What Is Dropshipping? Beginner’s Guide to Starting In 2026

Dropshipping is a business model in which stores do not keep the products they sell.

Instead, the store may resort to dropshipping to sell its products. 

This is done when the store purchases from a third party and ships the product directly to the customer.

It means that the seller does not have to handle the product directly.

In addition, many people tend to confuse the dropshipping business model with standard retail, assuming they mean the same thing. 

However, the main difference between these two terms is that the selling party does not own or stock inventory.

Instead, the seller is obliged to purchase the inventory needed from the third party, usually a manufacturer or wholesaler, to fulfill the orders.

How Dropshipping works on Shopify

There are two most common approaches for dropshipping on Shopify.

The first approach is to use the supplier database to find a supplier in North America or anywhere globally. 

The database should list the locations of different suppliers. The second approach involves looking for a Shopify app that connects you and your store directly to thousands of suppliers online.

For example, you want to start an online sneaker shop but lack the capital to buy stock. With a dropshipping business, you create a store on Shopify, which offers a 14-day free trial as you build it.

Using an app called Oberlo, you import product details from AliExpress (the leading dropshipping site) directly into your Shopify store via the Oberlo Chrome extension.

The Oberlo Chrome Extensions import the following:

• Product original name as entered by the suppliers
• The actual product price based on the different variants
• Product default Descriptions
• Product Images 
• Product Features

If the sneaker you sell in your shop is $19.99 on AliExpress, you can change the product price and details using Oberlo.

Oberlo allows you to do the following after importing the product to your shop:

• Enables you to edit product images (remove aliexpress store branding and logos)
• Allows you to set up a new product price
• Let’s you add a custom product description
• You can also edit product variants and other elements
• When you are satisfied, you can then push the product to the homepage of your Shopify store.

We will cover this in detail later; meanwhile, let’s move on.

Oberlo is recommended because it is developed by Shopify to help independent business owners find products to sell. 

Using Oberlo also gives you the added advantage of browsing AliExpress Products.

Oberlo started as a dropshipping app that allowed dropshippers to select products on aliexpress and then import them to their stores.

But after Shopify acquired it, it has since integrated many features.

You can decide to only use Oberlo verified suppliers instead of aliexpress suppliers.

On the Oberlo dashboard, you can browse products across different niches and view sales analytics to see what is moving, trending, or slowing down.

With the above judgment, you can make a clear decision about the niche you want to choose.

It lets you import products that catch your attention directly from AliExpress into Shopify with just one click. 

This is easier since Oberlo is connected to your Shopify store. You are required to install the Oberlo Chrome extension that allows you to import products from aliexpress to Shopify with one click.

The extension works only in Google Chrome and takes a few seconds to install.

I made a step-by-step guide to installing Oberlo in the Chrome browser. Check it out here. 

After a customer has bought a product, you can fulfill their order through the Oberlo app.

The good news is that Oberlo automates this process, saving you the hassle of doing everything yourself.

As a store owner, all you have to do is check whether the details in the app match the client’s details and are written correctly.

After confirmation, you can proceed to the “order” button.

The ordered product is then sent directly from the AliExpress supplier to the customer.

This transaction takes place regardless of where the customer may be in the world. 

Benefits of Dropshipping

Most enterprises, especially entrepreneurs, prefer the dropshipping business model because of its accessibility.

Using dropshipping gives you the upper hand to test different business ideas, with limited disadvantages.

In addition to that, you also learn more about how to choose products and what is demanded in the market. Dropshipping is a prevalent business model because of the following reasons. 

Dropshipping requires minimal capital.

The main reason most people and enterprises prefer dropshipping is that it requires minimal capital to get started.

Dropshipping allows you to launch an online store without investing thousands of dollars in inventory upfront.

Before dropshipping, retailers were forced to set aside significant capital by purchasing inventory in advance.

In addition, you do not have to purchase a product when using dropshipping unless you have made the sale and the customer has already paid. 

You can start sourcing products and launch a successful dropshipping business with very little money.

Furthermore, since you are not committed to selling through any inventory purchased upfront, you face minimal risk when starting a dropshipping store.

It is easy to get started.

Operating an online business is much more comfortable, especially when you do not have to deal with physical products. When using dropshipping, you do not have to worry about;

• Packaging and shipping of the orders.
• Managing and paying for a warehouse.
• Keeping track of your inventory so that you can account for every single product.
• Handling returned goods and inbound shipments.
• Continuous ordering of products and managing stock levels. 

Low overhead

Using dropshipping keeps overhead low, as you do not have to purchase inventory or manage a warehouse. 

Most successful dropshipping businesses in the market are run as home-based operations. All you need to make this work is a laptop and a few recurring expenses.

As your business grows, costs are likely to increase, but they are still relatively low compared to those of traditional brick-and-mortar businesses. 

Flexible location

Unlike traditional business models, which require a physical store, a dropshipping business can operate from anywhere.

All you need is a stable, fast internet connection to keep business operations as smooth as possible.

Communication is critical, and as long as you can easily communicate with customers and suppliers, you can run the business smoothly from anywhere.

A wide selection of products to sell

Since you do not have to buy the items you sell, you can offer trending products to your potential customers.

Moreover, if the supplier puts an item in stock, you can add it to your online store and list it for sale. 

Easier to test

Since dropshipping is easy to use, it is also easier to test its efficiency. 

This is because dropshipping is a practical fulfillment method that can be used to launch a new store and for existing businesses looking to test their customers’ preferences and appetite for additional product categories.

The main benefit of using dropshipping is its ability to list and sell products before you fully commit to buying a large inventory. 

Easier to Scale

With traditional methods of doing business, you will do more work in line with the number of orders that you receive. 

For instance, if you receive three times as many orders, you will likely do three times as much.

However, by leveraging dropshipping suppliers, most of the additional order processing is handled by the suppliers. This allows you to expand with minimal work and fewer growing pains. 

Increased sales growth will always bring additional work to the business. This is especially true when it concerns customer support.

On the other hand, companies that use dropshipping scale more easily than with traditional eCommerce methods. 

Disadvantages of dropshipping

The above benefits of dropshipping are essential for businesses looking to expand their existing product offerings and anyone who wants to start an online store. 

However, anything that has an advantage also has a disadvantage. Some shortcomings of dropshipping you should consider include the following. 

Low margins

Low-profit margins are the most significant disadvantage of operating a business using dropshipping. 

This is because the business method is highly competitive. Since it is easy to start a dropshipping store, many people choose it for its low overhead costs. 

Many competitors will set up shops and sell items at lower prices to increase revenue.

This makes it very difficult for online stores to succeed with dropshipping, since customers are also looking for affordable, high-quality products.

Since they have invested little in dropshipping, they do not mind making small margins. 

The most common thing with these sellers is that they often offer poor customer service and low-quality websites. Now, this is where you can come in and make a difference between those sellers and you.

You should know that poor customer service and a low-quality website will not stop customers from comparing the processes of these sellers and your prices. 

The good news is that you can reduce this problem by selecting a well-designed niche for dropshipping. 

Inventory Problems

If you are stocking your products in a warehouse or store, it is easier to track the products that are out of stock. If you are getting your goods from multiple warehouses, including fulfilling orders for other merchants, inventory can change daily.

Luckily, in modern times, many apps allow you to sync with the suppliers.

Dropshippers can “pass along” orders to a supplier with a few clicks. This will enable them to see, in real time, how much inventory the supplier has. 

The Oberlo app also allows merchants to take automatic actions when the supplier’s stock is zero.

When a product is no longer available, you can unpublish it so that it no longer appears on the page. Alternatively, you can keep the product published while automatically setting its quality to 0. 

Shipping Complexities

Most dropshippers work with multiple suppliers. This also means your online store’s products will be sourced from multiple dropshippers. This creates complications with your shipping costs. 

For instance, if a customer places one order for three items, and each item is available only from a different supplier, you will be forced to incur three separate shipping charges to send each item to the customer. 

Errors from the supplier

Everything done by human beings, and even by machines, is prone to error.

Even the best dropshipping suppliers make mistakes when fulfilling orders.

You have to take responsibility for your mistakes and apologize. Low-quality suppliers are also likely to cause endless frustration with missing items. 

In addition, they are expected to use low-quality packaging, which can damage the business’s reputation.

Limited branding and customization

Dropshipping does not give you too much control over the product itself. This is unlike custom-made products or those printed on demand.

Typically, the dropshipped product is designed and branded by the supplier. 

Furthermore, some suppliers can accommodate product changes in your business. Even then, the supplier still has the most control over the product.

Any changes to the product require a minimum order quantity to keep the product affordable for the manufacturer.

Common questions about dropshipping

Most people have different questions about dropshipping and the steps needed to make it successful.

Some frequently asked questions about dropshipping and how it works include the following: 

How much does it cost to start a dropshipping business?

It is hard to have the exact cost of starting a dropshipping business. However, there are some items that every person involved in a dropshipping business will need to spend money on to get started. Some estimated costs for starting a dropshipping business include the following: 

Online-store:

The estimated cost for an online store is $29 per month. All you have to do is find an eCommerce platform or a website builder to create and host your online store.

The recommended store is Shopify. Using Shopify and the Oberlo app gives you the upper hand for effortless product sourcing. 

In addition to that, you will also get access to the full selection of themes and additional free branding tools to get your business up and running faster.

You can sign up for a 14-day free trial of Shopify and start your journey.

Domain Name:

Every online store needs to have a domain name. The estimated cost for a domain name is $5-$20 a year. You can build trust with your customers quickly by having a domain name.

There are many domain names in the market, for instance, XYZ.shop or xyz.co. These are some of the top-level domain names that almost every business is using. 

However, it is recommended that you use a domain name such as xyx.com, which fits your brand well.

You can choose a brandable domain name, making it easy to switch between niches without worrying about buying a new domain.

If you are planning to sell or create a one-product store, you can search for a one-product domain name related to your product.

The same formulae apply when choosing a niche or a general store name.

You can buy domain names on Shopify for around $14 per year, or use Namecheap, which sells the same domain names for only $10. Here is a Namecheap link.

When it comes to Shopify’s domain name, you can connect an existing domain name by changing your domain name CNAME and host records.

The domain will point to the Shopify platform, and you can make it your primary domain even if you bought it from another platform like Namecheap.

Test Orders:

Dropshipping businesses require test orders. However, the cost of test orders varies because dropshipping requires less involvement in managing the product catalog. Yet, you should set aside some cash and time to test the products that you intend to sell. 

Testing a product before selling is important because it allows you to identify its shortcomings and defects before putting it out. 

Sending products with defects will only cause customer dissatisfaction, which, in turn, will harm your business.

Online advertising:

Online advertising helps grow businesses because people spend most of their time online and on social media—the cost of online advertising scales with your company.

However, it is recommended that you budget with at least $500 to get started. Every online store should look for ways to reduce its average customer acquisition cost across different channels. 

These channels may include SEO, content marketing, and word of mouth, among others. However, to get started, advertising is an essential medium for most product-based businesses.

Search Engine Marketing (SEM), social media ads, display ads, and mobile ads are the most common channels used.

How do dropshippers make money?

This is one question that many people who want to start a dropshipping business ask.

Their primary concern is how they will make money from doing this business.

Dropshipping involves selecting the right mix of products to market to customers. Marketing is essential for any business, and it is a cost that must be incurred in both money and time. 

This means you will spend a given amount on marketing your products while also spending some time doing the marketing. This is to help potential customers find, evaluate, and buy the right product.

In addition, customer support costs are included whenever there is a product or shipping issue. You also have to account for the original price at which a supplier sells the product. 

All overhead costs must be accounted for, meaning a dropshipping business charges a fee for distributing individual products.

Suppliers feel comfortable when dropshippers market their products because all costs and transactions are accounted for. 

Therefore, to make a profit from your dropshipping business, you should determine how much it costs to “acquire” a customer. You should then price your products with the acquisition price in mind. 

Is dropshipping a legit business?

Dropshipping is a business model used by many retailers worldwide, making it a legal business. 

The main aim of any business is to provide customer satisfaction and build a brand that the customers will easily resonate with. This is what guarantees a company’s long-term success. 

Many people question whether dropshipping is a legal business simply because they misunderstand how the industry works. 

Most retail stores in the market do not sell products they manufacture. 

Dropshipping, in this case, involves taking this approach and turning it into a fulfillment model suitable for different online businesses. 

Furthermore, there are some requirements and fundamentals you need to operate a business legally.

Before starting any business, you should consult a lawyer specializing in such matters to ensure you are conducting the business legally and in compliance with your region’s laws. 

Is dropshipping worth it in 2020?

2020 has been the year of challenges, especially since the emergence of COVID-19. How businesses operate has shifted with people no longer going to their places of work and forming social gatherings. As mentioned above, dropshipping is not a perfect and stress-free way to build an online business. It has pros and cons, all of which one should consider before resorting to this type of business. The truth is that to start any business, you require hard work, determination, and dedication. With careful planning, most of the challenges that come with dropshipping can be resolved so that they do not prevent you from building a business that thrives and is profitable. 

Understanding the Supply Chain and Fulfillment Involved in Dropshipping

The supply chain is a standard business term for the process and path a product takes from the time it is made to the manufacturer’s hands and finally to the customer.

Some supply chain experts insist that a product’s supply chain extends to the mining of the materials used to manufacture it. 

However, in this guide, we will discuss only the three most applicable players in the dropshipping supply chain. These key players are manufacturers, wholesalers, and retailers. Let’s look at them in detail.

Manufacturers

Manufacturers are responsible for creating products, but do not sell them directly to the public. After they manufacture the products, they sell them in bulk to wholesalers and retailers.

The advantage of buying a product directly from the manufacturer is that it is the cheapest way of acquiring products for resale. However, there is a minimum purchase requirement you must meet to buy these products from the manufacturer.

You also need to stock and re-ship the products when selling to customers. This is why it is easier to buy a product directly from the wholesaler.

Wholesalers

Wholesalers are businesses that buy products directly from manufacturers. They slightly mark these products higher and sell them to the retailers. Retailers are then responsible for reselling these products to the general public.

If wholesalers also have purchasing minimums, they are relatively low compared to manufacturers’. Most wholesalers stock products in dozens, and even hundreds, and they tend to operate in specific industries.

Most wholesalers already have business relationships with retailers, and when they obtain goods, they send them directly to the retailers. 

Retailers

A retailer is responsible for selling products directly to the public at a marked-up price. 

Dropshipping is a service.

Many people think that dropshipping is a role, but in reality, it is a service. You might have noticed that a dropshipper is not among the key players in the dropshipping supply chain. 

This is because the manufacturer, wholesaler, and retailer can all act as dropshippers. For instance, if a manufacturer ships its products directly to customers, it is dropshipping. This is similar to the wholesaler-retailer relationship.

However, the retailer’s price will not be as competitive as the wholesaler’s, since it does not buy directly from the manufacturer. Many people assume that, as a dropshipper, one will sell goods at wholesale prices.

This means a company has taken on the responsibility of shipping the products directly to the customer on your behalf. To get the best product prices, you should work directly with a legit wholesaler or manufacturer. 

The order process involved in Dropshipping.

Now that you are familiar with the key players in dropshipping, let’s look at how a drop-shipped order is processed.

To illustrate, we will place an order with a general store, a phone outlet, or an online merchant specializing in smartphone accessories. The phone outlet dropships all its products directly from the wholesaler. In this case, below are the steps that the order process takes.

Step 1: The customer places an order with the phone outlet

For instance, Mr. Allen needs a new phone case for his smartphone and places his order through the phone outlet’s online store. Once the order for the latest case has been approved, there are a few things that happen;

• Both Mr. Allen and the phone outlet will receive an automatically generated email notification of the new order. The email notification is likely to be identical. 
• The payment made by Mr. Allen is captured during the checkout process and will be automatically deposited into the phone outlet’s account. 

Step 2: The phone accessory outlet places its order with its supplier

Once the phone outlet store has received the email notification, it will be forwarded to the sales representative at the wholesale accessories shop.

At this point, the wholesale accessories have the phone outlet’s credit card on file. It will then bill it for the wholesale price of the goods, inclusive of shipping and any other processing fees.

Some dropshippers prefer using the XML format, a standard for inventory files, or the ability to place orders manually online. However, email is the most common way to place universal, easy-to-use orders for any dropshipping supplier. 

Step 3: Wholesale accessories ships the order

For instance, if the item in question is in stock, and the wholesaler successfully charges the phone outlet’s card, the wholesaler will be responsible for boxing up the order and sending it directly to the customer. 

Although this shipment comes from wholesale accessories, the phone outlet’s name and address will appear on the return address label, and the outlet’s logo will appear on the invoice and packaging slip.

Once the shipment process has been finalized, the wholesale accessories will email an invoice and shipment tracking number to the phone outlet. 

N/B: The turnaround time on dropshipped orders is always faster than anticipated. 

The majority of the quality suppliers will be able to get an order out the door in a few hours.

It allows merchants in this transaction to advertise same-day shipping, even when using a dropshipping supplier. You can learn more about everything you need to know about ePacket and dropshipping. 

Dropshippers are Invisible

Even though a dropshipper has a critical role in the ordering and fulfillment process of an order, they are entirely invisible to the end customer.

When the client or customer receives the package, only the phone outlet’s return address and the logo will be available on the shipment. 

For instance, if Mr. Allen receives the wrong case, he will contact the phone outlet at the address listed on the shipment. 

The phone outlets will then coordinate with the wholesale accessories behind the scenes to get the correct item and send it to the customer.  

To the end customer, the dropshipping wholesaler does not exist. The sole responsibility of the dropshipping wholesaler is to stock up the required products and ship them.

All other responsibilities, such as marketing, web development, and customer service, are the merchant’s sole responsibility.

How to find and work with reliable dropshipping suppliers and wholesalers

This is the most challenging task for any online business. Building trust with different suppliers and wholesalers is essential to ensuring that both the buyer and the seller benefit in the end.

However, before searching for suppliers, you need to know the difference between legit wholesale suppliers and retail stores posing as wholesale suppliers. 

As discussed above, genuine wholesalers buy their goods directly from manufacturers and offer them at significantly lower prices.

How to spot fake dropshipping wholesalers

Spotting fake wholesalers is very important, as it helps you know who to trust and who not to trust with your business. 

You are likely to come across many counterfeit wholesalers, depending on where you have based your search. 

Legit wholesalers are traditionally poor at marketing, and finding them is very difficult. This makes you more prone to encountering non-genuine wholesalers, who are usually middlemen. 

They will frequently appear in your searches, and that is why you should be cautious with every step you take. Below are some tactics that will help you determine when a wholesaler is not genuine.

They keep asking for fees. Fake wholesalers want ongoing costs. They tend to charge you every month to do business with them or order from them.

If a supplier keeps asking for membership fees or renewal fees, they are likely not legitimate.  

In this case, it is essential to distinguish between suppliers and supplier directories.

In this case, the supplier directories list all wholesale suppliers, categorized by product type and market, and are thoroughly screened to ensure suppliers are not fake.

However, most supplier directories will charge a fee, either one-time or ongoing, and this does not mean that the directory itself is illegitimate.

• They sell to the public.

As discussed above, retailers sell products directly to the general public. If you encounter a wholesaler who sells to the public, the chances are high that he is not legit.

To get accurate wholesale pricing, you will first need to apply for a wholesale account and prove that you are operating a legal business.

At this point, you will be approved before placing your first order.

Anyone claiming to be a wholesale supplier who offers goods to the public at wholesale prices is just a retailer offering products at higher prices.

Some of the legit dropshipping fees that you are likely to encounter in a dropshipping business include the following. 

• Pre-order fees

Many dropshippers charge pre-order fees ranging from $2 to $5 or more.

This depends on the size and complexity of the items being shipped. 

This is the standard rate since the cost of packaging and shipping individual orders is relatively higher than when orders are shipped in bulk.

• Minimum Order sizes

Some wholesalers have a minimum order size. This is the minimum order you must place for your first order. 

It is done to filter out window-shopping merchants who will end up wasting your time with questions and may not place small orders that are not helpful to the business.

If you are into dropshipping, these window-shopping merchants can cause some complications. For instance, what can you do if a supplier has a minimum order of $500, and your average order size is around $100? 

Trust me, you do not want to pre-order $500 of the product to get the privilege of opening a dropshipping account. 

What you can do in this situation is offer to prepay the supplier $500. This is done to build credit with them and apply it to your dropshipping orders. 

Doing the above allows you to meet the supplier’s minimum purchase requirement since you are committing to buy at least $500 of the product. You do not have to place a single large order without having any corresponding customer orders.

Finding wholesale suppliers

Getting hold of the best and reliable wholesaler supplier is very challenging, especially since almost all eCommerce businesses dropship.

In addition to that, now that you know how to spot a fake wholesaler, you can start your search for suppliers.

There are different strategies that you can use to contact your supplier, and some are more effective than others. 

Below are some effective methods, listed in order of preference and effectiveness, with the favorite method of finding suppliers listed first. 

Contact the Manufacturer

This is the most effective way to find a legitimate wholesale supplier. If you have an idea of the products you want to dropship, you can call the manufacturer directly and request a list of wholesale distributors. 

You can then contact these wholesalers to see if they dropship. Moreover, you can also inquire about setting up an account. 

Most wholesalers carry products from a variety of manufacturers. Using this strategy allows you to quickly source a selection of products within the category that you are exploring. 

After you have contacted the leading manufacturers, you will be able to identify the leading wholesaler. 

Use Oberlo

Oberlo is an app for Shopify that lets you easily import products from suppliers directly into your Shopify store. Then you can ship the product directly to your customer.

Features:

• Product customization.
• Imports products from the suppliers
• Automates the prices of products
• Fulfills orders automatically. 
• Provides auto-updates for inventory and price.

Search using Google

Google is mainly used for searching, and it may seem obvious that you can use Google to find high-quality suppliers. However, there are a few rules that you have to keep in mind, and they include the following;

• Search extensively. You have to search thoroughly for the wholesaler. This is because wholesalers are not good at marketing and promotion, and they do not rank highly in “wholesale suppliers for product x” searches. You will see different search results, and the wholesaler’s website will likely appear at the bottom.
• Do not judge by their website. It is common to find a wholesaler with a poorly designed website. Well, this shouldn’t be your basis for judgment, since many legitimate wholesalers have poor-looking websites. Do not let the poorly designed website scare you from getting what you came for.  
• Incorporate the use of keyword modifiers. Keywords give you access to different sites. The truth is, wholesalers aren’t doing enough SEO to ensure you find their websites. This is why you need to try out various search queries. Instead of focusing on “product wholesalers,” you can also use other terms such as “distributors,” “warehouse,” “resellers,” and even “suppliers.”

Order from your competition

If finding a new supplier is challenging, you can always use the old order from the competition trick. This works by finding a competitor you think is dropshipping and placing a small order with them. 

After you receive the package, you can look up the return address to identify the original supplier of the product. In most cases, you will find that this supplier is reachable. 

Attend a trade show

A trade show is the only place that you will connect with all the major wholesalers and manufacturers in the category. 

This is the best way to make contact with manufacturers and suppliers and research all your products in one place. 

However, this trick only works if you have selected your category and the product. 

But if you have the funds and time, attend the trade show to familiarize yourself with the major suppliers and manufacturers in the market.

Directories

The main question that people who aspire to be online business entrepreneurs ask is whether they should pay for the supplier directory.

A supplier directory is like a book that lists different suppliers and is organized by market, niche, or product.

In addition, many directories may resort to protective measures, such as screening, to ensure that the suppliers listed are genuine wholesalers.

For-profit companies run most supplier directories, and users pay a fee to access them.

Membership directories are beneficial, especially since they enable one to brainstorm different ideas. However, they are by no means necessary. 

This is because if you already know the product or category of products you want to sell, you are in a position to find major suppliers in the market with a bit of digging and use the techniques discussed above.

If you start a dropshipping business, you are unlikely to use the directory unless you want to find a different supplier for other products. 

Supplier directories are essential because they allow you to quickly search for a large number of suppliers in one place. Furthermore, you can brainstorm product ideas to sell or determine the categories to enter.

If you are also running out of time and are willing to spend some cash, directories come in handy. 

Different supplier directories are used in businesses. This guide lists some of the most well-known online directories. 

This is to give you various options to choose from and select the directory that works best.

Worldwide Brands

This directory has been in place for as long as possible. It advertises that it only consists of suppliers that meet a single set of guidelines. 

This is to ensure you are dealing with legitimate, high-quality wholesalers. 

This directory has proved useful, especially in finding real wholesalers and in brainstorming different product categories.

This directory contains a vast collection of legitimate wholesalers.

If you want lifetime access to the directory and you are comfortable with larger one-time payments, then this is the best directory to go with.

Quick Stats:

• This directory was established in 1999.
• It consists of thousands of wholesalers, making your search worthwhile.
• It has over 10 million products. The one-time price is $299. You do not have to pay anything again after paying once. 

SaleHoo

This supplier directory lists more than 8,000 bulk and dropshipping suppliers. It also seems to cater to merchants on eBay and Amazon.

One of the most compelling values about this directory is its annual price of $67, which includes a 60-day money-back guarantee. 

This is the best directory to go with if you are not straining to pay the yearly membership fee and only need to use it temporarily.

Quick stats:

• This directory was established in 2005.
• It costs $67 per year.
• It contains over 8,000 suppliers. 

Doba

This directory service integrates with other dropshippers, enabling you to place orders across multiple warehouses through a central interface.

The centralized system offers greater convenience and costs $60 per month. This fee is relatively high compared to other prices. 

Quick stats: 

• It was established in 2002
• Has a total of 165 suppliers
• Pricing is $60 every month. 
• It has over 1.5 million products. 

Before you contact the supplier

You can perform a cross-reference check, but before you start contacting suppliers, do the following.

• You need to be legal, and to do this, you need to be conducting a legitimate business/
• Understand that you appear, and if you are going to launch a new business, you need to know that the other suppliers will not go out of their way to get you going.
• Don’t be afraid of the phone. Many people fear taking the phone and making a call. Emails may work, but when you pick up the phone to ask a question directly, you are likely to get a quick response.

How to find suitable dropshipping suppliers

All suppliers are created equal, but some use tricks to distinguish themselves from the rest.

Good dropshipping suppliers tend to have the following attributes. 

• Expert staff and industry focus. Most rated suppliers have sales representatives who know what they are doing and are familiar with the product industry.
• Good suppliers also have dedicated support representatives. They are responsible for handling various questions and responding to customer feedback.
• Good suppliers are also those who have heavily invested in technology. 
• Good dropshipping suppliers can also take orders via email. This makes this process time-saving.
• It is centrally located. A centrally located dropshipper can ship orders faster to different parts of the country.
• An excellent dropshipping supplier is also organized and efficient. You can determine this by how they handle their orders, how quickly they ship items, and the quality of the packaging when the item arrives.

There are two primary payment methods that most suppliers expect you to use.

Credit Card

Most suppliers expect you to make payments using a credit card. A credit card is still the primary payment option even after you have established a thriving business. 

Credit cards are convenient to use and fast, too, since you do not have to write checks regularly. 

Using a credit card also offers an added advantage: you earn reward points that may be useful later.

Furthermore, since you are buying a product the client has already paid for on your website, it is easy to rack up purchases on the credit card without spending any of your own money. 

Net Terms

This is another payment option that suppliers accept. ‘Net terms” on an invoice means that you have a specified number of days to pay the supplier for the goods purchased.

For instance, if you have “net 30” terms, you have 30 days from the purchase date to pay your supplier for the goods.

Usually, the supplier requires you to provide credit references before they offer net payment terms, because it is effectively lending you money. 

This is a common and secure way of transacting. Therefore, do not be alarmed if you have to provide documentation when paying on net terms. 

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