If you want to run an online store without the stress of managing inventory, dropshipping is an appealing business model. But how can you find a supplier to provide products to customers?
What is the Dropshipping Business?
Dropshipping is an e-commerce business model where the products sold by an online seller are manufactured, stored, and shipped by a third-party shipping company.
Instead of purchasing large quantities of stock from a supplier, online stores will buy a single item directly from the manufacturer after processing payment from the customer’s credit card.
Dropshipping has many advantages for first-time business owners. In the early stages of your business, you may not have a lot of staff, so delegating order fulfillment to a third party helps save time for marketing, customer support, and brand growth.
How Do Dropshipping Sites Help Your Online Store?
Since dropshipping delegates a lot of the hard work of starting a business to a third party, it has many advantages if you want to grow your retail business. Here are some benefits:
Lower Operating Costs
When you drop ship products, you only pay when you sell them, which means you never have to worry about investing in purchasing excess inventory.
Lower Capital Requirements
Startup costs for dropshipping businesses can remain low because you don’t need to pay for manufacturing your own products or storing them. The additional savings provide more budget that can be allocated for assets like paid advertising, helping to boost your growth.
Location Flexibility
Since inventory is managed by the dropshipping company, there is less need to be in a fixed location. You can work from home, your favorite café, or a secluded cabin in the woods (preferably with good Wi-Fi connectivity).
Less Risk When Testing New Products
Most dropshipping sites highlight their best-selling products, meaning you already know what is currently in demand.
Time-Saving
Securing inventory, managing inventory, and shipping products can take a lot of time. By using a third party to execute these tasks, you can focus on marketing your products and building your brand.
Top 9 Dropshipping Sites
1. DSers-AliExpress Dropshipping
When it comes to product diversity, few dropshipping companies can compete with AliExpress. The online retail service launched in 2010 and features over 100 million products, so you can find something to sell regardless of the category you belong to.
If you plan to dropship using AliExpress, the best option is to use a Shopify store with the DSers-AliExpress dropshipping app. With a free plan, it allows you to add products from the massive AliExpress catalog to your store with just a few clicks.
Price: Free for up to 3000 products. The advanced plan starts at $19.90 per month.
Advantages: Large product variety, low cost, and easy synchronization with your Shopify store.
Disadvantages: AliExpress is one of the most widely used dropshipping companies, so your products may also be available in other stores.
Recommended for: New merchants on a budget who can build a strong brand and curate an attractive product assortment.
Shopify App: Yes.
2. Spocket
Spocket is an order fulfillment service with a wide range of wholesale merchants, most of whom are located in the United States and Europe. However, for global stores, this platform also features suppliers in Canada, Asia, Australia, and Brazil.
With the Spocket app, you can browse products from merchants and add them to your Shopify store with a single click. Spocket also automates the entire order process, with products being shipped directly to your customers at the point of purchase.
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Spocket offers a private label invoice feature, allowing you to create a customized invoice for your brand that is sent with your products. Branded packaging helps increase brand awareness and retain customers (which is also required for Amazon shipping).
Price: To list up to 25 products, you will need the starter plan at a price of $39.99 per month.
Advantages: Spocket includes branded invoices that keep your business on the minds of your customers. For some suppliers and customer sites, Spocket offers fast shipping times.
Disadvantages: Spocket can be expensive. Branded invoices are only available on the professional plan, which offers fewer products at a higher price than alternative dropshipping apps.
Recommended for: Start-up funded merchants who want to market their own products.
Shopify App: Yes.
3. SaleHoo
SaleHoo is a research tool and directory for dropshipping businesses, wholesalers, and online retailers. Its database includes over 8000 wholesale distributors and dropshipping suppliers, with more than 2.5 million products.
With SaleHoo, merchants can access the platform’s market research lab, which provides data and tips on products. You can see how well products perform in other stores and online marketplaces like eBay and Amazon before adding them to your own store.
Price: SaleHoo’s dropshipping features start at $27 per month. Access to the database (without dropshipping features) costs $67 annually or a one-time payment of $127.
Advantages: SaleHoo provides detailed information about available products.
Disadvantages: Dropshipping features do not integrate with Shopify or other e-commerce platforms, so you will need to import orders manually.
Recommended for: Although there is no app, SaleHoo has free API resources. Data-savvy merchants can take advantage of this feature.
Shopify App: No.
4. Zendrop
Zendrop is a popular Shopify app that offers dropshipping and print-on-demand services. It is an addition designed by experts in the dropshipping field, born from common challenges in other dropshipping sites, such as inconsistent suppliers and unpredictable shipping.
As a result, Zendrop features an easy-to-use interface for adding products to your site, many of which are stored in the U.S. to enable delivery in five to eight days. Merchants can also create custom packaging and subscription boxes to encourage repeat customers.
Price: After a seven-day free trial, the professional plan starts at $49 per month for unlimited orders.
Advantages: U.S. products, custom packaging, and a commitment to working only with trusted suppliers.
Disadvantages: Zendrop is for Shopify merchants only and is more expensive than some other apps.
Recommended for: Shopify merchants looking for an experienced intermediary between their store and suppliers.
Shopify App: Yes.
5. Modalyst
Modalyst is an automated dropshipping app known for carrying famous brands. Selling products from companies that your customers know enhances your own brand and boosts your site’s credibility.
For U.S. merchants, Modalyst offers a marketplace of suppliers who ship local orders in six to eight days. For global buyers, Modalyst suppliers ship orders to over 80 countries. The app also has an API partnership with AliExpress in the form of a Chrome extension.
Modalyst curates collections of products made from sustainable materials from eco-friendly suppliers, for merchants looking to reduce their carbon footprint. Additionally, you can add your own brand to your products through the private label dropshipping program.
Price: The free Modalyst plan includes automation features for up to 25 products. For $35 per month, you can get up to 250 products.
Advantages:
Worldwide Brands was founded in 1999 and is one of the oldest and most trusted directories for suppliers among veteran merchants. Dropship companies in Worldwide Brands must meet strict quality assurance standards.
Like Wholesale Central, Worldwide Brands is a directory of suppliers and dropshipping companies willing to work with new merchants. It may not offer automation, but it includes over 16 million certified wholesale products across a wide range of categories, along with a curated list of approved dropshipping companies.
Price: $299 for a lifetime membership.
Advantages: Extensive directory with a large number of certified suppliers; long-standing reputation in the industry.
Disadvantages: Requires a one-time fee, and does not provide direct integration or automation tools.
Recommended for: Merchants who want to build direct relationships with established suppliers and are willing to invest in a lifetime resource.
Shopify App: No.
A one-time payment of $187.
Benefits: Strict selection criteria to create a list of reliable suppliers.
Drawbacks: Worldwide Brands does not provide automation tools or an order management system, so inventory syncing can be cumbersome.
Recommended for: Store owners looking for reliable suppliers to partner with.
Shopify App: No.
How to Start a Dropshipping Site?
If dropshipping seems like the right option for you, you might be wondering where to start. Let’s take a look at the steps to build a dropshipping store:
1. Find a Niche Idea
The first step to starting your business is to think of a product idea. Remember that with dropshipping, you’re curating products around a brand, so the primary focus should be on the visual aspects of your brand.
Sometimes the supplier themselves can be a source of inspiration. You can try browsing some of their products and see if they complement each other or fill an underserved niche category.
2. Conduct Market Research
Once you have an idea, you can identify key competitors and conduct competitive analysis. Competitive analysis is a deep dive into your competitors’ business strategies, target markets, branding, features, pricing points, and website design.
By doing this, you’ll be able to assess the strengths and weaknesses of your competitors, highlighting opportunities to surpass them when developing your brand.
3. Find a Dropshipping Supplier
After completing your market research, the next step is to find a dropshipping supplier that carries the goods you need to build your brand. There are many suppliers that can be found through the sites mentioned here, but remember that you don’t have to use just one supplier.
Supplier directories like Wholesale Central and Worldwide Brands are great for finding retailers that carry specific products. They’re also good for inspiration and discovering underserved gaps.
Many dropshipping companies link directly to products in your Shopify store, so you can sell products from dropshipping companies alongside your own products.
4. Build Your Online Store
After selecting a dropshipping supplier, you’re ready to start your online store. Remember that maintaining your store will be an ongoing process, so you can develop your product range and brand based on what works.
Check out the eCommerce launch checklist to ensure you have everything ready for your grand opening.
5. Market to Your Audience
After launching your store, it’s time to drive traffic. If you have followers on social media or an online community, you can direct current customers to your store. In most cases, you’ll need to define your target audience.
Look for online communities dedicated to your product. Attend trade shows in person and hand out business cards. If you don’t have any cards, use a free business card maker to create a customized card for the occasion.
Develop a social media marketing strategy to build your online audience. And don’t forget to stay updated on news in the communities related to your product to learn more about trending products in your industry.
Shopify Makes It Easy to Connect with Dropshipping Sites
When you start a Shopify store, you’ll be able to integrate product sourcing apps that provide shipping and order fulfillment for your online business.
Dropshipping products saves time for you to focus on other important aspects of starting a business, such as marketing, branding, and customer service. It also means you don’t need to pay for inventory until it’s sold, making it harder to incur losses on products.
Are you ready to build your business? Start your free trial of Shopify – no credit card needed.
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