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It’s no secret that the ecommerce industry has been booming. As those trends continue to climb, the dropshipping market is following the same trajectory.
Dropshipping makes it possible for anyone to run an ecommerce shop without having to purchase, store, or ship inventory. Essentially, you can operate an ecommerce site from your couch without ever touching the products you’re selling.
But in order to do this successfully, you’ll need to find a dropshipping company to handle the logistics of fulfilling orders.
Whether you have an existing ecommerce business or you’re new to selling online, this guide will help you find the best dropshipping company for your unique needs. Continue below to learn more about my top recommendations and strategy for evaluating different options.
The Top 7 Options For Dropshipping Companies
How to Choose the Best Dropshipping Company For You
There are hundreds, if not thousands of different dropshipping companies on the market today. Without a buying guide to follow, narrowing down your options can seem like an insurmountable task. To make your life easier, follow the methodology that I’ve outlined below.
These are the factors that you should take into consideration as you’re researching and evaluating different dropshipping solutions:
Type of Dropshipping Company
Dropshipping companies come in all different shapes and sizes. So the first thing you need to do is determine what type of company will meet the requirements for your business.
Do you need a manufacturer? Wholesale supplier? Supplier directory? In some instances, you might just be looking for dropshipping software to facilitate your existing supplier relationship.
We’ll cover the types of dropshipping companies in greater detail shortly. This will give you a more detailed explanation of your options.
Next, you need to make sure that the company you’re considering supports your sales platform. It’s worth noting that not all dropshipping solutions are compatible with every ecommerce website.
For example, online stores using Shopify won’t necessarily be using the same dropshipping company as a business selling via eBay or Amazon. A brick-and-mortar retailer that wants to add an online sales channel won’t have the same needs as new business selling via Wix or WooCommerce.
So verifying the compatibility between your online sales channel and the dropshipping company’s logistics will be a great way to narrow down your choices.
In addition to the logistical benefits of dropshipping, you’ll also have access to wholesale rates. But like any type of inventory, those prices will vary from supplier to supplier.
Some dropshipping companies force you to pay a monthly or annual membership for access to wholesale pricing. In many cases, these membership fees are well-worth the discounts you’ll get as a result. But usually, the manufacturers will offer the best rates if you buy directly through them.
You’ll have to walk the line between what makes sense for your convenience vs. profit margins.
Industry and Products
What products are you selling? What are you planning to sell online?
The answer to these questions will definitely impact the dropshipping company you choose. If you’re selling shirts and hats, you probably won’t have the same dropshipping needs as an online store that sells computers, headphones, and other electronics.
Are you selling brand name products? Or will you be putting your own logo on inventory?
These are other questions to consider as you’re evaluating prospective solutions.
The best dropshipping companies leverage automation, which allows you to be as hands-off as possible.
You need to understand the logistics between how orders get processed from company to company. What happens after a customer buys something online? How does that order ultimately end up at their doorstep? The answer varies depending on the solution you choose.
In some cases, you’ll have to manually enter those order details from your own website to the dropshipping platform. But with an automated process, you won’t have to do anything. An online order will automatically be sent to the supplier without any extra steps on your end.
For those of you who already have relationships with suppliers, you can leverage dropshipping software to automate your fulfillment process.
Quality and Speed
Even though you’re not touching the products with dropshipping, your company is still responsible for the product itself.
The customer doesn’t care where the product came from or who shipped it. They expect high-quality products delivered quickly. If the dropshipping company you’re using takes weeks to ship and delivers defective products, it’s going to be a poor reflection of your company—not theirs.
So choose a company with an established reputation in this space. You might have to pay a little extra for the inventory, but it’s worth it to keep your customers satisfied.
The Different Types of Dropshipping Companies
As previously mentioned, there are different categories within the dropshipping space. Here’s a quick overview that explains each type of dropshipping company. This will make it easier for you to determine which type addresses what your business is looking for.
A dropshipping marketplace is an online platform with a network of different dropshipping companies. You’ll be able to facilitate your entire operation and manage the relationships between different dropshippers from a single place.
This is a great option for ecommerce shops that plan to sell products in different categories sourced from multiple suppliers. It’s also a great way to shop around and evaluate different companies from a single source of truth.
Going straight to the manufacturer is one of the best ways to get the lowest possible whole inventory prices—you won’t be going through a third-party.
However, not every manufacturer will be set up to facilitate dropshipping out of the gate. So you might need to use dropshipping software to manage this relationship. Another downside of using a manufacturer is that you’ll be limited to what that manufacturer produces. If you want to sell products that they don’t make, you’ll need to source them from a different manufacturer. At scale, this can be tough to manage.
A wholesale supplier doesn’t necessarily manufacture products. But they operate warehouses with inventory from various manufacturers.
The prices from a wholesale supplier will still be low, but definitely not as low compared to coming directly from the manufacturer (the wholesaler has to take a cut). These dropshipping companies are great for businesses that want to sell a wide range of different products in various categories.
Supplier directories don’t actually handle dropshipping. Similar to an online marketplace, it’s a single location for you to find various suppliers.
But to access information about these suppliers and prices, you usually have to pay a membership fee to the directory.
Dropshipping software is a great way for online stores to automate order fulfillment with their suppliers and manufacturers. These tools eliminate the need for ecommerce shops to manually enter order details after something is purchased through their online sales channels.
With dropshipping software, the order information gets sent directly to the supplier for fulfillment. This is faster, more efficient, reduces human error, and allows the site operators to stay more hands-off.
#1 – Doba Review — The Most Versatile Dropshipping Company
Doba is one of the most popular dropshipping services on the market today. Its popularity is largely due to the fact that it can accommodate such a wide range of ecommerce shops with varying needs.
With Doba, you’ll have access to millions of products from hundreds of suppliers in a single online catalog. Here’s how it works:
Other noteworthy highlights of Doba include:
- Compatible with 100+ ecommerce platforms including Shopify, Magento, BigCommerce, Volusion, eBay, Amazon, etc.
- Information on each supplier (average processing time, fulfillment rates, cost, etc.)
- Manage product lists and discover trending products
- Advanced search and filtering
- Data exports in a wide range of formats
- Inventory management tools
- Proactive inventory and price change alerts
Plans start at $29 per month. If you sign up for an annual subscription, you’ll get two months for free. Try it free for 30 days.
#2 – Wholesale2b Review — Best Free and Simple Dropshipping Company
More than one million products are available on Wholesale2b. The platform makes it easy for anyone to integrate dropshippers to their online store.
Wholesale2b is compatible with multiple sales channels and online marketplaces like Amazon, WooCommerce, Shopify, BigCommerce, Ecwid, eBay, Magento, and more.
Here are some of the top reasons why Wholesale2b ranks so high on my list:
- Free to sign up; no credit card required
- Easy to get started
- Extensive product catalog with options from multiple categories and industries
- 100+ dropshippers in the Wholesale2b network
- Automatic order imports and inventory tracking
- Ability to create a new turnkey ecommerce site from scratch
Whether you have an existing online store you’re planning to start a new ecommerce business, Wholesale2b has you covered. Sign up and try it today—it’s free.
#3 – Oberlo Review — The Best For Shopify Stores
If you’re using Shopify to sell online, look no farther than Oberlo. The platform integrates seamlessly with your Shopify store, so you can start dropshipping with ease.
More than 100 million products have been sold online with Oberlo.
Oberlo is free for basic use, but you’ll definitely want to upgrade to a paid plan, or you’ll be limited with what you can accomplish. Some of the top features include:
- Unlimited monthly orders
- Free Oberlo Chrome extension
- Bulk orders
- Real-time order tracking
- Variant mapping
- CAPTCHA solver
- Ebooks, guides, and free learning tools
- 24/7 customer support
- Customizable listing information
- Powerful product data
Paid plans start at $29.90 per month. This entry-level plan supports up to 10,000 products. You can join Oberlo for free to get started.
#4 – Megagoods Review — The Best For Consumer Electronics
Megagoods is my top recommendation for online retailers in the consumer electronics space.
They provide fast shipping, efficient processing, and have a great selection of brand name electronics products.
Here are some of the most popular product categories offered through the Megagoods platform:
- Alarm clocks
- Car audio
- Home theaters
- DVD players
- DJ products
- Bluetooth products
- PA systems
- Portable electronics
- Gaming products
In addition to the extensive electronics options, Megagoods also supplies items like watches, kitchen appliances, cutlery, cookware sets, and more.
The interface is a little outdated, but a Megagoods subscription costs just $14.99 per month. This membership fee gives you access to exclusive pricing. Try it free for 30 days.
#5 – SaleHoo Review — The Best Wholesale Directory
SaleHoo is one of the most popular wholesaler directory platforms on the market today. A membership grants you access to 2.5+ million products from 8,000+ suppliers.
With SaleHoo, you can find products and start selling them online in a matter of minutes.
For 15+ years, more than 137,000 people have used SaleHoo to sell online with dropshipping services. Here are some other reasons why they come so highly recommended:
- All suppliers have been pre-vetted
- Unlimited dropshipping training
- Award-winning customer support
- Plans are backed by a 60-day money-back guarantee
- Market research tools for hot products and high profit margins
- Easy to navigate with a modern interface
- Ability to automate your online store
Annual pricing for the SaleHoo supplier directory costs $67. Alternatively, you can pay a one-time fee of $127 for lifetime access. Try it risk-free.
#6 – Dropified Review — The Best For eBay Sourcing
Dropified is another popular dropshipping solution. It seamlessly integrates with ecommerce platforms like Shopify, WooCommerce, BigCommerce, and more.
Unlike other dropshipping tools, Dropfied is also compatible with eBay and AliExpress.
If you’re using eBay or AliExpress for inventory, Dropfied eliminates the need to copy and paste customer order details. These orders can automatically be shipped to your customers directly from the supplier.
Other top features and perks of using Dropfied include:
- Automatic order fulfillment
- Automatic price change updates
- Dynamic Facebook feeds
- Automatic product availability updates
- Simple product variant setups
- Easy product filtering
- Product and inventory sync
- Add to your ecommerce store with a single click
- Product customization
- Automatically import product reviews from vendors
- Easy to change vendors for different products
This list of features and benefits goes on and on. It’s quite extensive, to say the least. Dropified plans start at $47 per month. The entry-level plan supports 15,000 products and unlimited monthly orders. Try it free for 14 days.
#7 – Inventory Source — Best Dropshipping Automation Software
Inventory Source is a bit unique compared to other dropshipping companies on our list. They provide software to facilitate dropshipping automation.
To improve the logistics with your existing suppliers, Inventory Source will be a great option for you to consider.
Here’s why I like Inventory Source so much:
- Integrates with 25+ ecommerce platforms (Shopify, eBay, Amazon, Walmart, Magento, WooCommerce, 3dcart, etc.)
- Full product data integration
- Dropship order automation
- Automatic inventory sync
- Free directory of 230+ suppliers
- Ability to add your own suppliers outside of the Inventory Source directory
- Bulk feed management tools
Overall, the software is really easy to set up. It will benefit you and your suppliers alike. Plans start at $99 per month. You can create an account for free to browse supplier product feeds, automation tools, and integrations.
The concept of dropshipping is extremely appealing for anyone interested in selling online. But it only works well if you’re using the right dropshipping company.
Which dropshipping company is the best? It depends on your needs.
Just use the recommendations and buying guide explained in this post to find the best dropshipping services for your online store.
The key to building business successfully is to set your business up for success in the beginning. Everyone knows that the key to building anything strong is to have a solid foundation, and the same is true of building a business.
Building Business Means Setting Up a Strong Foundation and Following Through
No one wants to go back to the beginning to build a foundation. It is always best to take the extra time to build a solid foundation on the front end. That usually takes some extra work and more than a few extra steps. While it’s true that building business is not for the faint of heart, this extra work is always worth it. Here is how to begin setting up your business for success.
Building Business: It’s all in the Plan
Not only is a business plan necessary when it comes to getting business loans, but it is necessary to the day to day operations of your business as well. Virtually all successful entrepreneurs will tell you that a major key to success is to plan to work and work the plan.
Most traditional lenders are going to need to see a business plan as part of the loan application process. Truthfully, it’s best to hire a professional business plan writer if possible. They can work with you to get all the necessary information and put it together in the traditional format.
If you cannot hire a business plan writer however, there other options. The Small Business Administration offers a template, and your local small business development center may also be able to help.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
For a business plan to be taken seriously by a lender, it needs to include the following:
A Strong Opening
An Executive Summary
This is a complete summary of the business idea.
The description goes into further detail than the summary, describing the business. This is where you work to build excitement about your business.
Layout your plan for getting started. Do you have a marketing plan, area in mind for location, or idea of how many employees you will start with? What is your ramp up plan?
This actually includes two parts. All that market research you did goes here:
Analysis of audience
What need will your business fill, and for who? Are you a child care facility filling a need for affordable child care for working moms? Are you an eatery filling a need for a lunch spot for those working downtown? How will your business fill the need? All of that information goes in this section.
Is there already a business working to fill this need? Is there room for more? How do you plan to compete with them?
If you are not a new business, this will be a market analysis that supports your need for funding, or that shows your business is strong and growing.
Plan for Design and Development
How is all of this going to play out, from start to finish. What steps are you going to take? This is more detailed than your strategies section.
Plan for Operation and Management
Who will own or does own the business and who will run or currently runs it from day to day. This could be as simple as stating that you are the sole owner and operator, or as complicated as laying out a complete partnership plan or board or directors’ format. It just depends on how your business works.
This section includes current financials, projections, and a budget plan for the loan funds you are applying for. Lenders need to see that you know how to handle the funds you get, and that you have a plan to pay them back.
Working the Plan
Don’t fall into the trap of thinking the official business plan is only for lenders to help you get loan approval. It isn’t. Your business plan should be a useable, practical tool that you can follow and refer back to. That is key to building business. Are sales down? Refer to your plan. Struggling with cash flow? What does the plan say? Work the plan you worked so hard on and trust the process. Also, remember to revisit the plan occasionally even if things are going well to look for ways to improve it, or adjust it if necessary.
Building Business: Licenses
Do you need a business license? What type of license do you need? Ask yourself these questions and find the answers to begin building business on a solid foundation.
Which Types of Business Licenses Do You Need?
If a federal agency regulates your business activities, you will need a federal license. The Small Business Administration lists the following industries as needing a federal license.
- Alcoholic beverages
- Firearms, ammunition, and explosives
- Fish and wildlife
- Commercial fisheries
- Maritime transportation
- Mining and drilling
- Nuclear energy
- Radio and television broadcasting
- Transportation and logistics
The SBA also has a wealth of other information you need to know for starting your business, from help writing a business plan to finding funding.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Building Business: What Funding Options are Available
There are a number of funding options available to help you when building business. Which one you choose will depend on a number of variables. It’s likely the best option will be some combination of the many possibilities, including how fundable your business is. We break them down for you below.
Traditional Term Loans
These are the loans from traditional lenders such as banks and credit unions. As a business, your business credit score can help you get some types of funding even if your personal score isn’t awesome. That isn’t necessarily the case with this type of funding however.
With a traditional lender term loan, you are almost always going to have to give a personal guarantee. This means they will check your personal credit. You will need a personal credit score of 700 or higher to gain approval usually, with the best terms and rates coming at 750 or higher.
Of all of the available business funding types, this is the hardest to get, but is also typically the option with the lowest interest rates and most reasonable terms.
These are traditional bank loans, but they have a guarantee from the federal government. The Small Business Administration works with lenders to offer small business loans that they may not be able to get otherwise based on their credit history. Because of the government guarantee, lenders are able to relax a little on the personal credit score requirements.
In fact, it is possible to get an SBA micro-loan with a personal credit score between 620 and 640. These are very small loans, up to $50,000. Personal collateral is also usually a requirement.
The trade-off with SBA loans is that the application process is long and involved.
Business Line of Credit
This is basically the traditional lender’s version of a business credit card. The credit is revolving, meaning you only pay back what you use, just like a credit card. However, rates are typically much better than a credit card. The application and approval process is similar to that of a traditional term loan.
If you need revolving credit and can qualify for a term loan, this is a good option. It is great for bridging cash gaps and covering short term expenses without the high credit card interest rates.
There are no cash back rewards or loyalty points. This makes some business owners prefer business credit cards despite higher interest rates.
If you are an established business with accounts receivable, then you might consider invoice factoring. This is where the lender buys your outstanding invoices at a premium, and then collects the full amount themselves. You get cash right away, without waiting for your customers to pay the invoices.
This is a good option if you need cash fast. It can also work if you do not qualify for other funding types. The interest rate varies based on the age of the receivables.
These are private lenders, not traditional banks and credit unions, that offer terms loans. Usually they operate online. The difference between these and traditional lenders is that the loans have looser approval requirement and a much faster application process. Most often you can simply apply online, get approval in as little as 24 hours, and the funds are in your account within 24 to 48 hours after approval.
These are an option if your personal credit isn’t terrible and you need money quickly.
Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.
Crowdfunding is a newer option for finding investors. While the average Joe that wants to start a business needs funding, it is not always possible to find one or two large investors. With crowdfunding, you can literally have a crowd of investors fund your business in $5 and $10 increments.
There are many crowdfunding sites, but Indiegogo and Kickstarter are the most popular. The platforms are similar but there are some important differences. The most obvious is the timing of when you actually receive the funds that other invest in your company.
Find out more about each option here.
These are typically offered by professional organizations. There are some government grants available also. Competition can be stiff, but they are definitely worth applying for if you think you may qualify.
While requirements vary from grant to grant, and most are only awarded to a certain number of recipients, this is an option is worth looking into if you fall into one of these basic categories.
- Women owned business
- Minority owned business
- Businesses run by veterans
- Businesses in low income areas
There are also some corporations that offer grants in a contest format that do not require much other than that you meet the corporation’s definition of a small business and win the contest.
Business Credit Cards
These get a bad rap, but in lieu of another option, they aren’t a bad option. The draw is that they are available to most, even if their credit score that isn’t awesome. The catch is, the lower the credit score, the higher the interest rate. Also, there are limits on how low they will go with a credit score.
However, this is one type of funding that most of the general public is eligible for at any given time. They do a credit check, but your credit doesn’t have to be as high as it would be to gain approval for a traditional loan.
The downside of business credit cards is that they typically have a high interest rate. The upside is that many of them offer rewards in the form of cash or points that can be helpful.
Building Business: Marketing
Once you have your foundation set, you have to actually build up the business. That means getting others to buy whatever you are selling. Marketing is a term used for getting your product and service out there for others to see.
The number one beginner tip for marketing is to know who you are marketing to. You need to know what types of people will be buying your product so that you know how to convince them they need it. This step was probably taken care of in the marketing section of your business plan.
How you market will vary based on your budget, but these days social media marketing is huge. It’s a lower cost option than traditional television and news print, yet highly effective. If you can get just one post to go viral, you’ve done something. Get people talking about your product on social media and your marketing could basically be done for you, depending on what you are selling.
Of course, there is still a place for, and even a need for, traditional marketing when building business. Generally speaking, the best bet is to hire a professional to handle all aspects of marketing.
Building Business: Networking
This is an aspect of building business that so many do not really think about until after the fact. It can have a huge impact though. Of course, these days, as with marketing, much networking is done online through social media channels. There is something to be said for face to face connections however.
While much of your business may be run online, limiting face to face interaction, take some time to consider ways to connect locally. There could be those that need your services or product right in your area. Try joining your local chamber of commerce. They typically have events like business after hours that support this type of networking.
Building Business Isn’t Hard, but it Does Take Work
Building a successful business takes a lot of hard work and a lot of luck. Things can go wrong, even if you do everything right. You have to have a business plan, find funding, nail marketing, and work at networking. However, if you set yourself up for success in the beginning, work hard, and don’t lose momentum, you may end up with something fabulous.
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