In Conclusion
Using a dropshipping agency is a great way to take some of the burden off your shoulders.Dropshipping gives you more time to focus on marketing your store. In addition, an agency can provide you with more opportunities to grow your online store, such as branding, private label and white label.
What is your opinion on direct sales agency? Do you think direct sellers should use a direct sales agency?
Let me know in the comments below!
Good luck with your online business!
Leave a comment