Dropshipping suppliers: how to choose the right ones
Learn how to find dropshipping suppliers that ship fast, work with your store, and protect your margins.

November 2023 | Published by Xero
Written by Jotika Teli—Certified Public Accountant with 24 years of experience. Read Jotika's full bio
Published Thursday 2 April 2026
Table of contents
Key takeaways
- Order product samples from potential suppliers before listing items in your store to verify quality firsthand and avoid customer complaints about defective products.
- Evaluate suppliers based on shipping times to your target markets, as 62% of online buyers expect orders within three business days and choosing suppliers closer to customers reduces delivery costs.
- Research supplier reputation thoroughly by checking online reviews, ratings on directories, and testing their communication responsiveness before committing to a partnership.
- Consider working with multiple dropshipping suppliers simultaneously to diversify your product range and reduce business risk if one supplier experiences stock or quality issues.
What are dropshipping suppliers and companies?
Dropshipping suppliers are third-party businesses that store, pack, and ship products directly to your customers. You list their products in your online store, and when a customer buys, the supplier handles fulfilment.
Dropshipping companies (also called directories or platforms) connect you to multiple suppliers in one place. Instead of contacting suppliers individually, you browse catalogues, compare options, and import products through a single platform.
Here's how the dropshipping process works:
- A customer places an order in your online store
- You forward the order details to your supplier
- The supplier picks, packs, and ships the product
- The customer receives the delivery
Dropshipping suppliers operate worldwide. Choosing a supplier closer to your customers can reduce shipping times and costs. 62% of online buyers expect orders within three business days.
Companies that dropship
Understanding the types of companies involved in dropshipping helps you choose the right partners.
Most dropshippers work with a directory platform like SaleHoo or Spocket to access multiple suppliers and products in one place.
Suppliers fall into two main categories:
- Manufacturers: Make the products and sell directly. Often require bulk orders upfront, which increases risk if you're testing a new product.
- Wholesalers: Buy from manufacturers and resell to retailers. No bulk purchase required, but per-unit costs are typically higher
Factors to consider when choosing a dropshipping supplier
Before committing to a supplier, evaluate them against these criteria:
- Product quality: Order samples to inspect quality firsthand before listing products in your store
- Shipping times and coverage: Check average delivery times to your target markets and available shipping methods
- Pricing structure: Compare product costs, shipping fees, and any subscription or transaction charges
- Platform integration: Confirm the supplier works with your ecommerce platform (Shopify, WooCommerce, BigCommerce, and so on)
- Communication and support: Test response times and support availability before signing up
- Return and refund policies: Understand who handles returns and how refunds are processed
- Minimum order requirements: Check whether the supplier requires minimum quantities per order
- Reputation and reviews: Research supplier ratings on directories, forums, and review sites, as finding reliable suppliers is the biggest challenge for 84% of retailers
Best dropshipping companies
Before choosing a supplier, check online reviews for product quality, shipping speed, and customer service. Below are some of the most popular dropshipping platforms, with pros and cons for each. Note that some integrate better with certain ecommerce platforms, so confirm compatibility before signing up.
SaleHoo
SaleHoo is a supplier directory and Shopify integration tool. You can browse vetted suppliers, then import products directly into your Shopify store.
Here are the advantages:
- Access 2.5 million products
- Browse over 8,000 pre-vetted suppliers
- Import up to 500 products on Basic plan, unlimited on Premium
Here are the disadvantages:
- Choose from only two pricing tiers (Basic or Premium)
- Dedicated account manager available on Premium plan only
- Free trial not included; paid plans only
Spocket
Spocket is a supplier directory with location-based filtering, helping you find suppliers closer to your customers. You pay a monthly subscription plus product costs with no commission fees.
Here are the advantages:
- Order samples to verify product quality
- Integrate with Shopify, BigCommerce, WooCommerce, and Wix
- Access vetted and verified suppliers
- Get 24/7 chat support on all plans
Here are the disadvantages:
- List only 25 unique products on Starter plan
- Spocket manages all supplier communication on your behalf
AliExpress
AliExpress is a marketplace with over 100 million products from suppliers worldwide, most based in China. It's owned by Alibaba and offers low wholesale prices with no subscription fees.
Here are the advantages:
- Free to use with no subscription or membership fees
- Integrate with Shopify, WooCommerce, and DSers
- Access low wholesale prices for higher profit margins
Here are the disadvantages:
- Research products and suppliers thoroughly, which takes time
- Expect longer shipping times from Asia-based suppliers. Asia Pacific dominated the dropshipping market with a share of over 35.26% in 2024
- Vet suppliers carefully as quality varies
Worldwide Brands
Worldwide Brands is a supplier directory established in 1999, listing verified wholesalers and certified products. It's a popular choice for dropshippers seeking vetted, long-standing suppliers.
Here are the advantages:
- Access verified suppliers for added assurance
- Access over 16 million wholesale products
- Pay once for lifetime membership
Here are the disadvantages:
- Pay US$299 upfront fee
- Requires manual product upload to ecommerce platforms
- Pay extra for international shipping from US-based suppliers
How to find dropshipping suppliers
Here are the main ways to find dropshipping suppliers:
- Online directories: Use platforms like SaleHoo and Spocket to find vetted suppliers with product catalogues and ecommerce integrations
- Search engines and social media: Search for terms like "wholesale dropshipping," "dropshipping service," or "dropshipping suppliers [your region]"
- Third-party marketplaces: Browse Amazon, eBay, or Etsy for products, then research sellers to find potential suppliers
- Competitor research: Order from suspected dropshippers and check the return address to identify their supplier
- Trade shows and networking: Meet suppliers in person at industry events to build relationships and negotiate terms. 84% of online sellers say strong supplier relationships matter most
Tips for contacting and negotiating with dropshipping suppliers
Once you've identified potential suppliers, use these tips to build strong working relationships:
- Research thoroughly: Check online reviews for product quality, shipping times, and customer service before reaching out
- Communicate expectations clearly: State your requirements upfront and ask questions to avoid misunderstandings
- Stay flexible: Be firm on essentials but open to supplier constraints and capabilities
- Build long-term value: Offer ongoing business in exchange for better pricing or terms, or propose a trial period first
- Consider their perspective: Understand supplier margins and goals to negotiate fairly
- Be professional: Come prepared with business data and treat all suppliers respectfully
Is dropshipping possible in my region?
Dropshipping is legal in most regions, but requirements vary by location. Before you start, check the following:
- Business registration: Confirm what licences or permits your region requires for online selling
- Product legality: Verify that your chosen products can be legally imported and sold in your country
- Tax compliance: Understand your obligations for sales tax, VAT, or GST based on where you and your customers are located
- Supplier proximity: Choose suppliers closer to your customer base to reduce shipping times and costs
Manage your dropshipping business with confidence
Choosing the right dropshipping supplier affects your product quality, customer satisfaction, and profit margins. Take time to vet your options, test with samples, and build strong supplier relationships.
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FAQs on dropshipping suppliers
Here are answers to common questions about working with dropshipping suppliers.
How do I verify if a dropshipping supplier is legitimate?
Check online reviews, verify business registration details, order product samples, and test their communication responsiveness before committing.
What does it cost to work with dropshipping suppliers?
Costs vary by platform. Some charge monthly subscriptions, while others are free but charge per-product fees. You also pay product costs and shipping for each order.
Can I work with multiple dropshipping suppliers at the same time?
Yes. Many dropshippers use multiple suppliers to diversify their product range and reduce risk if one supplier has stock or quality issues.
How long does it take to set up with a dropshipping supplier?
Directory signups take minutes. Supplier approval and integration setup can take a few days to a couple of weeks, depending on the platform and any vetting processes.
What should I do if a supplier sends a defective product to my customer?
Contact the supplier immediately to arrange a replacement or refund. Communicate proactively with your customer, and document issues to prevent repeat problems.
Disclaimer
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
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