Dropshipping Suppliers Explained | How They Work & Benefits
Not sure where to get the goods for your dropshipping business? Discover the benefits and functions of dropshipping suppliers in this guide.

1. What are dropshipping suppliers?

When you run a dropshipping business, you need key suppliers to source and ship the products you sell to your customers. Dropshipping suppliers are important individuals in any dropshipping enterprise, so it helps to know how they work, what they provide, and how to find the best dropshipping suppliers for your needs.  

1-1. What is dropshipping?

Dropshipping Model

Put simply, dropshipping is a business model in which you sell products without actually holding or storing them. A dropshipper, such as yourself, finds a willing buyer for a product and sells the product to that customer. Rather than keeping inventory in a warehouse or some other storage facility, however, you pass the order onto a third-party, such as a supplier or manufacturer, who makes or retrieves the product and ships it to the customer. 

With the dropshipping model, you don’t have to spend money on inventory storage or shipping. Instead, you simply handle sales and customer connections, paying your dropshipping supplier or manufacturer a commission for their part of the process.

1-2. What is a dropshipping supplier?

A dropshipping supplier, therefore, is an important part of this business model. A dropshipping supplier creates or sources products as well as ships those products to end users. 

For example, imagine that you run a dropshipping clothing business selling different types of clothing. Your online store takes the orders from customers, which you then pass on to your dropshipping supplier.

The supplier receives different variants, matches the products with the orders and then delivers products to customers. In exchange, you pay the dropshipping supplier services fees for each sale you make.

2. What is the difference between drop shipping vendors and drop shipping wholesalers?

Both dropshipping vendors and wholesale dropshipping suppliers are similar, though there are a few differences.

2-1. What are wholesale dropshipping suppliers?

A wholesale dropshipping supplier makes a product in bulk and for low prices, enabling you to pass off those costs to your customers. Most wholesale dropshipping suppliers have independent websites as well as platforms and apps. They usually offer a wider range of products compared to dropshipping vendors.

2-2. What are dropshipping vendors?

Dropshipping vendors are the opposite. They work with a certain product range or type of products, and they may promote their items through dedicated dropshipping platforms. They typically charge higher prices than wholesale dropshipping suppliers, but they are also more capable of fulfilling customized orders for your customers.

2-3. Dropshipping Vendors V.S. Wholesale Dropshipping Suppliers

Both dropshipping vendors and wholesale dropshipping suppliers can be advantageous partners for your business. Here’s a quick way to compare them if you are deciding who to contact.

 

Factor Dropshipping Vendors Wholesale Dropshipping Suppliers
Inventory Usually only carry inventory in a specific range Purchases and stores a lot of similar inventory in bulk
Order fulfillment Can fulfill customized orders Fulfills large, bulk orders for lower prices
Costs Higher prices per unit Lower prices per unit
Quality assurance Doesn’t control product quality or fulfillment time Checks products for quality

 

3. Best dropshipping suppliers

There are many dropshipping suppliers you can contact. However, it pays to contact the best dropshipping companies – that way, you can be guaranteed a specific level of quality and good prices for your business model. 

 

3-1. Aliexpress

AliExpress

 

AliExpress is a subsidiary dropshipping platform for Alibaba, meaning it primarily provides products for and services to organizations based in the East. It’s a smart way to get an affordable dropshipping supplier for your brand.

  • Pros: A phenomenal range of products to sell, usually very affordable
  • Cons: Doesn’t have the best reputation
  • Service Fee: Free

 

3-2. Spocket

Spocket

 

Spocket is Shopify’s proprietary dropshipping application. It allows you to source products from many different dropshipping marketplaces, like AliExpress and more.

  • Pros: Lots of different products to choose from, the user interface is very intuitive, the purchase experience is fast, and the cost is relatively affordable
  • Cons: Only works if you have a Shopify website/online store
  • Service Fee: Free

 

3-3. Doba

Doba

 

Doba is an integrated dropshipping supplier hub, letting you place orders with several dropshipping warehouses through an easy-to-use, centralized interface.

  • Pros: Much more convenient than other dropshipping sites, emphasizes convenience, allows you to ship products globally, excellent profit margins in general
  • Cons: Cost of a monthly membership is relatively high
  • Service Fee: $60

 

3-4. SaleHoo

SaleHoo

 

SaleHoo’s supplier directory has over 8,000 wholesalers that offer dropshipping services. It’s primarily focused on Amazon and eBay dropshipping.

  • Pros: Comes with a 60-day money-back guarantee, serves US, UK, and Australian markets, lots of inventory variety
  • Cons: Yearly fee is a little high, doesn’t serve countries outside the US, UK, and Australia
  • Service Fee: $67 per year

 

3-5. Modalyst

Modalyst

 

Modalyst is an excellent automated dropshipping vendor. It offers clothes from important clothing brands like Calvin Klein, plus curates an independent list of new and trendy brands so you can capture more customers.

  • Pros: Has an API partnership with ApiExpress, shipping options for over 80 countries, excellent product recommendations
  • Cons: Have to choose a higher-priced plan to take full advantage of Modalyst, best for AliExpress users instead of others
  • Service Fee: Free to $90 per month

 

3-6.HyperSKU

HyperSKU

 

HyperSKU is a one-of-a-kind, comprehensive dropshipping platform that enables you total control over your orders and fulfillment processes. HyperSKU is a perfect dropshipping supplier for managing your business as it grows.

  • Pros: Easy to use, totally free to sign up,  global address validation, offers branding service, comprehensive suite of features
  • Cons: Not as wide market reach as older companies, but getting better each year
  • Service Fee: Varies per order, no subscription fee

 

3-7.Worldwide Brands

Worldwide Brands

 

Worldwide Brands is one of the oldest dropshipping supplier directories, so it’s perfect if you only want to work with legitimate wholesalers.

  • Pros: Service retailers around the globe, offers a variety of shipping costs and locations, has tons of wholesale dropshippers with trustworthy, legitimate reputations
  • Cons: Can be a bit expensive, and the list of dropshipping suppliers can be limited due to the focus on reputational quality
  • Service Fee:$299 to become a member

 

3-8. Wholesale2B

Wholesale2B

 

Wholesale2B is a dropshipping supplier that emphasizes real-time inventory automation, allowing you to automatically and easily import products into your Shopify storefront. 

  • Pros: Well over 1 million products ready for dropshipping, ships throughout Canada and the US, good for quick shipping to these countries
  • Cons: Not the best for international shipping
  • Service Fee: $37.99 to $49.99 per month

 

3-9. Eprolo

Eprolo

 

Eprolo is a dropshipping platform and supplier in the same application. It features a diverse marketplace as well as dropshipping agents to take advantage of.

  • Pros: Automated workflows and fulfillment services for fast cocomplete. The backend is managed by Eprolo. Can take advantage of a custom express shipping channel. Offers print-on-demand services
  • Cons: Only has one warehouse at the time of this writing. Express shipping channel may experience delays
  • Service Fee: Varies

 

3-10. Dropified

Dropified

 

Dropified is a well-designed, largely automated dropshipping supplier. It’s perfect for sourcing individual products or large, bulk orders of products from wholesale vendors.

  • Pros: Wholesale orders lower prices across the board, very easy to use for most, Majority of features are automated
  • Cons: Some of the extra dropshipping services aside from supplying/order fulfillment cost more
  • Service Fee: $97 one-time fee

 

3-11.Cj Dropshipping

Cj Dropshipping

 

CJ Dropshipping is a massive dropshipping agency service and order fulfillment platform. You can access many thousands of products and import them into your Shopify store with a few button clicks.

  • Pros: Excellent product variety and diversity, no fee pricing model, good product recommendations, reasonable prices if you have a smaller dropshipping company
  • Cons: Larger companies may find better deals and better options for bulk/large-scale orders elsewhere
  • Service Fee: Varies based on weight

 

3-12. Megagoods

Megagoods

 

Megagoods a wholesale dropshipping supplier that offers a wide range of products, though it primarily focuses on consumer electronics. It’s based in Santa Clarita, California, but ships products to international customers.

  • Pros: No minimum purchase requirements, perfect for businesses with electronic equipment focuses
  • Cons: International shipping can be a bit slow and pricey relative to other dropshipping suppliers
  • Service Fee: $14.99 per month + $1.50 per order

 

3-13.Importify

Importify

 

Importify offers phenomenal dropshipping services from the US, EU, and China: the most important markets around the world. It’s trusted by thousands of users and allows you to add products to your online store almost instantaneously.

  • Pros: Provides products from over 30 marketplaces, can import products to many different online store types, easy order fulfillment
  • Cons: Only get automatic order fulfillment and product field fulfillment if you pay for higher prices
  • Service Fee: $14.95 per month to $37.95 per month

 

 3-14. Inventory

Inventory

 

InventorySource is a comprehensive dropshipping wholesale supplier, offering access to over 4000 wholesalers with over 240 pre-integrated dropship suppliers.

  • Pros: Completely free to use, offers total access to supplier product data and reseller info, lets you check supplier quality before partnering with one
  • Cons: Have to pay extra for inventory automation or full automation
  • Service Fee: Free by default, options for $99 per month to $199 per month

 

3-15. Printify

Printify

 

Printify is a print-on-demand dropshipping supplier, enabling you to sell customized and printed products to your customers without any upfront investment.

  • Pros: Free to begin, offers over 700 unique products, provides access to over 90 printing facilities around the globe
  • Cons: Inventory doesn’t extend to other types of products
  • Service Fee: Free or $24.99 per month to connect more stores to your account and get product discounts

 

4. How to find and select drop shipping companies

Given the sheer number of potential dropshipping companies to work with, it helps to know how to find the right supplier company for your needs.

 

4-1. How to look for dropshipping suppliers

Strategies for finding the right dropshipping supplier

 

You can find the best dropshipping suppliers by keeping a few major strategies in mind.

For starters, you can and should do tons of research. Be sure to investigate a dropshipping supplier’s reputation or online reviews before partnering with them. Don’t hesitate to reach out and contact a dropshipping supplier before starting a business relationship; that way, you can ask them questions about the kinds of services and prices they offer.

You’ll also want to order some samples from a new dropshipping supplier. This is the best way to select the right supplier for your needs and customers, plus ensure that the products you sell are good quality.

 

4-2. How to choose the right dropshipping supplier for your business and avoid fake suppliers

 

Choosing the right dropshipping supplier for your business is key. That’s why it’s a good idea to avoid fake suppliers by:

  • Staying away from dropshipping suppliers that insist on ongoing or monthly fees if you are to do business with them
  • Avoiding suppliers that require high minimum order sizes, even if they are wholesalers. This could be a way to get you to buy a lot of products before you realize the supplier in question is a bad choice

 

Instead, you should choose a supplier that provides good deals for returns, that has affordable shipping rates, and that is willing to talk or negotiate with you regarding the specifics of your partnership. Furthermore, be sure that your dropshipping supplier has a strong command of the English language; fluency in English is very important, particularly if you partner with a supplier in a country like China or elsewhere.

 

 

5. How to work with dropshipping suppliers and build a good business relationship with them

After you choose the right dropshipping supplier, you’ll need to build a strong business relationship with them to ensure everyone walks away happy. Working well with suppliers frequently involves:

 

  • Communicating regularly with your supplier. Be sure to check in with them after every major order or at least every month
  • Negotiating for fair prices. If a dropshipping supplier takes a hardline when it comes to fees, it may be time to walk away if they aren’t willing to compromise
  • Partnering with multiple dropshipping suppliers. In this way, you can insulate your supply chain from business emergencies or market crashes; if one supplier relationship fails, for example, you’ll have another supplier to pick up the slack for your customers

 

6. Key Takeaways

 

Dropshipping suppliers are important elements in any dropshipping enterprise. These individuals or agencies provide you with the products your customers desire and help you fulfill orders in exchange for a commission from each sale you make.

 

That’s why it’s important to partner with a great dropshipping supplier like HyperSKU. HyperSKU allows you to control your dropshipping orders and data from a unified and intuitive platform; try it out today and take your dropshipping business to the next level!

           

FAQ(Frequently Asked Questions)

  • Is dropshipping legal in the U.S.?

Yes, dropshipping is completely legal in the US. However, you should choose your dropshipping supplier carefully so you don’t run into any legal issues regarding their shipments, their country of origin, etc.

  • How can a beginner start dropshipping?

You can start dropshipping by creating an online store and determining what you want to sell to your customers. Once you’ve answered these questions, you can start looking for a dropshipping supplier and begin advertising your company to your target audience, then send orders to your supplier to be fulfilled.

  • How do I find a local dropshipping supplier?

The best way to find a local dropshipping supplier is to look at social media platforms like Facebook, connect with dropshipping supplier groups online, and check job boards like Upwork.

  • Can I start dropshipping with no money?

You can start dropshipping with no money, especially if you use a free website builder tool. However, you’ll likely need to spend a little money to scale your business and start raking in real profits.

  • Is dropshipping still profitable?

Yes, dropshipping is still very profitable, especially when you consider the profit margins. With dropshipping, you don’t have to spend money on product creation or storage, let alone shipping. That means you only have to pay for marketing and sales, as well as the commission you provide to your dropshipping supplier or manufacturer.

 

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