USA vs Chinese Dropshippers: How to Choose Your Supplier

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USA vs Chinese Dropshippers: How to Choose Your Supplier

Choosing the right dropshipping supplier is absolutely essential if you want your online store to thrive. That being said, it’s not always immediately obvious which supplier you should go with. For example, there are a great many dropshipping suppliers based in China. However, a lot of online retailers emphatically avoid any suppliers who are not based in the US or who only have warehouses overseas. So, what are the relative benefits of USA dropshipping suppliers vs Chinese suppliers?

Well, before we dive into that, let’s just quickly talk about the logistics of dropshipping. First and foremost, dropshipping has become an immensely popular retail fulfillment model for online entrepreneurs. In fact, 23% of online sales were fulfilled by dropshipping in 2017. This amounts to a whopping $85.1 billion! That’s a significant number, so it’s definitely worth your time to determine if you want to work with USA or Chinese dropshipping suppliers!

The 8 Most Popular Dropshipping Suppliers from China

Chinese dropship suppliers are popular for some online resellers

So, before we launch into the relative pros and cons of USA dropship suppliers vs Chinese suppliers, let’s go over a list of each. Besides, some online retailers still decide to use dropshipping suppliers from China despite their being significant drawbacks. That being said, here are the 8 most popular Chinese suppliers:

1). AliExpress

This is an exceptionally popular directory of dropshipping suppliers. It’s notable for not allowing non-Chinese businesses to use its platform. Furthermore, some of the suppliers on its platform have very limited information available, so users are forced to rely on reviews and the store rating system. However, there is a strict policy of no returns, exchanges, or warranties; in fact, you can only ask for a refund if the item received is completely different from what was ordered.

2). DHgate

Similar to AliExpress, this directory connects international buyers to small-to-medium businesses in China. However, it does not carry nearly as many products and it will mediate disputes between buyers and sellers after a certain period of time.

3). TOMTOP

This supplier focuses mainly on electronics and gadgets. Furthermore, they have a clearly-defined dropship program that has very clear requirements for online resellers who want to participate in this program. Additionally, TOMTOP has warehouses in 9 different countries, including the United States. This means that products shipped from there will get to customers much faster than if they had to travel from mainland China. They also have a more comprehensive return and warranty program. This is especially useful considering that you’re dealing with higher cost items.

4). DealeXtreme

Customer experiences seem to vary, but a big factor for people still choosing to shop here is that they accept PayPal and that they offer free shipping anywhere. Furthermore, they specialize in selling inexpensive computers, home gadgets, iPhone accessories, electronics, cellphones, and car accessories. They also have s small but growing apparel section.

5). LightInTheBox

LightInTheBox specializes in apparel, accessories, gadgets, and home and garden products. They also offer customized dresses for weddings and proms at slightly higher prices. They also have a dedicated dropshipping website called DropInTheBox for those who want to dropship LightInTheBox products. Perks include additional discounts and a dedicated account manager for high-volume sellers.

6). Banggood

This supplier has an explicit dropshipping program with perks such as higher discounts, hot product recommendations, and dedicated Skype services to contact their sales and customer service representatives. They’ll also provide you with watermark-free photos of the products you want to dropship and ship your products without any identifying information from them. Furthermore, they specialize in toys, cellphones, gadgets, VR headsets, TVs, apparel, and garden supplies.

7). Tmart

This supplier focuses mostly on electronics and computer accessories. You can apply for a Tmart’s dropshipping program to get benefits such as additional discounts, watermark-free images, and no identifying information on packages they send out. Furthermore, they have a separate page called Tmart Express to order products that are available in their US warehouse so buyers from the US can enjoy shorter delivery times.

8). PandaHall

This supplier specializes in products used in jewelry making, such as beads, chains, earring settings, and special tools. PandaHall is more specialized than the other suppliers listed, but it’s a noteworthy inclusion because jewelry is a profitable niche on its own. Furthermore, it can complement plenty of other niches, such as women’s fashion (accessories), alternative medicine (crystals), self-improvement (affirmation bracelets), and more.

The 8 Most Popular Dropshipping Suppliers from the US

There are a number of excellent dropship suppliers based in the US

Now that we’ve listed the most popular dropshipping suppliers from China, let’s make a similar list for US-based suppliers:

1). Doba

Doba is one of the most comprehensive drop shipping services out there. It not only provides a detailed directory of manufacturers and wholesalers but also offers a platform to simply add the products you want without having to partner with multiple drop shippers. Typically, you have to partner with 20+ drop shipping suppliers. With Doba you just have to find the product to sell, list them on your site and then start selling!

2). Oberlo

If you haven’t heard about Oberlo in running your drop shipping business then you haven’t truly been drop shipping. Oberlo bills itself as the leading marketplace to search and find products to sell online at your Shopify store. Their platform for Shopify facilitates drop shipping by connecting merchants with suppliers, who then ship products directly to consumers.

3). Sunrise Wholesale

Sunrise Wholesale is a service that drop ships products directly to your clients. You gain access to over 15,000 brand products, and you can search for these products. Sunrise allows you to export your products — including images and product descriptions — to eBay, Amazon and your own website. It even integrates and syncs with Shopify and Big Commerce.

4). Wholesale 2B

Wholesale 2B requires you to sign up for a plan, but you don’t get charged anything for simply browsing the product database. As you’re browsing this database, you’ll see that they about 1.5 million products and several plans to choose from. Furthermore, they offer specialized plans if you plan on selling from eBay, Amazon, or your own online store.

5). SaleHoo

This supplier is a little different: SaleHoo has more of a focus on presenting a detailed directory for companies you can partner with for your business. They have 8,000+ companies in their network that give you access to over 1.6 million products. Furthermore, all the 8000+ suppliers are verified by the SaleHoo team, so you can trust them for quality and other factors.

6). Wholesale Central

The Wholesale Central doesn’t have a great website, but it’s a quite decent tool for filtering through categories like clothing, electronics and leather goods. Additionally, Wholesale Central has over 600,000 items listed with over 1000 trusted wholesale providers.

7). Megagoods

Megagoods is a direct supplier which has simplified the dropshipping model. Furthermore, they specialize in consumer electronics and video games with more than 45 categories. Finally, they have a large selection of brand-name products along with fast processing and private label shipping.

8). Greendropship

Greendropship offers over 20,000 natural, organic, and gourmet products. Furthermore, it’s not only based in the US, but it only provides items that have been made in the US. This means that although it’s a smaller company, it’s an excellent choice for any online resellers looking to focus in the natural and organic niche, which is especially profitable due to the fact that many consumers are willing to pay a premium for these types of products.

Should I Work With A Supplier Directory or a Single Company?

Dropshipping directories or single suppliers - which is better?

 

As you can see from the lists above, some of these options fall under the category of “directory” rather than “single suppliers”. So what does that mean, exactly? Well, a directory is when there is an aggregate list of preapproved suppliers. That being said, the benefits of working with a directory include:

  1. Lower risk—you’re not going to be scammed by our suppliers
  2. Easier searches—filter search results based on the exact specs you need
  3. Faster research—quickly find suppliers’ product offerings and contact information

Ultimately, it’s up to you who you’d rather work with. Obviously, a directory has more options, but not all online resellers are looking for something like that. For example, working with a single supplier has its share of pros as well. These include:

  1. Defined niche – Many single suppliers have a more limited selection that fall within an easily identifiable niche.
  2. Better customer service – When working with a large-scale directory, it’s sometimes easy to fall through the cracks and not build a good working relationship with customer service. Remember, Murphy’s Law applies to your online store: anything that can go wrong will go wrong. This means you’ll want excellent customer service.

If you’re examining USA dropship suppliers vs Chinese suppliers, keep in mind that Chinese suppliers are very frequently directories that aggregate a large number of smaller Chinese producers.

USA Dropship Suppliers vs Chinese Suppliers – The Pros and Cons

USA dropship suppliers vs Chinese suppliers - what are the pros and cons

So now we’ve established that you have plenty of options. As you can see, there are a great number of potential suppliers based in both countries, so the question remains: who should you work with?

Well, let’s take a moment to establish the relative pros of working with Chinese suppliers:

  1. Materials are easily accessible
  2. Wages in China are far cheaper
  3. China excels at cheap and efficient mass production
  4. Production lines in China are refined and organized

Ultimately, all of these add up to a single, powerful benefit: products from China are almost always cheaper!

On the other hand, there are some significant disadvantages to working with Chinese dropshipping suppliers, including:

  1. Language barrier – If they don’t speak excellent English or you don’t speak excellent Mandarin (or Cantonese for suppliers based in and around Hong Kong), then it’s highly likely that a language barrier will exist and complicate the process of doing business.
  2. Limited customer service – Unfortunately, Chinese suppliers do not have the best reputation when it comes to their customer service. Remember, Murphy’s Law applies, so you’ll want customer service 24/7/365!
  3. Overly complex or nonexistent return policies – Many Chinese suppliers have limited return/warranty policies. In some cases, even if they do have good policies, they will not cover the cost of return shipping, thereby making it unprofitable to follow through.
  4. Long shipping times – This one is huge! A report from Dotcom Distribution found that 87% of online shoppers identified shipping speed as the defining factor in deciding to shop with an online brand. So, if the Chinese supplier has no warehouses based in the US, or if they have to ship the product from China to their US-based warehouses, then the shipping may be prohibitively long.
  5. Product quality is usually lower – For the most part, the quality of products from China is not always up to par. As a result, many consumers avoid buying them and prefer products made in North America.
  6. Website design is lacking – In most cases, the websites for Chinese suppliers have lower functionality and are less intuitive than their American counterparts.

What Are the 6 Things to Look for Dropshipping Suppliers

At the end of the day, the question of USA dropshipping suppliers vs Chinese suppliers really depends on what you are looking for in your online store. If price is your main concern, then Chinese suppliers are probably the way to go. On the other hand, if communication, customer service, return/warranty policies, shipping speed, product quality, and web design are paramount, then working with US-based suppliers will likely be better for you.

So, that being said, let’s look at the 6 key factors when choosing your dropshipping supplier:

  1. Knowledgeable staff and familiarity with the industry. You need to work with a supplier who understands your business and its demands.
  2. Sales and service representatives who understand dropshipping. Additionally, these representatives need to be available at all times, 24/7/365.
  3. Innovative tools to help your online store succeed. These include excellent product descriptions, comprehensive data feeds, real-time inventory tracking, detailed product catalog, and a searchable order history.
  4. Ability to take automate the ordering process. Although this sounds minor, it’s actually important: you don’t want to have to constantly call in to process every order.
  5. High-quality products. This is a big one as it’s one of the main benefits of USA dropship suppliers over Chinese suppliers.
  6. Fast and efficient shipping. This is another key factor! In fact, the golden rule in dropshipping is that it shouldn’t take your supplier more than 24 to 48 hours to pack and ship item. Furthermore, if they’re based in the US, then it shouldn’t take longer than 5 business days to reach the customer.

Greendropship As Your USA Dropship Supplier

Greendropship is a high-quality dropshipping supplier

If you’ve decided to work with US-based suppliers, that’s great news! That means that other issues besides low prices influenced your decision. Furthermore, you’ll have to choose between working with a single supplier or going with an entire directory. Either will work, but if you choose the former, you may be wondering who to work with.

Look no further than partnering up with Greendropship! We have over 20,000 natural and organic products that have been made in the USA. We have also developed highly innovative methods for packing and shipping, including perishable goods. Health-savvy consumers will happily pay a premium for companies specializing in offering natural and organic choices, so you can potentially boost your profit margins by partnering up with Greendropship! Contact us today to speak to a sales representative who can answer any and all questions you may have.

 

 

 

 

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