Please check our latest article on dropshipping.
Antonia Klatt
Last Updated on 27 December 2023If you want to open a dropshipping online shop, you need one thing above all: suppliers. But there are not only reputable providers active on the market. Here you can find out what types of dropshipping providers there are, how to find good suppliers, and what to look out for when making your selection. We also introduce well-known international and German dropshipping suppliers and explain the best way to contact these product providers.
Find a dropshipping business idea
Before you start looking for dropshipping providers, you should be clear about what kind of products you actually want to sell. Because dropshipping is only a shipping method or a sales channel, but not a mature business idea. Since many dropshipping suppliers and wholesalers focus on specific segments, you should ask yourself the following questions before researching suppliers:
- Which products do I want to sell?
- Which price segment should my dropshipping business serve?
- Which market and which target groups do I want to address?
- What characteristics will differentiate me from the competition?
In order for you to be able to answer these questions and build a business that is as profitable as possible, you should first research a dropshipping business idea. There are several sources for ideas:
- Niches
- Passionate audiences
- Consumer trends
One of the biggest disadvantages of dropshipping is that it is very competitive. If all online retailers order their products from the same dropshipping suppliers, they all have similar product ranges. It is therefore worth taking a look at niche products. The narrower your niche, the smaller your competition. There are also many niche products that are not sold in brick-and-mortar stores. The online demand for these products is, therefore, greater and the sale of the products is profitable.
Closely related to the concept of niches are passionate target groups who are willing to spend a lot of money on accessories for their hobbies. Again, there are no limits to your imagination. Diving, fishing, felting, pets – the more passionate the audience, the better. Even if it may be a bit smaller, this target group is not only willing to pay but also loyal.
Another way to narrow down your business idea or to search for individual products is consumer trend research. Check out social media platforms, Facebook groups and Reddit forums, and product testing blogs. Here you will not only find reviews, but also discussions, product requests, and suggestions.
One last way to get some inspiration is to search on Google. You can either use Keyword Tools, which will help you find out if a product is searched for frequently, or try Google Suggest. However, the aim of this research should not be to find a product idea with the highest possible search volume. The higher the search volume, the higher the competition. Again, niche products with a lower search volume increase your visibility with potential customers.
Types of Dropshipping Suppliers
After you have found your business idea, you can start looking for dropshipping suppliers. There are basically two ways to purchase dropshipping products:
- Purchase directly from the manufacturer
- Purchase from a wholesaler
If you purchase products directly from the manufacturer, you are usually bound by minimum order quantities, have to pay for the goods in advance, and also store them until they are finally sold. However, ideally, you can modify your products and have influence or control over the quality.
If you are sourcing goods directly from the manufacturer, you can also use other fulfillment methods, such as Amazon’s FBA programs, instead of resorting to dropshipping. When using an FBA program, Amazon handles warehousing, expedited shipping, returns management, and customer support. For these reasons, Amazon FBA Selling is often seen as a long-term success model in contrast to classic dropshipping.
If you want to set up your own independent online shop or want to waive minimum order quantities and upfront payments, you can source your products from a dropshipping wholesaler. These types of dropshipping suppliers usually specialize in certain product categories and do not require any upfront payments. Wholesalers are therefore perfect as a product provider for dropshippers – you just have to find the right one.
Find dropshipping providers
Once you are clear about what type of supplier is suitable for you, you can start looking. In this chapter, we will introduce you to some strategies and characteristics of good and bad dropshipping suppliers and give you some tips for your search, so that you can find a suitable dropshipping provider as quickly as possible.
4 tips to find dropshipping wholesalers
Of course, you can just google “dropshipping supplier”. However, there are some other, more productive methods of finding suitable suppliers:
- Search with Google
- Contact the manufacturer
- Order from competitors
- Visit an industry fair
If you decide to use Google to search for a dropshipping provider, you should be prepared for an extensive search. Most wholesalers spend little resources on advertising and marketing. As a result, their web pages do not appear at the top of search results, nor are their web pages visually appealing. However, you should not be put off by this.
You should therefore continue to vary your search queries. Search not only for “dropshipping provider”, but also for “supplier”, “distributor”, “reseller”, “wholesaler” or “warehouse”. This will ensure that your research is comprehensive.
An easier way to find dropshipping suppliers is to contact the manufacturer of the products. Once you know what product you want to distribute, you can locate the manufacturer and ask if they offer dropshipping. Alternatively, you can ask them which wholesalers sell their products and then contact them.
If you know what products you want to distribute but can’t locate the manufacturer and wholesaler, we have another trick for you. Order the product from a dropshipping shop, i.e. a future competitor. After you have received the order you can check the quality and search for a return address. The return address usually leads you to the original sender, the dropshipping supplier, who you can then contact.
If you prefer to research live, you can visit a trade fair. Important manufacturers and wholesalers are usually represented at industrial trade fairs. Here you can not only research, but also make contacts and establish contractual relationships.
Good dropshipping providers
You don’t recognize good dropshipping providers by a beautiful website and a comprehensive range of products. Of course, the most important thing is always a reasonable price-performance ratio. You should also pay attention to the following properties:
- Specialization
- Good customer service
- High level of technological investment
- Central location
- Good organization and reliability
- Functioning returns management
- Individualized shipping
In general, you can assume that a dropshipping supplier who operates in a narrow niche knows their business better than a supplier who offers all kinds of products. The quality of the products is often better with these providers. You can tell how specialized a dropshipping provider is by their catalog, but also by their staff. If you can contact a specialized employee if you have any questions and the specialist staff can not only give you information about the process but also about the individual products, that’s a good sign.
Customer service also needs to be mentioned in the same breath. Dropshipping is a business in which problems with the provider not only result in financial costs. In its role as a supplier, the dropshipping provider also has a direct influence on customer satisfaction and the image of your shop. So you should tend to work with dropshipping providers who offer good customer service for sellers. Ideally, you will be assigned your own contact person so that problems can be solved as quickly as possible and you don’t have to get through the entire support team by phone or e-mail.
While you shouldn’t be put off by dropshipping suppliers with poorly designed websites, there still needs to be a high degree of technology investment. Because functions such as real-time inventory, online catalogs, order histories, and other data management and monitoring tools are priceless for dropshipping retailers. With them, you can optimize your processes and save yourself a lot of time. Dropshipping wholesalers who provide plug-ins for common shop systems, with which orders can be automatically forwarded, for example, and which enable programmers to customize these interfaces, are particularly attractive. Alternatively, you should discuss with your dropshipping provider whether you can also forward orders by email. Because putting in and forwarding orders by phone or manually via the website, if no integration function is available, are not only time-consuming. They also prevent you as a dropshipper from being able to run your business independently of time and place.
Another practical feature of good dropshipping providers is their central location in relation to your customers. The closer the provider is to your customers, the faster the packages will get to them. In addition, a central location saves you a lot of shipping fees and, under certain circumstances, import and customs fees. However, the following also applies: the closer the supplier is to Europe, the higher the purchase price of the products. So every dropshipper has to find the happy medium for himself. However, many wholesalers already store their products in several decentralized warehouses, thereby reducing delivery times.
Before you commit yourself to a dropshipping provider in the long term, you should place a few test orders. These are not only helpful to test the quality of the products, but also the organization, efficiency, and reliability of the supplier. With these test orders, also pay attention to the processing time of the ordering process and delivery, the tracking options, the billing and payment process, and the quality of the packaging. Many dropshipping suppliers offer sample products at a discounted price. You should avoid this and instead order products in a regular way. This way you can be sure that you check the daily processes in any case.
The daily processes also include returns management. Returns arise not only from quality defects but also from faulty deliveries and customers who change their minds. In E-commerce, you have to be prepared for a return rate of over 50% and take care of the returns management accordingly. Some dropshippers offer their customers a return address in their own country, collect the returns and send them back to the wholesaler in a bundle. Other dropshipping providers offer return addresses themselves. In this case, the end customer usually pays the return shipping fees. There are many return models for dropshipping. Find out which model is right for you and make sure that the dropshipping provider of your choice meets these requirements.
Once you’ve found dropshippers who meet many of these characteristics, you should still check whether your candidates offer customized shipping packaging. Of course, there is an extra charge for this and branded packaging is not always necessary, especially at the beginning. However, one of the most important points when starting a dropshipping business is marketing and a good image of the business. Individualized packaging increases the recognition value, enclosed cards increase customer satisfaction, and beautiful packages enhance the image. Therefore, you should make sure that customized shipping is at least an option for the future.
No matter how good the dropshipping provider you have chosen is – always back several horses. Most dropshippers source similar or even the same products from multiple suppliers. This way, competitive pressure can be exerted on wholesalers and, in the best case, the price can be pushed down. This also increases flexibility and security. If a dropshipping provider doesn’t have a product that was just ordered in stock, you can simply order it from their competitor and your end customer will still receive their package on time.
Recognizing bad and “imposter” dropshipping providers
Contrary to the characteristics mentioned above, there are also some points that indicate that a dropshipping supplier is bad or an “imposter”. Fake providers are mostly middlemen who pretend to be wholesalers and invest more money in marketing to be found faster and more frequently by dropshippers. In order to avoid dubious suppliers, you should pay attention to the following points:
- Public sale
- Minimum order quantities
- Ongoing Fees
The biggest warning sign that a supplier is just a middleman and not a wholesaler is the sale of products to the public. Wholesalers only offer their prices to registered, reputable companies with permission, so you often have to submit documents before ordering from them. If this is not necessary, the provider is probably just an intermediary who offers products at an increased price.
Another practice to avoid is minimum order quantities. These are mostly implemented to filter out dropshippers without serious interest. However, minimum order quantities are impractical, especially with dropshipping, since products are not sent to you first, but directly to the customer. If the order does not exceed the minimum order value, delivery cannot take place. If this is the case, you can offer the dropshipping supplier a credit prepayment. This way you meet the minimum purchase requirement of the supplier, but you can also use up the credit through several smaller orders from your end customers.
Another indication of dubious dropshipping providers is ongoing fees. No wholesaler should charge membership fees to give you access to their catalog. However, many supplier directories charge fees, and for good reason. On these lists, you will find suppliers that you can filter by product type and market and that are usually checked before they end up on the list. However, you should not take order-related fees from a dropshipping provider as a sign of their dubiousness. Many suppliers charge fees based on the size and complexity of the orders because the cost of packing and shipping single orders is higher than bulk orders. Fees up to $5 per order are standard in the industry.
Even if you now know what makes good and bad dropshipping providers stand out, you should not let it rest on that. Continue to regularly compare the conditions and also the customer satisfaction per supplier. Because just because a supplier offers the best price-performance ratio today and is reliable doesn’t mean it has to stay that way. In addition, you can always find better offers and possibly generate additional profits.
Alternatively, you can rely on proven, well-known dropshipping suppliers, especially at the beginning of your business. You may forego the best offers and profit margins but benefit from the experience of hundreds of dropshippers and reduced risk. Below you will find a list of the best international and German dropshipping providers.
Well-known dropshipping providers
Aliexpress & Alidropship
Aliexpress is without a doubt the most well-known dropshipping provider. Based in China and belonging to the world-renowned dropshipping group Alibaba, Aliexpress specializes in B2C business, i.e. retail. Thousands of products from every imaginable niche can be found on the platform at extremely low-cost conditions.
One disadvantage of Aliexpress is the location. Dropshippers have to expect delivery times of up to one month. Furthermore, Aliexpress products are not known for their good quality. This is a disadvantage, especially since certifications for compliance with health, environmental, and safety standards are required in Europe.
Orders are processed on Aliexpress through the Aliexpress system. As a dropshipper, you have to enter the necessary information into the system. This process works more easily via Alidropship, the Aliexpress WordPress plugin.
With it, you can easily create a shop, import products, run marketing campaigns, and place orders. However, you cannot integrate products from other marketplaces. If you have a Shopify store, you can use Oberlo to sell Aliexpress products. More on that later.
Alibaba
Alibaba is the B2B or wholesale platform of the Alibaba Group. In B2B trade, the long delivery times are less of an issue, since you can also store the products in your home country before they are finally sold. Of course, you are no longer a classic dropshipper, but you can benefit from the low Chinese manufacturing costs. In return, you pay a fee to use the online marketplace, but this is certainly made up for by your profit.
DHgate
Dropshipping DHgate is also based in China but is still recommended. DHgate offers a wide variety of lifestyle products including Consumer Electronics, Sportswear, Toys, Cosmetics, Housewares, and Home Decor. Customer service is considered reliable, but DHgate also suffers from delivery times of up to 30 days and, unlike many other wholesalers, does not offer payment via PayPal.
Furthermore, products with minimum order quantities are often offered, but this is not always a problem – on the contrary. Small products, in particular, can be ordered in large quantities, stored at home, or sent to another fulfillment provider, and then sent to the end customer within 2 days. At prices such as 0.5 ct per cell phone case, this is a worthwhile model for Amazon sellers.
BigBuy
BigBuy is one of the largest and best-known dropshipping providers in Europe. Thanks to its headquarters in Spain and contracts with various European courier services, BigBuy excels in terms of delivery. The offer includes electronics and household items, joke items, and decorations.
BigBuy offers many other advantages for European dropshippers. The provider offers individualized shipping, with which you can have your packages branded with your company logo. You can also integrate the entire BigBuy catalog on online marketplaces such as Amazon and Ebay with just a few clicks.
To use BigBuy you have to create an account with a one-time setup fee of €45. In order to be able to sell successfully afterward, you should take out a monthly subscription for €69, because without this subscription you can only send three products per month.
In general, the prices at BigBuy are higher than at Aliexpress and co. However, you benefit from fast delivery, significantly better quality, and wholesale prices for small orders.
Oberlo
Oberlo is another dropshipping plugin or app, this time for the online shop platform Shopify. Dozens of dropshipping providers can be found via the Oberlo Supply marketplace, including Aliexpress and co.
After installing the app, Shopify online shop operators can install products from these providers in their shop, and orders in the Shopify shop are forwarded directly to the dropshipping supplier via Oberlo. This saves dropshippers a lot of work. Furthermore, stock levels, prices, and product adjustments are kept up to date via Oberlo, the Oberlo dashboard is available with sales trend analisys and multilingual support is available.
Oberlo is free up to a shipping quantity of 500 units. After that, there is a monthly fee of just under €30 and you can have up to 10,000 packages sent to customers.
NEDIS
NEDIS is the only German dropshipping provider on this list, but with a central warehouse in the Netherlands. Specializing in cosmetics, household goods, and electronics, NEDIS is one of the largest European suppliers and is primarily aimed at young online shops. Customized deliveries are also possible with NEDIS. The dropshipping provider also shines when it comes to shipping. NEDIS promises to deliver orders received before 4 p.m. to end customers the very next day. In doing so, they compete with Amazon and clearly stand out from the competition.
Dropified
Dropified is another dropshipping plugin that allows you to integrate products into your own online shop on WordPress or Shopify with just a few clicks. The functionality is similar to Alidropshop, but a lot more flexible, since products from other providers can also be imported. Features vary between plans, with the cheapest being $47 per month and the most expensive being $167 per month.
Banggood
Bangood is a dropshipping supplier in the fields of mobile phones, lighting, home and garden, sports and fitness, cosmetics, apparel, and car accessories. The supplier scores with a free or minimal and location-independent delivery fee. Banggood is particularly popular because the website is similar to that of the online giant Amazon and is therefore easy to navigate. Unlike many other Chinese dropshipping providers, Banggood also only has a few counterfeit products in circulation.
Dropshipping providers in Germany
The main disadvantage of the dropshipping model is the long delivery times when suppliers are based in distant countries. This is especially true in times of Amazon Prime & co. when customers expect delivery times of less than 3 days.
In contrast, the greatest advantage of the dropshipping model has so far been the low purchase prices for the products. Up to 1 July 2021, imports from third countries up to a value of €22 were also exempt from import VAT. There were no problems with most purchases via dropshipping.
However, this rule has been rescinded. Since July 1, 2021, every import from a third country has been subject to import VAT. This means that dropshipping imports are now associated with additional effort and costs. This, in tuen, makes dropshipping providers in Europe, and especially German manufacturers famous for their quality products, significantly more attractive.
Since retailers in Europe and especially in Germany are often not yet familiar with the dropshipping model, the search is more difficult. Supplier and wholesaler lists can help. For an annual fee of €49/year, Dropshipping.de offers access to almost 650 mostly German manufacturers who are already familiar with dropshipping.
Alternatively, at Suppliers.de you can search for dropshipping products and filter between suppliers, wholesalers and manufacturers. Dropshipping-marktplatz.de is even more practical. The platform not only offers a large selection of suppliers, but you can also forward orders from your online shop or websites such as Amazon and eBay directly to the suppliers via the platform.
If you would like to start researching products directly, we will introduce you to 10 dropshipping providers based in Germany below.
Brands Gateway
BrandsGateway is a Germany-based luxury clothing dropshipping provider. In addition to easy-to-use management software, BrandsGateway offers integrations with WooCommerce and Shopify, allowing for smooth, real-time order matching.
Shirt King
Shirt-King specializes in textile production and print-on-demand services and scores with short delivery times. This is a dropshipping supplier for dropshippers who want to start their own label.
Youngfash
Youngfash is another fashion dropshipping supplier. Although Youngfash is primarily geared towards women’s clothing, the portfolio of more than 4000 products also includes a sufficient selection for children and men.
Gallay
If you are planning to start a jewelry business, Gallay is the right dropshipping provider for you. The supplier offers a platform for managing products, as well as a selection of over 6000 glass and gemstones, gold-plated and silver-plated brass alloys and various gold and silver jewelry.
Emporium
Dropshipping cosmetics and perfumes are available from Emporium. The dropshipping supplier dispatches products within 48 hours of ordering, offers advertising campaigns and promotions, and ensures constant restocking.
Manolya Electronics
Are you more interested in electrical items? Then you should take a look at the Berlin-based dropshipping provider Manolya Electronics. The company offers high-quality electrical appliances from brands such as Samsung, Apple, Panasonic, and Miele and boasts short delivery times and low prices.
AGI AKKU Service
In contrast to Manolya Electronics, AGI AKKU Service offers small parts and practical accessories such as rechargeable batteries, power packs, and chargers and offers another advantage. As a dropshipping provider based in Germany, AHI AKKU Services follows all relevant environmental protection guidelines.
Trends 4 Cent
In addition to electrical and fashion items, household goods are also popular dropshipping items. The dropshipping supplier Trends 4 Cent offers these products, and car accessories, small electronics, and leisure and outdoor items to boot. The provider shines with PayPal buyer protection and well-organized logistics.
CLP
Dropshipping is not only suitable online, but also in stationary trade when it comes to heavy products. This includes furniture. The dropshipping supplier CLP offers over 1000 interior products and scores with high stocks and seasonal items.
BuXtrade
The Hamburg-based company BuXtrade ships nutritional supplements, sweeteners, spices, and more. This dropshipping provider is characterized by reasonable prices, a flat rate shipping within Germany of only €3.95, and a quick return process.
Contact dropshipping supplier & negotiate
With many dropshipping suppliers, you can order directly online on the platform. However, you sometimes have to contact small suppliers or “normal” wholesalers yourself. There are a few things you need to think about before contacting the supplier.
Before contacting dropshipping suppliers
First of all, most reputable dropshippers require proof that you have incorporated and are running a legitimate business before they contact you or you can open an account on their website. Only after you provide them with proof can you see their prices and benefit from them. So gather the necessary documents before you start sending out E-Mails.
Furthermore, you must be clear in advance about how you will be perceived by dropshipping providers. Experienced dropshipping suppliers are constantly being contacted by dropshipping newbies. They’ll set you up an account on their website, but don’t ask about discounts or special services until you’ve made at least a few sales.
The main goal here is to build credibility. When contacting suppliers, formulate your business project in concrete terms and communicate professional successes that will help you to set up and manage your dropshipping business (e.g. in the areas of sales, corporate management, marketing).
Even though most dropshipping newbies tend to contact wholesalers via E-Mail, it is often worth just picking up the phone and calling the dropshipping provider if possible. Of course, this is mostly only the case with Western-based suppliers. You should write down all your questions beforehand so that the conversation is as constructive as possible.
Contacting dropshipping providers
When contacting suppliers, you should pay attention to professionalism and form, as many providers usually decide whether or not to work together based on your request. Especially in times of online platforms and social media, it is important to remember that you want to enter into a business relationship with the wholesaler.
Regardless of whether you contact the potential dropshipping supplier by phone or email, there are a few important points that should always be included in your contact:
- Presentation of your company
- Products
- Product quantities
- Time frame
- Packaging and shipping
First of all, you should introduce your company. Usually, it makes no sense to present yourself as a large company. Use phrases like “young company” instead. Furthermore, the industry or niche should be mentioned here. You are also welcome to present the vision and goals of your business or brand. You should make it clear that your business is a dropshipping model. If the wholesaler has no experience with this business model, you must point out to them that the delivery will not be made to your business address but instead, deliveries will be made to many end customers individually.
After that, you should express your interest in certain products. Of course, you should only contact dropshipping providers after you have already found products in their catalogs that interest you. It’s best to refer to specific product numbers, mention the expected quantities of products you plan on selling, and to ask about the timeframe in which the dropshipping supplier can pack and ship packages.
When contacting providers, you can also clarify initial questions. For example, you can inquire about customization options for packaging and labels, ask if there is inventory synchronization software, and find out how the wholesaler handles returns. Finally, of course, you have to inquire about the price.
Paying dropshipping suppliers
Now that you know what is important when selecting dropshipping suppliers and you may have already considered a few dropshipping providers, it’s time to get down to business: ordering and paying for products. Most providers accept:
- Payment with credit card
- Invoice with net terms
Paying the dropshipping provider by credit card is one of the most popular payment methods among dropshippers and is fairly self-explanatory. It’s quick and uncomplicated and since the end buyer has in most cases already paid the sales price to the dropshipper, there are no expenses involved.
An alternative is an invoice with net terms. This means that you have a certain number of days before you have to transfer the invoice amount to the dropshipping provider. Therefore, this payment method is also suitable for dropshippers who do not require their end customers to pay in advance. As a retailer, you pass on the order of a product to the dropshipping supplier, the end customer transfers the sales price to you as soon as he has received his goods and you transfer the purchase price to the dropshipping provider and keep your profit.
Normally, the dropshipping provider asks for credit references before granting you the invoice with net terms option. However, this payment method is quite common and very practical, even if you have to gather a few documents in advance.
Conclusion
Nowadays, the market is flooded with dropshippers from all over the world and all industries. Every online shop owner has different priorities, so it’s not about finding the “best” supplier, it’s about finding the best supplier for you. In this article, we have given you some strategies and tips to help you find a provider in Germany or abroad.
If you order goods from German dropshipping providers, you no longer need to worry about customs and imports. But one tax issue remains: VAT. hellotax can help you with this. We specialize in e-commerce, dropshipping, and Amazon businesses and help you to be VAT compliant in the EU. Contact us today and find out more!
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