With the popularity of Amazon and Shopify online stores at its peak, people are starting to take notice. Entrepreneurs are now opting to open their own dropshipping businesses based on the success of others who have ventured into the same types of businesses before them.

While a dropshipping business can indeed be profitable, there’s a lot of work involved if you want to generate massive income. From locating local suppliers who offer the best deals to following up on your orders after they have been packaged and shipped, things can get too overwhelming for business owners to handle everything on their own.

The good news is that you don’t have to go it alone. Most of the time, hiring a middleman is actually a more cost-effective way of doing business. Here are some of the reasons why:

1. They Can Help Lower Your Logistics Costs

Travelling to China can be expensive, what with the airfare and accommodations that go with it. You can save a lot of time and money by getting someone to do all the sourcing tasks for you. Your middleman can also help you schedule your sourcing trip if you want to pay a visit yourself. They can provide you information on the best time to visit and when accommodations are relatively low.

5 Reasons You Need a Middleman for Sourcing Products in China handshake

2. They Locally Represent You and Your Company

You may be miles away, but having a middleman to take care of all your sourcing tasks makes all that distance immaterial. A sourcing agent serves as your local representative. They are your company’s extension and they help you get the best deals so you don’t have to worry. Then you can concentrate on other important tasks.

3. They Keep Your Business Secure and Safe

There are a lot of scammers and swindlers pretending to be reputable suppliers. A company that is not located in China can be easily deceived. This is more true for someone who does not have knowledge and experience in how things go over there.

By hiring a middleman, you’ll be getting someone who is not only familiar with the process, but also someone who has inside knowledge of the most reliable suppliers in the area. This minimizes your risk of getting scammed.

5 Reasons You Need a Middleman for Sourcing Products in China secure lock symbol

4. They Help Bridge the Communication Gap

Language is probably the biggest barrier when sourcing products outside of your country. This is why having a local sourcing agent comes in handy. The language in China is their native tongue, making for clear and transparent communication with suppliers and greatly reducing the risk of mistakes in the process.

5. They Help Lighten Your Workload

Perhaps the biggest reason why you need to get the help of a sourcing agent is the amount of work that they can take off your plate. As a business owner, you are going to be pretty busy all the time. Having a middleman to take care of all your sourcing activities, you will have more time to take care of other important stuff.

Negotiating with suppliers can be a daunting task, especially if you are thousands of miles away. Having someone to focus on this is definitely a huge help.



 Connor Gillivan is the author of Free Up Your Business: 50 Secrets to Bootstrap Million Dollar Companies, a serial entrepreneur, and the CMO and co-founder of FreeeUp.com. When he’s not bringing together hundreds of freelancers and business owners, he’s mentoring entrepreneurs through his site, ConnorGillivan.com. He currently lives in Denver, Colorado.