For those who are new to dropshipping, finding the right wholesale supplier can be challenging. It is quite possible that you will run into hiccups along the way until you find the right wholesalers to work with. That being said, how do you find the right wholesaler for your online business?

Wholesalers typically use different business models which will affect your business differently. Some charge membership fees while others don’t.

So the real question is, are member-based wholesale drop shipping plans really worth it?

Who Likes Membership Fees?

We do! (Well, sometimes).

When we think of membership fees, we tend to think of gym memberships and the like. Memberships that may or may not be worth the investment. So why do some wholesale dropshipping companies require you to sign up for their memberships?

While nobody likes paying for an annual or monthly membership, sometimes membership fees are actually the better deal.

Wholesalers are in the business to make money, just like you. That means that they need to make money from their customers, the only difference is when they make their money.

Suppliers that do not charge membership fees end up charging more for the products themselves. While this might be good for newbies who are only trying to buy limited amounts of a product, business owners may end up paying more in the long-run if they sell higher volumes of products.

VIP Treatment

Another reason why subscribing to a wholesale membership might be a good idea is because of the perks that come with it. As with most other memberships, the upfront cost you pay helps go toward things like enhanced customer service, monthly newsletters and updates, and updated product catalogs.

While wholesale companies that do not require upfront memberships can still provide good service, you tend to get better support and perks if you sign up for a membership. Companies that charge membership fees tend to be pretty reliable and helpful should you need to contact them.

Sometimes wholesalers who charge membership fees also have better shipping options and faster order processing. This perk can help give your business the competitive edge it needs when relying on others to source your products. Established wholesale companies sometimes have the access to better shipping deals than their competitors.

Once again, you get what you pay for. Although nobody likes paying money upfront, sometimes it is worth the investment. Especially if it gives you advanced services, processing, and shipping. 

It is also worth noting that some wholesalers have exclusive access to manufacturers. Therefore, they are able to charge a premium for their services. $150 a year might not be a bad price to pay for access to the best products and services. 

As with all wholesalers, do your research. Take the time to talk with them and determine whether or not they will make a good partner. Products aside, their service, prices, and product information should be a good fit for your company.

Importable Data

One possible advantage that member-based wholesalers have over the competition is their ease of use. Some companies include CSV files which make it very simple to import product data into your own store. These CSV files are rich with data that can make your job a lot easier. Especially if you are using a hosting site like Shopify. Here’s an example of how these files can improve your workflow.

Say you have contacted a wholesaler about stocking a few of their products on your website. Instead of painstakingly typing all of the product descriptions and finding copyright free photos of the products, the wholesaler will sometimes do this for you by providing you with a CSV file. 

See if your potential supplier is able to give you CSV files that you can upload directly to your store. Once you’ve uploaded the CSV file to your Shopify store, you will instantly have an updated and professional looking products with descriptions. This is a great feature for business owners who do not have time to spend entering product data.

Wholesalers who charge a membership fee are more likely to provide these features. This is another perk that can be well worth the annual fee. Time is money, make sure you’re spending your time on the things that matter to your business.

Conclusion

Finding the right wholesale supplier to partner with requires research. It is always a good idea to do a cost comparison when searching for a wholesaler. When you are doing a cost comparison, think about the volume of items you plan to move this month, next year, and in five years time.

Also, think about whether or not the perks associated with a membership will be worth the investment. Having importable product data could be something that you need to save you time. Likewise, having access to 24/7 customer support may be a key feature you are looking for when shopping for wholesalers. 

Whether you decide to do business with a wholesale company that charges fees upfront or with their products, have a discussion with your potential wholesalers to find the company that is the best fit for your e-commerce store.

Membership plans aren’t for everyone. Think about the quality of service you are looking for and see what kind of wholesale memberships you can afford. Only you know what is right for your company.

Be sure to sign up for the GreenDropShip wholesale membership and newsletter!