Finding reputable Amazon dropshipping suppliers is a crucial part of establishing a successful dropshipping business on this marketplace. But truth be told, it is not that easy to find one that would be giving you the best services including consistent supply of products, on time delivery and excellent customer service.
It is because there are numerous Amazon dropship suppliers out there. So, we scoured the internet to provide you a list of reputable suppliers so you can skip the hassle of doing it yourself.
Do you like that? Keep reading.
Is Dropshipping Dead?
Before finding out the best Amazon dropshipping suppliers, let’s see if this business model still works. It is undeniable that dropshipping on Amazon or any platform is still worth trying.
We used Google Trends to see the popularity of “dropshipping” in the US over the past 90 days. Google Trends uses a scoring system of 0 to 100. Understanding the numbers, “0” means there is not enough data to score the term. On the other hand, “100” represents its peak popularity.
We looked back at the performance of the word “dropshipping” over the past 90 days (August 2023 - November 2023) and the results are shown in the graph below.
As you can see, there are some undulations in the line graph but the popularity mostly stays above the median score of 50.
We looked further into the past five years to see if the popularity of the term has increased since 2018. As evidenced by the data pictured above, the popularity of the term “dropshipping” is slowly crawling upwards.
Source: Oberlo
Mentioning dropshipping market, as described in the graph above, the market size is progressively increasing. With a $243.42 billion valuation at 2023, dropshipping is expected to double by 2026, reaching $476.10 billion.
All in all, the data provided by these three graphs above only proves that dropshipping is stillprofitable to invest in.
In fact, it is steadily increasing in popularity, and along with that, the financial projections about its future look very optimistic.
Therefore, it is still a great time to initiate a dropshipping business today if you want to try your business acumen in the dropshipping industry.
The Amazon Dropshipping Model Explained
Source: Fit Small Business
If you are new to this business model, you need to find out how dropshipping for Amazon works.
In a nutshell, assuming that you have found your Amazon dropshipping suppliers and you are ready to launch the business, the model works like this:
- Customer - Say you are selling thermal bottles. The customer places their order on your Amazon store.
- Amazon Store (You) - You receive your customer’s order. Let’s say the retail price of thermal bottles in your store is $35, and the supplier price is $28. Upon confirming a customer’s order, you get to keep the $7 profit and forward the $28 to the supplier so they can initiate the order.
- Dropship suppliers for Amazon store owners - Upon confirmation of order details, they will process the order and handle the shipping until the order reaches the customer
Amazon FBA vs. Dropshipping On Amazon
Beginners always confuse Amazon FBA and Amazon dropshipping as the same thing. But while they have their similarities, they are two different business models.
Amazon FBA
Amazon FBA or Fulfilled By Amazon is a business model in which you don’t need to handle the delivery yourself because you use Amazon’s storage and logistics to fulfill customers’ orders. In this business model, you can leverage the well built infrastructure of Amazon logistics.
However, regarding selling items when you use Amazon FBA, you are the one who owns or makes the products (which means you had an initial capital investment to purchase inventory). Then, you send your products to Amazon warehouses and Amazon will ship it to customer’ doorstep.
Dropshipping
The similarity between Amazon FBA and dropshipping is that in both business models, you don’t take physical possession of products yourself and you don’t handle the fulfillment.
However, unlike FBA, you don’t need to actually make the products to dropship on Amazon. You just need to list and sell them on your store. Additionally, You don’t pay for any product from the supplier until a customer places an order.
In a way, you act like an agent between the supplier and the customer, and in the process, you get your share of the profit.
What To Look For In Amazon Dropship Suppliers?
Good dropshipping products sourcing companies play an important role, which can build trust with customers and increase sales. Here are the things that the best dropshipping suppliers for Amazon businesses should have.
Product Quality
A good dropshipping provider must have a high-quality product. This implies that the provider should offer a diverse choice of high-quality, in-demand items at reasonable costs. By selling high-quality items, your Amazon dropshipping business is more likely to have return customers and excellent evaluations, which may lead to increased sales.
Moreover, offering high-quality and trendy items can attract new customers and enhance brand recognition. Customers are more willing to pay a greater price for a product if they perceive it to be of good quality. As a consequence, the profit margins may increase.
Moreover, high-quality products are less likely to be returned, reducing return costs and minimizing the chances of negative feedback and conflicts.
Low Per-Order Fees
Dropshipping suppliers for Amazonnormally charge per-order fees within the range from $2 to $15 on top of their selling price. While this is an acceptable business practice, some suppliers overcharge dropshippers. This eats up your profits.
Therefore, it is important to find a supplier with a reasonable per-order fee, much better, free dropshipping suppliers on Amazon which do not charge you.
Timely Shipping
Customers want to get their products promptly and effectively, thus fast delivery is critical to customer happiness. Fast shipment from a supplier may lead to more return customers, positive feedback and more sales.
Furthermore, clients are more inclined to prefer shopping from a seller that can deliver quickly than one who cannot. This may bring in new consumers and raise brand recognition.
Technology
Dropshipping is a data-driven business especially when serving a large customer base and selling numerous items. Amazon has an arsenal of business tools that will let you monitor your business.
In the same way, your dropshipping supplier must provide you with an insightful dashboard that lets you know what’s happening with your business in relation to them.
Some key data that should be accessible in your dashboard are:
- Average Order Value
- Customer Lifetime Value (CLV) and Customer Acquisition Cost (CAC) Ratio
- Total Sales
- Gross Margin
- Net Profits
Customer Support
Experiencing problems is almost a sure thing when doing business. Therefore, you should take this into account when looking for a supplier. Should you encounter problems with their products, would they be willing to rectify mistakes?
Our List Of Top Amazon Dropshipping Suppliers
According to Printful, 84% of ecommerce retailers say that the biggest obstacle to starting a dropshipping business is finding a good supplier. So, if you are planning to scour the internet for the best dropshipping suppliers for Amazon, you are in for a massive task.
But if you want to save your time instead, check out our list of Amazon dropshipping suppliers.
Note: We used Trustpilot to provide user reviews of the following companies. Check out the screenshots below.
01. CJDropshipping
CJDropshipping is amongst the top three most installed dropshipping apps (along with DSers and Zendrop). It is a platform where budding entrepreneurs can look for suppliers of any products that they wish.
CJDropshipping is one of the best dropshipping suppliers USA for Amazon sellers, because they have a warehouse network located within the country. Hence, locally stored items can be delivered in as fast as 2-7 days by USPS+.
CJDropshipping is best for beginners because financial risks are very low.
In fact, they offer the following:
- No minimum order requirement
- No per-item fee
- No monthly recurring charges
- No set-up fee
- No storage fee
- No hidden charges.
Trustpilot reviews of CJDropshipping makes it a very reliable dropshipping source. The supplier garnered a Trust Score of 4.9 which equates to an “Excellent” review from more than 10,000 people.
💡 Quick Read - 9 Best Dropshipping Clothing Suppliers For A Successful 2024
02. SaleHoo
SaleHoo has a list of more than 8,000 multiple suppliers from over 2.5 million SKUs so you can rest assured that you are partnered with a reliable dropshipping supplier.
The only catch is that they only cater to dropshippers located in the USA, UK, and Australia.
They offer access to their supplier directory for either $67 per year or a one-time fee of $127 for a lifetime subscription. Which, if you ask us, already sounds like a good deal compared to the time and money that could be wasted with the wrong supplier.
Regarding user feedback, SaleHoo garnered a Trust Score of 4.2, which equates to “Great”, from 440 reviews.
03. Banggood
Banggood is a platform that might just give you the chance to find the best dropshipping suppliers for Amazon. They are a China-based wholesale supplier where you can find winning items to dropship on Amazon across 15 categories.
There is no fee once you get started with this supplier. Moreover, you’ll get 5% - 20% lower prices compared to retail. Furthermore, Banggood provides an API that you can integrate into platforms other than Amazon – such as Shopify and eBay.
Banggood is one of the best suppliers for Amazon shopshipping with “Great” feedback on Trustpilot. This supplier receives a trust score of 3.3 from more than 45,000 online reviews.
04. Worldwide Brands
Unlike the first three items in this list, Worldwide Brands is not a dropshipping platform. It is a full-blown directory so you can find dropshipping suppliers that suit your business.
Worldwide Brands grants your direct access to suppliers and it only contains companies that adhere to a strict set of guidelines. So, if you want to find legit and pre-vetted Amazon dropshipping suppliers for your business, Worldwide Brands is for you.
There is one catch though… You need to pay a $197 one-time fee to gain lifetime access to their list (which is updated every week with new suppliers).
They claim that they are the only 100% certified directory of legitimate dropshipping suppliers where you can find more than 16 million wholesale products across a wide range of categories.
An “Excellent” trust score of 4.5 from 324 people says it all about the reliability of Worldwide Brands’ online directory.
05. Wholesale2B
Wholesale2B is a dropshipping services platform that connects wholesale suppliers to dropshipping entrepreneurs. With 18 years of experience, Wholesale2B takes pride in its established network across the North American region. With over a million dropship-ready items from various categories, it's simple to construct one-of-a-kind product collections for your Amazon dropshipping store with Wholesale2B.
Moreover, if you are just looking for a directory of multiple suppliers for Amazon from the United States and China, Wholesale2B will be very glad to give you a list for free if you sign up.
Aside from Amazon, Wholesale2B can be integrated with 15 other platforms like Shopify, Ebay, Wish, and more.
Regarding the trust score on Trustpilot, Wholesale2B gets a “Great” result of 3.9 from 220 reviews.
06. Doba
Doba is an all-in-one dropshipping platform that provides a directory of pre-vetted Amazon dropshipping suppliers. This directory mostly includes suppliers from the United States and China, although they can ship products globally. Regarding product options for merchants, Doba has over 2 million products across 13 categories which includes consumer electronics, home, outdoors, sports, and more.
Additionally, aside from Amazon, Doba can also be integrated with WooCommerce, Bigcommerce, and eBay, among other platforms.
If you want to create a proprietary website in addition to your Amazon dropshipping store, Doba will be very happy to let you have your own selling platform through Doba Direct (US only) – free of charge, with access to 24/7 support, secure payment, and 70,000+ profitable products to sell.
On Trustpilot, Doba gets an “Excellent” trust score of 4.3. However, do note that there are only 82 reviews so far.
07. Alibaba
As it primarily functions as a B2B platform that caters to customers who are buying in large quantities, you can find the most competitive prices of almost any item here.
Although Alibaba is not a dedicated dropshipping platform, it has a large selection of suppliers and items in the world. As a dropshipper, you can use this platform to directly communicate with product manufacturers and negotiate lower wholesale prices. You might even find suppliers who entertain a dropshipping business model.
Alibaba is also a great search engine to discover interesting products to sell in your Amazon dropshipping store. You don’t even need to sign up to browse through millions of products.
Mentioning the trust score of Alibaba on Trustpilot, this supplier receives an “Excellent” trust score of 4.3 from over 22.000 people.
08. AliExpress
Next in our list of top Amazon dropshipping suppliers, AliExpress is the direct-to-consumer (D2C) subsidiary of Alibaba, which means that anyone can buy the items in retail quantities.
Since there is no integration between AliExpress and Amazon, dropshippers are left in their own devices in looking for reputable suppliers, and negotiating a dropshipping model.
Since AliExpress is a D2C platform, customers who know about its existence could just simply buy the products themselves from AliExpress.
Those who have their own dropshipping websites through platforms like Shopify and Woocommerce can use DSers to integrate AliExpress in their website. That way, they can easily add products directly from AliExpress to their dropshipping store.
Among all the items in the list, AliExpress gets the most number of user reviews on Trustpilot – more than 138,000. However, it has a “Poor” trust score of 2.6. It's important to note that they have received 1-star reviews accounting for 16% of the total reviews, which raises questions about their reliability. So before transacting, always do your due diligence to avoid getting duped.
How To Find Dropship Suppliers For Amazon Online Store
5 steps to find reliable dropshipping suppliers
Choosing a supplier is a crucial step in setting up a successful dropshipping business, so take your time to do thorough research and make the best decision. Here are five steps you should go through:
- Research potential suppliers: You can find these suppliers using dropshipping directories, through wholesale suppliers, or by directly reaching out to manufacturers.
- Evaluate each supplier: Consider factors such as their product range, pricing, delivery times, and customer service. Check online reviews and ratings to get a sense of their reputation.
- Contact the suppliers: Once you have a shortlist of potential suppliers, contact them to inquire about their services. Ask about their dropshipping process, their fees, and their return policy.
- Negotiate terms: If a supplier seems like a good fit, try to negotiate the terms of your partnership. This could include pricing, delivery times, and return policies.
- Test the supplier: Before fully committing to a supplier, consider placing a few test orders to evaluate their service.
What you should ask wholesale suppliers
The last but not least phase of choosing a dropshipping supplier is you need to confirm with them by asking some questions. Knowing these specific information allows you to gain valuable insights into how the supplier operates and what you can expect if you decide to work with them.
- What procedures do you have in place for managing returns and damaged goods?
- How quickly do you process orders from the point of sale to delivery?
- Are orders covered by insurance?
- Do you offer protection against fraud?
- Do you provide shipment tracking numbers?
- Can you explain your billing procedure?
- What are the conditions stated in the dropshipping contract?
- What is your fee structure per sale?
- Is there a fee for handling? Are there any additional charges?
The Problem With Dropshipping On Amazon
It is undeniable that Amazon is a great online selling platform that connects thousands of sellers with millions of buyers all in one place.
But this hold on market also serves as its main drawback for entrepreneurs who want their businesses to stand out.
Using Amazon as a dropshipping platform puts you in direct competition against sellers within the same niche. Which makes it a highly competitive marketplace.
Furthermore, Amazon dropshipping does not provide room for branding efforts since sellers are locked in with the platform's UX design. This makes it very hard for startups to make their businesses stand out.
The Alternative: Dropshipping With Shopify
If you are looking for a platform that gives you freedom on how to conduct your business, execute your branding efforts, and design your online store the way you want to, having your own online store for dropshipping is your best bet.
Shopify is one of the most popular dropshipping platforms in the world, currently powering 11.8% of all dropshipping ecommerce stores. So if you trust numbers in making your decision, you can’t go wrong with Shopify.
🎥 Watch our video: How to Set Up Wholesale on Shopify Without Shopify Plus
If you already have an Amazon store, you can still harness the power of both platforms by integrating the two of them. That way, you get the best of both worlds.
>>> Are you building one? These Shopify store examples might help you
Bottom Line
It is undoubtedly that dropshipping is still profitable to sell in the next few years. Although dropshipping on Amazon may include several drawbacks regarding the intensive competitions and limited branding, merchants can overcome these challenges by building a dropshipping store using Shopify.
However, to grow a successful dropshipping business, it is important to find a trustworthy supplier with good product qualities, competitive prices, fast shipping and advanced technology. Using our list of the best Amazon dropshipping suppliers, you can have a solid start to make your business sustainable and equipped for the long haul.
