June 25, 2020

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American Dropshippers is it the way forward?

Dropshipping suppliers in the USA

So you want to find dropshipping suppliers in the USA? Maybe you have tried drop shipping and are sick of overseas suppliers with long delivery lead times. Could it be you are just starting up and want to find a way a dropship without fear of letting your customers down? Well you have come to the right place! In this article i will show you how you can get access to verified dropshipping suppliers in the USA. Suppliers that have been vetted and reviewed so you know you can trust them.

Why Dropshipping suppliers in the USA?

Well if you live in the USA there are many benefits to keeping all of your business in one place. The obvious benefit to dropshipping suppliers in the USA is you will not suffer from long lead times that your competitors do.

The next is marketing benefit is trust you can instill with your future customers. You can now advertise that shipping is from USA . If the product is made in the USA advertise that too!

When someone says dropshipping business, the common thing to think of is low priced products from China sold at huge mark up. But Drop shipping from USA is a thing, that executed correctly can be equally as profitable. There are many quality suppliers that operate within the USA many offering drop shipping services. Let’s explore some of the benefits in depth so you can decide if this is the right decision for you.

Shipping benefits

I know when I shop online I do it for convenience, I can’t be bothered to go to the shops or wait around. This is a obvious downside to dropshipping from China you have little control over how long items will take to arrive with your customer. And if you are trading on platforms like eBay where great feedback is king long lead times will stop your customers from repeat purchases. Lets look at what happens when you chose dropshipping suppliers from the USA:

Fast Shipping for USA customers

Typically items shipped within the US will take 1-3 days, so you customer could order a item and potentially have it delivered the next day. I mean how good is that? Your customer will be really happy with that convience. Let’s compare this to dropshipping overseas which could take weeks how frustrated would you be, leading me to my next point.

Reduction in cancelled orders

Have you ever bought something online then changed your mind because it took too long to arrive? another point why you should find drop shipping suppliers in the USA. USA drop shipping supplier = USA delivery services from start to finish. Not only are you providing fast shipping times, you are also working with shipping companies that you and your customers are familiar with.

For the customer they likely have a app so they can track their order and for you, you can see that your orders have been delivered. Customers also expect to be able to track their orders UPS, FEDex and DHL all provide this service so again you are providing a high quality service.

More Shipping services

Using US shipping providers means you can offer your customers service options. For example some providers now offer same day or next day delivery guaranteed. So if you are selling products where you know your target customer likely needs in a hurry this is a great service to be able to offer to convert more sales.

I know if i am in a hurry i look for a provider that can give me next day, do you?

Product Marketing benefits

So you may be thinking right now, with all of these shipping benefits why aren’t more businesses using American dropshippers as opposed to Asian. Well truth be told it’s about cost. Asian suppliers are cheaper than US so if you are looking for the lowest cost product then Asian suppliers might be the way to go, however you can still make great profits with american dropshippers you just need to make sure you are selling the value of your products. Check out my tips below for when choosing dropshipping suppliers in the USA:

American dropshippers

Product quality

Talk about the quality of your product – products that are made in China or other Asian countries have a good reputation for being cheap but for being of quality not so much. So by advertising the fact your product is from the US and are a business that supports the US economy you customer already knows they are paying a little bit more but you and them are both supporting American jobs. Good for you!

Made in the USA

Was your product also made in America? – if it was dont forget to tell your customer that! Whilst China has the reputation of being cheap, America has the reputation of quality products. I don’t know about you, I dont mind paying a little more for something that is quality made and going to last, maybe why I am writing this article on a Macbook I love quality lasting products. Add the stamp or flag to your pictures if advertising on Amazon or Ebay patriotic Americans will click on your product ad, it’s a great marketing tool trust me.

Higher retail prices

Higher Retail prices – As i’ve said people expect to pay more for quality and straight forward service. So if you are shipping fast and showing a quality product that supports US economy that means people usually happy to pay more. In conclusion if marketed correctly you dont need to absorb the higher cost of products sourced from the US vs China you can pass that on to your customers and everyone wins.

Customer Satisfaction is the biggest benefit

By now you can probably guess that customer satisfaction will be your biggest benefit. You have more control over your product therefore you are able to deliver a better service. So let’s break this down you might save on a product cost by buying from China but how much time will you spend answering shipping queries of “where’s my product?”, how much repeat business will you lose by a bad experience of a customer waiting too long for a order? These are just examples of hidden costs that could be associated with dropshipping outside the US.

Then there’s the point that you can make yourself a seller of difference. Anyone can buy products from Asia with sites like Alibaba, the cost of entry is too easy. For a business to market themselves as “American only” goods is powerful and a reason why customers could remember you. I would say that’s another good reason to choosing dropshipping suppliers in the USA, wouldn’t you?

How do I find dropshipping suppliers in the USA?

The best way to find verified suppliers is to subscribe to a dropshipping directory. Why you ask? Well by paying a nominal fee a lot of the hard work oas been done. Researching suppliers, finding out if they are legit has already been taken care of. All you have to do is pick a supplier that you like and make contact, simple! You remember I also spoke about cost being more expensive in US than Asia? By using a directory you have a whole list of different suppliers within the US that you can compare against each other and work out deals. You can’t do this if you just research a good few suppliers.

Although the finding the right dropship directory itself can be a mind field I am going to save you time and give you my recommendation which is Salehoo.

Right now by joining Salehoo you get access to over 1100 verified and reviewed suppliers that are shipping from America. This is pretty amazing considering most are boasting for having a few hundred suppliers! There are over 8000 if you look at their total supplier list. This means if you choose to you could have suppliers from USA and worldwide to suit your needs.

If you want a full breakdown of Salehoo and what its about you can read my full in depth review here.

If you want to read on though I have provided a comparison of all of the top dropshipping platforms. It’s worth a read as I only discuss platforms that I know to be legit. You might have come across on the internet promises of access to directories and cheap suppliers. Be sure to do your own research and some can be scams, the below I know are legit.

Get Access to over 1100 American suppliers now

Which is the best dropshipping platform?

There are many dropshipping platforms each with their own pros and cons. Take a look below where I take you through the top well known.

USA dropshippers compared
information correct at time of writing

Salehoo

Salehoo is one of the most established directories around, and today they offer so much more than a directory. You can see my full review here on Salehoo. In a nutshell for the price you get access to over 8000 different suppliers. I contacted Salehoo to find out how many of those suppliers were American dropshippers. They boasted they had over 1100 on their books. Versus other services for the price Salehoo is a absolute steel you have no high monthly subscription. Some services are charging as much as Salehoo do in a year, in a month!

If you are new to dropshipping they also provide free training and have a cool tool. The tool helps you with market research of products within your niche,that have low competition and high sell through rates so that you do not waste you time promoting products that may not sell.

My personal favorite just because of the all the functionality you get for the price and its well established.

Salehoo

Oberlo

Established in 2015 Oberlo is fairly new on the scene, they offer a free service that is limited to no order tracking.

But good if you just wanted to explore, but if you want some real functionality for a serious business then you need to pay nearly 30 dollars a month which is a hell of a lot more than other providers.

The other thing to note with Oberlo is you are paying for the software more than actually finding suppliers they actually advise you find suppliers on Aliexpress.

Oberlo is great if you are fine with limiting suppliers and just want software that integrates easily with Shopify. If your intention is to find lots of suppliers I would steer towards Salehoo or Worldwide brands.

Doba

Doba’s missions is to empower retailers and wholesale suppliers of all sizes to connect and do business. By joining you will get access to 1.4m different products but it comes at a cost for their basic service you can expect to pay $29 a month. if you want more functionality then you can expect to pay upto $249 a month. Pretty costly if you are new start up. The other thing to note with Doba is that you are not dealing with suppliers directly, you order from doba and doba orders from supplier. If you would like to be able to connect and negioate Doba is probably not for you.

You can however opt for a free 30 day trial if you want to have a browse of the service.

Worldwide brands

Similar to Salehoo, Worldwide brands has been in the business for a while. It’s actually been established for 20 years and are accredited by the BBB.

By signing up to Worldwide brands, you get access to what they say is the world’s largest catalog of suppliers.

In terms of membership fees they offer one a lifetime subscription cost of $299 which actually isn’t bad when you compare to Doba and Oberlo. You can also opt to pay for this over 3 payments which is handy. Worldwide brands also boast the fact that they are a American company so have good contacts with American dropshippers. As far as functionality this is geared towards those who just want contacts, you dont get some of the fancy integration services that others offer.

Find out more about Worldwide brands here

Modalyst

Modalyst boasts featuring thousands of US dropship providers and the software can directly integrate into your Shopify or Wix store.

Again this service does work out more costly. You can sign up free for a very limited service but again if you want real business functionality then you will have to sign up for a $35 a month subscription. You are also charged a 5% transaction fee on every purchase. So although this software might be more convient it has the potential to cut in to your costs.

What to look for once you have found a supplier

By this point you might have decided which service to go for. The next thing to do is pick some suppliers from the huge choice you now have.

This is where it gets interesting. You want to make sure that the supplier is right for you and your business. Here are some things I would recommend you look for for dropshipping suppliers in the USA.

Is the supplier trustworthy?

Is the supplier Trustworthy? Does it get good feedback? This is one of the main advantages of joining a platform like Salehoo. Each supplier has been rated not only by Salehoo but members can also give a feedback rating. This way you know other businesses like yours have had a good experience with them.

Is the business listed as part of any bodies? If you really want to do a background check then you could see if the supplier is registered with the Better Business Bureau this is a really great sign that they are a trustworthy business who prides itself and its business practices.

Communication is key

What is their communication like? Of course rule number 1 before purchasing is you must reach out to the supplier and see for yourself what the communication is like. is it fast? how do they treat you as a potential customer? Are they able to answer your questions accurately? If you are not satisfied then neither will your customers be. So if in not good enough move on to the next supplier.

What is their shipping service like? in a ideal world you would like the products to be shipped with your details and branding, is the supplier able to do this? in this step its also crucial that you confirm shipping costs with the supplier what does it include and how long will shipment to your customer usually take. I will also find out what shipping provider they use so you can provide accurate information to your customers i.e. does the shipping provider have tracking.

What is their inventory like? Before committing to any supplier it is really useful to find out how they treat inventory. For instance how much do they keep at any given time? How quickly can they replenish items should they start selling fast (think peak periods like the holiday season) you don’t want to be caught out in your peak period. Finally you should ask how they cope with demand in general, for instance how much demand can they truly handle before they run out of inventory.

After sales service should always be covered

How do they handle any product returns? A good after sales service breeds a good business in the long term, so it’s crucial that you find a supplier that shares this sentiment. Find out before you commit how they handle product returns, refund requests and any product quality concerns. I would also recommend setting up a tracker for your business for product returns it will help you identify any patterns down the line to prevent returns that maybe more information for the customer is needed before purchasing or maybe a product you are selling is not of good quality so you should stop selling and associating it with your business.

Any warranty offered with the product? A supplier that offers warranty means not only can you pass this on to your customers and develop trust and quality perception but it’s also a good indication that the supplier is confident about the product they are supplying. Afterall would you offer a warranty on a product that always went wrong?

Any other fees that could affect your profit

You will know if you are already in the dropshipping business that it is completely normal practice for suppliers to charge a dropshipping fee.

Again before you decide on a supplier ask what fees they charge and if they charge any other fees you need to work out if your product margin will cover your costs after all.

Compare the fees across all of the suppliers you are considering so you get the best deal for you and your customers.

Conclusion

Now that you can see the benefits of dropshipping suppliers in the USA, you can start to think of if this is something that you would like the explore for your business.

You hopefully now see that there is a viable alternative to chinese suppliers. Having said that there is no harm in offering both, the beauty of dropshipping is that you can experiment and find out what’s right for your market.

Just remember to be upfront so if you are offering a cheaper alternative that is from Asia then remember to be clear on shipping times so that you customers are not dissatisfied, but by adding US suppliers to your mix it means you can show a wide range of product with different service options. It might be something like need it fast see these products, on a budget and not in a hurry these could be right for you. I hope you have found this article useful, please share your dropshipping experiences below.

About the author 

Mary Elizabeth

Founder of MeMoreMoney. A self-taught finance nerd, learning by doing and experiencing. Bought first house at 21, paid off student debt, and save 100k by 30. Featured Personal Finance Expert in GO Banking Rates and Yahoo! Finance

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