Dropshipping is an exciting business model that allows retailers to sell online without stocking or shipping themselves. Once you can build an eCommerce website, get the right product to sell, and find suitable dropshipping suppliers, you are ready to begin a dropshipping business. This dropshipping guide will teach you how distributors choose dropshipping suppliers. Selecting the right suppliers is the technical part of dropshipping. Since you won’t be stocking inventory yourself, it is critical to have genuine dropshipping suppliers who can deliver quality products in real-time. Even after building an online store and researching the right niche, your success as a retailer hinges on finding the right supplier.
Tips to Find Reliable Dropshipping Suppliers
Selecting the right supplier can take some time, but due diligence pays. There are factors to consider when you are looking for a dropship supplier. Providing high-quality service is just one out of many considerations. Here are seven things to look out for in reputable suppliers.
1. Authenticity
Verifying the suppliers’ authenticity is the first step to finding a dropshipping supplier. Before dealing with anybody, you want to know how reliable they are. You want to be sure they can deliver what they claim on their website. The right dropshipping supplier will offer high-quality products at discount prices, a solid customer support system, and fast delivery. Quality is crucial in the eCommerce business model. Shoppers always want to get good value for their money; hence, they will continually search for stores that can provide the best quality. In line with quality, the price should be reasonable to encourage a large profit margin. High-quality products with high-profit margins are a recipe for maximum sales. Attentive customer support is essential to your business; the supplier can be relied on for answers when things get out of control.
2. Product categories
Product category is another important consideration when thinking about how to find suppliers. What is their product range? How many product categories do they have? Some suppliers specialize in a single product category while others specialize in multiple product categories. Suppliers with multiple product categories provide added advantages over those with a single or limited product category. You want to ensure that the supplier offers multiple product categories and sources that are reliable and high-quality.
3. Warehouse & shipping
As a dropshipper, you don’t need a warehouse, but your supplier sure does. A supplier may have all of the attributes outlined above, but you can question their authenticity if they fail to deliver items within a specific timeframe. In addition to the abovementioned parameters, ensure to confirm their delivery period and delivery rate. You also want to know how many warehouses the supplier has. If they have one, make sure they offer proximity to your customers. The warehouse should be strategically located to have global coverage. This encourages faster delivery.
4. Sales channels
A sales channel is the avenue in which a B2B (business-to-business) company sells its products to end customers. The right dropshipping supplier will offer multiple sales channels from the general marketplace to social media channels or via an online store. Since the dropshipping business model heavily relies on suppliers’ product sourcing; it makes sense to investigate what sales channels your suppliers are using.
5. VIP membership system
The VIP membership system offers exclusive rewards to those who have significantly contributed value to your product through repeat purchases. Suppliers using the VIP program offer exclusive access to promotional events like discount sales, surprise gifts, etc.
6. Make sure they offer integration to diverse eCommerce platforms
Switching from one eCommerce platform to the other can be frustrating for retailers. They will prefer integrating several eCommerce platforms other than switching to new ones. When finding a dropshipping supplier, ensure they can integrate several eCommerce platforms. Suppliers should be able to integrate with Shopify, Amazon, eBay, Walmart, and other top eCommerce platforms. The integration should be smooth, prompt, and successful. This will afford retailers the opportunity to reach more customers.
7. Privacy & policies
A privacy policy is a legal document that binds two or more parties. As a potential retailer, you need to read and understand the supplier’s policies before working with them. The supplier’s policy will cover how returns, missing packages, and broken items are handled. If you can’t find the policy on the supplier’s website (which is almost impossible), contact them directly to ask.
8. After-sale services & other value-added services
The right dropshipping supplier offers after-sale services and other value-added services. A good example would be returned after 3 months sales period. Here’s what the SaleYee after-sales terms and conditions look like “If a distributor who has purchased the products on the SaleYee platform encounters an after-sales problem, SaleYee will be entrusted by the supplier of the products to process after-sales issues according to the ASS T&Cs.”
How to ensure the suppliers are reliable?
Now that you know how to find cheap suppliers, how do you ensure the suppliers are reliable?
1. Do research
The first step to verifying the authenticity of a dropshipping supplier is to conduct intense research. The research will help you determine which dropship supplier to use or not. When researching dropshipping suppliers, you want to consider whether the supplier can cater to local or international customers. You also want to consider raw material sourcing, customer service, delivery times, warehouse address, and product quality.
2. Contract competitor's suppliers
Building a relationship is crucial in any business. Having found a dropship supplier to work with, you need to build a relationship with them. Talk to the supplier and get to know more about their services. Maintaining a good relationship with your dropship supplier will build trust. As time goes on, the supplier may provide you with the contact information of their existing customers to clear your doubts before committing to them.
3. Experience the UI and make sure they applied technologies to publish products in your store conveniently
Technology has transformed the eCommerce sector and, made suppliers invest in technology. When choosing the right supplier, ensure they have features that help streamline client operations and increase customer experience. Features such as customizable data feeds, automated email response, searchable order history, a chat system, and a sophisticated product catalog are a few things that excite customers.
Avoid these pits:
- Charge ongoing monthly fees: This is a bad sign if a dropship supplier insists on monthly or ongoing fees to do business with them. Ongoing fees could mean a supplier is part of a directory instead of a single supplier.
- Limit the minimum order quantity rate: Minimum order quantity or size is another thing to consider when choosing a dropshipping supplier. Most suppliers are willing to fulfill orders as they come which will incur multiple order fees. These suppliers will demand upfront payment for every minimum order size before they can fulfill orders that come from your online store. Refuse to deal with or avoid suppliers that follow such a pattern. They are more suited for dropship wholesale.
- Charge pre-order fees: Charging pre-order fees is normal in dropshipping. It can be lower or higher depending on the complexity and size of the order. However, it is best to avoid suppliers that charge above the normal pre-order fees. You can research to get an idea of normal pre-order fees.
Why you need to find the right dropshipping suppliers
Different dropshipping suppliers offer different services. Unfortunately and inevitably, many suppliers who disguise themselves as trustworthy don’t offer real value. Many retailers have fallen victims to fake suppliers, sending money without getting the product delivered. This is for a beginner. For an established retailer, using the wrong dropshipping supplier can tarnish your brand image and make you lose a lot of customers.
For this reason, learning how to find suppliers for an online store is non-negotiable. It is essential to conduct thorough research before choosing suppliers. Google search can do a lot of wonders. Yes, you can always change suppliers if issues arise. However, it is best to find trustworthy partners than run scatter.
Worldwide reliable dropshipping suppliers
Are you looking for the top dropshipping suppliers? Here is a list of the top five global dropshipping suppliers.
1. AliExpress
AliExpress is a popular online marketplace owned by Alibaba. This Chinese eCommerce giant offers millions of products from different categories. You will find suppliers willing to ship bulk items at a discounted rate and increased product margins. Unlike many eCommerce platforms, getting started with Alibaba is entirely free. With affordable products, an easy-to-use website, and a large variety of products, AliExpress is the go-to destination where dropshippers test out new products.
Pros
- Getting started with AliExpress is free
- Access to millions of products with large profit margins
- No language barrier – you can order via the AliExpress website without speaking directly to the supplier
- AliExpress boasts numerous automation tools for order fulfillment
- AliExpress handles shipment tracking and notifications
Cons
- Shipping time is slow – even with ePacket, customers often wait weeks to receive their orders
- Slow shipping can lead to customer dissatisfaction which can affect your business
2. SaleYee
Based in China, the SaleYee platform is a global dropship and wholesale platform that actively empowers anyone to sell online and earn globally. SaleYee provides dropshipping automation tools that help users with order tracking, product synchronization, inventory tracking, and flawless communication with suppliers. With just a few clicks, anyone can research products from the right supplier and import them into their eCommerce website. SaleYee integrates well with top eCommerce platforms and marketplaces, including Shopify, Wish, Amazon, eBay, and Walmart. This makes selling easier to get started. How to find furniture suppliers? Want to learn how to find suppliers for dropshipping? Visit www.saleyee.com.
Pros
- Over 30,000 profitable SKUs
- Free to sign up – no subscription fees
- 650,000+ sq.m. local warehouses guarantees faster shipping time
- Fast & free delivery
- Quick customer support
- Huge discounts to ensure large profit margins
- Up to a 3-month after-sales period
Cons
- Fewer products compared to other eCommerce platforms
3. SaleHoo
If you are looking for where to find dropshipping suppliers, consider this powerful suppliers’ directory. While the first two on our list are eCommerce platforms, SaleHoo is a wholesale and dropshipping directory. SaleHoo boasts an extensive archive of local and international directories of buyers and sellers. The New Zealand-based company vets suppliers to ensure they meet the product and service standard. You can have access to reputable suppliers at a reasonable rate. Consider SaleHoo if you already have some experience with a particular product or niche, as testing new products can be difficult with SaleHoo.
Pros
- At $67 per year, SaleHoo’s subscription is quite affordable compared to the competition
- SaleHoo provides a directory for buyers to find sellers and vice versa
- You are sure to locate suppliers from around the world that will suit your business model
Cons
- Unlike SaleYee and AliExpress, SaleHoo does not allow retail orders – it is simply a directory.
- The process can be a little complicated, and most times may require direct communication with suppliers. You will have to create, build, and nurture relationships with suppliers to get the best.
4. Megagoods
Are you interested in dropshipping consumer electronics, Megagoods is your best plug. Based in California, Megagoods specializes in consumer electronics. Unlike other services, Megagoods own its products and warehouses. This means fast shipping for your buyers. Megagoods offer a 30-day free trial which allows you to browse the company’s inventory and get acquainted with the suppliers without any upfront commitment.
Pros
- Megagoods is the surest destination for dropshippers selling electronics
- At $14.99 per month, Megagoods is relatively affordable
Cons
- Since Megagoods is focused on consumer electronics, its product offering is restricted.
- Megagoods lack integration with eCommerce platforms – you will have to carve out a fulfillment process from the grass root.
- $1.50 fee for every order can reduce profit margins for products
5. Sunrise Wholesale
Sunrise Wholesale is a Los Angeles-based dropshipping company that offers between 15,000 and 30,000 products. Sunrise Wholesale is ideal for retailers with customers in the United States and Canada. Note that Sunrise Wholesale cannot fulfill orders beyond the United States and Canada. With over 20 years of service, Sunrise Wholesale has all it takes to establish your dropshipping business.
Pros
- Sunrise Wholesale is ideal for retailers with customers around the United States and Canada
- Sunrise Wholesale manages the inventory themselves, which makes shipping time faster
- They integrate with top eCommerce platforms to make selling products easier.
Cons
- Limited product selection
- The monthly subscription fee of $49 is quite expensive compared to the competition
Conclusion
Finding suppliers for your dropshipping business isn’t as easy as it sounds. Even if you know the right dropshipping supplier to work with, you will need to map out a marketing strategy to build a successful eCommerce business. Hopefully, these tips on how to find dropshipping suppliers can help you simplify the process
