Finding Products to Sell Online

One of the most challenging tasks facing any new web merchant is sourcing products to sell online. The Internet, for better for worse, has bridged the communication gap between wholesalers and retailers of products online, but it’s often difficult to wade through the muck. Many companies profess to offer qualifed directories of Dropshipping Wholesalers, but even the most discerning eCommerce expert has difficulty determining which offerings are legitimate.

Product Research

Without a doubt, the first thing to do in preparing to launch an online dropshipping business is to perform original product research. You do not want to invest your valuable time and money bringing products to market before you realize that your chosen industry or product line leaves little room for profit margin, is over-saturated with competitors currently, is not at all what customers are looking for, etc, etc.

We recommend utilizing the industry standard, Terapeak. You can perform searches on products to dropship and more. Learn about the products you want to sell before you try to sell them. You’ll thank us later.

Product Liquidations

There are two websites online which are generally considered to offer the best information to those seeking to connect with wholesalers or manufacturers that are liquidating product inventories:

  • Liquidation.com – This is pretty much the online ‘hub’ for wholesalers who are seeking to liquidate excess inventory. It is our understanding that you can only purchase products here by the pallet-load, so be prepared to shell out some dough and warehouse inventory if you’re going to purchase from Liquidation.com. The site gets a lot of traffic and, thus, competition, but buying in bulk is generally cheaper.
  • LiquidXS.com – Here you’ll find a good deal of branded merchandise and collectibles. LiquidXS.com is not as well-known or as highly-trafficked as Liquidation.com, so you may benefit from a lower level of competition from other buyers on this site.

Wholesale Marketplaces

The globalization of the marketplace has made it possible to connect with suppliers from all over the world with a click of your mouse. To accomodate relationships between wholesalers and retailers, a number of wholesale communities have sprung up across the globe. The most well-known marketplaces are:

  • Alibaba – Alibaba is the world’s largest online community of wholesalers. The company has made significant strides over the past few years in gaining the trust of its buying members – including ranking wholesale members by their membership (trust) level, partnering with shipping/fulfillment providers like FedEx, adding chat and other interactive features, etc.
  • DHGate – DHGate professes to be PayPal’s largest ‘client’ in the Asia-Pacific region (whatever that means). What we can say about DHGate is that they offer wholesale products which originate in China. They have access to over 10 million wholesale products from more than 100,000 Chinese manufacturers and wholesalers.
  • GlobalSources – Global sources is also an Asian-based sourcing community. The website is quite intuitive and aims to connect wholesalers/manufacturers and retailers through forums, resources and events.

Dropshippers

Dropshipping has become quite fashionable lately. Dropshipping has enable ecommerce entrepreneurs to launch new ventures quickly without the immediate and long-term inventory costs that often cripple new ventures. There are some drawbacks to dropshipping, of course, that one must be wary of when considering starting a dropship business.

First of all, the benefit of lower inventory costs for dropshippers comes at a price. Sure, it may be less expensive to start up and maintain a dropshipping business, but it is often at the cost of long-term profitability. For their (dropshipping) part, wholesalers/manufacturers will take a larger share of the profit that is made available through the supply chain and less is left over for the retailer.

Secondly, when it comes to dropshipping information – buyer beware. In an age of instant commerce and gratification, there are many organizations out there that will be happy to take your money in exchange for the promise of the key to ‘dropshipping success’. Be diligent about your research and you should be fine.

These are the dropshipping directories that we have reviewed:

  • Worldwide Brands: Worldwide Brands is, without a doubt, the industry leader when it comes to wholesaler dropshipping. At $299, their membership is the most expensive among competitive brands, but – without a doubt – is worth the money for anyone who is serious about launching a dropshipping business online. Read our Worldwide Brands Review for more information.
  • SaleHoo: SaleHoo is widely-regarded as the next-best thing to Worldwide Brands and is a good alternative for those interested in a more entry-level alternative. Their lifetime membership is only $67 and they run a legitimate operation – you’ll find quality wholesalers in the directory.