The eCommerce wholesale industry has some truly terrifying forces lurking around. Our Wholesale Horror Busting Series recently exposed how to conjure up the Treats instead of the Tricks this Halloween. Don't miss it! Everyone met Vlad de Middleman, a type of Wholesale Vampire. The de Middleman family has a long reach and they hide their true identities under different names, like  Drop Shipping Agents. 

Drop Shipping Agents are a Problem...

Drop Shipping 'Agents' may provide access to a few real drop shippers, but they remain middlemen. Here is why using them is a problem:

1. They charge recurring fees to access real drop shippers—extra fees you shouldn’t have to pay.
2. They create intense competition. Thousands of people end up using the same small group of drop shippers, making it impossible to sell anything.

How to Tell The Difference

Drop Shipping Agents work very hard to make you think they own a warehouse or two. That's because real wholesale drop shippers do. A real drop shipping supplier owns warehouse spaces that is complete with offices, loading docks, and staff. Some Agents are very good at convincing you that you can access thousands or even tens of thousands of products from their warehouses.

Again, here's the first important part. Drop Shipping Agents do not own their own warehouses. They are middlemen. No matter how many products or warehouses these people claim to have, they don't have a single one. They're just sitting in a house or a rented office somewhere, thinking up clever website text and new ways to make you think they are the real thing.

Some of them are even more clever. There are Agents out there who will actually admit to you that they are Agents. They'll tell you that even though they are, they don't really make any money by acting as a middleman. Some of them want you to believe they do it out of the goodness of their hearts. Others will tell you that they make their money only from your Membership Fees. Regardless of how they say it, they usually bury this information in their sites, hoping you won't pay attention to it. Plus they sugar-coat it in such a way that it sounds really good to you if you do actually realize what they are up to.

How a Drop Shipping Agent Operates

1. They go online and find one, two, five, or maybe even ten real wholesale drop shippers.

2. They contact these real drop shippers and convince them to work with them. say, "Hey, send us a list of your products and a bunch of pictures, and we'll help you sell them online through our order system."

3. They create a website that pretends they are the ultimate drop shipping solution.

4. The small ones simply have one group of products you can order. When you place an order, they will turn around and send that order to the real drop shipper, who will send it to your customer.

5. The bigger ones will tell you that they have a whole bunch of warehouses all over the place, with clever names. North Warehouse. Pink Warehouse. Plaid Warehouse. You get the idea, right? They'll tell you that you can order from any one of those warehouses, for a price. Some of them give you one or two of them for your initial Membership Fee and then jack up the Membership cost if you want to order from more Warehouses.

Drop Shipping Agents Don't Own A Warehouse

Again, these people don't have any warehouses! Their warehouses only exist in cyberspace! Each warehouse is nothing more than a collection of product images that these middlemen got from a wholesaler that you should be working with directly, instead of paying some Agent a fee for that privilege. When you place your orders, those orders will simply be turned around by the Agent to the real drop shipper for fulfillment.

Some of these Agents will tell you that it's better to work with them, even though they are Agents because they are centralizing your ordering and shipping. Believe me, we've been in this business a long time, and we've never seen an ordering or shipping issue that was enough of a problem to justify ordering through middlemen. Not ever.

Conclusion

Is this illegal? No.
Is it a Scam? No, not usually.
It's just a very poor business idea, in our experienced opinion.

You need to avoid the traps of Drop Shipping Agents and work directly with legitimate wholesale suppliers.  Would you say that it's a good business decision to take the middleman route to a very small number of drop shippers being used by a huge crowd of others?

Nah.

Why We Know What We Are Talking About

For over 25 years, Worldwide Brands has been fighting against these evil Wholesale Vampires and other Wholesale Horrors. We certify wholesalers through a lengthy process to ensure they’re REAL before sharing them with our members.

Our dedication to authenticity and quality means that you get access to only the best and most reliable suppliers. We take pride in protecting your business from scams and ensuring you have a solid foundation for success. With our expertise and commitment, you can confidently navigate the wholesale market and focus on 
what you do best—growing your business.

Join us and become part of a community that values integrity, trust, and excellence. Let's conquer the Wholesale Horrors together!