Dropshipping has achieved high popularity, with e-commerce trends on the rise.
Dropshipping sourcing agents enable you to sell online without even touching inventory. They basically save you from the hectic work of purchasing inventory upfront, store it, and shipping it to your customers.
Although working with a sourcing agent helps you in starting or growing your business, identifying the right ones is very challenging.
To make the work easy for you, we have figured out which dropshipping agent is the best and which one you should avoid.
Read on to enrich yourself with useful information and see which one is most suitable for your business.
Chapter 1: Sourcing Agent vs Dropshipping Sourcing Agent in China
Before starting our search of the best dropshipping sourcing agent, it is important to learn the difference between a sourcing agent and dropshipping agent.
1. What is sourcing?
Sourcing is finding and getting products from manufacturers, factories of suppliers to sell them to your customers in the market. There are countless options of manufacturers and suppliers in China.
Sourcing is a crucial part of your online or offline business because without sourcing a product, you cannot have it, and when you won’t have anything, what are you going to sell?
2. What is a sourcing agent?
A sourcing agent is either an agency or a person that works on the behalf of a buyer to buy products or goods which he/she cannot buy him/herself or are out of his/her reach.
International trades often need sourcing companies or agents to import/export goods smoothly. In the most common cases, a sourcing company will source suppliers for the client but can also offer services such as quality control, product testing, shipping, etc.
3.Why you need a sourcing agent?
There are numerous reasons to hire a sourcing agent. Since online businesses require products from various places, a top-notch sourcing agent can assist you to get familiar with your target market.
Following are some of the reasons that define your need for working with a sourcing agent:
Network and Experience:
By hiring a sourcing agent, you can enjoy an access to a wide range of network. A sourcing agent has the experience of working with different manufacturers and can help you find the one that is most suitable for your required goods.
So, using his/her market experience, a sourcing agent can find the perfect supplier that matches your demands.
Another crucial reason to hire a sourcing agent is to get your things done well on time. The right sourcing agent will get you started with the best supplier in no time.
The agent will save you from the hassle of searching and negotiating with the suppliers according to your specifications and unique requirements. The agent does all that and much more for you.
It is very critical to inspect and verify licenses and certificate from the suppliers. A sourcing agent also saves you from doing it and does it by him/herself on your behalf.
They ensure that the supplier is authentic and can work legally without any issue. Sourcing agents can also help you identify and filter out the fake and scam suppliers.
The next reason to hire a sourcing agent is to help you with the negotiations. They can assist you to negotiate according to your specifications and ensuring to keep high quality at lowest possible price.
Sourcing agents are well aware of the markets and have the knowledge of typical practices more efficiently.
Removes Language Barriers
Sourcing agents remove the language barrier for you at the time of negotiations as they help your suppliers to brief your product’s specifications. Sourcing agents make sure that each and every element of the specification is added in the brief.
4. What is dropshipping?
Dropshipping is the method which allows your supplier to show their goods in your store so that they can be sold. In simple words, you can sell their products. The supplier keeps the products in their warehouses.
When an order is placed for a product online from your website, the supplier ships the product directly to the customer. So, you never touch the product or it never passes itself through your hands but reaches the customer.
You put your own profit in the selling price and the supplier will pay you those profits.
5. What is a dropshipping agent?
Dropshipping agent is the supplier that supplies products to your customers. These agents regulate the inventory as per the demands and needs of their clients’ businesses.
There are dropshipping agents for different niches such as healthcare, electronics, toys, cosmetics, etc.
Dropshipping agents are responsible for taking care of various vital elements of the supply chain including product delivery, maintaining warehouse, quality inspection and more.
They are responsible to get the product details from the client and find out the manufacturers that will offer a good price and quality for your product. Then when you get an order, the agent will be responsible to pack and ship the product.
6. Why you need dropshipping agent?
There are different advantages of hiring a dropshipping agent which are discussed further in the blog.
But for now, just understand that a dropshipping agent makes your work much easier and effortless by shipping the products on your behalf without you even touching them.
So, basically, you will sell the products on your store and your dropshipping agent will send them to your customers on your behalf.
7. Difference between a sourcing agent and a dropshipping agent?
The main difference between sourcing agent and dropshipping agent is that a sourcing agent will find different factories and manufacturers for different products. These agents may or may not offer product delivery to your customers.
Sourcing agent will ship the bulk quantity to your destination from where you will have to handle the inventory and make arrangements for warehousing.
Whereas a dropshipping agent is bound to supply products to your customers. But the agent may or may not source new or products different to his/her specific niche.
Chapter 2: Dropshipping agent vs. Print on Demand
Other than old school dropshipping agents, there is a rise in the POD or print on demand drops shipping agents. POD dropshipping agents offer custom order services to their clients.
The growth of these POD drop shippers has increased because different clients want to own products customized according to their own preferences and needs for their buyers.
Usually, people consider regular and POD drop shippers same but they have different similarities and differences.
Continue reading to understand them both:
1. Dropshipping Agent Similarities
Both of the dropshipping agents offer product supplies and deliveries for the orders given by the clients. They also provide inventory management.
The operation and work process is also quite similar as well as provide quick and easy reach to the international markets for effective international trade.
Then, you don’t have to set up a warehouse or arrange extra storage to work. The two types of drop shippers handle and manage both of these processes.
They are held accountable for overviewing and maintaining the storage of products.
Businesses running with both of the dropshipping agents have the same risks. Supply chain management defines your business. Your work profile will be destroyed in the international market if you will choose an incompetent dropshipping agent.
2. Dropshipping Agent Differences
There are number of differences between both of these dropshipping agents. In traditional dropshipping, you have no option of product customization.
Whereas POD dropshipping agents offer product customization to their clients.
Customization option is very useful for products of some niches such as clothing where clothes of latest designs are more attractive in comparison to old fashioned clothes.
Moreover, POD dropshipping agents offer payment when products are sold. On the other hand, conventional dropshipping agents also ask for the payment of stock.
But the game is not in the favor of POD dropshipping agents only; there are some downs of POD agents as well. With POD, your design is also featured with other designed products.
It makes it quite challenging for buyers to only be gravitated towards your designed goods.
Additionally, conventional dropshipping agents offer numerous options for knowing customer metrics. These options are not available with POD dropshipping agents.
Since clients design their products on their own, there are not many methods to know what the demands of their customers are.
However, the customized products are marked as “designer products” and are sold at much higher price, the profit margins in POD dropshipping is higher in comparison to traditional dropshipping.
Chapter 3: How to identify a reliable Dropshipping sourcing agent
1. Do your Research on dropshipping agents
After deciding on the products you want to sell, the first thing to do is to research the available dropshipping agents in the market and filter out which ones are most suitable for your business.
Try to choose multiple drop shippers for your preferred product niche as it will give you better idea of different drop shippers.
At the time of choosing a dropshipping agent, consider the service potential, raw material sourcing and delivery times offered by them.
2. Request Sample Products from dropshipping sourcing agents
After selecting a few highly professional dropshipping sourcing agents for your business, order some samples from them by yourself.
It is the important part of choosing agents because it will enable you to check what and how your potential customers will experience your online business store.
Verify different dropshipping sourcing-related concerns such as product quality, service quality, packaging, delivery timing, etc. Testing these factors will strengthen the decision you make of choosing them.
3. Understand the Difference between a Drop Shipper and a Middleman
A middleman will not supply the product confidently and will keep a share for him/herself as well. Whereas the dropshipper will know the market, how to negotiate and the product pricing very well.
The dropshipper will only charge the service charges. On the other hand, a middleman will keep on asking you for money in the form of different types of fees or charges.
4. Minimum Bulk Order requirement by dropshipping sourcing agents
While selecting a dropshipping sourcing agent, keep the minimum bulk order in mind. Sometimes, the agents are looking to charge some minimum order fees and complete clients’ orders when they come in.
For example, if the agent’s smallest order size is 50, you should give the charges for 50 pieces upfront.
However, the agent will complete the orders when they come from the store. If your chosen agents don’t do so, stop working with them as they are preferred for dropshipping wholesale only.
5. Avoid the Monthly Fee Scheme by dropshipping sourcing agents
Do not do business with a dropshipping agent that insists on ongoing or at least for a monthly fee. Because an ongoing fee can be a reason that the agent is a trader instead of a sole supplier.
The right dropshipping sourcing agent will not ask for such monthly fee and will probably have the stocks in the warehouses.
6. Talk to the Dropshipping Agent Directly
Contacting the selected dropshipping agent will help you build a good relationship with him/her. Contacting them will let you clear your doubts and have any information you need.
You can ask them queries related to their offered services. You may ask them about their current clients and what sort of experience do their customers get.
These questions and information can clear your confusions before committing to an agent.
Keeping a healthy relationship with the dropshipping sourcing agent from the beginning will result in a business in which you will have full trust.
It will make it much easier to get answers to your questions, clear your concerns and resolve the disputes in quick pace. In the end, you and your dropshipping sourcing agent are in the same team.
Chapter 4: Advantages of Dropshipping Sourcing Agents
1. Free Product Sourcing Service by dropshipping agent
Different dropshipping sourcing agents offer free product sourcing services. The product sourcing services can help you source products of different niches directly from a factory or a manufacturer in no time.
In this way, you don’t have to face the hassle of finding manufacturers or factories from thousands of available options. You can focus much better on maintaining your online store and leave sourcing headache for the dropshipping sourcing agent.
2. 1 to 1 Support Team by dropshipping sourcing agents
The dropshipping sourcing agent may offer a full support service that will help you in choosing manufacturers of your products, sample units, production line inspection, private label, on time fulfillment of order, and much more.
You can ask your agent to help you out at any point of your business if the agent offers 1 to 1 support. Working with multiple agents can result in different support teams from different vendors which can cause issues and confusions.
3. Quality Inspection by dropshipping sourcing agents
One of the most crucial process is quality inspection and quality check. The agent can provide full quality inspection. Products from the factories are fully inspected and checked to ensure they are of top-notch standards and of perfect quality.
The sourcing agent is responsible for getting rid of factory tags and repacking the products with excellent packages. The agent will take care of different quality problems and solve them in China before products are shipped to the customers.
4. Fully Integration with Shopify
Excel or CSV file orders are also supported by some dropshipping sourcing agents. The companies may have total integration with Shopify for full and fast automation.
Various agents also have their own applications. These applications are supported by Shipstation, eBay and WooCommerce integration. The applications are also very helpful for online transactions.
5. Bulk Inventory Storage by dropshipping sourcing agents
The dropshipping services offered by several dropshipping sourcing agents lets you begin your dropshipping business, thanks to their bulk inventory storage service.
You can avail the bulk storage options offered by different sourcing agents. You can also purchase inventory for a good price and keep your products in their warehouses without any worries.
6. Branding Package by dropshipping sourcing agents
If you want customized brand packaging, you can do so as some agents offer full solution for it.
It will help you make your branded dropshipping online business to become much stronger Agents provide various services such as branding package similar to packing box or bags with your brand logo, hangtags or insert cards depending on your branding strategy.
7. Private label & White Label
Private label and White label are almost used as the same term, however they have a slight difference. Private label is a brand sold exclusively in one retailer for example Walmart. White label is a generic product, which is sold to multiple retailers.
Some agents also offer private label and white label dropshipping service. The service is very useful for clients who have their own brand.
With these labeling services, it is possible to dropship your own brands. With the products labeled according to your brands, you can easily sell the product under your unique brand.
8. Photography & Videography by dropshipping sourcing agents
Photography and video can upscale the image and value of your products. It is a great marketing technique as well. Many dropshipping sourcing agents also offer product photography and video services.
This is an important advantage of working with a dropshipping sourcing agent as you can avail their photography and video service.
9. Merge Multiple Orders to One Order by dropshipping sourcing agents
If you have various orders and different suppliers, most probably you will choose one of them. But, with one dropshipping agent, you can easily merge different orders into a single one.
The dropshipping sourcing agent can prepare the products and regulate all the details simultaneously. It will save your money and time required to source goods from various suppliers.
Chapter 5: Top 10 dropshipping sourcing agents in China
1. EJET Sourcing
EJET is the pioneering dropshipping sourcing agent located in Yiwu, China. It was founded back in 2007.
They have a large database of suppliers and products. The company has more than 1000 trusted clients from more than 50 countries from all over the world.
They know how to deal and have experience of more than 15 years in the field. The company consists of over 100 professional and experienced staff members.
The agent has more than 3000 qualified sellers who import from China. Every year, they fulfill the shipping of about 3000 containers.
2. Leeline sourcing
Leeline Sourcing is a famous and professional dropshipping sourcing agent in China. The company has different sourcing services as well as good experience in handling dropshipping and freight forwarding.
The company has successfully gained the trust of more than 2000 clients and offers prices much lower as compared to top-rated dropshipping agents such as AliExpress.
Their most appealing factor is that it provides full quality inspections that minimize faulty goods making up to your targeted market.
3. Ali Express dropshipping Agents
AliExpress is the online retailer of Alibaba. It is also a quite popular dropshipping service that is available anywhere in the world. It is a Chinese business platform where different products are offered at amazingly low prices.
The site also has analytics and customer reviews which are helpful in choosing quality products.
AliExpress dropshipping is also possible without any sort of contact with the suppliers. The option has a very low risk to test out new product ideas without hefty investment as the platform is awesome for finding samples and small order quantities.
SaleHoo is a top quality wholesale supplier directory. It connects suppliers to drop shippers easily and efficiently. The directory is full of suppliers of a wide range of niches.
The available suppliers currently serve Australia, UK and the US. SaleHoo sign up cost is $67 a year and gives you 60-day money back guarantee.
Jingsourcing is one of the leading dropshipping sourcing agents in China. The company focuses on serving different online small and medium sized businesses. Unlike other agents, they offer small sized product packaging and shipment.
They mainly focus of professionalism and maintaining product quality. Their warehouse is very big and has full time workers for its maintenance.
6. BigAnt dropshipping
Big ant dropshipping can take care of everything in China for their clients, from sourcing to dropshipping. They are an AliExpress agent that can mainly focus to help small businesses.
So, you can easily place small sized orders and drop ship them to your designated location. They also offer bulk inventory storage and have their own working app, making it easy for you to contact and work with them.
7. China Purchasing Agent
They are providing our customers One-Stop Drop shipping agent from China. More than 80% of the world’s products come from China. Their fees are very transparent and they do not have any costs or commissions.
As they mention on their website, they will give you 2 free trials and then only charge 3% service fee.
8. Chinese Sourcing Agent
The best way to learn about them is to go to their website, go to contact us section and then open their brochure. You will see that they provide all support for your drop ship business so you can focus on your core business.
They will help you to do product sourcing, legal support, and fulfillment center as well as order processing. You can also read different case studies in their brochure to understand how they help you.
9. Bang Good
Banggood.com focuses on B2C cross-border e-commerce and is committed to bringing China’s high quality goods, efficient supply chain and top class customer service to the world.
They provide many dropship benefits such as no membership fee, 5% to 20% dropship discount and higher category discount, product information and images, free automatic tools like banggood API/eBay API, custom shipping invoice, personalize product recommendation and also offer 24 hours customer service.
10. My Sourcify
My Sourcify is another premium dropshipping sourcing agent based in China. They provide a huge variety of services and offer optimal support. The company is able to cover products in any part of the country to any place of the world.
They offer sourcing and dropshipping services to its clients. They provide secure samples, inspection services and shipping to anywhere in the world.
Either you are starting a new e-commerce business or are doing an import-export business for years, knowing the available dropshipping sourcing agents can let you source top-rated and best quality goods at low prices and more profitability.
The right dropshipping sourcing agent can take your business to another level.
There are so many dropshipping sourcing agents out there, all claiming to help you get the high quality products in best prices, and on time.
But not every agent is suitable for you and accomplishes your business requirements. We have listed the best ones that you may opt for and immediately start your business.