Starting your own dropshipping business can be an exciting venture, but finding the right supplier is crucial for your success. However, finding the right supplier is not always easy or straightforward, and can involve a lot of trial and error and testing.
The good news is, we’ve already done the testing.
In this article, you’ll discover actionable tips and strategies to help you identify and connect with top-notch dropshipping suppliers.
By the end, you’ll be equipped with the knowledge to choose a partner that ensures quality products, timely deliveries, and seamless communication, setting your business up for long-term success.
The Role Of Suppliers In The Dropshipping Model
Suppliers enable your dropshipping business to operate smoothly without the need to hold inventory. The role of suppliers is to handle product storage, order fulfillment, and shipping, which frees you to focus your time on everything else.
Here are the 6 main roles of a dropshipping supplier explained:
1. Product Management
Reliable suppliers maintain consistent stock, ensuring your store avoids stockouts and keeps customers satisfied. Your supplier should update inventory in real-time to reflect current inventory levels.
2. Pricing
Finding the right price point is a delicate balance. Your supplier’s pricing should be competitive enough to allow you to make a profit while keeping your products affordable for customers. More importantly, be wary of suppliers offering prices that seem too good to be true – it could be a red flag.
3. Deliveries
Fast and reliable shipping from suppliers gives your business a competitive edge and keeps complaints at bay (for the most part). Opt for suppliers who offer real-time tracking to reassure customers.
4. Communication & Customer Service
As you act as the middle-man between customer and suppliers, effective communication with suppliers is at all times is very important to maintain. The best suppliers offer multiple contact methods, such as email and live chat, and will respond to inquiries on the same day so you can then respond to your customers quickly. Clear, responsive communication builds a strong working relationship.
5. Quality Assurance
Suppliers should always conduct quality checks, ensuring products match your store’s descriptions and images, reducing the risk of returns and unhappy customers.
6. Return and Refund Handling
No matter how good your store experience and product quality, returns are inevitable. A good supplier will manage these processes on your behalf relieving you from the burden of handling returns.
What Do You Need Before Finding a Dropshipping Supplier?
There are certain preparations that are necessary before you even start your search for a reliable dropshipping supplier. Here are 4 key areas you need to cover before contacting suppliers.
1. Define your product niche.
There is no point in selecting products from hundreds of categories, and the key to success is sticking to a specific niche.
Identify a particular category (fitness, tech accessories, home décor) which will enable you to become an expert in what you do. For instance, if you want to supply fitness products, assess suppliers specializing in fitness items.
You will be able to target your market more effectively and narrow down suppliers who are familiar with the goods you want to offer.
2. Understand Your Target Market
Understanding your target market helps align your product offerings with customer needs.
Analyse your customers’ preferences, demographics, habits, and weaknesses. This will help you in selecting the right products leading you to the right suppliers.
3. Set your business goals and requirements.
Set objectives for your business. Define short-term and long-term goals including your desired profit margin and sale volumes.
List the unique and specific requirements you might have for your suppliers such as delivery times, minimum orders or customising options.
For instance seasonal items demand fast delivery. If fast delivery is a priority, then prioritize suppliers known for quick shipping times.
4. Determine your budget and pricing strategy.
Develop a pricing strategy that covers your costs while staying competitive. For example, if you aim for a low-margin, high-volume model, choose suppliers with competitive pricing and bulk discounts.
4 Types of Dropshipping Suppliers
Understanding the different types of dropshipping suppliers can help you choose the best fit for your business. Each type of supplier offers unique advantages.
Here are the 4 main types of dropshipping suppliers:
Manufacturers
Manufacturers produce goods directly. Sourcing products from manufacturers can reduce costs since there’s no middleman. They provide better control over product customization, quality, and branding.
Examples of manufacturers include electronics manufacturers and clothing factories.
However, manufacturers may have higher minimum order requirements and longer shipping times.
Wholesalers
A wholesaler acts as an intermediate between the manufacturer and the retailer. The wholesaler buys a bulk of products from the manufacturer and then sells them to dropshippers.
Their prices are obviously higher than that of the manufacturer, however, you can still make a decent profit after the sale.
The minimum quantity order is not as high as the manufacturer, though the cost per item may be slightly higher.
Aggregators
Also known as dropshipping suppliers or marketplaces, the aggregators are platforms that connect the dropshippers with wholesale and manufacturers.
AliExpress is one of the more commonly known aggregators and it offers a vast selection of products from multiple suppliers, all on one platform.
Using aggregators can save time and effort, but you will face higher costs due to additional fees.
Print-on-demand suppliers.
Print-on-demand suppliers allow you to customize products with unique designs and only produce items upon order.
The print-on-demand model reduces the risk of holding inventory and allows for creative flexibility. However, shipping times can be longer, and profit margins might be lower.
Examples of common print-on-demand supplier include Printful and Teespring.
5 Best Methods for Finding Dropshipping Suppliers
1. Competitor Research
Analyze competitors products to discover their suppliers. Tools like SimilarWeb and SpyFu can provide insights into competitor sources.
For Shopify stores you can combine our database of top Shopify stores with our Shopify spy tool Koala Inspector to find products in your niche.
Evaluate the quality of products and supplier reliability based on competitor performance. Reverse engineering successful businesses can uncover reputable supplier leads.
2. Trade shows and industry events
Attending trade shows and industry events is a great way to get to know new suppliers and build a face-to-face relationship.
You can see some of their products for yourself, stay updated regarding trends and fashion and even discuss terms and conditions.
Building an in-person relationship can sometimes take you a lot further than any online connection.
3. Networking and referrals
Take advantage of social media and professional networks. You can seek reliable suppliers by leveraging your professional network and by looking for referrals.
Connect with other entrepreneurs, and be active in online communities that are designated for dropshippers.
Much like trade shows and events – there is nothing more reliable than personal recommendations.
4. Direct outreach to manufacturers
Contacting manufacturers directly can help you find reliable suppliers.
Doing this allows you to establish a direct line of communication without intermediaries. If you bypass middlemen, you often get better pricing and more control over your product line.
Start by identifying manufacturers relevant to your niche.
Use online resources like ThomasNet and Alibaba or trade show directories to compile a list of potential manufacturers. Google’s search engine can also be a tool—search for terms like “wholesale [your product] manufacturer” to find leads.
5. Using supplier databases and tools
These are aggregators as we mentioned above. Aggregators will have their own platform often with a dedicated tool for dropshipping products.
Online directories and marketplaces are a great starting point for finding dropshipping suppliers.
Directories like SaleHoo, Worldwide Brands, and Doba list verified suppliers. These platforms streamline your search and minimize the risk of scams. Membership fees apply to access these directories, but the investment can save time and provide quality supplier options.
You can also have a look at the reviews and ratings which will provide a better idea of who you are about to be working with, however, this still doesn’t exempt you from ensuring reliability and predicted quality.
5 Best Dropshipping Supplier Platforms.
1. AliExpress
AliExpress is one of the most popular choices due to its huge product variety and competitive prices.
The platform can connect with thousands of suppliers mostly from China and offers easy integration with e-commerce stores.
Occasionally, the shipping times can be long and the quality of products is not always the best.
2. Oberlo
Oberlo is a dropshipping app designed for Shopify users and it streamlines the process of importing products from AliExpress to the Shopify stores.
It has features that assist in automating order fulfilment and updating prices and inventory automatically.
It is user-friendly and is thought to be a great choice for drop shippers taking their first steps in business.
3. Spocket
Unlike other platforms, Spocket focuses on US and EU suppliers. It offers fast shipping times, and the products are usually of high quality.
The platform is integrated with several e-commerce platforms such as Shopify and Wix and enjoys features like product customisation and sample ordering.
It might have a small product selection in comparison to the Asian competitors, however, it emphasises quality and value.
4. Modalyst
If you are into selling branded or high-end products, Modalyst might be a good platform for you.
The platform offers a long list of suppliers, mainly based in the EU and US, and offers various features for easy product importing, and real-time inventory updates. Modalyst is suited for traders of specific niches and premium brands.
5. Doba
Doba holds one catalogue which holds millions of products from thousands of suppliers.
It integrates with major e-commerce and marketplace platforms, Amazon and eBay amongst others. Doba is known for its extensive product collection and detailed market research tools.
How To Find Private Suppliers for Dropshipping
Turning to AliExpress might be the easiest option, however, if you look for less common suppliers you can earn a competitive edge in the market.
Collaborating with a private supplier can provide you with the uniqueness that can’t be found anywhere.
To find these hidden secrets, explore trade shows and industry directors. These will feature smaller manufacturers and avoid presenting the mainstream platforms.
Try to connect with manufacturers independently. If they aren’t already set up with a dropshipping platform, you never know, as they might be willing to set up one for you. Keep an eye on rising markets and local craftsmen as they can offer you the unique stage you are after.
Here are 5 ways to evaluate potential dropshipping suppliers and to find private ones also:
5 Steps to Evaluate Potential Dropshipping Suppliers
1. Assess product quality and variety.
One of the best ways to do this is to order samples and personally check the quality of products you want to sell.
Test the supplier’s range and make sure they have a wide variety on offer to meet your business’s needs. You will then be able to cater for different customers and eventually increase your order value.
2. Check shipping times and methods.
Timing is crucial as it has a direct impact on customer satisfaction.
Check the different shipping times for various regions, confirm the shipping methods and ensure they can meet the delivery timeframe.
Tracking capabilities, packaging quality and advanced shipping options must all be taken into account.
3. Review pricing and minimum order requirements.
Analyse the supplier’s pricing structure and consider all volume discounts or special offers.
Compare them with standard market rates to ensure you meet your desired profit margins.
Minimum order requirements are something you cannot ignore. A low minimum will allow you to test new products and manage a low cash flow.
4. Examine customer service and support.
The quality and responsiveness of the supplier’s customer service have to keep up with standards.
Test their support channels and ask questions about the products. The more you ask the better.
You will appreciate good customer support service when dealing with product concerns and problems.
Make sure you understand their return policy to make sure they are aligned with your business practices.
5. Verify legitimacy and reputation.
Confirm the supplier’s legitimacy and reputation by conducting research.
Look for reviews and search for other dropshippers and retailers who have worked with them. Verify their business registration, and investigate their reliability and consistency in product quality.
How To Identify Fake Dropshipping Suppliers
When searching for dropshipping suppliers, watch out for these red flags:
1. No business registration
To avoid scams, verify that suppliers have legitimate business credentials. Cross-check company registrations, licenses, and certifications through official government portals. Confirm valid tax IDs and physical office locations.
2. Excessive fees or pricing inconsistencies
Avoid high membership fees, unusually low prices, or unexplained pricing inconsistencies, which may indicate a scam.
3. Poor communication or responsiveness
Slow responses, unclear answers, or lack of professional contact channels like email or phone numbers are warning signs. Unclear shipping details are also a concern.
4. Lack of quality control measures
A supplier who refuses to provide samples, or one who doesn’t refund defective items, could be fake. Look out for their quality certifications or the control process, and if they’re missing these, avoid them.
5. Limited or outdated product catalogues
An outdated or incomplete catalog with missing details, such as materials or specifications, can indicate an illegitimate supplier.
6. Negative reviews
Negative reviews are a major red flag when assessing a dropshipping supplier. Consistently poor feedback from other users can indicate issues with product quality, delivery times, or customer service, suggesting that the supplier may not be trustworthy or reliable.
7. Unprofessional website
An unprofessional website is another warning sign. Look out for poorly designed pages, broken links, or missing contact information. A legitimate supplier should have a polished and functional website that reflects their professionalism and credibility.
8. Unrealistic promises or guarantees
Suppliers offering unrealistic promises, such as guaranteed overnight success or exceptionally low prices, should be avoided. These claims indicate a lack of credibility and are used to lure inexperienced business owners.
