[RECENTLY UPDATED] You can make money by employing a variety of methods, but nothing beats ecommerce, specifically dropshipping. In today’s digital landscape, many dropship companies are making fancy bucks with a minimum effort. How? Here’s everything you need to know about dropshipping companies and dropshipping suppliers so that you can begin your dropshipping journey without any trouble.
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- Dropshipping Statistics
- List of Top Dropshipping Companies
- List of Trusted Dropshipping Suppliers Based on Niches
- Frequently Asked Questions (FAQs)
What is Dropshipping?
The dropshipping business model is a supply chain management model where online retailers sell different products without having to manage their own inventory. They sell products as their own – that they purchase from various suppliers – on their dropshipping sites and earn handsome commission on arbitrage.
The dropshipping companies work as a bridge between global suppliers and customers. Once a customer places an order and pays the sum against the desired product, dropship companies provide the order information to suppliers who then dispatch the product from their warehouse to the customer directly.
History of Dropshipping
The dropshipping business model became popular in 2006, when AliExpress began to explore the USA market. At that time, many businessmen were unaware of the dropshipping business model, however, some curious entrepreneurs took the first steps and came up with online stores. Soon, more people began to jump on the dropshipping bandwagon, and this ecommerce business model became an instant hit.
Today, dropshipping is a highly profitable business model, as it allows you to start an online store with little to no investment at all. AliExpress offers millions of products at reasonable costs – thus allowing you to sell them on a higher price and make handsome profit for yourself.
Let’s dig deeper on how to start a dropshipping store.
There are two dropshipping platforms that work like a charm. If you’re new to the world of dropshipping, they will allow you to maximize your online store’s potential with a user-friendly interface. They are Shopify and WooCommerce.
Both the platforms hold their fair share of pros and cons. Shopify is great for people who are about to begin their journey, and do not have in-depth knowledge of code development. But it may become costly if you want to scale up your online store. It is still worth all the trouble.
WooCommerce on the other hand, is a free WordPress plugin. You may have to pay for a plugin such as AliDropship or WooDropship if you don’t prefer the manual technicalities. However, it also allows you to begin without any plugins, but the process may become complicated since you need to work with a number of development codes.
Here’s how you can start your very own dropshipping company using either of the two platform(s) without any trouble, and further scale your online store to generate better profits.
There are various pros and cons of dropshipping. It has proven to be beneficial for many entrepreneurs, but at the same time, many weren’t able to utilize its potential in full.
Regardless, we thought it would be great to put some dropshipping stats on the table so that you can make an informed decision.
According to Statista, the five largest countries with highest ecommerce and dropshipping market share in terms of revenue in 2018 were:
|China||US $636.09 billion|
|USA||US $504.58 billion|
|UK||US $86.45 billion|
|Japan||US $81.7 billion|
|Germany||US $70.35 billion|
Moreover, according to Magenticians, following are the top 10 ecommerce companies of 2019:
|1. Amazon||6. Rakuten|
|2. Alibaba||7. Home Depot|
|3. eBay||8. Flipkart|
|4. Jingdong||9. Zalando|
|5. Zappos||10. Otto|
Furthermore, according to Statista:
- In 2017, ecommerce retail sales across the globe amounted to US $2.3 trillion and are likely to grow up to US $4.88 trillion in 2021.
- 1.66 billion people around the world had purchased goods online.
- The ecommerce retail sales accounted for 10.2% of the global retail sales in 2017.
- During 2017, a customer, on average, spent $1800 in the US and $1600 in the UK for making an online purchase.
- A 2017 survey stated that 11% of online shoppers purchased goods online via smartphone on a weekly basis.
- During the third quarter of 2018, 1.84% of global ecommerce website visits came from Android devices which were later on converted into purchases.
- The gross B2B merchandise volume of ecommerce transactions amounted to $7.66 trillion in 2017.
- Nearly 57% of shoppers purchased goods online from an overseas retailer during 2017.
- The ecommerce market revenue in 2018 amounts to US$504.58 billion.
- It will show an annual growth rate of 7.8% amounting to US$735.36 billion by the year 2023.
List of Best Dropshipping Companies in 2021
Dropshipping companies are free to work with various industries. Hence, it is important to evaluate dropshipping suppliers based on their offerings and public reviews.
To give you a head start, here are top five general dropshipping suppliers along with their pros and cons, thereby helping you to decide with which suppliers you must work. These ecommerce stores offer millions of products and have been successfully catering to dropshipping companies from around the world.
Spocket is an ideal platform for sourcing US dropshipping suppliers with the benefit of branded invoicing. It features a forever-free plan with large amount of Etsy based products for higher quality, unique goods.
The highlight of Spocket is the majority of suppliers are US or European based so your customers can receive their order much faster than from Chinese suppliers; some items can arrive in as little as 2-5 business days.
Branded invoicing allows you to keep your brand consistent throughout the sale, fostering customer trust.
Though the products are quality, it doesn’t have the quantity of other platforms so you may not find the exact item you are looking for.
This is a wholesale supplier directory that connects dropshipping companies with dropshipping suppliers allowing them to grow together. Although it offers an array of products, it is not available for free.
This platform charges $67 annually against sign-up, but also offers a 60-day money back guarantee, so if you’re unsatisfied, you can claim your money back.
Startup Lessons from Simon Slade, Founder of SaleHoo
He developed a directory that has over 8000 suppliers from around the world.
Generally, the dropshipping suppliers are responsible for managing the inventory. Dropshipping companies neither have to stock merchandise nor they have to worry about the packaging or the postage of the product, as suppliers have to take care of it all.
Another benefit of SaleHoo is that it connects dropshipping companies with more than 8,000 legitimate dropshippers. There is no criteria of a minimum order which allows dropshipping companies to offer more choice to their customers.
SaleHoo’s market research lab allows dropship companies to know which products are the best-selling on the market and can be taken advantage of.
When it comes to disadvantages, dropshipping companies may face a sudden stock shortage with SaleHoo. They may sell the goods online on their dropshipping sites, but when it comes to fulfil that order, shortage of stock from suppliers is never a good news.
When the dropshipping suppliers mess up, dropshipping companies are the ones that bear the blame for the mishaps. Once again, bad reputation for your brand.
This is an excellent platform for dropshipping companies. It offers millions of products with a free sign-up. Dropshipping companies have an array of product categories to choose from on AliExpress platform, such as electronics, apparel, footwear, DIY, accessories, cosmetics and much more.
The best part about this platform is that it offers millions of dropshipping products at cheap prices so that dropshipping companies can re-sell them at a higher price and enjoy better profits.
It also allows dropshipping companies to sell a product globally with free shipping, so you neither have to pay, or have to calculate the shipping costs with every transaction.
You know what they say, all that glitters is not gold. Along with the advantages, there are various disadvantages that don’t allow dropshipping companies to grow up to their potential.
For instance, false advertisement is a crucial concern that many dropshippers have to face. At times, the customers do not receive the product they paid for. The quality or the size of the product varies from the advertisement and hence, trouble for dropshipping companies.
Furthermore, although AliExpress offers free shipping worldwide, the delivery time period may vary anywhere between one week to 60 days. Also, returns or exchanges may become a hassle which is harmful for your brand reputation.
This marketplace works as an umbrella for various suppliers and manufacturers. Doba allows you to work with an arsenal of products relevant in your industry, and create your own custom list of dropshipping suppliers.
One of the advantages of working with Doba is that their website is simple to navigate. It also provides educational resources on dropshipping that can allow you to scale your dropshipping company with ease.
Moreover, it’s easy to customize inventory, and the integration between Doba and 100+ shopping carts allows faster uploading of products as well. Additionally, you will get fewer inventory notifications as a precaution against overselling a product.
If you own a dropshipping company, you must remember that Doba’s subscription plans are not cheap. Their membership can cost you anywhere between $60 to $90 per month, depending on which plan you opt for.
Furthermore, unlike AliExpress, Doba offers expensive products which means lesser margin of profit. Not only that, expensive products also make it difficult to compete on major platforms.
This platform is more of a supplier integration system. It allows dropshipping companies to opt for millions of products listed by hundreds of dropshipping suppliers. You can sell them on eBay, Amazon, BigCommerce, Shopify or even on your own dropshipping site.
Their plans include various listing tools that allow you to upload products with a few clicks. You can save time by refraining from manually copying and pasting product details.
Unlike other platforms that even charge for viewing catalogs, Wholesale2B allows its users to freely view their suppliers and products for free. It offers affordable plans and reliable carriers such as FedEx, USPS, UPS and DHL.
On the down side, depending on the dropshipping suppliers’ policies, you need to pay a 20% restocking fee if your customer decides to return the product.
Also, they do not have many support channels which means you can only contact them via live chat or ticket requests. Having an email or a phone number for support would have been more convenient, especially in case of an emergency.
#6 Worldwide Brands
This comprehensive directory of dropshipping companies and suppliers allows them to exchange products in bulk. Every week, they update their list(s) with new dropshipping suppliers and ensures that each and every one of them is reputable and reliable. To gain access to this directory, you must pay a one-time fee of $249 only.
There are no restrictions on minimum number of orders. Worldwide Brands offers a huge variety of product selections. Dropshipping suppliers undergo strict verification processes before they appear in their directory, which eliminates counterfeiters and other fraudulent companies.
It allows you to manage your business with multiple suppliers from one centralized location. Also, where products are over-saturated, some amongst them offer a smaller profit margin, and some products can also cost you money.
This makes it difficult to generate profits by selling products on platforms like eBay or Amazon. Most dropshipping suppliers ask for a resale certificate when dropshipping companies place orders in a bulk quantity.
Dropified is a dropshipping software that offers automation tools to import different suppliers’ products onto your store. Dropified is compatible with various ecommerce platforms including WooCommerce, BigCommerce, Shopify, and a few popular others.
With Dropified, you get the option of a 14-day free trial to test out its features. If the dropshipping sites don’t work well with you, you can get your money back within 30 days. If in case you’re stuck, you can connect with their team through multiple support channels.
There are processes that can be better automated to make your life easier. Furthermore, it lacks a FAQ section, so you’ll have to look for the solutions to your query on discussion forums and online communities.
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DHGate is a popular dropshipping company. The website facilitates online buyers and sellers in connecting and purchase products. The interesting part here is that you can buy in small wholesale lots even if you order a single item.
DHGate dropshipping store has a built-in escrow service that protects the buyers and sellers. It’s easy to order and the payment gateway is secure. Additionally, you have the option to join their VIP Club and enjoy greater kickbacks.
DHGate is a popular dropshipping store and has multiple suppliers especially in categories of electronics and fashion apparel. Most of the vendors in the said category use the same stock images for products, which makes choosing a product in these categories difficult for customers.
#9 WholeSale Central
The WholeSale Central is a Connecticut-based dropshipping company that offers business-to-business service. You can see many wholesale dropshipping suppliers who wish to connect with retailers on this website.
The website is absolutely free to use and easy to navigate. The focus of Wholesale Central is to help wholesalers find retailers.
The dropshipping suppliers here are very limited, hence finding suppliers can be difficult and time-consuming. The website uses an obsolete model, which is why Wholesale Central doesn’t offer any integration and selling tools.
Modalyst is a business-to-business dropshipping company that curates a large list of dropshipping suppliers that deliver fast to the United States and Europe. You’ll find a lot of branding here that’s done by suppliers because they invest efforts in creating and delivering high-quality and premium products.
Modalyst operates on standardized procedures and automated systems, so tasks like tracking are easy to do. You’ll have access to a dashboard, through which you can skip all the paperwork. This dropshipping company handles the return policy and commission rates with its suppliers. Here, the supplier ships products either to the company or to the customers.
On the flip side, Modalyst can be costly when it comes to profitability. On every transaction, there’s a 5% fee if you’re using the free plan, however, this transaction fee decreases when you pick a premium plan. There’s a 60% payment to brands on their products’ MSRP, independent of the selling price. Shipping times and shipping costs can vary, which can be a disadvantage to your customers.
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Ecommerce and Dropshipping Market Share by Revenue
The ecommerce industry – since the inception of dropshipping – has made tremendous strides across the world. With promising numbers, we bring you the top five dropshipping niches with respect to the revenue generation during 2018 according to Statista.
It would be wise to opt for those product niches that have proved their potential in the previous years. Nonetheless, before we proceed to the product niches, let’s take a look at the average spend per user specifically from USA in order to get an idea of your individual customer’s budget of online spending.
List of Trusted Dropshipping Suppliers Based on Niches
#1 Toys, Hobby and DIY
Toys, Hobbies and DIY is an excellent niche for dropshipping companies. It has proven its potential by gaining the number 1 spot on the chart of market share by revenue for the year 2018.
When it comes to selecting dropshipping suppliers who offer a variety of quality toys, we have shortlisted a few who have been operating smoothly for quite some time now, and are trusted vendors for toys. They are:
The above-mentioned dropshipping suppliers offer a collection of various toys and products that cater to personal hobbies. There are a lot of customers across the globe who search for gifts and toys for their loved ones. It’s about time you tap and cash-in this market.
#2 Electronics and Media
The revenue generated by this niche during 2018 was US $105.33 billion. If you’re interested in working with the suppliers of electronics and media products, here are the top dropshipping suppliers in this category. Their various tech products will allow you to offer trending electronic gadgets to your customers.
Tech products gain traction rapidly. You can find popular and best-selling products with these suppliers, and can scale your business profitably. Tech gadgets offer a good profit margin, and their demand is on a constant rise. Float your boat with trending products to sell, and create steady revenue streams with multiple online stores.
The fashion industry tends to provide promising results time and again. During 2018, it was able to generate a revenue of US$ 102.82 billion. There are various products you can sell if you opt for the fashion niche, and to assist you further, here are the top dropshipping suppliers in the “Fashion” category for you.
These fashion mongers sell everything there is that people use in their daily routine. From a vast variety of apparel for both men and women, they also offer shoes, accessories, hats, jackets, nightwear, and suits etc.
#4 Furniture and Appliances
Although it may not seem like a profitable one, furniture and appliances niche generated a whopping US$ 79.4 billion in revenue during 2018. One cannot ignore such numbers. Furthermore, the profit margin in this niche can be quite fruitful. If you wish to offer such products, you must check out these top dropshipping suppliers in the “Furniture and Appliances” category.
The above-mentioned names are amongst the most popular furniture vendors. With the latest designs and quality material, they can help your customers furnish their homes with ease.
#5 Personal Care
Women love to shop beauty products online. This niche generated nearly US$64.1 billion in revenue during 2018, which shows a high demand in personal care products. There are numerous suppliers working in this niche. Here are a few top dropshipping suppliers in the “Personal Care” category that are worth considering.
They offer a large number of beauty and cosmetic products. Women can use an array of quality products when it comes to their personal care. From nail polishes to makeup, they offer everything there is a woman can think of.
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Bonus Tips: Best Dropshipping Plugins
If you wish to thrive and become successful in the rapidly growing dropshipping industry, you must get your hands on the best dropshipping plugins and tools that will not only save your time, but will also help you generate steady streams of revenue.
#1 AliDropship Woo
This plugin was developed exclusively for dropshippers who wish to work with AliExpress. AliDropship automates the entire dropshipping process for entrepreneurs. All you need to do is to select a couple of products on AliExpress and this plugin will automatically add them to your dropshipping store. It also offers a built-in photo editing software which can help you remove watermarks and logos from the product images. The downside is that it isn’t available for free. You will have to pay $89. You can use this plugin on one website per license.
#2 Inventory Source
This plugin automatically uploads products, syncs inventory and route orders with dropshipping suppliers directly from your online store. With 180+ integrated supplier network, you can find trusted dropshipping suppliers.
You can automatically upload products and images from the dropshipping suppliers you’re working with, directly on to your website. Also, you can customize product categories and pricing with simple controls. You can also filter brands, product categories, pricing range, low-stock merchandise, products without images, and many other settings with this dropshipping plugin.
It allows you to set or change your pricing within seconds, reflecting how many products your store sells. Moreover, you will also get daily inventory feed monitoring and automatic price, quantity and status update, right from your suppliers to your website
#3 Abandoned Cart
Almost 70% of your visitors will abandon the cart at some point. This plugin helps bring most of them back by using multiple retention strategies. It emails them from time to time reminding them of the products which they have added to the cart but have never bought.
It also analyzes abandoned cart ratio and compares with recovered cart ratio. After that, it stops sending emails when those customers have made the purchase from your online store.
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MemberPress is an ideal plugin if you’re interested in selling subscription-based products or services. It offers a variety of integration options, and can easily connect with third-party services.
It is powerful, as it allows you to control user access levels and content restrictions. Only users – with the access – will be able to go beyond restrictions. It is a beginner-friendly plugin, and can easily extend with addons allowing you to scale your dropshipping ecommerce store at your will.
On the downside, MemberPress only supports PayPal, Stripe, and Authorize.net as its payment gateways. Their pricing plans are available on annual terms only. Nonetheless, it is the perfect ecommerce plugin to sell membership-based products and services.
#5 Pixel Caffeine
Majority of the dropshipping companies are now wise enough to use retargeting techniques to sell their products effectively. Facebook has made retargeting even easier, as the products start appearing on the wall of all those who have visited your online store.
But one problem with retargeting is that the promotions are shown to everyone. Pixel Caffeine solves this, as it helps in customizing product promotions for each visitor. It is a free plugin, and can work efficiently with your dropshipping store.
Hopefully, you have a clear path in your head now. To assist you further, here’s a list of 150+ trustworthy dropshipping suppliers who can facilitate you in any product category you need.
Do remember, it is wiser to practice amongst the best-performing dropshipping niches for now, however, feel free to experiment with new products during the holiday season. Happy dropshipping!
Q1. How to find dropshipping suppliers in 2021?
You must ensure the following aspects to find out the best dropshipping suppliers for your online store:
– Research about them
– Contact relevant suppliers
– Order samples from them
– Order from the competitors
– Evaluate product quality, and select the right supplier for your business
Q2. Will dropshipping suppliers ship the products with my brand’s packaging?
Fortunately, many dropshipping suppliers offer branding services, once dropshipping companies have reached their minimum purchasing quantity. However, most entrepreneurs go with small quantities, and find it difficult to start their own brand due to quantity restrictions.
Nonetheless, there are plenty of fish in the sea. Research and contact them in order to find out whether they are able to cater to your request. Rest assured, most of them will.
Q3. How to build a healthy relationship with your dropshipping suppliers?
There are numerous ways to build and maintain a steady, prosperous relationship with your dropshipping supplier(s), only if you’re willing to work for it. Nonetheless, a few things to always remember are:
– Pay them as soon as possible
– Check in with them
– Be friendly with their representatives
– Give them an ample time to deliver goods
– Share your insights with them
– Address issues as soon as they arise
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