How to find the right dropshipping supplier for your small business

Published Friday 5 December 2025

Table of contents

• What are dropshipping suppliers and companies?
• How to find dropshipping suppliers
• How to evaluate dropshipping suppliers
• Best dropshipping companies in Australia
• Companies that dropship
• Wholesale dropshipping in Australia
• Managing your dropshipping business finances
• FAQs on dropshipping suppliers

Key takeaways

• Research dropshipping suppliers systematically using multiple channels including online directories like SaleHoo and Spocket, marketplace analysis, direct manufacturer outreach, and social media networks to find reliable partners.

• Evaluate potential suppliers thoroughly by verifying their business registration and ABN, ordering product samples to test quality, checking response times and shipping speeds, and confirming they maintain adequate stock levels.

• Negotiate supplier relationships professionally by clearly communicating your expectations, being flexible about capabilities while firm on requirements, and building long-term partnerships that benefit both parties through ongoing business commitments.

• Consider wholesale dropshipping once you've validated product demand through initial sales, as this approach offers better profit margins through bulk pricing but requires commitment to minimum order quantities.

What are dropshipping suppliers and companies?

Dropshipping suppliers handle product storage and shipping so you can sell without inventory. Here's how the system works:

• Suppliers: Store products and ship directly to your customers
• Dropshipping companies: Connect you to multiple suppliers through one platform
• Your role: Focus on marketing and customer service while suppliers handle fulfilment

This model lets you start selling immediately without upfront inventory costs or storage space.

The dropshipping process follows these steps:

• Customer orders: Customer purchases from your online store
• Order forwarding: You send order details to your supplier automatically
• Supplier fulfilment: supplier packages and ships products directly to your customers
• Delivery to customer: customer receives the product with your branding

This automated system means you never handle physical inventory.

Dropshipping suppliers and companies exist all over the world. If you choose a dropshipping supplier in another country, delivery times for your customers may be longer

How to find dropshipping suppliers

Finding reliable suppliers requires a systematic approach across multiple channels. Use these proven methods:

Online directories:

• Supplier platforms: SaleHoo, Spocket, Alibaba for vetted suppliers
• Search terms: "wholesale dropshipping Australia", "dropshipping suppliers", "[product] wholesale"

Marketplace research:

• Reverse engineering: Buy from suspected dropshippers and trace return addresses
• Price sorting: Search Amazon, eBay for lowest prices to identify wholesalers
• Direct contact: Reach out to high-volume sellers about their suppliers

Direct outreach:

• Manufacturer websites: Contact companies directly for dropshipping programs
• Trade shows: Meet suppliers face-to-face for better negotiation terms
• Industry networks: Join dropshipping communities and forums for recommendations

Social media research:

• LinkedIn: Search for "wholesale [product]" and "[product] manufacturer"
• Facebook groups: Join dropshipping communities for supplier recommendations

Tips for contacting and negotiating with dropshipping suppliers

Follow these tips when contacting dropshipping suppliers.

• Research the supplier: You need to know that your supplier is reliable and trustworthy before entering a deal. Look them up online (even if you found their listing through a trusted directory) to find customer reviews. Look at product quality, shipping times, and pricing so you can negotiate better.
• Communicate clearly: Your supplier has a significant role to play in keeping your customers satisfied. Clearly state your expectations, concerns, and requirements to the supplier. Ask plenty of questions so you can create a fair agreement.
• Be flexible: Your vision for the business might not align with what's possible for the supplier. Be firm on your expectations, but open-minded about supplier capabilities. Explain your requirements and listen to theirs so you can find a mutually beneficial solution.
• Build a long-term relationship: The promise of ongoing custom could encourage suppliers to provide a discount or additional benefits as part of your agreement. In return, recommend their products or refer customers. If you're not ready to enter a long-term contract, suggest a trial period before signing.
• Consider the supplier's perspective: Your supplier will have their own targets to meet. Think about how you can help them reach their goals while sustaining your own business. Acknowledge their profit margins and business model before haggling on price.
• Be professional: Come to conversations equipped with information and key figures for your business. Be fair and polite with all suppliers, regardless of whether you choose to work with them or not.

How to evaluate dropshipping suppliers

Checking your suppliers carefully helps protect your reputation and keep your customers happy. Use this simple checklist:

Financial verification:

• Business registration: Verify the supplier's legal business status; for Australian suppliers, this includes checking their Australian Business Number (ABN), a unique 11-digit number identifying the business.
• Payment terms: Understand fees, minimums, and payment schedules
• Insurance coverage: Confirm supplier has liability and product insurance

Quality assessment:

• Product samples: Order samples to test quality before committing
• Return policy: Review their process for defective or damaged items
• Quality certifications: Check for relevant industry standards and certifications

Operational reliability:

• Response time: Test how quickly they respond to enquiries
• Shipping speed: Verify actual delivery times to Australian customers
• Inventory management: Ensure they maintain adequate stock levels

Red flags to avoid:

• No business address: Suppliers without verifiable physical locations
• Unrealistic promises: Claims of extremely low prices or instant shipping
• Poor communication: Delayed responses or language barriers affecting order accuracy

Best dropshipping companies in Australia

Choosing the right supplier requires evaluating three key factors: product quality, shipping speed, and customer service reliability.

Research each supplier by:

• Reading reviews: Check feedback on product quality and delivery times
• Testing samples: Order products yourself to assess quality
• Verifying integration: Ensure compatibility with your ecommerce platform

Here are Australia's top dropshipping suppliers with their key advantages:

SaleHoo

SaleHoo has two offerings for dropshippers: a directory to source reliable suppliers and a store integration for Shopify, so you can directly import products from SaleHoo to your Shopify store.

Pros:

• You can choose from 2.5 million products
• You can access over 8000 suppliers who are pre-vetted by SaleHoo
• You can import 500 products on the cheapest plan or unlimited products on the Premium plan

Cons:

• Only two pricing plans to choose from: Basic or Premium
• No dedicated onboarding account manager with the Basic plan
• No free trial

Spocket

Spocket connects sellers to a library of products and a supplier directory that you can filter based on location. Paying no commission fees, sellers using Spocket only pay for the products they sell – and a monthly subscription.

Pros:

• You can order product samples to make sure the quality is up to scratch
• You can use Shopify, BigCommerce, WooCommerce, and Wix integrations
• Suppliers are vetted and verified
• You get 24/7 chat support on any of the plans

Cons:

• The starter plan only lets you sell 25 unique products
• Spocket handles all communication with the supplier, so you can't get in touch with them directly through the platform

AliExpress

AliExpress is owned by Alibaba, a popular business-to-business (B2B) online retail platform based in China. With over 100 million products available, AliExpress offers variety and simplicity for dropshippers worldwide.

Pros

• No subscription or monthly membership fees
• Compatible with a range of platforms, including Shopify, WooCommerce and DSers
• The availability of products at cheap wholesale prices offers the potential for higher profit margins

Cons

• You'll need to invest significant time into researching quality and trending products
• Given many suppliers are based in Asia, delivery times may take longer with the free or standard shipping options
• Make sure you check the legitimacy and reputation of any suppliers you choose

Colourblocker

Colourblocker is a Sydney-based dropshipping platform that ships to Australia and New Zealand. It offers a range of quality products in kitchen and homeware, electronics, and accessories.

Pros

• Colourblocker typically approves applications for dropshipping accounts quickly (within 48 hours)
• No monthly subscription or fulfilment fees - you only pay for the products you buy
• 48-hour processing time for orders
• Easy integration with platforms such as Shopify, WooCommerce, and Amazon

Cons

• Delivery times can be up to 10 business days, depending on location
• Express shipping is only available for wholesale orders
• Colourblocker don't pay to ship returned items, and they charge a restocking fee for returns

DropshipZone

DropshipZone is a popular wholesale and dropshipping supplier located in Melbourne. Offering thousands of products across popular categories, DropshipZone is easy for dropshippers to use and integrates well with other ecommerce platforms.

Pros

• You can connect with trusted suppliers based in Australia
• It's free to join, with no subscription or membership fees
• Your orders are processed within 1-3 days
• No minimum order quantities

Cons

• depending on the address, delivery can take up to 14 days in the off-season and 19 days in peak season
• You'll pay a commission fee for successful orders
• The product range is more limited than some other directories

Companies that dropship

Dropshipping companies are online services that connect you with verified suppliers and link their products to your online store Popular Australian options include SaleHoo, Spocket, and DropshipZone.

You'll work with two main supplier types:

• Manufacturers: Make products directly but often require bulk orders
• Wholesalers: Buy from manufacturers and offer smaller quantities with higher per-unit costs

Wholesalers typically offer more flexibility for new dropshippers testing products.

Wholesale dropshipping in Australia

Wholesalers buy products from the manufacturers in bulk, at a cheaper price than retail. Often, wholesalers will stock a huge catalogue of products from different manufacturers.

Wholesale dropshipping means working directly with wholesalers instead of using supplier directories. This approach offers better profit margins but requires proven product demand.

When to consider wholesale dropshipping:

• You've validated product demand through initial sales
• You're ready to commit to minimum order quantities
• You want higher profit margins on established products

Benefits:

• Lower costs: Bulk pricing reduces per-unit expenses
• Better margins: Direct relationships eliminate platform fees
• No storage needed: Wholesaler handles inventory and shipping

Drawbacks:

• Minimum orders: Often require bulk purchases upfront
• Higher risk: More capital tied up in unproven products

Managing your dropshipping business finances

A successful dropshipping business isn't just about selling products – it's about managing your money well. You need to track your profit margins, manage cash flow between customer payments and supplier fees, and stay on top of your tax obligations like goods and services tax (GST). For example, the Australian Taxation Office (ATO) notes that imported goods with a customs value of A$1,000 or less generally do not have GST payable at the time of import.

Using Xero accounting software makes it easier to see your sales, costs and overall financial performance in real time You can connect your bank accounts and integrate with popular ecommerce apps from the Xero App Store. This helps you automate bookkeeping tasks, so you can spend less time on admin and more time growing your business.

FAQs on dropshipping suppliers

Here are answers to some common questions about working with dropshipping suppliers.

How much does it cost to work with dropshipping suppliers?

Costs can vary. Some supplier directories are free to join, while others charge a monthly subscription fee. You'll also have the cost of the products themselves, and some suppliers may charge additional fees for shipping or processing orders.

How long does it take to set up with a supplier?

This depends on the supplier. Some platforms offer instant access once you sign up, while others have a vetting process that can take a few business days. It's best to check the supplier's specific onboarding process.

Can I work with multiple suppliers at once?

Yes, many dropshippers work with multiple suppliers. This can be a good strategy to offer a wider range of products, have backup options if one supplier runs out of stock, and avoid relying on a single source.

What should I do if my supplier stops responding?

First, try contacting them through different channels, like email and phone. If you still get no reply, pause orders from that supplier so you can protect your customers’ experience and find a more responsive partner This is why having a relationship with more than one supplier is a good idea.

Do I need business insurance for dropshipping in Australia?

While not always legally required to start, having business insurance, such as public and product liability insurance, is highly recommended. It can protect your business from financial loss if a product causes harm or damage.