How To Select Best Dropshipping Suppliers/WholeSalers 2024

Entering into the world of dropshipping and finding a perfect supplier whom you can trust? I can feel your pain, picking a supplier is the most crucial decision you will make in your business, and your success rate is also dependent on that. In case your supplier screws up, it’s your responsibility to make it up to your customer, not theirs. So you require to make sure you choose someone who will have your back.

And there are not one or two aspects to consider; there are so many factors that need to be taken into account while choosing for your drop shipping supplier.

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If you know what kind of products you are going to sell than it can be much easier but still make sure that the supplier you go for is reliable enough.

Seeing the demand for dropshipping, I decided to help you find the best drop shipping suppliers and also to educate you what should be the factors you should consider and what you should be avoiding. Pexda is reliable product hunt tool which helps you find profitable products to sell online. Check the complete Pexda review here.

Not all the dropshippers achieve the milestone. There a few tips to take care to find a perfect supplier who can make your dream reality. A few things to look into a supplier.

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How To Select Best Dropshipping Suppliers/Wholesalers In 2024

1. Satisfactory Responses

One thing that I personally look for in a supplier is whether he/she is a good sales representative or not. If a person is not able to answer your queries about his products then might be he/she is a fraud.

Don’t get me wrong here, no one is perfect, but they should be willing to answer your questions in case they don’t have an answer at the spot in a timely manner.

Top-notch suppliers have expert representatives who understand their industry as well as their product lines. If you are launching a store in a niche you are not familiar with; then you should talk these representatives with your valuable questions.

A person who is aware of the advantages and disadvantages of his product can be the right choice.

2. Cost-effective Price

Price is the most critical and essential aspect to ponder when looking for new dropshipping suppliers. Numerous suppliers offer different prices for the same product, so it’s important to shop around and to find who offers the quality product at the best price.

My advice is to do the math first and see whether you can still make a good profit when dealing with a high fee. If not, keep looking for the right one.

Also, take care that legitimate wholesalers don’t ask for monthly fees to do business with you. If a “wholesaler” is demanding you to pay a monthly fee, it is most likely a fake one.

This is a pronounced area to research that surprisingly can go neglected. In reading reviews and doing your research, particularly in industries such a fashion, jewelry and electronics, it is necessary to make sure you are developing a retail business around products from a supplier you can believe.

Pay attention to the products you are examining are there any grammatical mistakes in the title or product description? I know we all make blunders, but if these mistakes are constant among a line of products, you are likely looking at fake or forged merchandise. Also, if the prices seem too good to be true, it sadly probably is.

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3. Relevant product option

It’s better to pick a dropshipping supplier who can render you with a variety of products which come into a category you’re familiar with. They usually offer a lower price with significant customer service than the smaller suppliers. With this advantages, you can charge a higher rate than other retailers while still ensure the customer’s satisfaction with your products.

Different industries can have different supply chains. Understanding where you fit into this picture can help you find suppliers that will cater to your needs.

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4. Shipping & Warehousing Options

Depending on where you are selling products, this can play a large part in selecting your supplier. Suppliers with various warehouses can add complexity to the process but can be hugely profitable to save money on shipping and can be an even more significant asset for those with warehouses in different countries.

If your supplier takes more than 24 hours to ship an item, then they will not be a good fit for you. In this case, your supplier will not get affected, your customers are going to blame you and might never shop from your store again. Dropshipping is an overly competitive market—there is no room for a long shipping process. The competition will punch you if yours is too long.

On the other side, if you can find suppliers who ship very quickly, you’ll achieve a competitive edge. To find the best drop shipping companies, I suggest placing a test order before you make your final choice.

5. Quality products are the key

As I mentioned earlier in the above section on determining a product to dropship, discovering the best dropshippers implies getting the drop shippers selling the best quality products.

Selling high-quality product advantages:

• Higher client satisfaction
• Increased word-of-mouth referrals
• lower returns
• Excellent product reviews

I can’t even think of any adverse side to selling a quality product, other than possibly lower margins. However, the profits above will mean more value for your business over time than you would ever get from trading the high-margin but low-quality product.

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6. Advanced in technology

The latest technologies are ruling the world and going to be increasingly important to you for your dropshipping business. I am a tech savvy person and aware of the advantages of being technologically sound.

So I would advise you to pick a supplier who is technically solid. A supplier who has following things incorporated can be your perfect fit –

– A comprehensive website with full features

– An inventory data feed to modernize your product listings automatically

– The options to place and cancel orders on their site also via email

Though, not all drop shipping suppliers are going to have these advanced features. Don’t count one out just because they don’t have a website— keep these things in mind during your search.

7. Prefer reputed sellers with positive reviews

This is the most crucial thing while evaluating suppliers. As a rule of thumb buy from the suppliers that have 95% and higher positive feedback.

The feedbacks shows the seller’s sales volume, and the positive feed rate represents the feedback that the supplier has received.

8. Systematic and Efficient

Business demands to be orderly and effective to achieve desired heights. If your supplier has a competent staff and a well-managed work process, the chances of errors will be less. Agree??

A few tips to recognize your supplier’s management skills-

• How they handle the order process?
• How quickly the items ship out?
• How quickly they follow up with tracking information and an invoice?
• The quality of the pack job when the item arrives.

Looking for a reliable and legitimate supplier?

Must follow these steps:

Look out for these red flags while searching for wholesaler dropshipping suppliers:

1. Membership or Monthly Charges

Some of the legal suppliers charge monthly fees, and some are just willing to take your money, or you can say steal from you. The simple way to avoid this is to identify why these suppliers charge you. Ask questions to your supplier, if the reason they are giving sound

2. Your supplier denies receiving credit or checks

ds fair enough then go ahead. The ultimate result is to do your research first before shaking hands with anybody in this business.

If your supplier is refusing to take another mode of payment, and strictly deals in bank transfer, run away from him asap. Almost all dropshippers accept credit or checks.

3. The supplier is not listed on BBB

The BBB (Better Business Bureau) is a US-based organization that keeps businesses record. It’s a marketplace where people can report frauds and scams. This organization also take legal actions against unethical and illegal business practices. A great way to identify whether your supplier is legitimate or not.

You need to visit their website and search for the supplier. The result will show you everything, an excellent resource to check.

4. There’s no address mentioned by your supplier

Legitimate supplier keeps the process transparent, so if your supplier is not displaying the address, it’s a huge red flag. Keep a check on your supplier’s profile.

5. Do check the domain age

A young domain means new business, and regarding a supplier, it can be a scam. Have you heard the term prevention is better than cure? I know you might have at some point in your life. So check the domain age of your supplier.

6. Do your proper research, don’t forget to check on Google.

Google the first thing that comes up in anyone’s mind if they want to search something. Right!! So do not forget to check the supplier’s name on Google. People write reviews that you can see through Google, so if someone had any bad experience, you could be aware through this. Just search for the name and scams if there’s anything wrong you will be able to see that in the results.

7. Have you tried calling your supplier???

In many cases, if the supplier is not authorized, their provided number won’t even work sometimes. The simplest way to spot these frauds is by calling them. Go ahead ask a few professional queries, if they stammer or are unable to respond then it’s a huge red sign, my friends.

8. Before ordering in bulk, try placing a sample order.

Making a small test order is a great way to identify the quality as well as services of the supplier, not only this you will also be able to identify whether that supplier is fraud or not.

Legitimate Methods To Find Dropshipping Suppliers

Contact the Manufacturing partner

If you have in mind that what products you would sell, the first thing is to contact directly to the manufacturer. They are the right person who can guide you about authorized distributors, who might be willing to become a supplier for your dropshipping business. Just a few calls can give you the right information.

Google It

Google is the highest using search engine, many of us search everything on Google on a daily basis. But you might get some useful results or might not because of the poor marketing of suppliers. In this case, finding the right partner on Google can be a time-consuming process. You have to dig deep to get that perfect partner because the right things need a little effort.

You can subscribe to the Directories

There are a few supplier directories also present that contains profiles of drop shipping companies related to a specific product or types of products. There are a number of directories available online, and many of them also have a screening process to make sure that the supplier is legitimate. But be aware as a few people present fake profiles to become the part of these directories. Ultimately, research is the option that can ensure whether the supplier is legal or not.

You can also order from your Competition

Not able to find a supplier? You can use the old trick, order from your competition. Find a dropshipping competitor and place the order with that company. After receiving the order, you can track the original shipper. Now you have the supplier to contact; maybe he/she can become your partner.

It’s a strategy that you can apply if you are not able to find out a supplier from any other means. Do not rely heavily on this trick only but you can give it a shot. Additionally, you can also get some leads from your referrals by friends or family. Nowadays social network made it much easier to get any information, so do not forget to use these channels.

Legal Requirements to Be A Dropshipper

• EIN

I know the article is about finding a dropshipping supplier, but it’s necessary also to be aware of the legal terms and conditions that you should fulfill as a drop shipper before approaching a supplier.

In the USA, you will need an EIN and also a seller certificate to work with authentic suppliers. The EIN is like an insurance for your dropshipping business so that you will become a  proper legal business owner. Setup your drop shipping business and then get an EIN.

• Resale License

If you are a US-based seller you need a resale license, a sales tax permit, this certificate releases you from paying the sales tax for the wholesale products you are reselling. This tax is paid by your customers when they will buy a product from you; you will collect the money and then send it to the state.

• Business Registration

If you are not doing business in the USA or Canada, then you may need a business registration certificate for approaching a wholesaler. Getting this certificate is not a difficult job, and it usually involves registering yourself as a legal business with your state or federal business registry.

If you are doing business in Australia, you would need ABN (Australian Business Number). There are different requirements according to various places such as in New Zealand, you will require NZBN, and in the UK you will need a company registration number.

• VAT (Value Added Tax) Number

There are different requirements according to places. If you are planning to do business in the UK or Europe, there are different legal requirements your supplier may ask you for VAT number. As EIN in the US, there’s VAT number in Europe, and the laws vary from country to country.

The reasons why suppliers ask for these documents

Suppliers are also running a business just like you. If you are doing business, you know it also can be risky, so it’s their right to make sure that they are working with the right and legitimate people.

There may be various reasons why they ask you for these documents such as –

1. To ensure you have a legal business

Maybe your supplier wants to make sure that they are doing business with an authorized identity or they want to know whether you are serious for the business. By showing the legal papers, you can build the trust and prove that you are not just testing them.

2. As an ID proof

It’s okay if your supplier asks you to show your ID. They just want to know who you are. By showing them your business info and other legal ID’s, you can prove that you are a real person.

3. They might need to charge sales tax

In a few countries such as the US, your supplier requires your valid reseller license to charge you the sales tax before selling anything to you.

4. Suppliers don’t deal with public

I hope you know that many legal suppliers don’t deal with the public so they may use paperwork to verify they are not dealing with the general public. Because these kind of scams are common people, try to get goods at a cheaper rate by showing that they are reselling.

5. To process the orders faster

If an overseas supplier is asking for your business registration number, don’t worry they just to make sure the process moves more quickly and the products reach to you sooner. They may also need your number to add to the invoice to avoid customs delays.

How should you contact a supplier?

You are all set with the legal documents and the list of suppliers; now it’s time to reach out to see if they will be a perfect fit for you.

Email- As a professional business person email should be your first preference, and it’s easier to get the info you need. If you are not sure what to ask in the email, then go ahead prepare a list of things to get all the info in a professional manner.

After mailing, you can also follow up with a call. This increases the chance of a proper response and also to identify how good the supplier’s support representatives are.

The list of question you should ask your supplier

To represent yourself as a professional, you should be ready with a bunch of questions to clear up everything you have in your mind. Questions might help you learn more about your supplier.

A few questions that can help you –

1. What are your payment terms and are they negotiable?

A basic but important question from your business’s point of view. This will help you in finding out their actual pricing and also to get the best deal.

2. Do you charge any cost besides the actual price of the product?

This question will clear many things such as do your supplier charge any delivery fees, fuel charges or any other duties on imported goods.

3. What the return policy?

It’s a crucial question because sometimes customers order the wrong item or they don’t like the item and also the possibility can be that supplier shipped the wrong item. So to clear these, you should be aware of the policies your supplier have of return or replacement.

4. Do you know your gross margin?

In dropshipping, you set your own prices, but still, you should know what other sellers are making. Gross margin is the amount of money you make after selling something. So ask your supplier what will be your expected gross margin.

5. What type of warranty or guarantee the products have?

To offer your customers a great experience you must know what type of warranty the products have.  Ask your supplier that if a customer wants to return some damaged product within the warranty what will be the procedure and everything in this concern.

6. Ask supplier do you maintain a database?

It is crucial to connect to an inventory data feed when you are selling from suppliers that also sell to other online retailers to evade the risk of selling products that are out of stock.

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Conclusion: How To Select Best Dropshipping Suppliers/Wholesalers In 2024

Yeah! It’s not the end it’s the beginning. You have all the information that you need in a perfect supplier. Assess the potential suppliers and finalize an ideal fit for your business. So begin your search right now and launch your dropshipping store before the market niche is all dried up. If this guide is helpful to you, do drop a comment we would love to hear from you!