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Drop shipping suppliers guide: how to dropship from Costway

14 min read

Costway was established in 2008, like many other online suppliers they started selling on third-party platforms like Amazon and eBay and in 2015 they set up their own online shop aiming to provide quality products and favorable price.

Over ten years of experience in the market, they have grown to be one of the top tier retailers in North America and Europe. Right now, they have warehouses in the UK, Germany, Italy, Canada, France, Spain, and of course the US. Good news! Costway is now a supported supplier of DSM Tool that you can use for your drop shipping store.

In this article we will learn:

  1. The reasons why you should start dropshipping from Costway
    1. Is Costway offering reseller or dropshipping agreement?
    2. Do Costway packages shows Costway logo or the purchase price?
    3. How many products Costway has on their website?
    4. In which countries can I re-sell Costway products?
    5. Costway shipping, return and payment policies
    6. Taxes when dropshipping from Costway
    7. Costway customer service
  2. The Costway dropshipping program
    1. How to apply to Costway dropshipping program
    2. How to get a reseller agreement from Costway
    3. Costway dropshipping program benefits
    4. Get an extra discount when using DSM Tool for dropshipping from Costway
  3. Products to dropship from Costway
    1. Costway private labels
    2. Sections in Costway website you must know about
  4. Increasing profitability when working with Costway
    1. Costway “Membership and Perks”
    2. Cashback opportunities
  5. Automating Costway dropshipping with DSM Tool
    1. Collecting products
    2. Listing products
    3. Repricing automation
    4. Processing orders
    5. Updating tracking information

The reasons you should start dropshipping from Costway

Costway offer a dropshipping program and a re-seller agreement

If you are selling on a marketplace such as eBay or Amazon, according to the marketplace policies in many cases you will be asked to provide a reseller agreement in order to be allowed to dropship products from that supplier.

For example:

 

This is the reseller agreement that Costway gave to me in order to sell their products in my own store. Later in this article, you will get a step by step process on how to get yours.

Costway packages are (not really) dropshipping friendly

In order to reduce customer’s claims that products have been dropshipped to them, some dropshipping friendly suppliers (like Tmart) offer to send packages without an invoice, marketing material or their logo on the package. Costway only stands in 1 of the 3 requirements. They do deliver packages with logos and some of the packages have Costway marketing material in them, but they do not include any invoice in the package to release any price info about the product that they sent.

Costway offers over 8000 white label products and thousands of products of other brands

Costway offers over 8000 branded products that are available on their site and suits whatever your needs are. They do specialize but not limited to Home and Garden products, we will discuss more deeply what products to dropship from Costway in this article later.

Costway operates in North America and Europe

Costway has a total of 9 warehouses as of the moment, 5 in the US, 2 in the UK, and 2 in Germany. Based on the website of Costway, their warehouses are located in California, Kansas, New Jersey in the US. In the UK it is located in Ipswich. In Russia – Moscow. Germany – Hamburg.

 

Countries where Costway warehouses are located

Shipping, Return, Payment Method, and Taxes

Shipping

It was mentioned above, Costway has warehouses in the USA, Canada, and other European countries. They offer free shipping to all of their items, and the delivery usually takes 2-7 days. You can refer to their Shipping Guide for more details.

Payment

Costway accepts PayPal and Credit Cards as a payment method. If you worry about the security of the payment process, well do not anymore because Authorize.net is their payment service provider.

Returns

Costway’s return policy is simple. You can return an item within 90 days after the order is placed if you received the item damaged or defective, and all of their products have a 3 months warranty. If your customer feels they are not satisfied with the product you can easily take care of their needs by contacting Costway’s customer support at service@costway.com.

Regarding the 3 policies on how to work with Costway using DSM Tool on how to set them properly in your eBay store, I highly recommend referring to the help center article How to set up Costway as a drop shipping supplier in DSM Tool.

Taxes

Online Selling Is a Business. If selling items online is your business, the same tax rules apply to you as for any other business. You pay income tax on your profits at regular tax rates. Costway also applies taxes on the orders that you will make and it varies depending on the country of the warehouse that you will choose.

United States of America – 7.25% sales tax will be applied for orders shipped to CA. No Sales Tax except CA.
Tip: consider using a tax consultant to get tax exemption when processing orders shipped to CA in order to increase your selling margins

Canada – Sales tax has been included in the product price.

United Kingdom – 20% VAT already charged in all orders.

Germany – undisclosed, possible taxes may apply.

Italy – undisclosed, possible taxes may apply.

France – undisclosed, possible taxes may apply.

Spain – undisclosed, possible taxes may apply.

Customer Service of Costway

Contact Information

The common way to get help from their customer service agents is through email (service@costway.com) but in some Costway site like in the UK, they have a hotline contact number and that is “01473550500”. For simple questions, you can always refer to their FAQ section.

Reviews

When dropshipping products from a supplier, your customer service depends on the ability of the supplier to provide good customer service as well.

On the part of how their customer support assists their customers, based on Trustpilot, Costway has a TrustScore of 7.4/10 based on service reviews which means they have great customer support.

 

Costway is not exempted in failures. What I like with Costway is that they follow-up to every issue. They try to make things right and a good experience for the buyer. This goes to show that customer support of Costway is really caring for your business.

Costway Dropshipping Program

How to create a dropshipping account for Costway website

The most important question to ask is “Does Costway support drop shipping?”. Yes, they do and the process to become a Costway is explained below, together with an explanation how to get a re-sell agreement from them.

Each Costway site has a different membership. The membership that you have in US site is not applicable to the UK site and to other sites as well. Even the reseller agreement or certificate of authorization that you will get from the US site is not applicable to other sites. That means you have to be a member first on that site so that you will acquire the reseller agreement or certificate of authorization to dropship their product.

Step 1: go to Costway website and hover your mouse to the word that says “Sign In or Join Free” and click “Join Today” button.

 

Step 2: is to provide personal information like Name, Email, and Password. You also need to put a checkmark on the captcha or else it will not go through, then click the “Register” button. Signing up to Costway’s newsletter is optional but if you wish to subscribe, you can get some benefits out of it. Later, we will discuss more of Costway’s membership benefits and perks on this article.

 

Sign-up page

 

Step 3: After providing all the necessary information, you will be redirected to your My Account page where you can see all the details of your Costway account. Note that it is not yet a dropshipping account, keep reading to learn how to turn your account to a dropshipping account.

Costway’s My Account page

 

Step 4: Once you have created your Costway account, the last thing to do is to contact service@costway.com for more detailed dropshipping info. It will be helpful if you can give them your needs if you are working on a specific niche for your store. Also, include to your email message the link of your store and a little bit of introduction of yourself to them.

Use the following template to make sure you are sending all of the required information to Costway team:

Hello,

My name is Name and I would like to apply to the Costway drop shipping program, please find my business details below:

Full name: Your Name
Nationality: USA/UK/Germany….
Entity type: Individual / Business / LTD company….
ID number: 12345678 (or: business tax ID)
Sales channel: eBay/Shopify/Amazon
Store links: http://ebay.com/…. , http://mystore.shopify.com
Experience: X years
Automation software: DSM Tool
Notes: Ones approved, please also provide me with a dropshipping authorization certificate.

Thank you very much!
Your Name

 

Costway response time is around 24 hours, see their message as a response to my request to dropship in their site. 

 

 

Step 5: Once Costway acknowledge that you are authorized to sell their items for dropshipping, your My Account’s page will change to a dropship account page, see the image below:

Costway’s Reseller Agreement

Aside from updating your account page, you will also receive an authorization certificate coming from Costway’s customer support giving you the authority to sell Costway products on the store link that you provided to them. If you have other stores from other platforms or online marketplaces, you have to indicate them on the email message for dropshipping membership. The image below is an actual authorization certificate that I got from Costway:

 

Costway’s dropshipping authorization certificate

This certificate also serves as a protection from infringement issues from Costway thus preventing as well in eBay VeRO.

Costway Dropshipping program benefits

This is a part of your Costway dropshipping account where you can see to measure the total discounts that you will receive based on your monthly sales, you can see that by clicking on “My Current Dropship Level”. 

At the start of your drop shipping account in Costway, the initial level will be Level 1 and at this level, you can already get a discount (Non-quality refunds are not counted). Succeeding monthly sales also moves your drop shipping account to a higher level and still get discounts. See the table below:

Level 1 – More than 10 orders a month, Costway will give you a $5 coupon.
Level 2 – If your monthly sales between $5000 – $9999, Costway will give you a $55 coupon, including 5 pieces $5 coupon and 3 pieces $10 coupon.
Level 3 – If your monthly sales between $10000-$29999, Costway will give you a $150 coupon, including 10 pieces $5 coupon and 10 pieces $10 coupon.
Level 4 – If your monthly sales between $30000-$59999, Costway will give you a $ 350 coupon, including 14 pieces $5 coupon and 28 pieces $10 coupon.

Extra discount for DSM Tool dropshipping sellers!

Get a 5$ discount for orders over 88$ with coupon code: WA885TER when drop shipping from Costway using a drop shipping account!

 

What to dropship from Costway

Costway white-label products

Costway’s white label products are brands owned by the Costway company, and sometimes even manufactured by them. You can find Costway’s products in different marketplaces like the sample I have below are from Amazon and Walmart. Costway themselves as mentioned above are selling their products on those 2 giant platforms and you can see that they are performing well. You will notice that Costway like most of its popular products is home appliances and furniture.

This is a great opportunity for you to take part in the sales-sharing cake, by finding unique ways to generate sales for those products., For example, if you have reached the required drop shipping level you can use a coupon to discount one of their best-sellers and make a quick sale at the same price level as Costway, making a profit from the discount.

Costway products sold in Amazon

 

Costway products sold in Walmart

You must be careful of copyrighted products that is why we highly recommend being a member of Costway’s dropshipping program so that you will get the full authority of using their products to resell.

Sections in Costway website you should get to know

 

Seasonal deals

March Sale

At the time of writing this article, they had a Spring Sale and March Sale. It shows the best selling items featured products and top picks for home furniture and appliances. Always check Costway’s website or subscribe to their newsletter for you to get updates on their special deals and discounts. Let’s look at the other sections where you can get great products for your dropshipping store.

Products on sale are easier to dropship, because there is a higher chance you will find price differences between Costway and the average price on the platform you are selling. If you are selling on your own website, the seasonal sales help you focus on what products to sell when doing research because you will probably find there the most relevant products for the current trends.

Best Sellers

Costway Best Seller section that shows a variety of products from furniture to gym equipment that sold multiple times and that has good reviews. This is a good chance for you to look for price differences for products you already know that has high demand if you’re selling on a marketplace, or save time on product research for your own site store.

Best Seller section in Costway

New Arrivals

New products and seasonal items added in their catalog, making it a great opportunity to try to be among the first to sell those products on other sales channels. New arrivals might result in lower competition and higher margins for you.

Featured Products

In this section shows the promoted products of Costway that is really appealing to potential buyers. These are not only flags of Costway that these are products with demand but also an opportunity for you to enjoy seasonal discounts.

 

Increasing profitability when working with Costway

Membership and Perks

Costway has a Reward Points program. It is a kind of coupon or discount that you can collect and earn in various activities in their site. You would be happy to hear that it does not expire.

The image above shows how to redeem points when you place an order. Directly exchange points into cash. Redeeming Costway point at a value of $0.01 per point. Earning points by registering an account to their website, subscribing to a newsletter, ordering, reviews, etc.

Cashback

Cashback is another way to secure your profit when you are doing drop shipping. For Costway, Giving Assistant is giving 2% cash back for every successful order. They are the only cashback site that offers cash back for Costway that we could find. If you find another cashback opportunity online, feel free to contact us and we will update the article.

If you are selling on a marketplace like eBay on Amazon, consider using the cash back as a back-end profit. You can keep the same profit margin and reduce the break even level, making your price more competitive.

If you are selling on your own website, use the 2% as part of your margin calculation, that will allow you to invest more in your traffic per conversion.

Dropshipping in Costway using DSM Tool

DSM Chrome Extension

DSM Auto-Paste: The items collector

You can use our DSM Tool Chrome extension for free to list items either Single item or in Bulk.

Single

Look for the item in Costway that you want to list and click the blue cart button with the DSM Tool logo. The product link will be copied and will be redirected to the Rapid Lister section of DSM.

Bulk

You can create or select multiple items by clicking the “+” button, and it will create a list that will be automatically copied to the DSM Tool Bulk Lister.

DSM Auto-Paste: Orders processing

Our Chrome extension also semi-automated processing of your orders. You can also copy the address of the buyer and paste it on the check-out page of the product in Costway.

Go to Sales and Orders page and look for the buyer’s address. A “Copy Address” button will be available to click and the address will be copied automatically.

To paste it, click on the “Paste Client Address” button in the address filling area at the target website.

DSM Auto-Paste: Updating tracking information

Another feature of our DSM Chrome extension is to update the tracking information once you received an email with the tracking information for the order. Use the DSM Auto-Paste Chrome Extension to update tracking information when you receive an email with the tracking information.


Repricing Frequency

DSM Tool checks and reprices Costway products every 60 minutes. The DSM system will apply the change in the price of your listing if it detects any movement in the price from Costway website and set the listing out of stock if it goes out of stock on Costway.

 

 

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Written by Romeo Atis

Romeo started his experience in eBay as a virtual assistant in 2015, he lives in the Philippines and before working in DSM he worked as an English teacher. He worked as an account manager for DSM Tool customers working with dozens of eBay sellers while maintaining an active eBay account by himself. Romeo is also a talented chess player and is always up for a game.

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