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Dropshipping is a business model that allows you to sell goods online, without your own warehouse, stock and unnecessary investments. Storage, packaging and delivery of goods are handled by the supplier. The dropshipper’s website is a kind of showcase, which he advertises, promoting the goods. Dropshipping attracts those who want to start their own business with minimal investment. It is interesting for those who are finding a new niche or expanding their enterprise, looking for interesting offers and reliable suppliers. Finding a reliable supplier is not an easy task, sometimes it is solved by trial and error.
Without the right suppliers, any good business idea is doomed to failure. Stelvel Ltd knows this, working in the dropshipping and e-commerce business market, we cooperate directly with well-known suppliers and manufacturers. A quick check of counterparties and monitoring of their reputations from Stelvel Ltd specialists usually ends in a successful transaction. Having considerable experience, we would like to share with you an algorithm for finding suppliers. So, let’s begin.
Supplier, who is he?
Who do you need? Identify the needs of your business. What do you offer? Who is your target audience? What is the target range of products or services? How are you different from your competitors? Why is your offering unique? What can the vendor do for you?
Profitable partners for an e-commerce business are:
- Product manufacturers
- Wholesalers or distributors
- Dropshippers
You should start searching for and selecting suppliers at the idea stage, researching the market, studying competitors, calculating the financial component of the future business.
Search Engines
Use search engines to find dropshipping suppliers in your niche. Conduct a search using keywords related to your niche. Study the results and compile a list of potential suppliers.
Online marketplaces
Explore popular online marketplaces like Alibaba, SaleHoo, Oberlo, and Doba. They bring together dropshipping sellers and suppliers. Some of them provide databases of suppliers in different niches.
Social Media
When looking for suppliers, use social media like LinkedIn, Facebook and Instagram. Join groups and communities related to e-commerce and dropshipping. Ask questions, ask for recommendations and pay attention to feedback from other group members. Find vendor pages on social media.
If you already have a list of potential vendors, it’s important to vet them and make sure they are reliable and quality of service. Look for independent reviews and ratings on specialised platforms or forums. This will help you get an idea of the supplier’s reputation and quality of service. If you have any questions, please contact Stelvel Ltd.
Attention: special conditions
There will always be suppliers on the market who offer more than attractive terms and prices. Be careful, even overly suspicious. To reduce the risk of fraud, check the financial condition of the future partner in advance. Look for feedback from disappointed, robbed or dissatisfied entrepreneurs.
Constant monitoring
Even after the conclusion of a partnership agreement, it is important to constantly monitor the work of the supplier. Evaluate the quality of products, speed of delivery, and speed of customer service. If problems arise, report them to the partner without delay and look for solutions. Your reputation as a seller depends on how responsibly the dropshipping supplier treats his duties.
Supplier Commissions
Each supplier may have different terms and commissions for using their services. Some suppliers may charge a flat amount per order or a percentage of the cost of the product. Calculate a rough average commission based on the prices of the goods and the terms of co-operation.
Don’t stop searching
Keep searching for both suppliers and profitable niches and offers. This process should become a regular routine. Expand the list of partners, so you will reduce risks and not fall into dependence on one or two suppliers.
The market and customer requirements are constantly changing. Keep an eye out for new trends. Look for suppliers who can adapt to the changing needs of your business.
Vendor selection criteria
When you have identified your potential suppliers, compare them according to the following screening criteria:
- price: compare the value for money, take into account hidden costs as well
- reputation/certifications/standardisation
- working conditions and payment methods
- delivery terms and conditions
- minimum order
- returns policy
- after-sales service/technical support/repairs
- sales support tools
- financial health of the company/longevity of the partnership
- compliance with certain ethical and environmental regulations
Contact the supplier and ask questions related to the working conditions. Pay attention to answers, speed of feedback, professionalism in communication, level of service.