Where can I find drop shippers willing to accept minimum orders of 1-2 items?

Full Question I am an online retailer and need drop shippers for an MOQ (Multiple Order Quantity) of 1-2 items. The emails I am receiving from manufacturers and suppliers do not support this need. Is there a resource where I can acquire drop shippers, or how do I submit my request for drop ship suppliers only?

Answer If you are looking for a factory direct relationship, it is quite rare that the supplier would drop ship 1 or 2 items at a time direct to your clients. Also, it is probably a bad idea to have your supplier ship directly to your buyers, unless you don’t mind your buyers cutting you out of the supply chain. For the sake of discussion, let’s say that you didn’t mind your buyers knowing the factory. You may be able to get the supplier interested in shipping small units if

1. You place a blanket PO (Purchase Order) and give a deposit on a large order.
2. You pay the factory a small processing fee to arrange the exportation.

You may have better luck with a China wholesaler, rather than factory direct. But you still run the risk of getting cut out of the supply chain if your buyer knows your supplier.

The other reason that you don’t see a lot of drop shippers in PRC (People’s Republic of China) is because the headaches associated with export documentation and VAT rebate processing is roughly the same for a large order and a small order. But on a large order it is financial viable for the supplier to amortize the export processing fees over the large order.

There are 3rd parties who will warehouse the bulk order in China, then drop ship smaller batches to overseas client or client’s buyers direct in exchange for a service fee. If the 3rd party is professional, they can also organize the VAT rebate for you. The other option is to buy in bulk and use a drop shipper in Hong Kong or your home market. If you are in a major market like N. America or EU, there are drop shippers in every major city.