Posted on As with any business model, dropshipping has its advantages and disadvantages. Dropshippers should be evaluated according to the specific needs and uses of online businesses.
It is easier than ever for aspiring entrepreneurs to start selling their products to consumers thanks to eCommerce, platforms such as eShopCart Commerce, and low cost marketing to consumers. There are several tradeoffs to be considered when doing so. Anyone who wants to start a business must recognize these and find a supplier that can help them succeed.
Tips for Finding Dropshipping Suppliers
To turn your dropshipping operation into a success, you should make sure you find a quality supplier:
Check out the reviews Check the supplier's customer reviews to see what people are saying about their products and service. Your ability to sell those products yourself will give you insight into how customers view your own quality.
Reexamine policies In light of the fact that supplier policies will be passed on to your customers, you should understand how they handle broken products, missing packages, returns, etc. If you are unable to find the policies on the supplier's website, contact them directly.
Get a taste of the products Order a product you wish to sell yourself in order to see how the product is made and how fast it ships. You can estimate the customer's perception of the level of service based on these results.
Fees should be understood It is common for dropshipping to include hidden charges and fees. In order to effectively manage overhead, you should thoroughly understand the various shipping rates, subscription fees, stocking fees, and more.
Automate your workflow You may not be able to manage inventory levels, place orders, and track shipments manually as your business grows. It is ideal for the supplier to integrate with the eCommerce platform so that these workflows can be automated, enabling you to focus on growing revenue streams.
Best Dropshipping Suppliers
There are many different services and marketplaces that can help you find great suppliers to align your business with.
SaleHoo is a directory of wholesalers and dropshippers. SalesHoo comprises one of the biggest international directories of buyers and suppliers and has its headquarters in New Zealand. There are many manufacturers on SaleHoo's global supplier directory, and customers can avail of their services at a reasonable cost. Due to the formalities and direct contact with suppliers, it's harder to get started and test new products. Thus, dropshippers with experience in a particular industry or product may find this to be a better option.
Pros Considering the size of its directory, SaleHoo is an excellent resource for buyers looking for dropshippers and traditional wholesalers alike. The $67 yearly subscription is also very reasonable in comparison with the competition.
Cons The supplier must communicate directly with clients and it follows a more formal process. As a result, you will have to build relationships and establish communication channels with other companies.
Summary There are over 40 million suppliers on SaleHoo, and its services are reasonably priced. Due to the formalities and direct contacts with suppliers, it's more challenging to get started and test new products. Dropshippers who have experience in particular industries or products will probably benefit from this.
With Wholesale2B, customers can shop online, manage buying and shipping processes, and integrate their eCommerce platform with Wholesale2B's dropshipping service. A US-based company, Wholesale2B, automates the dropshipping process with minimal need for communication with suppliers.
Pros Wholesale2B offers an automated way to dropship from suppliers across the globe quickly and easily. Access to the service is free, and it is integrated with several eCommerce platforms and digital marketplaces.
Cons It is free to browse Wholesale2B, but to purchase anything you want to buy from them, you need separate subscriptions. As an example, if you wish to dropship on multiple platforms, you will have to pay separately for each one. During business hours, they only provide limited customer service options.
Summary It's easy and inexpensive to get started selling on most eCommerce platforms with Wholesale2B's automated dropshipping platform. It costs a lot to subscribe to different apps like their web analytics service, especially if you sell across multiple platforms.
Alibaba owns AliExpress, an online marketplace. AliExpress stocks millions of products and is typically the first choice for dropshippers. AliExpress allows you to order single items, unlike many Alibaba wholesale suppliers. As a result, you no longer need to store inventory off-site, allowing you to ship direct to customers.
Pros Join for free and find millions of products at affordable prices. If there's a language barrier, you can order directly through the website without speaking directly with suppliers. All notifications and tracking are handled by AliExpress. Also, there is a number of highly reliable eCommerce automation tools, such as Magento Commerce, that automate order fulfillment.
Cons Alibaba's suppliers are mainly located in China. In countries like the United States, customers can get products directly from manufacturers for cheaper prices and often with worldwide shipping options.
Summary AliExpress offers a wide range of products at affordable prices. Dropshippers visit it to try out new products due to this. Due to slow shipping times for many products, it's not always the best option for a large or fast-growing eCommerce business, which needs prompt and transparent shipping to avoid customer problems.
Consumer electronics are distributed by Megagoods. This company actually owns and manages their own warehouses of products, so it is able to ship to the United States quickly. For dropshipping electronics from the US, Megagoods is ideal. Due to Megagoods' limited product offerings, and those platforms' absence of integration with eCommerce platforms, you'll have to start from square one when it comes to fulfillment.
Pros As Megagoods' warehouse and fulfillment operations are all domestic, dropshippers selling electronics to US-based customers won't have to worry about international shipping times.
Cons Compared to larger wholesale directories and marketplaces, Megagoods offers a limited selection of consumer electronics. Additionally, they lack research tools and eCommerce integrations.
Summary For dropshipping electronics based in the US, Megagoods is ideal. The products are a little limited, and Megagoods does not yet integrate with any eCommerce platforms, so you'll have to build out the fulfillment process from scratch.
In the U.S. and Canada, Sunrise Wholesale offers buyers 15,000 to 30,000 items across multiple categories. Based in Los Angeles, the company has a long history of building eCommerce integrations.
Pros It is easy to ship to US and Canadian customers through Sunrise Wholesale. They can ship products in under a week because Sunrise Wholesale manages the inventory themselves, unlike the majority of international suppliers. Their platform also integrates with eCommerce platforms for easy product sales.
Cons Sunrise Wholesale manages most of the inventory themselves, so its product selection is relatively limited, ranging from 15,000 to 30,000 items, rather than the millions offered by other dropshipping services. In addition, they charge $49 per month for subscriptions.
Summary Sunrise Wholesale provides a great solution for dropshippers trying to deliver products quickly in the U.S. and Canada. It is not possible to ship internationally outside these two countries, due to their limited product offerings.
Doba provides easy-to-use tools for finding suppliers, ordering and tracking products, and managing inventory. A brand planning to provide their own customer service can benefit from the company's U.S. location and live customer support.
Pros With Doba, you can manage all operations and orders from beginning to end. Moreover, they integrate well with eCommerce platforms and marketplaces, making it easy to sell products.
Cons To form a direct working relationship with suppliers, it can be difficult to contact them directly. For large brands that may have custom demands for their suppliers, this can cause a variety of problems. There are also expensive service tiers.
Summary In addition to managing sourcing, fulfillment, and integration, Doba provides a platform that allows dropshippers of all levels to get started quickly. But their higher tier plans can get quite expensive if you work directly with suppliers.
Wholesale Central is a directory of wholesale and dropshipping suppliers. This US-based company has been bringing buyers and suppliers together for over 25 years.
Pros There are suppliers from all over the world at Wholesale Central, and you can explore and navigate the site easily. Even better, buyers can use it for free.
Cons In order to access Wholesale Central's services, you must communicate directly with the suppliers. Any relationships, communications, or purchases must be handled directly with the suppliers. It will take a little more time to find the right dropshipping partner since most of their suppliers sell bulk wholesale rather than dropship.
Summary With Wholesale Central, buyers have access to a large database of wholesalers around the world, it is easy to use, and it is free. You will need to set up any relationships and processes with the suppliers directly, since dropshipping can be difficult to locate.
Modalyst is an automated dropshipping application for online stores. There are products from brands such as Calvin Klein, Dolce & Gabbana, and DSquare that shoppers will enjoy shopping at. Moreover, the platform offers an array of style-centric brands for every target audience.
Pros These suppliers have their headquarters in the U.S. and EU. Shopify & BigCommerce are directly integrated. Tracking & shipping information will be sent to you automatically. Notifications at the stock level are synced with your store in real-time. Stocks are not bought up front. When customers order from your store, you will need to purchase products from your suppliers.
Cons As part of your business process, you need to log in to your Modalyst dashboard after a customer places an order in your store and pay for it before the order is processed by your supplier. Modalyst's free pricing package and most premium prices come with 5% transaction charges. Getting access to Modalyst's entire network of suppliers requires an upgrade to our Pro or Business subscription plans.
Summary It's so easy to arrange business relations with high-quality, on-demand suppliers with Modalyst, but their features and services go far beyond connecting buyers and sellers. By curating a network of US and EU-based suppliers, and by offering pre-negotiated shipping, pricing, and return policies, Unify has created a platform of value that's not just useful to dropshippers, but to their customers as well.
Check out eShopCart's free demo to see how an integrated eCommerce platform can help your dropshipping business succeed.