Whats the best platform to seek suppliers for dropshipping?

36 replies
There are many platforms out there with a lot of suppliers, i just don't know who to contact and what kind of products to go after, i can sell pretty much anything, i don't target a specific niche, i care more about the profitability of the product, i want to go for big profit margins and low volume instead of high volume and small profit margins. I plan to sell on ebay.
#dropshipping #platform #seek #suppliers
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  • Profile picture of the author affmarketer101
    I usually dropshipping from Aliexpress; DHgate, Banggood.
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    • Profile picture of the author Shanks88
      Originally Posted by InternetMarketingMadeEZ View Post

      AliExpress is definitely my first choice.
      Its good if you are using shopify combined with oberlo but what if you sell on ebay? how long does it take to deliver a product? also does the package indicates that the product came from china and aliexpress? Lastly can you contact the seller and ask him for a discount? in that case how do you sell the product? do you send the order through email to the seller?

      Can you suggest any free automation software?
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  • Profile picture of the author dave_hermansen
    AliExpress is definitely not he place to go if you are looking for high profit products, which is definitely different than high profit margins. A product you sell for $10 but buy for $2 is a large margin but it still only nets you $8, so you are going to have to sell a whole lot of them to make any kind of decent money. A product with a low profit margin may very well make you a whole lot more money - like something you buy for $850 but sell for $1,000. So, which is it? Are you trying to have a high profit or a high profit margin?

    If it is margin, sure, stick with the cheap (in every sense of the word) products on AliExpress. If it is high profits you are after without regard to the margin, there are no true dropship suppliers or directories (although there are a few that are glad to take your money and claim they are). The only way to get those type of products is to call the brands, themselves, and see if they will dropship for you. If not, they might be able to give you the contact information for large buyers or distributors of theirs who will dropship.
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    • thank you for your comment ,but when i call the brand (factory ) to give me the large distributors contact information ,this distributors would love to take amount from him not piece by piece .if item cost 50$ he will prefer to sell 10 item together rather than 1 item only.
      what can we do for this?
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      • Profile picture of the author dave_hermansen
        Originally Posted by Mohamed abdelaziz View Post

        thank you for your comment ,but when i call the brand (factory ) to give me the large distributors contact information ,this distributors would love to take amount from him not piece by piece .if item cost 50$ he will prefer to sell 10 item together rather than 1 item only.
        what can we do for this?
        Find another distributor or try a different brand. Usually, you''ll eventually find a distributor that will dropship for you if you keep making calls and when you do, they often will carry many of the brands that you couldn't get before. You just have to keep calling and calling until you completely run out of places to call. Sometimes, but not all that often, you can't find a supplier and you have to choose another niche. If it was easy, everybody would be doing it and there would be way too much competition. Part of being successful is sometimes doing something others have not been able (or more accurately, "willing") to do.

        Tell them you will pay an extra $10-15 processing fee, which is what many brands/distributors charge extra for dropshipping. The fact is, if they have a returns department, they are already dropshipping things one at a time for customers who need to exchange things. You are not putting any extra burden on their system than what is already in place.

        In some cases - especially ones where we already KNOW we are gong to be able to sell the products pretty quickly and that there is little risk - we have told suppliers that we will buy 10 right now but we still want them to dropship them one at a time and they almost always will do that.

        Of course, I'm talking about how things work in the U.S.A., where both manufacturers and distributors have gotten used to dropshipping over the past decade. Things may be much different in the rest of the world.
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        • Profile picture of the author Shanks88
          Originally Posted by dave_hermansen View Post

          Find another distributor or try a different brand. Usually, you''ll eventually find a distributor that will dropship for you if you keep making calls and when you do, they often will carry many of the brands that you couldn't get before. You just have to keep calling and calling until you completely run out of places to call. Sometimes, but not all that often, you can't find a supplier and you have to choose another niche. If it was easy, everybody would be doing it and there would be way too much competition. Part of being successful is sometimes doing something others have not been able (or more accurately, "willing") to do.

          Tell them you will pay an extra $10-15 processing fee, which is what many brands/distributors charge extra for dropshipping. The fact is, if they have a returns department, they are already dropshipping things one at a time for customers who need to exchange things. You are not putting any extra burden on their system than what is already in place.

          In some cases - especially ones where we already KNOW we are gong to be able to sell the products pretty quickly and that there is little risk - we have told suppliers that we will buy 10 right now but we still want them to dropship them one at a time and they almost always will do that.

          Of course, I'm talking about how things work in the U.S.A., where both manufacturers and distributors have gotten used to dropshipping over the past decade. Things may be much different in the rest of the world.
          How many products should you aim to list when you are starting out? this is assuming you call the suppliers and sell for better prices etc and is one supplier enough? also what is the standar discount % you aim for?
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          • Profile picture of the author dave_hermansen
            Originally Posted by Shanks88 View Post

            How many products should you aim to list when you are starting out? this is assuming you call the suppliers and sell for better prices etc and is one supplier enough? also what is the standar discount % you aim for?
            Assuming we are still talking about the more expensive, non-AliExpress model, the number of products really is niche-dependent. We have sites that sell less than a dozen products and others that sell hundreds. The answer lies in whether or not you have a wider selection than people could find by going to a local brick and mortar store (if you don't, do not bother with an eCommerce store).

            All websites start with one supplier. Add their products and continue to call other suppliers. You'd be surprised how many suppliers who may have already said "no" will suddenly want to be on a website when they see their competitors' products on your website. Companies do not want to feel like their competitors' have an advantage.

            Again, we do not aim for a standard percentage; we look at profits. Normally, high priced products have a lower profit margin than lower priced products. Also, some niches - like consumer electronics - are notorious for having bad margins. The profit margin varies widely across product niches but a good guess when trying to figure out what to sell is about 20%. If something sells for $500, you can estimate a profit of about $100 (it may be lower or higher but it is a good guess when first starting out). I wouldn't bother with anything that was 10% or lower. You need at least 15% in order to pay for advertising, profit fees and, of course your time and effort.
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  • Profile picture of the author Shanks88
    I have one question but i won't make another thread for it since i already made too many.

    Is dropshipping a variance free business? when i say *variance free* i dont neccesarily mean not making money for an X period but can a bad turn of events bring you down below your initial capital? is there a risk of ruin in this business like in a poker game assuming you are working alone without employes to pay?

    I read somewhere that some people lost several thousands when a postal service messed up a delivery of their products. This kinda worries me.

    What appeals me into this business model is that you don't risk any money, i rather not mess with another high variance business, variance is a hell.
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    • Profile picture of the author dave_hermansen
      Originally Posted by Shanks88 View Post

      I have one question but i won't make another thread for it since i already made too many.

      Is dropshipping a variance free business? when i say *variance free* i dont neccesarily mean not making money for an X period but can a bad turn of events bring you down below your initial capital? is there a risk of ruin in this business like in a poker game assuming you are working alone without employes to pay?

      I read somewhere that some people lost several thousands when a postal service messed up a delivery of their products. This kinda worries me.

      What appeals me into this business model is that you don't risk any money, i rather not mess with another high variance business, variance is a hell.
      Your supplier is ultimately responsible for the arrival of a package. That said, in more than a decade of doing business and probably more than 100,000 orders, we have never had a package not arrive. That doesn't mean there aren't scam artists out there who will claim it never arrived, which is why you should strongly consider signature delivery - especially on more expensive orders. You should also consider using a fraud protection service like NoFraud or Signifyd. They guarantee orders for a small percentage so that if there is a chargeback, THEY have to pay for it, not you.

      You can lose money if you do not know what you are doing with advertising but that is something you have control over. Other than that, your only other cash outlays are minimal - the cost of your domain and your monthly shopping cart hosting fees.
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  • Profile picture of the author cearionmarie
    You can get better deals with aliexpress. Despite what others say about it, it's a rather decent platform to use.
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  • Profile picture of the author micjustin33
    Well for decent profit its actually depend what niche your are targeting and how much profit margin are there in your targeted products well I usually prefer fast moving consumer products either their profits margin are low but with a good number of sales you can get good amount of accumulated profit margin. However shipping process is really an issue with Aliexpress because they ship products from china although Oberlo is a very good app which give you simple eCommerce dropshipping solution.
    Check This guide : https://www.withintheflow.com/oberlo-review/
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  • Profile picture of the author Laracraft Lara
    There are such a significant number of variables that should be considered while picking dropshipping providers. When you choose which items have a decent benefit potential, you have to ensure that the providers you pick are dependable.
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  • Profile picture of the author Shanks88
    Is it required to give your tax id to your dropshipping supplier? and if so why?
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  • Profile picture of the author Rose Anderson
    In the U.S. you usually need to have a tax ID and resellers permit to buy from any wholesaler. But different countries have different rules.

    Rose
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    • Profile picture of the author Shanks88
      Originally Posted by Rose Anderson View Post

      In the U.S. you usually need to have a tax ID and resellers permit to buy from any wholesaler. But different countries have different rules.

      Rose
      I got denied by some US manufacturers because i didn't have a reseller licence, so is it illegal for me to do business with US manufacturers even though i live on another country?
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      • Profile picture of the author dave_hermansen
        Originally Posted by Shanks88 View Post

        I got denied by some US manufacturers because i didn't have a reseller licence, so is it illegal for me to do business with US manufacturers even though i live on another country?
        It's not illegal; it's just that they don't want the sales tax collection and remittance burden shifting to their company. If you don't have a resale certificate, it means that they have to collect and remit any sales tax that might be due for things they send to your customers.

        Many suppliers aren't set up for that because they do not sell to consumers. They have plenty of other companies in the U.S. that do have sales tax certificates asking them to be their supplier. You just create more work for them that U.S. businesses do not.

        The only way around that is to set up an LLC in the U.S. and get a tax certificate for that LLC.
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  • Profile picture of the author IGotMine
    Whats the best platform to seek suppliers for dropshipping?
    None of them.

    If a site offers drop-shipping to the general public then you'll find the products offered being sold on Amazon and Ebay for less than the "drop-ship price."

    The only way to make drop-shipping truly profitable is to have an exclusive source.
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    • Profile picture of the author dave_hermansen
      Originally Posted by IGotMine View Post

      None of them.

      If a site offers drop-shipping to the general public then you'll find the products offered being sold on Amazon and Ebay for less than the "drop-ship price."

      The only way to make drop-shipping truly profitable is to have an exclusive source.
      Actually, you do not need an "exclusive" source, You need to go to the very top of the pyramid and see if they will dropship for you. There are tons of manufacturers who will now dropship directly to your customers. If they won't, you go one tier down and see if you can dropship from the Brands' actual distributors. That is very different than signing up with a drop-ship directory that provides fake retailers who are pretending to be wholesalers.
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      • Profile picture of the author Shanks88
        Originally Posted by dave_hermansen View Post

        Actually, you do not need an "exclusive" source, You need to go to the very top of the pyramid and see if they will dropship for you. There are tons of manufacturers who will now dropship directly to your customers. If they won't, you go one tier down and see if you can dropship from the Brands' actual distributors. That is very different than signing up with a drop-ship directory that provides fake retailers who are pretending to be wholesalers.
        Does this work for the regular dropshipper? e.g. i want to sell acer laptops, do you mean i have to contact acer itself? will acer ship orders one by one? dont these companies require to buy a lot of volume for a wholesale price? Also the actual distributors sell cheaper than your regular retailer?

        What niches work well with this model?

        Is it really impossible to make a competitive deal on aliexpress through alot of contacting and searching?
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        • Profile picture of the author dave_hermansen
          Originally Posted by Shanks88 View Post

          Does this work for the regular dropshipper? e.g. i want to sell acer laptops, do you mean i have to contact acer itself? will acer ship orders one by one? dont these companies require to buy a lot of volume for a wholesale price? Also the actual distributors sell cheaper than your regular retailer?

          What niches work well with this model?

          Is it really impossible to make a competitive deal on aliexpress through alot of contacting and searching?
          That's pretty much the process. You would call Acer and, in this case, they likely would not dropship but they might be able to point you to their huge buyers/distributors who quite possibly will dropship (if you ask nicely). Although it may seem like you will lose a bit as that distributor takes his cut, often times, the price you get from them is the same or better than what you could have gotten from Acer because you might only be able to buy 50 laptops and the distributor gets a better price from Acer because they buy 200 or 500 at a time. Even better, that distributor usually isn't carrying just one brand, so you can usually pick up quite a few brands with just one real distributor.

          It's easy to talk yourself out of success. The only way you ever really know is by trying. There are many product niches where pretty much every manufacturer dropships, one product at a time. Actually, it is pretty stupid for them not to. You'll hear excuses like "we are not set up to ship things one at a time" but that's a pretty lame excuse. All manufacturers have returns/exchange departments that ship things one at a time so of course they are already set up to do that.
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          • Profile picture of the author Shanks88
            Originally Posted by dave_hermansen View Post

            That's pretty much the process. You would call Acer and, in this case, they likely would not dropship but they might be able to point you to their huge buyers/distributors who quite possibly will dropship (if you ask nicely). Although it may seem like you will lose a bit as that distributor takes his cut, often times, the price you get from them is the same or better than what you could have gotten from Acer because you might only be able to buy 50 laptops and the distributor gets a better price from Acer because they buy 200 or 500 at a time. Even better, that distributor usually isn't carrying just one brand, so you can usually pick up quite a few brands with just one real distributor.

            It's easy to talk yourself out of success. The only way you ever really know is by trying. There are many product niches where pretty much every manufacturer dropships, one product at a time. Actually, it is pretty stupid for them not to. You'll hear excuses like "we are not set up to ship things one at a time" but that's a pretty lame excuse. All manufacturers have returns/exchange departments that ship things one at a time so of course they are already set up to do that.
            Do i have to call them? what about sending an email? will this pitch work?:

            Hi, My name is X and im interested to sell your products through dropshipping, do you Dropship? if not, can you give me the contact info of your main distributors?

            Thank you in advance.

            Am i too aggressive?

            If i close a deal, is it ok to ask if they refund in case something goes wrong? and obviously i will ask them for tracking postal service too.

            Also, many of these brands have branches on several countries, can i call or send an email to the one on my country? If i can call them on my country, it will be easier since i will be able to talk on my mother language, also i won't have to pay a lot on telephone bills, that's a pain but damn, there isn't a word for dropshipping on my language i think and when people ask you and you answer that you are a dropshipper, they don't understand what you are saying.
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  • Profile picture of the author dave_hermansen
    Calling works so much better than emailing. Nothing in the world is as easy to blow off as an email. Some of these companies get dozens of requests per week any many of the people are jaded because they know that 90% (or more) of the accounts they set up never order a thing from them. They see these requests and all of the paperwork as a colossal waste of time. At least if you call, you can convince them that you are not wasting their time and that you know what you are doing. You can establish some sort of rapport with them and get them to like you. People like to help people they like. Besides, they HAVE TO speak to someone who is on the phone with them.

    Also, we normally do not even mention dropshipping until later in the call, after they have already provided us with information and shown some interest in being a supplier. If they are not keen on dropshipping, we tell them that we are happy to buy in bulk later, but always start off dropshipping until we see which products of their move fast and have a better idea on how many we will sell. Once they agree to dropship, they never come back later and say "weren't you supposed to start ordering in bulk at some point?".

    You definitely want to contact whichever place is in the area that you will be shipping to. You don't want to call the U.S. branch if there is a European branch and you will only be shipping to Europe. We typically don't use the word "dropshipping" anyway. We tell them that we will need the products shipped directly to customers when we order them.
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  • Profile picture of the author yukon
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    Whats the best platform to seek suppliers for dropshipping?
    The best one is a manufacturer.

    Every person along the chain eats away at profit.
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    • Profile picture of the author dave_hermansen
      Originally Posted by yukon View Post

      The best one is a manufacturer.

      Every person along the chain eats away at profit.
      Very true almost all of the time. Occasionally, you find a real distributor in some niches who buys so much quantity, they have better wholesale prices than you could get by buying much smaller bulk quantities from the manufacturer, yourself, but it is pretty rare. There are also some niches where the manufacturers only sell to distributors (and not even directly to retail brick and mortar stores), where you really have no choice but to buy from the distributor, who becomes the top of the food chain (unless you have the kind of money to be a distributor, yourself).
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      • Profile picture of the author DURABLEOILCOM
        You could also use Oberlo Dropshipping as well as Dropified Dropshipping. They both have easy to use systems for starting out.
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        • Profile picture of the author dave_hermansen
          Originally Posted by DURABLEOILCOM View Post

          You could also use Oberlo Dropshipping as well as Dropified Dropshipping. They both have easy to use systems for starting out.
          Neither Oberlo nor Dropified are actual suppliers. The OP's original question seemed to be that they were looking for higher dollar profit items and not the high margin, low dollar profit items available from AliExpress that anybody can get (including your customers). I'd never think about selling high ticket items from AliExpress.
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          • Profile picture of the author Shanks88
            Originally Posted by dave_hermansen View Post

            Neither Oberlo nor Dropified are actual suppliers. The OP's original question seemed to be that they were looking for higher dollar profit items and not the high margin, low dollar profit items available from AliExpress that anybody can get (including your customers). I'd never think about selling high ticket items from AliExpress.
            I wonder, can i sell houses, cars, cranes or boats with this model? and how does the last three get delivered if someone buys? I should be able to contact a house seller or a company that sell cars and make a deal with them right? then list their houses or cars on my site, i can't think why this shouldn't be possible unless i need special permission from the company or the state.
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            • Profile picture of the author dave_hermansen
              Originally Posted by Shanks88 View Post

              I wonder, can i sell houses, cars, cranes or boats with this model? and how does the last three get delivered if someone buys? I should be able to contact a house seller or a company that sell cars and make a deal with them right? then list their houses or cars on my site, i can't think why this shouldn't be possible unless i need special permission from the company or the state.
              I suppose anything is theoretically possible. I'm pretty sure you'll have an incredibly difficult time trying to find a supplier who will dropship cars, cranes or boats, though. As far as shipping goes, you'd have to work that out with the supplier.

              I think you're aiming a bit too high when it comes to high ticket items. Imagine what the chargeback would be on a fraudulent car, crane or boat order, assuming you could ever find a payment processor who would ever process payments for something that expensive.

              Try aiming a bit lower - something $3,000 or less.
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  • Profile picture of the author ANTHONY2006440
    You could always start with AliExpress then work to find a different distribution channel
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  • Does anyone know a US based platform for suppliers?
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  • Profile picture of the author nvw112
    If you're looking for unique products and less sellers with those products, you best bet is to bypass the lists that are easily obtained and go straight to the manufacturer; just as another member suggested. Your profit margins would be better and you'd really be able to find better niche-related products. Just start with a Google search and look and also look locally --- obtaining a reseller's license would be beneficial, too.
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  • Profile picture of the author Shanks88
    Only one manufacturer answered out of the many emails i sent and that was for a really strange niche. It's probably easier to make a deal with a manufacturer who isn't a big name. My inability to call on the us and the fact that i don't live there or have any rep makes it almost impossible to make a deal with a popular brand.

    I don't know how it will end up with this manufacturer but if it doesn't work out, im considering to go for a small ticket strategy on aliexpress, it will be far easier to get started and it will allow me to make more sales and improve my feedback, i think shipping to the us is not that bad right? can anyone tell me how i can tell a manufacturer from a retailer there?
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    • Profile picture of the author dave_hermansen
      Originally Posted by Shanks88 View Post

      Only one manufacturer answered out of the many emails i sent and that was for a really strange niche. It's probably easier to make a deal with a manufacturer who isn't a big name. My inability to call on the us and the fact that i don't live there or have any rep makes it almost impossible to make a deal with a popular brand.

      I don't know how it will end up with this manufacturer but if it doesn't work out, im considering to go for a small ticket strategy on aliexpress, it will be far easier to get started and it will allow me to make more sales and improve my feedback, i think shipping to the us is not that bad right? can anyone tell me how i can tell a manufacturer from a retailer there?
      That's why I told you to call, not email. And, that's why the market is so much more wide open on larger ticket items. It's harder to get a supplier and most people quit before they really even try.
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  • Profile picture of the author Shanks88
    Yeah, ok i learned the hard way that emailing sucks, they still respond but they respond way too slow, someone responded to me after a week because he was on a trip, you don't really know what to expect and it takes forever to get started, most of them demand a phonecall after you email them anyway so it doesn't make any difference. I managed to find a supplier for one item on alibaba but that is because there is a live chat there, even then it took 2 days to get an answer.

    Is there a free way to make a phonecall through the pc? my telephone bills will not be kind if i do so many phonecalls to foreign countries.


    Edit: Nvm skype does it for only 10$ per month and its free for US phonecalls.
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  • Profile picture of the author habbott
    Plenty of people have already suggested Aliexpress, which has the widest range of products and suppliers. They are a safe choice to go with. However, if you want to do more research or if for whatever reason Aliexpress doesn't have a supplier that catches your eye, you can also try Oberlo Verified, Light in the Box, D&H, and A Better Lemonstand has a dropshipping supplier directory. As always do your own due diligence before ordering anything.
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