Finding the right supplier for your drop shipping business can seem like an overwhelming task. But it doesn’t have to be! The best way to win is to understand how drop shipping suppliers operate. The better informed you are about drop shipping, the more successful you will be!
The most important thing to note is that there are two types of drop shipping suppliers to choose from. The two types of drop ship suppliers include Aggregators and Manufacturers.
Let’s review both:
1. Aggregators: If you’re ever searched for a drop ship supplier, you will come across websites that claim to have thousands or even millions of brand name products to choose from. These are aggregators—companies that purchase products directly from wholesalers and sell them to people interested in buying drop shipped products. In other words, Aggregators are middlemen. They typically advertise online, offer pre-made websites and load these sites with products. The majority of aggregators make their money from membership and/or handling fees.
It is important to note that when you order something from an Aggregator, they will then order from their own wholesale supplier. This is the reason why it is not always ideal to buy from an Aggregator. The profits tend to diminish as more hands are involved. Therefore, if you are planning to sell products on eBay or Amazon, then making money with Aggregators can be pretty difficult.
However, there is an advantage to working with Aggregators. They are easy to find online and have a variety of products to choose from. So if you can find a way to make the profits work, then this can be a great way to get started with Drop Shipping.
2. Manufacturers: Did you know that there are plenty of manufacturers available today that would be willing to drop ship? Most people do not realize that you can go directly to Manufacturer’s to get access to great products at the lowest possible prices. Some Manufacturer’s work direct with companies, while others use something called a master distributor. Either way, Manufacturer’s are a great resource for retailers, or any company interested in getting access to deeply discounted products.
The best way to find Manufacturer’s interested in drop shipping is to go to websites such as WholesaleCenteral.com and/or Thomasnet.com. Another great way of getting access to drop ship manufacturers is to go Wholesale Trade Shows.
It is important to note that going through a Manufacturer is a great option; however it takes significantly more work to get started. You have to contact individual manufacturer’s who would be willing to drop ship, and this takes time and effort. But this is a great way to get the best possible price!
Ultimately, going through either an Aggregator or a Manufacturer is a decision that only you can make. However, I hope you understand that there are advantages and disadvantages to both! Either way, the information enclosed will at least help you get started!