So you want to start an online business, and you’ve decided dropshipping is the best option for you.  How can you find the best dropship products to sell online?

Step 1: Brainstorm Multiple Product Ideas

Think of 5-10 products you could successfully sell online.  It’s important to have a few different products in mind, because you may not be able to find a dropshipper for your first idea.  After all, not all products are available through a dropshipper, or you may not be able to get your product at a price that allows you to make a sufficient profit.  If you have 5 or more products in mind when you start looking for suppliers, you can compare the results for fishing rods, magic tricks, calligraphy pens, chemistry sets, and baby carriers to make a final decision.

Tip: If you are having trouble brainstorming product ideas, check out this list of products you can sell online for a profit, or simply examine your online purchases over the last month or two.  You should come up with some solid ideas by thinking of the products you yourself like to buy online.

Step 2: Find A Legitimate Supplier – No Middlemen!

If you type “dropship products” or “find dropshippers” into a Google search, you will come up with literally millions of results – educational articles, links to databases and directories, and a mountain of companies purporting to offer dropship services.  Some of these companies may be legitimate, but a huge number of them are actually middlemen.  When purchasing products to resell online, it is extremely important that you get as close to the source as possible – this means you need to purchase directly from the manufacturer or distributor.  Why is this so important?  If you don’t, it will be very difficult for you to make a profit.  You may not be able to sell your products at all, because your prices won’t be competitive.

Let’s imagine your competitor is puchasing food dehydrators directly from the manufacturer.  He gets each dehydrator for $84, then marks them up $20 and sell them for $104.  You, on the other hand, are purchasing from a middleman.  You get the food dehydrator for $99.  You are then forced to either sell it for a $5 profit, which wouldn’t even cover the cost of your overhead, or try and sell it for $120, in which case people will simply buy from your competitor.  You need to get your dehydrators direct from the manufacturer, just like your competitor does.

How can you tell if a dropshipper is a middleman?

Ask these 3 questions:

1. How many different products do they dropship?

You may think the fact that they dropship everything from kitchen faucets to baby clothes is a good thing, but in fact that’s the sure mark of a middleman.  They obviously are not manufacturing all those different products – they’re purchasing them from a manufacturer and marking up the price.  A real manufacturer or distributor focuses on one particular kind of product, like anti-aging skin products or bowling balls.

2. What does it say on their website?

Most legitimate suppliers will proudly post on their website where their products are made.  But be aware, not everybody offering an online service is honest.  Many middlemen post success stories of clients making thousands of dollars selling their products, but that doesn’t mean a thing.  You are always better off buying direct from the source, no matter what a middleman tells you.

3. Do they charge a fee?

Legitimate dropshippers don’t charge an annual, monthly, or sign-up fee for their services.  Only middlemen do this, because they know once you figure out you can’t actually make money selling their products, you’re not going to buy anything else from them.  The fee is where they make their money.  A real dropshipper only charges a small dropship fee, commensurate with the price of packaging and shipping the product.  This means that when you order your food dehydrator from them, they only charge maybe $2-$10 to cover the cost of packing and shipping the item.

How can you find legitimate dropship suppliers?

Wholesale Match operates a database of quality dropship and wholesale suppliers.  If there is a dropshipper available for your product, we’ll find them.  All you have to do is submit a list of products to our Research Team, and they will email you back a list of dropshippers and/or wholesalers in 1-3 business days.  We also provide a variety of educational materials for people who need help starting their online business.  Finally, we are the only supplier database that offers a 100% money-back guarantee on our annual membership.  If you don’t make back at least the cost of your membership, we will refund it in full at the end of the year, as long as you give us a chance to work for you by calling, emailing, or submitting a Research Request at least once a month.

dropshippers, dropshipping, product research, selling products online

You probably already know that Wholesale Match can find you dropshippers and/or wholesalers for virtually any product.  But once you have a list of potential suppliers, what’s the next step?

Once our Research Team provides you with a list of potential suppliers, you need to decide which one(s) you want to work with.  The best way to do this is to visit each supplier’s website.  This will give you an idea of the products they carry, and often you can view their prices as well.  Once you’ve chosen one or two dropshippers or wholesalers, you need to contact the supplier via email or over the phone to set up an account.

Before committing to work with a particular supplier, you will want to ask a few questions to ensure that the supplier is really what you’re looking for.  The following is a list of questions you should ask potential dropshippers and wholesalers.  You may want to have this list handy when you call your prospective dropshipper or wholesaler so you don’t forget anything.

Questions to ask your dropshipper or wholesaler:

1. Are you currently accepting new retailers?

2. Do you require a Reseller’s License and/or Tax ID Number?

3. Are all of your products available for dropship/wholesale?

4. Do the prices listed on your website reflect the retail price or the dropship/wholesale price?

5. Do you provide a pdf file or catalog with your product images and descriptions?

6. Do you have a minimum order amount?

7. What are your dropship/shipping fees?

8. Do you ship internationally?

9. Do you provide blind dropshipping (meaning, will the dropshipper’s company name be visible on the package or in the packing materials)?

10. Do you notify retailers by email when a product runs out of stock?

11. How are returns handled?

This is just a basic list of questions – some of these questions may not be important to you (like blind dropshipping), or you may have other questions that are important for your specific online business.  You’ll have to brainstorm to determine what the absolutely essential services your dropshipper or wholesaler must provide are.  Keep in mind while you do this, no supplier is perfect, so you may have to accept a lack of international shipping or a small dropshipping fee in order to get a great supplier for the product you want to sell.

dropshippers

Are you a manufacturer, dropshipper, wholesaler, importer, or distributor?  If so, you may be interested in being listed in Wholesale Match’s directory.  Wholesale Match is one of the biggest databases in the industry, and we will list your business at no cost to you.  Our only requirement is that you be a legitimate dropship or wholesale supplier who is accepting new retailers.  If you would like to submit your business for listing in our directory, we will perform a short review of your company and website, and begin providing your information to online retailers within the week.

Wholesale Match is a database of dropshippers and wholesalers, and also a resource for educational materials for people looking to start an online business.  We are the only database with a Product Research Team who have an extensive understanding of the suppliers listed in our database and who do the work for our customers.  This means that the results provided are truly relevant to the customer and dropshippers and wholesalers listed in our database will not receive requests or correspondance from the wrong people.  This also means your business won’t get lost in the shuffle.

If you are interested in being listed in the Wholesale Match database, please email support@wholesalematch.com or call 801-938-4718.  In your email, please include the following information so we can review your company for inclusion in the database:

1. Company name and website address

2. Business owner name and contact information

3. Physical address

4. Short company description

5. Services provided to retailers (ie wholesale, dropship, and/or affiliate program)

6. Minimum order requirements for wholesale

7. Dropship fees, if any

8. International shipping policy

We appreciate your interest and are dedicated to communicating with all our suppliers regularly to ensure that both they and our customers are are being connected in profitable relationships.

If at any point you decide that you would no longer like to be listed in our directory, we will remove you and refrain from providing your company information to retailers.

dropshippers

Dropshipping 101

The first step of starting  dropshipping business is to find a great supplier for your products.  Unfortunately, it’s not easy to find a quality supplier.  There’s no Yellow Pages for the real professionals, and there are a boatload of scam artists and middlemen masquerading as legitimate dropshippers and wholesalers.  They make their money off membership fees and selling you products that are too expensive for you to resell for a profit online.  How can you avoid middlemen and find a quality dropshipper or wholesaler who will provide you with products that will allow you to make money online?

If it sounds too good to be true, it probably is.

There are plenty of supposed dropship or wholesale suppliers who will allow anyone to sign up and who promise to supply thousands of different products.  If there are no restrictions to sign up with them, they are probably not a legitimate business.  A real wholesaler must by law get your Reseller’s Permit and Tax and ID number, otherwise, they are not allowed to sell you products tax-free for resale.  If they don’t bother to do this, they are probably actually selling you products retail and calling it wholesale.  The fact that they have thousands of products of all types isn’t a good thing either.  It’s impossible that they are manufacturing or even importing all these products themselves.  More likely they are purchasing their products from dozens of different suppliers and reselling them to you.  Thus, they are a middleman, not a legitimate supplier.

Don’t dropship with the Invisible Man.

If the company seems to have no history with the BBB or other agencies, no successful online businesses they are currently supplying, and no physical address where their warehouse is located, you are probably in communication with a scam artist.  A legitimate dropshipper or wholesaler shouldn’t be evasive or sketchy about their business details.  One of the biggest red flags is if they refuse to give you product information until after you pay some kind of fee.  A real dropshipper/wholesaler will send you a pdf file with all their products and prices, or provide a login to a reseller’s website.  Prices and products are only kept secret when they are not really provided at wholesale prices or when they don’t exist at all.  Which brings me to my third point:

Finding a dropshipper shouldn’t be like buying a gym membership: don’t pay hefty sign-up fees.

You should also never pay an exorbitant fee to sign up with a supplier.  A small processing fee of less than $20 isn’t unreasonable, but anything over that is the sign of a scammer.  Don’t confuse sign-up fees with dropship fees: many dropshippers charge a dropship fee, but that is to cover shipping costs and is only charged when products are ordered and shipped.  Dropship fees usually range from $1-15 per order.  Wholesalers may require minimum order amounts, but again this is not a sign-up fee – the money is used to purchase products, not pay the supplier.

Manufacturers are your goal.

The person you really want to buy your products from is a manufacturer.  In some industries that isn’t possible and you are required to purchase from a distributor.  Middlemen are your last resort.  It’s possible to make money buying and selling products from a  middleman, but more often the cut they take won’t allow you to make a sufficient profit.  Your goal is to buy straight from the source, the manufacturer.

Use a reliable source to find suppliers.

You may get lucky and find a good supplier through a Google search or a free directory, but every Tom Dick and Harry has access to the same free sources you do.  Most legitimate suppliers don’t post their information online because they don’t want to be hassled by a bunch of would-be entrepreneurs.  Your best bet is to find real dropshippers and wholesalers is to pay for access to a quality database.  If you decide to use Wholesale Match’s database, our Research Team will do the work for you.  We also guarantee that you will make the cost of your membership back within a year, or we will refund the annual membership fee in full (as long as you give us the opportunity to work for you at least once a month).

dropshippers, finding suppliers, wholesale

You need ideas for products you can sell online for gadzillions of dollars in profit.  I get a bizarre pleasure out of making lists.  Thus was born the third installment of Products You Can Sell Online For A Profit.  The following are products that we here at Wholesale Match have many, many dropship and wholesale suppliers for.  As always, these products need appropriate targeting and marketing in order to be successful: nothing is guaranteed.

photo credit: Bill Hails

Product Ideas:

African products
Baby Boomer products
BBQ sets and marinades
Beer-themed products
Cake decorating supplies and equipment
Children’s dress-up clothes (costumes)
Chocolate-dipped fruit
Christmas ornaments and wreaths
Collegiate sports-themed products
Diabetic products
Doll clothes
Egyptian products
Fancy aprons
Fancy robes (bathrobes, kimonos, etc.)
Flags
Fondue sets
Freeze-dried camping/emergency food
Geriatric care products
Gloves and scarves
Gourmet cookies
Gourmet popcorn
Greek products
Henna kits
Hiking products
Japanese Anime products
Journals
Juggling supplies
Karaoke equipment
Laptop bags
Left-handed products
Mailboxes
Manicure and pedicure supplies
Maps
Masks
Moccasins
Model trains
Musical instruments
Native American jewelry and belt buckles
Nightlights
Obama products
Products made from a particular material like cedar or stone
Puppets
RC toys
Robotic toys
Rock hunting supplies
Roller derby supplies
Scales
Science kits
Security and nanny cameras
Sorority and fraternity items
Swords and armor
Tarot, Astrology, and Palmistry supplies
Tea and tea sets
Tie-dye kits
Tropical/vacation clothing
Unusual or hand-made board games
Vegan products
Walking sticks and canes
Water bottles
Weightlifting supplements and protein shakes
Wind chimes
Wine accessories

photo credit: TheMarque

If you would like a list of dropshippers and/or wholesalers for any of these products, simply submit a Research Request to the Wholesale Match Research Team by logging into the website, clicking on the Suppliers button, and scrolling down to the lower left-hand side of the page where it says “Can’t Find What You’re Looking For? Submit A Research Request”.  Our Research Team will email your results in 1-3 business days.

Product Ideas, dropshippers, dropshipping, product research, wholesale

Finding a great supplier is one of the most important steps in setting up your online business.  Whether you’re looking for a dropship or wholesale supplier, I would advocate using Wholesale Match, since we have thousands upon thousands of quality dropshippers and wholesalers in our database, and we add new ones every day.  The Research Team will actually go out and find new suppliers for you if you haven’t found what you’re looking for in the database.  But even after we find you some solid potential suppliers, you’re going to have to do the work to get set up with them, including contacting the suppliers, setting up an account, and negotiating your terms.  The following are some common pitfalls would-be online business owners often encounter while getting set up with suppliers:

First: Explain clearly what you’re looking for when you call a potential supplier. I can’t tell you how often people call the customer support line and say, “You sent me a supplier for ping pong paddles, but I called them and they don’t dropship.”  Then the customer service team calls the supplier back to see if their policy has changed, and in fact they do dropship.  What goes wrong?  Often when somebody calls a potential supplier, they don’t really explain what they’re looking for.  Some companies dropship every day, but aren’t familiar with the term “dropshipping”.  Some will tell you that they only wholesale, but they have no minimum and can ship to any address, so they are in effect actually a dropshipper.  Communicate with your potential supplier, and take the time to learn about their company.  Don’t just ask one or two questions and then hang up the phone.

photo credit: alicepopkorn

Second: Be prepared to use more than one supplier. For convenience sake, many people want a supplier who can provide them with all their products in one place.  So if you were selling, say, meditation stones, yoga mats, and seaweed facial masks, you might expect your supplier to stock all those items.  However, they might carry only yoga supplies, or only spa items like seaweed masks.  You might have to use two or three or even six or ten suppliers to get the range of fantastic products you’re looking for on your website.  Sometimes you’ll get lucky and find a supplier who carries everything you want at a great price, but usually you’ll find a better deal shopping around, using a few different suppliers.

Third: Have your business plan ready long before you start supplier-shopping. Do your product research, plan exactly how you’re going to market your website, and have your budget laid out.  That way, when you finally call a supplier, you’ll sound like a professional and they’ll be excited to work with you.  Imagine for a moment that you were a distributor of soccer cleats, and some random guy called you and said, “Hey, I’m thinking about maybe selling soccer stuff online, but I dunno, I might do golf.  But probably soccer, at least for now.  Wanna supply me with cleats?”.  Not likely.  While most suppliers are happy to start a partnership with a new retailer, they want to work with solid entrepreneurs who have their stuff together.  They may ask you questions about your projected sales volumes, credit score, website, etc., and you need to be able to answer intelligently.

Fourth: Get your Reseller’s Permit and Tax ID Number. A lot of people try to get around obtainng their Reseller’s Permit and Tax ID Number by using suppliers who don’t require them, but the best suppliers want proper documentation, and anyway, it’s the law.  Spend the time and the little bit of money it will cost you: it’ll save you a mountain of problems later on.  A Reseller’s Permit is required to purchase products tax-free for resale purposes, and a Tax ID Number is necessary to submit your taxes at the end of the year.  If you want your online business to be successful, treat it like a real business and set it up properly, without taking short cuts.

Fifth: Be prepared to pay initial order costs. If you want to start an online business, you need capital.  Some e-business newbies believe they will be able to get their website up and running and start selling products for $100 or less.  The truth is, there are going to be additional costs.  One of these costs might be initial orders from suppliers.  While many dropshippers have no fees to sign up and will allow you to ship individual orders, others require you to make a large initial order or put down a deposit before they’ll work with you.  This is rare, but more common with certain categories of products like clothing.  After your first $100-500 order, suppliers are usually willing to do single orders, or a much smaller volume.  You could choose not to work with suppliers who require a deposit or larger initial order, but unfortunately you would be cutting out some of the best dropshippers and wholesalers.

dropshippers, finding suppliers, wholesale

Many people setting up a dropshipping website or selling on eBay would prefer to use a single dropshipper to supply all their products.  Using a single supplier is convenient because it simplifies your business operations.  Whenever a product is sold on your website or on eBay, you know exactly where you need to get it from.  Presumably, you are also choosing a dropshipper who you trust, who you can rely on.  This takes some of the stress out of your life.  However, there are benefits to using more than one dropshipper.

Benefit #1: Increased Selection. While some dropship suppliers offer a wide range of products, the best ones usually do not.  That’s because the best dropshippers are usually the manufacturers or direct distributors of a certain product, like cake-decorating kits or cowboy boots.  They don’t also supply pet products and hunting gear and kitchen sinks.  Sometimes it’s totally fine to have a website that only sells one product, like posters, but you might want to supplement your website with other products that mesh well with your original product, like t-shirts.

photo credit: brownpau
photo credit: Beige Alert

Benefit #2: Reliable Supply. Should something go wrong with your first dropshipper, say, they run out of stock on certain items, or worse, go out of business entirely, you don’t want your entire online business to be crippled.  Using multiple dropshippers means that you’re not totally dependent on your single supplier.

Benefit #3: Experimentation and Competition.  If you only ever use one dropshipper, how will you know you’re getting the best deal on your products?  If you have a couple of suppliers for the same product line, you might be pleasantly surprised when one offers you a bigger bulk discount or a bonus for sales volumes.

photo credit: CrotchSplay

I’m not saying you should get a dozen different suppliers, because that definitely would make life complicated.  It’s a good thing to build your business around two or three really solid dropshippers.  But if you want to branch out and add another two or three when you’re ready, I don’t think that’s a bad thing.  In terms of selection, supply, and experimentation, it can be very beneficial indeed.

dropshippers, eBay

Dropshipping is an expanding marketing system in the US: every day more manufacturers and distributors are joining the ranks of companies who dropship their products to retailers.  It’s a symbiotic relationship that benefits both the manufacturer/distributor and the retailer.  The manufacturer/distributor is able to sell more of their products because they have other retailers promoting and selling them.  The retailer is able to sell products online without spending a lot of money upfront or carrying inventory.  They only buy what they’ve already sold, so they’re never stuck with excess merchandise and are spared the costs of storing and packing products.

The following is a list of questions people frequently ask about dropshipping:

photo credit: amboo who?

Do I have to pay to set up an account with a dropshipper?

No, most dropshippers do not charge any money to set up an account with them.  Some may have a small administration fee, less than $20, but even that is rare.  If they are trying to charge you to set up an account or to simply view their discounted prices, they are probably not a legitimate dropshipper.

What do I need to set up an account with a dropshipper?

Requirements vary by company.  Some dropshippers require you to have a reseller’s permit or tax ID number.  People try to avoid getting their reseller’s permit and tax ID number, but this limits who you can work with (the best suppliers require it), and isn’t legal anyway.  Anyone who resells products is supposed to have a reseller’s permit and tax ID number (the former allows you to avoid paying taxes on the goods you purchase for resale and the latter is necessary to pay your taxes at the end of the year).  You can apply for them through your state agencies and they are not particularly expensive or difficult to get.  Some dropshippers will also expect you to have your website set up, or at least a URL you can give them even if it’s not operational yet.

How do I know if a dropshipper is legitimate?

The quality of their website and customer service is a good indication.  The best dropshippers are those who manufacture the product themselves (no middleman), though profit can also be made working with a distributor who purchases directly from the manufacturer.  This is particularly helpful when the manufacturer is located in Asia and you don’t want to deal with customs and language issues.  A legitimate dropshipper offers products at a significantly discounted rate and does not charge exorbitant fees to sign up with them or to ship the products.

What kind of profit margin can I expect working with a dropshipper?

Your profit won’t be quite as large working with a dropshipper as it might be buying from a wholesaler.  Most wholesale companies offer their products at approximately 50% of retail.  Your dropship profit margin might be closer to 75%.  The important thing is that once all dropship fees, shipping costs, etc., are taken into account, you are making an acceptable amount of money off each sale.  An “acceptable amount” is an individual decision – only you can decide what your time is worth.

photo credit: hickoryhollow113

Are there any other fees associated with dropshipping?

Again it varies company to company.  Some dropshipping companies charge you exactly the cost of shipping, others add a $3 or $5 fee per order to cover storage and packing.  As long as your profit margin is still satisfactory, fees are acceptable, though obviously not desirable.

Can I negotiate with dropshippers?

Definitely.  If you can present them with a compelling business plan or just impress them in general, they may give you a better deal than the average Joe.  Many dropshipping companies provide volume discounts or better prices to retailers they have worked with for a long time.  It’s not out of place to ask for a better discount or a smaller dropship fees as long as you are not too pushy about it (you don’t want to lose the supplier entirely).  It’s better to try this after you’ve successfully sold their products for a few months.

How do I contact a dropshipper?

Make sure you’re prepared when you call the company (calling is better than emailing unless they specify that they prefer the latter).  Dropshippers don’t have to do business with you, and if you don’t impress them with your professionalism and organization, they probably won’t.  They stand to lose money working with you, so you have to prove your reliability.  At the very least, you should have a business name and a business plan in place.  Having a website semi-set up is also helpful (obviously you need the dropshipper and their products to set up your website entirely).

What if a dropshipper won’t work with me?

You can’t make them, but you can certainly try.  If they don’t respond to your phone call or email, than try again.  Be persistant.  If they seem hesistant once you get them on the phone, than convince them.  Show them the benefit to their company of working with you.

What if I find a product I want to sell, but the company doesn’t dropship?

Not all companies dropship.  More are starting every day, but there are some elite brands and huge companies that dropshipping doesn’t make sense for.  It works better for small to medium-sized companies who are trying to grow their sales and exposure, not a high-end brand like Apple that already has plenty of exposure and is trying to protect its elite status.  If you find a company who has a great product you really want to sell, you may be able to convince them to dropship.  Like I said above, show the benefit to their company.

Once I have an account set up with a dropshipper, what happens next?

Usually when you set up an account with a dropshipper they will provide you with a catalog and/or images and descriptions of their products.  You post these images and descriptions on your website or on eBay.  When a customer makes a purchase, you take their payment, then order their product from the dropshipper.  The product is shipped directly to the customer, and you keep whatever is left over after you pay the dropshipper.

Will the customer be able to tell the product came from someone else?

Some dropshippers provide “blind” dropshipping – either the package is blank/nondescript, or the package and packing slip have your business name printed on it.  Other dropshippers do not provide this service.  Sometimes the package has your company name on it, but the packing slip has the dropshipper’s name.  You have to verify with the dropshipper exactly what their procedure is.  Some customers may be annoyed if they realize the package came from a different company than they expected and others won’t care as long as they got what they paid for.  They wouldn’t have bought the product if they didn’t think it was a good deal, so they probably won’t notice or care where it shipped from.

photo credit: B Rosen

Who handles returns and customer service?

Again, this varies according to the dropshipper, so check with the individual company.

How do I know what products to dropship?

Almost any product can be sold online for a profit.  The pertinent factors are how cheaply you can get it from a supplier, whether the market is oversaturated, and how you plan to market it.  Check out the blog posts “Products You Can Sell Online For A Profit” part 1 and part 2 if you are having trouble coming up with ideas.

Can a wholesaler be used as a dropshipper?

Yes, if a wholesaler has no order minimum, than you can order products as they are ordered from you, and have them shipped to the customer.  Sometimes wholesalers have no minimum, but they require a large initial order ($300-1000).  It might be worth it to make this large initial order if you are fairly certain the products will sell and you really want to use the supplier for smaller orders afterward.

How do I find dropshippers?

It’s not easy to find dropshippers using a search engine.  Many are nowhere to be found on the SERPs, and most of the top hits are databases, middlemen, or services that purport to set you up with suppliers (usually international manufacturers).  There’s nothing wrong with using a database; it will get you more results faster than you would find on your own.  But they usually cost money, so make sure you research your options before handing out your credit card information.  Obviously, I think Wholesale Match is the best database because we have a Research Team who will do the work for you, but by all means, check them all out before you make a decision.  After all, the quality of your suppliers in large part determines the success of your online business.

photo credit: Brooks Elliott

dropshippers, dropshipping, finding suppliers, product research

There are definitely pluses and minuses to using an international dropshipper or wholesaler.  Sometimes the latter outweigh the former.  But other times, with certain products, you have to be a little more adventurous in order to make a sustainable profit margin.  Really, it all comes down to how risk-averse you are.  If you want a stress-free business experience, an international supplier is probably not for you.  If you don’t mind taking a little risk for the possibility of greater reward, than an international supplier might be just what you’re looking for.

First: The Benefits. Using a dropshipper or wholesaler based somewhere like China or Thailand is likely to get you a product about as cheap as possible, which will often off-set the increased shipping costs and allow for a larger profit margin than with an American supplier.  A second benefit of international suppliers is that probably very few other Americans are using the same dropshipper or wholesaler, so you won’t be competing with other websites selling the exact same products.  International suppliers also provide products that are rare or impossible to get in the States, like authentic ethnic items and imitation products.  Finally, most Asian-based dropshippers are extremely anxious to build relationships with US-based sellers, in sharp contrast to some persnickety domestic suppliers.  Thus, they are usually very accomodating.

photo credit: ajagendorf25

Second: The Negatives. Selling with an international supplier is a lot more chancy.  Your experience will be as good as the supplier is, and it’s hard to tell ahead of time how reliable and sophisticated a foreign company is.  The main issues are the language barrier and possible customs/shipping hassles.  Also, the quality and consistency of the product is not always on par with American companies.  For instance, one of my associates makes a lot of money buying clothing from an Asian company and selling it on eBay.  She buys around 5-10 items of clothing at a time.  The items are good quality, but the sizes vary drastically.  She’ll buy two Smalls, and one will be tiny and the other quite large.  This isn’t a problem, because she simply posts them as Small and Large on eBay, but it could be a problem if you are dropshipping the item directly to your customer.  Also, some customers are annoyed when they purchase from an American company and the product arrives from Asia.  Many international suppliers provide blind dropshipping, but you have to check with the company as to exactly what this entails (for instance, sometimes a packing slip is still included).

How To Make It Work: The number one thing you have to do is strenuously research your potential international supplier.  The major players will be reviewed on sites like Dropship Forum (dropshipforum.co.uk) and Rateitall.com.  Here you’ll discover if other retailers have had negative experiences with the dropshipper you’re considering.

When you do contact an international supplier, have a list of questions ready and make sure you get them all answered – when dealing with a language barrier, it’s easy to get off track and neglect to have all questions answered fully.

You’ll want to cover the following bases:

1.Shipping Policy: Shipping is extremely important – even though you warn customers that shipping may take up to 2 weeks, they may get annoyed waiting and, if you’re selling on eBay, blast your rating.  If an international company can’t stick to a strict shipping schedule, ditch them and find somebody else.  Asian dropshippers are aware of this issue, and many companies now offer next-day processing to expedite shipping as much as possible, but it will still probably take about 10 days.  Check exactly how items are shipped, (blind or not blind), and how long it will take (the company should use reliable services like UPS, DHL, FedEx, etc.).
2.Fees: You will want to check if there are any fees associated with their service (order fees, monthly fees, etc.), and whether there is a minimum quantity of products you have to buy in order to get the best price.
3.Refund/exchange policies: When dealing with an international supplier, a 12 month guarantee is desirable and not unreasonable.  You’ll want to know if the company handles refunds and customer complaints themselves.  (You may want them to deal with it for your convenience, but keep in mind this will tip off your customer as to the real supplier of the product, and they quality of the customer care may be sketchy).
4.Quality Control: You are well in your rights to ask about the supplier’s quality control.  Ask how they maintain quality at the factory level and at the warehouse.
5.Promotional Materials: Will they furnish product descriptions, photos, etc.?
6.Catalog Updates: Make sure they update their catalog regularly so you’re not selling items they don’t actually have – they should email you if they run out of stock on anything.
7.Payment: Most dropshippers and wholesalers in China only accept payment by Western Union or wire transfer (really, this is all they can do – credit cards are under government restriction in China).  This method is not always secure – make sure the account is used solely for these kinds of payments.  Also, be aware of the cost of this kind of transfer – it can be as high as $15.  To protect yourself further, use an escrow service so they can’t take the money out until the product has arrived.
8.Samples and Tests. Quality companies which usually send you a sample order so you can test the quality of the product.  If not, order something yourself so you can get a run-through of the ordering, shipping, receiving process before you start using it on customers.  (Note: A lot of Asian companies ship all their products as “samples” since this avoids customs hassles if the quantity is a dozen or less.  Obviously this is not honest, but it is common).

Be Aware: Brand-name products from China are 99.99% guaranteed knock-offs/fakes/replicas, whether the company acknowledges it or not.  Some are made to look exactly like the real thing, while others are sold as unbranded alternatives- a phone that looks very much like an iPhone, for instance.  If you are purchasing a brand-name product from China, assume it is fake.

photo credit: simonlesleyphoto
photo credit: Davvyk

Some common products dropshipped from Asia include: computers, computer components, cell phones, mp3 players, lingerie, clothing, jewelry, watches, handbags, shoes, pet products, and electronics accessories of all kinds.

There are a lot of people who make money using international dropshippers and wholesalers, but there are others who have had obnoxious experiences and ultimately failed.  I would recommend reading the message boards to get some real-life examples of the kind of issues you might come up against (just Google “Using Chinese Dropshippers” and you should find some examples).

In my mind, the risk might just be worth it: I don’t mind a little drama if the profit is there.  Only you know how much excitement you can stand.  If you do use an Asian supplier, you’ll have to exercise your due diligence even more than with a regular dropshipper or wholesaler.  If you are interested in checking out international suppliers, simply specify your interest in your Research Request to the Wholesale Match Research Team.

dropshippers, finding suppliers, pricing and profits, wholesale

Let’s say it’s your life’s ambition to dropship exercise bikes.  You know there are thousands, maybe millions of other products out there, but you want to dropship exercise bikes and nothing else!  But let’s also pretend that there are no dropshippers for exercise bikes (actually, there are plenty, but we’re in the middle of a hypothetical situation here).  What does this mean?  Are you doomed to live a life of deep frustration, dropshipping yoga mats and boxing equipment and never fulfilling your true calling with exercise bikes?  Not a chance!
If there is not currently a dropshipper for your favored product, then you need to create a dropshipper.  And how does one create a dropshipper?

photo credit: kainr
Step One: Find another kind of supplier. This can be a manufacturer, a wholesaler, or simply an online retailer.  Find whoever on this earth is possessed of exercise bikes.
Step Two: Contact them. Email, telephone, or livechat with their operator.  Visit their office in person, if it’s at all feasible.  But find out who’s in charge, and get hold of them.
Step Three: Convince them to dropship to you. Some companies have never heard of dropshipping.  Others know what it is, but never had the motivation to do it before.  Convince them that dropshipping exercise bikes to you will be of benefit to their company.  Have some tentative sales numbers prepared, charm them with your professionalism and passion.

photo credit: papalars
Step Four: Have a backup plan. If the company is adamant that they will not dropship to you, then have a second plan of attack.  Consider wholesaling, or an affiliate relationship.  Try to negotiate some kind of discount or frequent-purchaser rate.  Most companies are flexible, especially when the ultimate point is that you want to buy/sell/promote their product.  Be persuasive, be persistent, if one company shuts you down, then move on to the next.  And don’t be afraid to use your resources here at Wholesale Match.  If dropshipping exercise bikes is your dream, then we’ll help you make it happen, even if we have to get out there and pound doors with you.

dropshippers, dropshipping, finding suppliers, wholesale