Before looking for the suppliers, it is essential to know how to distinguish the true and legal wholesale suppliers and stores that pretend to be wholesale suppliers. True wholesale supplier buys directly from the manufacturer and that is why offers you the best price.

How to Spot Fake Dropshipping Wholesalers

No matter where you are looking for the legitimate wholesale suppliers you will find out that there are too many “fake” ones. True legitimate wholesalers are not very good at marketing and that`s why they are hard to find, but retailers can`t get them off their minds because it is the best way to do business.

Here are several tips to check if the wholesaler is legitimate:

THEY WANT ONGOING FEES

If your supplier asks you for monthly payments just for the privilege of buying the goods directly from him at the best price – most likely it is not a legitimate one, because the legitimate wholesalers do not charge any fee for the membership or anything.

Though there is a possibility to work with supplier directories. That is a group of suppliers organized due to certain type of items they sell, for example, tires. This directories can charge a fee, but a single supplier usually don`t.

THEY SELL TO THE PUBLIC

To get the best price which is the one of a genuine wholesale price you need to prove that you have a legitimate business and be approved. Once you are approved you can place your first order. If the price is offered to anyone, i.e. general public, most likely this price is not original wholesale one.

Here are the fees you need to count:

PER-ORDER FEES

Some suppliers can charge you $2-$5 fees, as the shipment of individual orders may take more money that the bulk one. It depends on the size and complexity of the goods shipped.

MINIMUM ORDER SIZES

Most wholesalers have a certain order minimum which you need to fit to make the order. They do it to filter the merchants that buy only single pieces and won`t transform into a big company not to waist their own time on such orders.

Of course, if you are a dropshipper, that may cause a problem. But in this case there is also a way to resolve the problem. If the minimum amount for the order is $750 you can pre-pay this money and have it on your dropshipping account, so that you can get the orders, e.g. for $150, to build a credit and then get smaller orders that one for $750.

Finding Wholesale Suppliers

So, as far as now you know how to disguise a fraud from a real wholesaler, it is time to learn how to find a supplier. There is a huge lot of different ways and tips, more effective and less effective, below are listed the most effective ones that we love a lot.

Contact the Manufacturer

That is the best and our favorite method to find contacts of a legitimate wholesale suppliers. Knowing the items you need, just call the manufacturers and ask them to send you the list of distributors, and then contact everyone in the list to make a data base about the stocks and prices of these distributors. Calling up several manufacturers you`ll be able to analyze the info and find the best wholesale suppliers in the niche you work in.

Use Google

Google is how everyone searches for any information, but keep to these rules:

Search intensively – as far as written above about the poor marketing of wholesalers that may be a difficult thing. So, you have to dig real deep, do a lot of research and find your wholesaler only on the 15th list of search.

Don`t judge by web-site – as already written, poor marketing and promotion does its job. Do not let poor web-site scare you off the legitimate wholesaler with a good pricing and conditions.

Use modifiers – not like many trading web-sites, wholesalers do not use much SEO to promote their services, so you may need to use different queries, use synonyms and all the related to your topic words: reseller, supplier, product, warehouse.

Order from the Competition

If it is really hard to find a supplier of one certain item, you can use the services of your dropshipping competitor and Google the return address to contact the supplier. We have never done this, but we have heard about this from others. This technique can help you, so you should keep it in mind just in case.

Attend a Trade Show

Trade shows are a good way to get the contacts of all the possible manufacturers and wholesalers. If you have already chosen the niche you want to operate in and the items you want to sale, you just need to visit the trade show in that niche and made a lot of business acquaintances.

Directories

As far as you know that supplier directories are paid, a good question can come up your mind if you need it that much to pay for it? Actually, this database of suppliers is really made of genuine wholesalers. They are really necessary, especially for brainstorming. And you should value the fact that now you do not need to spend hours by the screen searching a genuine wholesaler or manufacturer. All suppliers you may need according to your niche are gathered into one directory.

If you do not have ages to search for suppliers and want to develop your business right and fast, supplier directories are the best thing that can be. You will find there a review of all of them, but here we decided to bring light on the major of them.

Worldwide Brands

Quick Stats:

Established 1999

Thousands of wholesalers

Over 10 million products

Price: $299 for a lifetime membership

It is one of the oldest supplier directories that provides a list compound by legitimate and proved wholesalers. We have used its information and found them very useful, as we have found legitimate wholesalers we like to cooperate with. Of course it is difficult to enlist all the legitimate wholesalers that exist in the world, but the ones that can be found on the pages are genuine and proved.

 

SaleHoo

Quick Stats:

Established 2005

Over 8,000 suppliers

Price: $67 per year

This directory counts more than 8.000 bulk-purchase and dropshipping suppliers and even caters to the ones working on eBay and Amazon. The price of the directory is not big for an annual one and they offer 60-day money-back guarantee.

 

Doba

Quick Stats:

Established 2002

165 suppliers

Over 1.5 million products

Price: $60 per month

This service went far beyond a simple directory. It integrates with 165 proved suppliers letting you to place orders with multiple warehouses via their own centralized interface. It also correlates with eBay. Their price is as well exceeds the ones of other directories. Opposite to around $70 annually it is $60 monthly. But the interface and the work are worth this money. In case you can find really good suppliers yourself it may be better to save $700 a year.

 

Wholesale Central

Quick Stats:

Established 1996

1,400 suppliers

740,000 products

Price: free

This is an absolutely different directory of suppliers. Opposite to all the rest they charge the wholesale suppliers and manufacturers, so you can see their ads too. But you can find there reviews of the suppliers and be sure that they are proven and worth working with. Free means that it is hard to resist not to use this service, but you need to think about the pricing and make a more thorough search, as you can find there retailers, not wholesalers with wholesalers pricing.

Before You Contact Suppliers

Now, when you have found several or many proven and trustworthy suppliers and ready to go further and you need to organize everything well. So…

YOU NEED TO BE LEGAL

As written above, to start working in this business you need to prove that you have a legal business because a lot of suppliers reveal the price to proven merchants only. They will answer your questions about the goods and possibility of dropshipping, but you need to have a membership and to have your business all set up to launch the cooperation with any of suppliers. We will discuss this more in another chapter.

UNDERSTAND HOW YOU APPEAR

Lots of merchants appear and show the suppliers’ genius business plans and ask them so much questions that it is hard to answer. And only few of them really do order. So do not get scared off when you see that not all the suppliers are willing to much to contact you right after you message them hello and ask any questions about business.

Most of the suppliers who offer any dropshipping account would love to cooperate with you, but you need to prove that you are a good retailer, that you have orders, that you work well and then ask for special pricing. Otherwise you risk making a bad reputation and you know that it influences business a lot.

Your successes may help you to persuade a wholesaler start dropshipping with you if they haven`t done it before. You just need to be serious and precise in dates and figures. You need to take some risks and some expenses to convince the supplier to work with you, especially if you just start dropshipping and promise to cover some inconveniences in future after you get successful in that business.

DON’T BE AFRAID OF THE PHONE

Do not be afraid to call the supplier and convince. Lots of people may write and send an e-mail. But that is not that convincing and lots of them just can be deleted without reading. So, pick up the phone, dial and negotiate. It is scary to say, but you need to do the first step and there you will see the end of this stairs. Just prepare some questions you need to clarify ahead and everything will be fine.

How to Find Good Suppliers

Suppliers, just alike everything on the planet, may be good, really good or bad. As far as suppliers are a critical part of dropshipping business, you need to have it proven, so here are 6 features that most great suppliers possess:

EXPERT STAFF AND INDUSTRY FOCUS –The best have the best sales representatives knowing the industry very well. It is a great thing to consult a good one and ask all the questions about the product lines.

DEDICATED SUPPORT REPRESENTATIVES – Great supplier will supply you with n individual sales representative who will take care of you as well as of all the problems you might have. That will help you to solve the issues faster and more effectively and that is really important.

INVESTED IN TECHNOLOGY – Updated web-sites are not the thing to surprise nowadays, so great suppliers care about online catalogs, real-time inventory and all the other staff really useful while placing an order. You will really feel the difference when you try it.

CAN TAKE ORDERS VIA EMAIL –That is much better for the clients as calling to make an order or making it online on the web-site is more time consuming.

CENTRALLY LOCATED – more time consuming If you are situated in a large country it is a very convenient point, as the most part of the parcels will get the destination place within a couple of working days with a centrally located dropshipper. And it saves both time and money ( I mean shipping fees).

ORGANIZED AND EFFICIENT – Competent employees make your collaboration more efficient and almost flawless. Others can lead you to some nervous disease botching every 5th order. But of course, you will know after you try only.

To test the supplier you may place some small orders and find out how their support work, how they handle everything, how fast will you get the items, how they work with invoices and tracking information and of course the quality of the parcel.

Your Options on Paying Suppliers

There are most commonly 2 ways to pay the supplier:

Credit card – Usually you are asked to pre-pay if you just started the business. Even if you have a prosperous business, it is actually a very convenient way to pay. And there is no need to mention about the bonuses you may get like flier miles and so on. As far as the client has already paid to you for the order, you do not have to pay from your own pocket.

Net terms – Net terms can be seen in the invoice you get, and that means that you have a certain number of days to pay for your order. Net 30 means you have 30 days to pay. Usually the payment comes by a check or bank draw. And first, the supplier may ask you for the references before offering net payment. It is how it is done, so do not be afraid when you are asked to give some documents.

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