READ TIME: 5 MINUTES

Renaissance man 👋,

The difference between mediocrity and meteoric success hinges on an important but underestimated factor: the efficiency and reliability of your supply chain. As a seasoned dropshipper with over 4+ years of experience and multiple 7-figure in sales, I bring you insight that could potentially transform your supply chain process.

The pivotal figure in today’s issue is the private sourcing agent, the linchpin of a successful dropshipping business that offers a sustainable supply chain process to scale to new heights.

TODAY, AT A GLANCE:

Challenge → Complex supply chains in dropshipping.

Solution → The power of a private sourcing agent.

Phase Highlight → Mastering supply chain efficiency.

Key Statistic → Leading to sustainable growth.

WHAT IS A PRIVATE SOURCING AGENT?

A sourcing agent is just the intermediary between you and your supplier.

Let me show it to you in an easy-to-understand visual

When you place your sourcing request, your agent comes in and sources products from one or more suppliers according to your requirements. The agent then buys the product from the suppliers, handles quality checks, and directly ships it to the customer.

So, within dropshipping, your sourcing agent is primarily responsible for:

Sourcing products - Searches for a product through thousands of factories inside China based on your requirements

Quality Inspections - Carefully checks for defects or damages to improve customer satisfaction and reduce chargebacks and refunds.

Order fulfillment - Providing you with the fastest shipping options possible, sending orders directly to the customer.

PROS & CONS WORKING WITH ONE

As always, nothing is perfect, and the same applies to working with a sourcing agent. After fulfilling thousands of orders through one, here are the pros and cons of working with one.

Pros

++ WIDER PRODUCT CHOICES

Sourcing agents have access to thousands of factories directly from China as they mostly source from platforms such as 1668.com or taobao.com. They can offer a wide range of products to choose from. Some may be hard to find directly on Ali Express.

++ BETTER-PRICED PRODUCTS

Again, as they are sourcing directly from 1688 or Taobao, it cuts off the middlemen's prices as they are sourcing directly from factories inside China. Yes, you’re getting dropshipped when fulfilling your order through Ali Express.

++ FASTER DELIVERY

Sourcing agents have established relationships with many logistics companies. They can provide you with the fastest and most cost-effective shipping solutions. Our shipping times inside the EU are between 5 to 12 days.

++ REDUCED RISK OF SCAMS

A sourcing agent can distinguish a reliable supplier from a nonreliable one. So, yea, they basically can help you avoid potential scams from unreliable suppliers directly from Ali Express.

++ LONG-TIME PARTNERSHIPS

Working a long time together with your sourcing agent can benefit your product selection. We’ve been working with our agent for over 2+ years now, and they regularly provide us with products that are doing well for other clients working with them.

++ CONTINUOUS SUPPORT

Unlike fulfilling your orders directly from Ali, the sourcing agent offers personalized 1-on-1 support, and if anything needs to happen within the aftersales process, they take care of it.

Cons

== LOWER PROFIT MARGINS

Some sourcing agents charge monthly fees for their services, and some may add hidden fees to the product cost. The fees can eat into your profit margins if you do not have clear agreements with each other. We pay our sourcing agent 10% on the COGS only.

== LACK OF CONTROL

Of course, when you work with a sourcing agent, you’re relying on them to fulfill the orders. This means you have less control over the entire process than doing it all by yourself.

== QUALITY CONTROL ISSUES

Some sourcing agents may get lazy in the process, if you’re agent is not continually checking the quality of the product carefully, you may get negatives customer feedback because of damaged or poor-quality items.

DO YOU NEED A SOURCING AGENT?

Theoretically speaking, no, you can still get some traction with your dropshipping business without a sourcing agent. But what if you have 50, 100, or even 300+ orders every day? Can you still manage everything by yourself?

## Will the quality of the products remain the same? As on the low scale?

## What happens if you’re scaling hard and your product is out of stock? Are you able to find other factories with the same quality?

## How about if your order get suck or lost somewhere? How would the support be directly from Ali Express?

## Not to mention, what if you run several stores? Are you able to fulfill it all by yourself?

It would work better to work with a private sourcing agent.

Just like in every business, the most important thing is to build relationships and a reliable team around you.

So it’s recommended that you work with one to improve the performance of your business.