If you have big plans for your dropshipping empire you might be wondering if you should work with a dropshipping agent. Agents can be helpful, but there are pitfalls too. Here’s what you need to know about dropshipping agents in Australia.
What Does a Dropshipping Agent Do?
A dropshipping agent finds products for you, then stores and ships them on your behalf. This frees up your time to focus on marketing and sales.
With an agent, you don’t have to worry about any of the logistics of shipping, price negotiations or order fulfilment. Just focus on selling and let your agent do the rest.
A dropshipping agent can do some or all of these:
- Source products by finding the best suppliers;
- Check product quality and specifications;
- Negotiate prices;
- Receive shipments of the products in their warehouse;
- Pick, pack and ship orders to your customers;
- Provide customer support for shipping problems and breakages in transit.
The Benefits of Using a Dropshipping Agent
A good agent can help you with products by finding and negotiating great deals. They often have the ability to communicate and partner with suppliers who don’t have the language skills or website infrastructure to deal directly with English-speakers. They can also help you get better product packaging and branding by negotiating these with suppliers for you.
The main advantage of working with a dropshiping agent is their ability to get your products to your customers quickly. Good agents might have better shipping services than some suppliers and this means your customers can receive their orders faster.
Dropshipping Agent Benefits:
- Better prices for you;
- Faster shipping for your customers;
- Easy communications;
- One point of contact for multiple suppliers.
Pitfalls of Using a Dropshipping Agent
✖ Some dropshipping agents refuse to work with small retailers, or people who are just starting out.
✖ You will need to order a minimum amount of stock and may also have to pre-pay for it.
✖ Most dropshipping agents have manual processes for sending orders, so you will have to spend time each day emailing spreadsheets of orders to your agent.
✖ Not all dropshipping agents are trust-worthy, they could take your pre-order payment and disappear. It can be hard to check credentials before you sign up.
✖ Some dropship agents charge a setup fee, which adds to your upfront costs.
Who Should Use a Dropshipping Agent?
If you want to sell cheap items from overseas countries where you don’t speak the language, a dropshipping agent could be a good idea. An agent can help you get access to suppliers who you would not be able to deal with directly. A good agent can also reduce the time it takes for your customers to receive their products.
However, it’s important to know that when you use an agent you may have to purchase quantities of stock up front, pay for orders in advance and pay the agent an up-front set up fee.
Is There a Better Way?
The traditional dropshipping model, of selling cheap commodities from offshore, is dying. The cost to reach new customers is increasing month to month. In 2022 it’s harder than ever to get customers by advertising on platforms like Instagram and Facebook because of new privacy and cookie settings.
Australians are losing faith in cheap dropshipped items from overseas and are yearning for high quality, locally-source products. In addition, many Australian retailers have experienced legal problems after importing items that did not meet Australian safety standards. Together, these trends are driving retailers away from Ali-Express style dropshipping.
The future of successful Australian dropshipping depends on fruitful partnerships between Australian suppliers and retailers. These partnerships support the creation of valuable, curated brands that customers will return to over and over.
✓ Retailers who work with local Australian suppliers have access to high quality, fully compliant products.
✓ Products from local suppliers comply with Australian safety standards and regulations, which removes legal hassles and keeps consumers safe.
✓ Retailers and customers support the Australian economy, by championing Aussie brands, and purchasing locally.
✓ Retailers can create powerful brands that delight their customers and bring them back time and time again, which reduces advertising costs.
✓ Returning customers are up to 80% more profitable than new customers.
Isn’t it time you stopped trying to sell cheap junk from overseas? Aren’t you sick of seeing your advertising budget blowing out month after month? It’s time to switch to grown-up dropshipping.
There has never been a better time to start working with high quality, Australian suppliers. We can show you how.