How to Find a Dropshipping Supplier

For newcomers to ecommerce, dropshipping is a low cost way to get started in the industry. Dropshippers don’t have to buy stock or manage their fulfilment – they outsource this work to a third party. You, the seller, simply provide the storefront, sales process, and marketing to sell those products online. While the concept is straightforward, outsourcing the procurement, storage, and shipping to a third party doesn’t come without risks. And finding the best dropshipping suppliers or companies for you is a tough task.

To find a dropshipping supplier that’s suitable for you, read online reviews and customer feedback about product quality, shipping time, and service. Every dropshipping business differs slightly, but the relationship between sellers and suppliers who dropship will look something like this: Dropshipping suppliers provide the product for sellers, and ship it to customers. Think of them as your backstage hand – managing all the behind-the-scenes activities to move your product from storage to customers’ doorsteps. Dropshipping suppliers and companies exist all over the world. Bear in mind that if you choose a dropshipping supplier from another country, it could extend the delivery time for customers.

Understanding Dropshipping Suppliers vs. Companies

You need to work with a supplier so that you have products to sell. Dropshipping suppliers provide the product for sellers, and ship it to customers. On the other hand, dropshipping companies provide access to lots of different suppliers and products you can choose from. As a seller, you’ll need to work with a third party dropshipping company that connects you to dropshipping suppliers. Companies such as SaleHoo and Spocket work as dropshipping supplier directories – and list all kinds of suppliers and products to choose from.

The Difference Between Manufacturers and Wholesalers

Some dropshipping suppliers are manufacturers, while others are wholesalers. Let’s look at the difference:

• Manufacturers: These entities make and sell the products to wholesalers or retailers. But they often require bulk purchases upfront, which can be risky for dropshippers trialling a product.
• Wholesalers: They buy products from manufacturers and sell them on to retailers for a small profit. They stock the product, but they don’t make the product. Price per unit tends to be higher with wholesalers, but the risk is lower because you don’t need to make bulk purchases upfront.

Analysis of Top Dropshipping Companies

Here’s a snapshot of some of the best dropshipping companies, including the pros, cons, and noteworthy features:

SaleHoo

• You can access over 8000 suppliers who are pre-vetted by SaleHoo.
• You can import 500 products on the cheapest plan or unlimited products on the Premium plan.

Spocket

• Spocket connects sellers to a library of products and a supplier directory that you can filter based on location.
• Paying no commission fees, sellers using Spocket only pay for the products they sell – and a monthly subscription.
• You can order product samples to make sure the quality is up to scratch.
• You can use Shopify, BigCommerce, WooCommerce, and Wix integrations.
• Note: Spocket handles all communication with the supplier, so you can’t get in touch with them directly through the platform.

AliExpress

• AliExpress is owned by Alibaba, a popular B2B online retail platform based in China.
• With over 100 million products available, AliExpress offers variety and simplicity for dropshippers worldwide.
• You’ll need to invest significant time into researching quality and trending products.
• Given many suppliers are based in Asia, delivery times may take longer with the free or standard shipping options.

Worldwide Brands

• Worldwide Brands is a long established supplier directory promoting quality wholesalers and verified wholesale products.
• Having been around since 1999, Worldwide Brands is considered a popular choice for dropshippers.
• You get access to 16+ million wholesale verified products.
• There’s an upfront fee of US$299 for the membership, which can be a costly start - even if it is for a lifetime!
• Worldwide Brands doesn’t integrate directly with other ecommerce platforms.
• Some US-based suppliers may charge additional shipping fees to deliver outside of the US.

Exploring Wholesale Dropshipping

Wholesale dropshipping is where you work directly with the wholesaler instead of going through a directory or dropshipping company. Wholesalers buy products from the manufacturers in bulk, at a cheaper price than retail. Often, wholesalers will stock a huge catalogue of products from different manufacturers.

Many wholesalers will require a bulk purchase of stock up front, which isn’t always the most cost-effective solution for sellers. Especially if you’re trialling a new product in your store – you can end up with a bunch of stock and no buyers. However, wholesale dropshipping can be a great solution once you’ve established a customer base and a selection of popular products. By working with a wholesaler, you could get a better deal on stock by purchasing in bulk.