One of the most commonly asked questions about eCommerce today is how and where to find the best dropshipping suppliers. This is thanks to the exploding growth of dropshipping. Dropshipping is the new get-rich-quick scheme for many, while others view the concept with skepticism.
What is Dropshipping?
Dropshipping is the current trend in eCommerce. This buzzword has been gaining interest over the past few years. According to Google Trends, interest in the concept has grown by over 238% in the past five years. So what does it mean?
Dropshipping is simply a new method of online retail where you don’t own or store the products you sell. As a dropshipper, you partner with a manufacturer/ wholesaler (Dropshipping Suppliers) who stocks the product. You sell the product on your eCommerce store. When a customer places an order with you, you forward it to your supply partner, who delivers it.
In other words, your sole responsibility is to sell the product online. You are not going to handle product manufacturing, storage, or delivery. Seems like easy money, doesn’t it?
Dropshipping – Why it works
You may wonder why a manufacturer would allow a third party to earn money while doing all the heavy lifting (manufacturing, storing, and delivering the product) themselves. Dropshipping is an extension of the business philosophy of specialization and outsourcing. This philosophy espouses that a business should only focus on the activities that it is good at. All other business processes that are part of the value chain can be outsourced to others.
The manufacturers (Best Dropshipping Suppliers) want to focus on manufacturing and delivering the product in this case. They are happy to leave the marketing to drop shippers. Another thing to remember is that dropshipping margins are usually meager. Your supplier gives you a small share of the sale revenue, which is why it is essential to achieve volumes in dropshipping.
Dropshipping on Shopify – Why use Shopify?
There are a few elements to a successful dropshipping strategy.
- An attractive storefront: Remember, your sole job is to market the product. It is essential to create an inviting storefront at a low cost. Shopify is very good at this. It offers a range of themes that are customizable without much developer assistance.
- Multiple Suppliers: A successful dropshipping operation does not rely on just one supply partner. As stated before, this business requires volume to be profitable, and volume can be increased with multiple manufacturing partners. Dropshipping on Shopify offers an easy way to build this into your website. It already allows you to add products from different vendors to your collection.
- Multiple delivery services: Shopify also lets you set up different delivery services with different rates as needed.
Dropshipping with Shopify is a versatile eCommerce platform. It is possible to create highly customized, beautiful websites with animations and lots of content pages on Shopify. But it is also possible to create simple sites that look presentable with minimal coding effort. That is why we recommend dropshipping on Shopify.
What to look for in dropshipping suppliers?
So how do you go about acquiring dropshipping suppliers? Many online resources can help you, but first, you must know how to evaluate the Best Dropshipping Suppliers. Here are a few things to look for:
- Product type: Is there a particular niche or product type you want to sell? The supplier must have those types of products available for sale.
- Product quality: Even though you, as a dropshipping retailer, are not responsible for quality and manufacturing, poor products will hurt you. After all, you are selling the product on the internet, under your brand. You need to be sure of the product’s quality. You will find customer reviews and other feedback about the supplier’s products online. Do your research to ascertain supplier product quality before striking a deal with someone. Perhaps you could purchase the products yourself to get acquainted with the quality.
- Return and sales policies: Suppliers will also handle customer deliveries and returns. You must be familiar with the supplier’s policies because you must present the same to the customers on your website and other sales channels.
- Fees and margins: Now, the most crucial part is the margins. We are getting into the business to make money, after all. You need to closely examine the supplier’s fees and margins. Factor in your marketing costs and projected sales volume to calculate how much money you can make. Ensure that the business is viable for you.
- Daily processes and activities: Managing an online business is not a walk in the park. There are orders to track, customer complaints to answer, and inventory levels to monitor. All these tasks will be even more difficult if your supplier’s inventory and order tracking systems do not sync with your eCommerce site. Nobody wants to spend all day importing and exporting Excel files and manually entering data. So, please make sure your supplier uses up-to-date systems that can easily sync with your Shopify backend.
Top Dropshipping Supplier resources
As stated above, Dropshipping Suppliers are either product manufacturers or wholesalers. Often, these manufacturers/ wholesalers are small to medium-sized businesses. It can be challenging to reach out to them individually. Fortunately, since the rise of the dropshipping model, multiple directories collate these suppliers for dropshippers. Here are the top supplier directories for dropshippers followed by a detailed description of each:
| Name | Type | Country of origin | Pro | Con | Cost |
|---|---|---|---|---|---|
| Worldwide brands | Supplier directory | US | Vetted suppliers, US-based so quick delivery | No free trial | Has a lifetime membership fee of $197 |
| Spocket | Supplier directory | Canada | Easy eCommerce integration, Allows for product sampling | Limited product variety | Free to $100 per month |
| Doba | Supplier directory | US | Live customer support, Easy eCommerce integration | Tough to contact suppliers directly due to the automated system | Free to $299 per month |
| Oberlo | Software connecting to supplier directories | Lithuania | Easy integration, Wide product variety | Lower margins | Free to $80 per month |
| Salehoo | Supplier directory | New Zealand | Large variety, Global products, Low subscription price | Products quality varies, No automated direct retail orders- you must establish relationships yourself. | $67 per year |
| Wholesale central | Supplier directory | US | Free to use | No automation, Some suppliers are retailers | Free |
| Aliexpress | Supplier directory | China | Free to use, Automated ordering, Cheaper prices | Slower delivery to the US, Quality checks are not the best | Free sign-up, only commissions (5 to 8%) |
| Wholesale2B | Supplier directory | US | Free to browse, Wide selection of US and Chinese products, Easy integration | Convoluted pricing, Limited customer service | Free to browse, charges for delivery integrations on platforms (each platform charged extra) |
| Megagoods | Distributor/ wholesaler – electronics | US | Affordable membership fee, Quick and low-cost shipping | Only consumer electronic products, No easy integrations with eCommerce | $14.99 per month |
| Printful | Distributor – custom apparel and household items | US | Ability to create custom-designed products. | Limited niche, No wide applications | $29 per month |
Worldwide Brands
Type: supplier directory
Country of Origin: USA
Pro: US-based supplier with a reputation for quality and customer service.
Con: No free trial. You have to pay $197 for a lifetime subscription.
Fee Details: Has a lifetime membership fee of $197
Worldwide Brands has been in business for over two decades, long before dropshipping suppliers became today’s trend. This Floridian business directory has been helping smaller retailers (both online and offline) find quality products. The $197 fee may seem steep but remember, it is for a lifetime membership and has been discounted recently. The fee used to be $299. Also, this is a simple business directory. They collate data of suppliers from across the country, verify their legitimacy and present you with the list. They do not offer order automation or integration Dropshipping with Shopify or other platforms. You have to reach out to the suppliers and place orders with them.
Spocket
Type: supplier directory
Country of Origin: Canada
Pro: Easy eCommerce integration, allows for product sampling
Con: Limited product variety
Fee details: Free to $100 per month
Though not based in the US, Spocket is known for its quick delivery times to the US. It also has apps and extensions to integrate its inventory system with your eCommerce site easily. So you can access the products you need to sell quickly, though the collection variety is a bit limited. Spocket is also more transparent regarding quality, allowing you to sample the products before you decide to start selling them online.
Doba
Type: supplier directory
Country of Origin: US
Pro: Live customer support, easy integration with eCommerce platforms
Con: It is tough to contact suppliers directly due to the automated system
Fee details: Free to $299 per month subscription
Doba is a known supplier directory with a completely automated ordering system. Doba is for dropshippers that want an easy-to-use interface that seamlessly integrates into your eCommerce site. You will not be talking to individual suppliers on the phone; instead, you will accept and place orders using the Doba system. This is great for an automated workflow but is not great if you want to talk to the Best Dropshipping Suppliers and establish a long-term relationship. Pricing varies depending on the number of inventory/orders you have.
Oberlo
Type: software connecting to supplier directories
Country of Origin: Lithuania
Pro: easy integration, comprehensive product variety
Con: Lower margins
Fee Details: Free to $80 per month
Oberlo is a software tool that connects you with supplier directories. It does not have a list or any relationships with Dropshipping Suppliers. Instead, it acts as a middleman between the supplier directory and you, adding another step in the value chain. This tool is so popular because it lets you connect your Shopify store with a wide range of supplier directories, some of which do not have their own integration apps. It has a lot of credibility because it is controlled and owned by Shopify itself.
Salehoo
Type: supplier directory
Country of Origin: New Zealand
Pro: large variety, global products, the low subscription price
Con: Product quality varies, no automated direct retail orders- establish relationships yourself.
Fee Details: $67 per year
Many other providers we have listed tend to be automated and easy to integrate with eCommerce platforms. On the other hand, Salehoo is more of a bare-bones supplier directory. You will be given access to the supplier’s contact information. It is up to you to establish a relationship with the supplier and place orders as needed. Being in the east, it has many products from China and other Asian countries alongside Australian and New Zealand suppliers. So the quality does vary. However, it is a good option for cost-conscious dropshippers.
Wholesale Central
Type: supplier directory
Country of Origin: US
Pro: Free to use
Con: No automation; some suppliers are retailers
Fee details: Free
This business started in 1996 and has the old business model of charging suppliers to be listed. It is free to use for retailers. Once you log in, you will get supplier contact details. After that, you need to contact the suppliers and work with them yourself. There is no automated system for placing orders or any integration. Just a website with business names, business descriptions, and contact details. Suppliers are primarily US-based, which is suitable for short delivery times. Beware, you must do your due diligence before joining a supplier. This provider does not do an excellent job of checking its listed members. So, a few suppliers on the list are retailers themselves (instead of wholesalers or manufacturers).
Aliexpress
Type: supplier directory
Country of Origin: China
Pro: Free to use, automated ordering, lower prices
Con: Slower delivery to the US, quality check not the best
Fee Details: Free sign-up, only commissions (5 to 8%)
This Chinese behemoth is part of the Ali Baba family of Chinese corporates. While Alibaba.com focuses on B2B selling, Aliexpress is its sister concern and deals with retail orders. This can be your go-to directory if you’re keen on Chinese products. It is one of the most popular platforms in China. So, it has a wide variety of low-cost Chinese products. Being based in China makes it slow to deliver to the US, so you might have to deal with customer complaints.
Wholesale2B
Type: supplier directory
Country of Origin: US
Pro: Free to browse, a wide selection of US and Chinese products, easy integrations with eCommerce stores
Con: Convoluted pricing, limited customer service
Fee details: Free to browse, charges for delivery integrations on platforms (each platform charged extra)
This directory was established in 2004 and has served online retailers since then. The directory offers an extensive range of both Chinese and US products. Since it was created for online selling, it does provide easy integrations with popular eCommerce platforms, including Shopify. Free to browse but expensive if you plan to sell on multiple marketplaces.
Other Suppliers
The above list had examples of popular dropshipping suppliers from all over the world. To make a helpful list for a broad audience, we populated it with suppliers offering a wide range of product categories. However, you, as a drop-ship seller, might have an alternate strategy. Perhaps you would prefer to market a particular niche of products.
It isn’t possible to list all product niches in the world alongside their suppliers in one list. You will have to identify your area of interest and research suitable suppliers. Don’t forget to evaluate suppliers based on our five-point criteria from earlier in the article. However, we can help you by giving you a few examples of niche suppliers to help you explore:
Megagoods
A great option to target the niche electronics market. Megagoods is not a directory but a wholesaler of consumer electronics. It has a wide range of products within the electronics category. However, you must be prepared to create your fulfillment process as the supplier does not offer automated eCommerce integration.
Printful
This niche provider gives dropshippers the ability to create custom designs for their customers. It offers a range of apparel and household products that the dropshippers own designs on it. In this way, it has a unique approach and lets you play a designer’s role. However, products are limited to household Knik knacks and fashion.
Conclusion
We hope this article was helpful and that you are better able to identify the suppliers you need for your business. Once again, if you want to start a dropshipping store, I recommend using Shopify. It’s an easy-to-use platform that lets you create your online store and manage your dropshipping business from one place. Plus, several dropshipping supplier directories integrate well with this platform. Contact us today to build your Shopify Dropshipping store.