Based in Los Angeles, California, and founded in 2004, Megagoods is a dropshipping company with a goal of helping customers build and expand their own businesses of reselling products to consumer. The company specializes in reselling electronic goods, but also has other items in its inventory of 1,500. Megagoods stores the items in its own warehouse and touts a quick and easy way for people to resell the goods without hassle or needless processes. With Megagoods, one doesn’t need to have a business license or even prior experience. In addition, resellers can do business outside of the United States. Megagoods has grown steadily and is PCI compliant and EDI compliant. The company is proud of its commitment to providing sound and viable solutions to its customer base. The company aims to provide both high-quality products and high-quality customer service.


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Membership Fees
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The Good

  • Membership prices
  • Ease of use
  • Time-saving capabilities
  • Free shipping
  • Customer support

Dropshipping is a fairly new and intriguing business idea that has drawn the interest and attraction of a growing number of people. As this growing industry has several companies to clamor for customers, it’s important to consider which ones offer the best options. Megagoods does have aspects and elements one would find pleasing. Here are a few pros:

  • Membership prices. With a one-time fee of $14.99, it’s difficult to complain about the upfront cost of using Megagoods. This membership price is one of the best in the industry and is certainly one of the best things about this company. In addition, for those who are doing some investigation, Megagoods offers a one-month free trial. If after the month you don’t like what you see, you may walk away with no questions asked. This poses an almost-what-have-you-got-to-lose situation. From this standpoint, why not check out Megagoods for a month and see if they have what you’re looking for?
  • Ease of use. One of the best things about using Megagoods is how easy it is. One doesn’t need to be an expert in merchandising, shipping, retail or anything of the like. You simply select the product of your choice and upload it to a site such as eBay or Amazon. Then you wait for potential buyers. It’s that simple.
  • Time-saving capabilities. Time is precious to everyone, and there never seems to be enough of it. So who wants to spend endless hours with painstaking tasks of putting products and descriptions of your products on eBay or Amazon? Export features with Megagoods allows for super-fast and simple transfer of products and descriptions from Megagoods’ site to the site where you are listing the merchandise.
  • Free shipping. Some products (though not all) offer free shipping. Saving money is always a good thing.
  • Fraud/Prevention security
  • No minimum order required
  • Custom data export
  • Customer support. Megagoods customer support is solid, as it provides for phone and email assistance. Response times are quick, and the agents are helpful and friendly. You aren’t likely to get frustrated with lack of help and resolution to problems.
  • Website information. The website, while in and of itself is not the greatest, does have a robust FAQ page complete with a wealth of information helpful to the current or prospective customer.

The Bad

  • Poor selection
  • Extra fees
  • No shopping card integration
  • Market research
  • Inventory notifications

The pros are noted, but in reality, Megagoods has far more shortcomings and negatives than it has positives. Finding the positives is a more difficult chore than identifying areas in which this company needs to improve before it can be viewed on the same plane as other dropshippers. As you search for companies to help you conduct your business, consider these negatives:

  • Poor selection. If you are the type of reseller who needs a large selection from which to choose or if you want a diverse inventory at your disposal, don’t waste your time with Megagoods. In fact, the word “mega” shouldn’t really belong in the company’s name. The company has an inventory of just 1,500 products, which, if you consider some competitors have more than a million, this is quite a paltry figure.
  • Extra fees. Above it was noted that membership prices are a high point of the company; however, when you start to look at additional fees, that price doesn’t look so good. Megagoods has a $1.50 dropship fee for every item you sell. This is on top of your membership fee, meaning your out-of-pocket costs really add up. There is also a 20 percent merchandise restocking fee. This is a negative because if your buyer decides he or she doesn’t want the product, you are responsible for paying for it.
  • No shopping cart integration. This important and useful tool is absent from Megagoods.
  • No market research or marketing tools. Unless you are familiar with marketing and market research, Megagoods isn’t going to be a choice for you. Instead, you’ll be stumped with how to market your products effectively, as these tools are unavailable.
  • No low inventory notifications. If your inventory is getting low, don’t count on Megagoods to keep you in the loop: there is no way of informing you through alerts or otherwise. Imagine the predicament if you continue to advertise products to potential buyers that are no longer available.

Megagoods simply has too few tools and resources to make it a good choice for resellers. It’s easy enough to use, but the add-ons and extras just aren’t there.

The Bottom Line


Of all the dropshippers in the industry, Megagoods is at or near the bottom. This is a frank and bold statement, but there is no other way to slice it. The product selection is woefully poor and the dearth of tools is head-scratching. To be fair, Megagoods is still growing and learning, and there still may be hope for the company. But at present, there are few compelling reasons to choose it over many others.

You will no doubt have access to decent customer support, and the process of using Megagoods is not terribly complicated. You can make money, but with all the fees you’ll incur with each product you sell, you’ll have to be savvy and hard working to be able to make your business profitable and thriving.

Do yourself and favor and thoroughly investigate the company and its competitors, and be sure you want to go with Megagoods despite its flaws. Truthfully, however, there are a number of dropshippers that will give you everything Megagoods has, plus much more. You’re likely to regret your decision to use Megagoods.

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