How Do I Find A Supplier For My Dropshipping?

Dropshipping is one of the most cost-effective online businesses you can try. If done right, it’s also among the most lucrative.

It only requires a little capital to start. And this is why! You don’t need to keep any stock or fulfill orders yourself. All you need is an online store and a product marketing strategy. 

Also, since the market is usually global, you can make good sales with the right strategy.

However, a dropshipping business can only be successful with the right supplier. Remember, as a drop shipper, you are not the one fulfilling the orders; your suppliers do. 

So, if you have the wrong suppliers, your brand or store can suffer a blow, primarily when the supplier cannot deliver quality products on time.

So, how do I find a supplier for my dropshipping business? 

A new drop shipper will ask this question!

Before we answer that, let’s understand how dropshipping works.

What is Dropshipping?

It is an order fulfillment business where you advertise products on your e-commerce store like Shopify, and interested customers make orders. 

The store owner doesn’t own or stock the products they sell in dropshipping, which is where the concept of dropshipping comes in. 

Once a customer orders a particular product, the order is placed in the store and goes directly to the supplier. The supplier fulfills the order by packaging and delivering the product to the customer. 

How does it benefit you?

When advertising products, you add a markup to the suppliers’ products. 

Therefore, as the store owner, you earn by receiving the difference between your store’s and supplier’s prices. 

This means that you need to get the word out about the products you’re selling. As such, your most significant task is to advertise the products and make customers place orders.

Importance of Choosing the Right Dropshipping Supplier 

The working mechanism for dropshipping highlights the need to identify the right supplier. Suppliers play a vital role in the success or failure of your business. 

What does this mean?

Suppliers Affect Your Brands or Store’s Reputation 

Usually, when a customer orders on a dropshipping storefront, the order goes to the supplier. The time it takes for the order to be fulfilled depends on the supplier. 

Faster delivery means a happy customer and mostly repeat orders. However, the opposite also applies.

Also, the quality of the product sent to the customer matters. If the supplier sends substandard products, this means dissatisfied customers. 

In return, it might lead to refund or product replacement requests, which tarnishes your brand or store’s image. 

This makes it paramount to ensure you have just the right supplier. 

Suppliers Determine Your Cost of Operations

The supplier you choose determines the cost of your products. If you select a supplier with higher product prices, you’ll need to charge more to customers. 

Since this is only sometimes possible, you may need to reduce your profit margin to maintain sales, which affects your profits.

Also, how much does the supplier charge to ship the products? Higher charges mean you’ll incur higher operational costs. Remember, any extra cost on the products eats up your would-be profits. So, choose a supplier wisely. 

The Work of Dropshipping Companies and Suppliers

Dropshipping suppliers are business entities that provide products for dropshipping businesses. They fulfill customer orders by packaging and shipping the products. 

In other words, they are the backstage hands that ensure the movement of a product from its storage to the customer’s doorstep.

What about dropshipping companies? Who are they? 

These are companies that offer drop shippers access to suppliers and products. They work as directories where you can easily choose suppliers that fit your business and customer needs. 

Good examples of drop shipping companies include Aliexpress, SaleHoo, and Spocket. 

Dropshipping suppliers can usually be manufacturers or wholesalers. 

In the case of manufacturers, it means that the company that manufactures a product also acts as a dropshipping supplier. 

Here, the prices of products are relatively low as there is no intermediary. 

However, most will sell in bulk to retailers or wholesalers, making ordering one or two product pieces tricky. 

On the other hand, wholesalers buy the products from manufacturers and sell them to drop shippers at lower prices. Their prices are higher than the manufacturers’, but their business partnership is more feasible because you don’t have to buy in bulk.

Note: Some retailers exploit drop shippers. They pretend to be wholesalers but are retailers. This means they offer products at much higher prices, resulting in meager profits for you, the store owner. 

Therefore, be very careful when choosing a dropshipping supplier. 

What to Consider when Choosing Dropshipping Suppliers

Now, after you’ve understood the importance of a supplier in the dropshipping business, how do you pick the right one? 

What factors should you consider before settling on a specific dropshipping supplier?

Product Quality 

The quality of products a specific supplier offers is paramount. Quality products mean satisfied and happy customers. And as mentioned earlier, this will, in most cases, result in repeat orders and referrals – more orders, more money. 

On the other hand, poor-quality products result in disappointed customers, which leads to bad reviews for your products. This means a bad reputation and poor sales. 

Therefore, before anything else, determine the quality of products. But how do you do that?

Customer reviews about a particular supplier will reveal all that. Search online for reviews about that supplier.

What do dropshippers say about them? This will help you make an informed decision.

Delivery Time

How long does it take for the supplier to deliver the product to the customer? The shorter this time is, the better for your e-commerce store’s reputation. Delayed deliveries only negatively impact your brand.

While the supplier may not influence the shipping process, as logistic companies do, the time they take to deliver the package to the shipping company matters. 

For example, if you place the order but the supplier takes five days to pack and take the package to the shipping company, the longer it takes to deliver the product to the customer.

Therefore, choose a supplier that promises the shortest delivery time. Anything beyond two days will result in unnecessary questions from customers. If you can answer the questions satisfactorily, you stand to retain customers.

Fees

The dropshipping business should be straightforward. However, some suppliers may need to make it simpler. 

For example, suppliers should only charge you for the shipping cost on top of the product’s price. You may incur insurance costs, especially where the product is expensive. 

If a supplier charges more than these two fees, they are most likely exploiting you. Here are some of the main fees that suppliers include:

• Warehouse charges
• Marketing fees
• Retail fee, etc.

Take your time to determine if the charges your supplier includes are genuine.

Efficient Systems

The type of order placement and fulfillment systems the supplier uses also matter. Slow systems mean slow delivery time. However, technologically advanced systems result in more efficient processes. 

Therefore, don’t just look at prices and fees. 

Also, look at how efficient their systems are. This way, you are assured that the order will be handled quickly once you place it for your customer. 

Customer Support 

Efficient customer support is crucial in any business. So, settle for a supplier that offers just that. 

You should note that you are the supplier’s customer. However, customers who buy products from your store also need customer support. With adequate customer support from the supplier, you can offer it to your customers. 

For example, if a customer asks you about the shipping status, you can only answer that if your supplier offers correct answers. 

Also, if they ask you to provide the tracking number, you must get it from the supplier.

The faster and more accurately your supplier can answer your questions, the quicker you can answer your customers. 

Therefore, choose a supplier with efficient 24/7 customer support. 

How Do I Find A Supplier For My Dropshipping? 

This question is common, especially with new dropshipping businesses: How do I find a supplier? You just saw why this concern is essential.

So, how do you find the right supplier?

Well, there are several ways to go about this task. Here are the most effective ones:

Google Search

In this internet age, almost every business is present online. You can get nearly every answer about anything on the internet. Therefore, start with a thorough search on the internet. 

The only disadvantage of this method is that you might need more reliable suppliers. 

Why? Only some suitable suppliers are online. Also, those with an online presence are off the first page of search engines. 

Those who appear on searches know how to optimize their sites, and they might need to be more suitable suppliers.

So, go beyond a standard search. Look for reviews from drop shippers and customers. This will offer better data. 

Dropshipping Companies

These are companies that help connect drop shippers with suppliers. They usually offer extensive supplier directories and available products for drop shippers. Browsing their directories can be an even better way to find great dropshipping suppliers.

The best thing about these companies is that they usually vet the suppliers they indicate on their list. This way, you are at least assured of picking a supplier that will satisfy you. 

However, even here, don’t just pick a supplier. Conduct thorough research on the supplier you choose. Look for reviews from other sources and sites to ensure you make the right choice. 

However, you should note that most of these directories are paid. But they offer a better chance of picking genuine and reliable suppliers. 

Some of the best platforms here include Aliexpress, Spocket, Salehoo, and more.

Trade Shows

Trade shows offer the best meeting place with manufacturers and wholesalers. If you can create a good rapport with such people, you can easily find the best suppliers in your area. 

Here, you can also interact with manufacturers to know the current trending products. This can help you choose the right products for your store. 

Trade shows are the best place to strike the best deals as you deal directly with the suppliers.

Contacting Manufacturers

Sometimes, you need to look for manufacturers directly. For instance, research the manufacturer once you pick a product you need to sell in your shop. 

From here, inquire if they can ship products to customers. They can try to figure out how their systems and operations work. 

Remember, your business’s success depends on the supplier’s efficiency. 

You can order a product from existing drop shippers and look for the return mail address to get the manufacturers. Contact them and negotiate a good deal. 

Automating Your E-commerce Store with AI Tools

Finding the right supplier for your dropshipping business is paramount. However, other things are needed to ensure a successful business, and smooth operations in your store are at the top of this list. 

For instance, if you have a Shopify store, the e-commerce’s Shopify integration bot simplifies all your operations. These AI tools come with benefits like:

• Inventory and Order Tracking: This makes tracking your inventory and customer orders easier, ensuring a smooth business run. It offers real-time inventory data and tracking information.
• Analytics for Advance Ad Performance: This feature helps you better understand your customers by providing insights into their preferences and behaviors. This allows you to tailor your ad campaigns to influence their purchases positively.
• Performance Score and Optimization Suggestions: This AI tool analyzes your store’s performance, traffic, social media activities, and even website setup to offer comprehensive insights on improving it. 

Frequently Asked Questions 

What does the total dropshipping price mean?

This is the price of a product after including all costs plus the profit margin. The final selling price will include the product’s price from the supplier, shipping costs, overheads, marketing costs, website maintenance, return and refund risks, and more. Considering all these factors and costs allows you to set a price promising profits.

Is dropshipping worth it in 2024?

If done right, dropshipping can be lucrative and easy to manage. However, it would help if you had good suppliers, conducted suitable marketing campaigns, and researched market trends. In other words, you need to know your customers, what they want, and the best way to deliver what they want.

How do you get the best dropshipping suppliers?

First, determine the quality of products a supplier offers, how long they take to ship the product, and how responsive their customer service is. These factors help distinguish good from poor dropshipping suppliers. Attending trade shows, signing up for dropshipping companies, and researching online enables you to spot these suppliers. 

Can I start dropshipping with no money?

Yes, it is possible. You can set up an e-commerce store without paying for it using free trial versions of e-commerce stores like Shopify. 

And when it comes to suppliers, you don’t need any upfront capital. However, you may need to budget for ads to be successful as a drop shipper.

How much money do I need to start dropshipping?

Dropshipping is a low-cost startup that can be started with as little as $100, depending on your location and the e-commerce store you use to set it up. 

It is a simple business model with no overhead costs.