How to Find Reliable and Safe Dropshipping Companies

Looking to start a dropshipping business to sell online? Dropshipping is considered one of the easiest ways to start scaling an ecommerce online store. It enables entrepreneurs to start a business and sell online without manufacturing products, holding inventory, or delivering goods to customers. In simple words, dropshipping is an ecommerce business that allows you to take orders, but your dropshipping company ships the products to your customers. 

In a dropshipping business, a retailer doesn’t have to deal with the products physically. Instead, a dropshipping company takes care of everything from packaging to shipping on the retailer’s behalf. A dropshipping company plays a significant role in the success of your dropshipping business. It can either make your dropshipping experience very rewarding or can cause serious business setbacks. 

Rebounding from business setbacks can be challenging and may require a great deal of effort and time. Setbacks are bound to happen at one time or another and can be disorienting, but working with a professional dropshipping company, you should have a more powerful opportunity to bounce back. For this reason, you should choose a dropshipping company for your business after careful thought and consideration. 

With so many dropshipping companies in the market, it can be challenging to locate dropshipping suppliers that are trustworthy and reputable. That said, how to find dropshipping companies that are appropriate for your dropshipping business? One of your primary considerations should be looking for dropshipping businesses that’s a good reflection of the brand you want to build and can provide you with the high-quality services your business deserves. 

In this blog, we’ll take you through the steps for finding a reliable and reputed dropshipping company for your dropshipping business. 

Let’s get started!

What makes a good dropshipping company?

The rise of online shopping and global ecommerce have created a way for many aspiring ecommerce entrepreneurs to start a dropshipping business. Whether you’re a newbie or a pro dropshipper, you may often find it hard to establish trust with dropshipping suppliers, especially if you can’t meet them face to face or communicate with them clearly. Therefore, the dropshipping experts often recommend that entrepreneurs choose a local dropshipping company as it can make running a business easier. 

You could also attend a trade show to connect with the best dropshipping suppliers and manufacturers in your niche, make contacts, and get familiar with the suppliers and their products and services. 

To help you choose the best dropshipping company, we’ve discussed some characteristics of a good dropshipping company in this section so you can filter out the bad ones from your list.   

Characteristics of a good dropshipping company

Before choosing dropshipping suppliers for your business, you should consider the following to ensure you've chosen the best dropshipping suppliers for sourcing your products.

Large product catalogue

The ecommerce industry is continuously flourishing, and speaking of ecommerce business models, they play a crucial role in providing a strategic approach to make your business profitable. So before you get started, you should choose a business model that works for your business. 

Generally, there are two types of business models - horizontal marketplace and vertical marketplace. Understanding which business model fits your dropshipping business is challenging. But, a thorough study of these models and knowing their pros and cons may help you choose a business model that will fit your business needs. 

Amazon founder and CEO Jeff Bezos’ Virtuous Cycle illustrates that success starts with a fantastic customer experience, earning their trust and loyalty, and offering a wide selection of products, which ultimately attracts more customers and increases profitability. Amazon follows the one-stop shop, i.e. horizontal marketplace strategy and their logo reflects that too (an arrow pointed from a to z). When you provide a broader array of products, you give your customers more choices and options to explore. This can bring great satisfaction to your customers and simultaneously increase your sales and profit.

Whether you've got an ecommerce niche store or you’ve taken a mass-market approach, it’s generally best to work with a dropshipping supplier that can provide you with a wide range of high-quality products. Dropshipzone is the perfect example of a horizontal marketplace that offers multiple categories of products, which helps them reach a broader audience. 

Fair and competitive pricing

One of the crucial factors that you should consider when you're looking for the best dropshipping suppliers is product pricing. Working with wholesale suppliers or wholesale distributors for dropshipping who offer high-quality products and genuine wholesale pricing enables you to set a price for your products that can increase your profit margin, stay competitive, and improve your conversion rates. However, some suppliers may require you to apply for a wholesale account to take advantage of wholesale pricing.

The product cost has a significant influence on a customer’s purchase decisions. The way you set product price doesn’t just influence product demand in the market but also guides buyers’ purchase intentions. When your product pricing is fair and competitive, the chances of making better sales and profits are higher. So, do your due diligence to find suppliers or a wholesale distributor offering wholesale prices.

Good reputation

Many issues can arise with your dropshipping suppliers in the long run. And due to this reason, you need to find the right source for your products. Choosing a dropshipping supplier with a good reputation for your dropshipping business is essential. Selecting the wrong one can spoil your brand’s reputation and quickly run you out of business. You need to guard your brand’s reputation because it takes years to build a good one, but just a few mistakes ruin it. 

To maintain a good brand reputation, you will want to sell higher-quality products that meet the advertised standards and provide fast shipping and excellent customer service. With a good dropshipping supplier, you’ll be easily able to maintain these standards and your brand’s reputation.   

Excellent customer service

The last thing you want to deal with are problems your dropshipping supplier or company is supposed to solve. A good dropshipping supplier will have an expert customer service and support team with extensive knowledge about the industry. They should be willing and able to handle any task-based requests or issues ranging from dealing with refunds and returns to technical difficulties you may encounter when using their dropshipping platform.

In this case, your dropshipping supplier should be easy to contact by phone, email, or online chat, at a minimum during business hours, so you can quickly discuss your business' problems with the experienced and professional team at any time. Simply having easy-to-contact methods in place isn’t enough.

A reliable dropshipping supplier will provide solutions to your business problems or requests in short order to ensure the smooth functioning of your business. For finding good dropshipping suppliers that are legitimate, we advise you to conduct an extensive market research.       

Organisation and efficiency

When looking for a dropshipping company, you want to avoid disorganised dropshipping suppliers as they can complicate your business operation and ruin your business’ reputation. You can understand how organised and efficient a dropshipping supplier is by observing how well it manages its business.

Consider checking if the dropshipping supplier has implemented any systems that can increase efficiency and ensure the smooth functioning of the business. You could also place a few test orders with your shortlisted dropshipping company to determine how the order process is managed from start to finish, shipping time, invoicing and tracking information, and packaging and delivery. This may give you an idea of what to expect when you’re working with a particular dropshipping company.   

Return and refund policy

Another essential characteristic of a great dropshipping supplier is its refund and return policy. Before you choose a dropshipping company, make sure that the dropship supplier offers a refund, return, and exchange policy. It’s one of the crucial factors that can severely impact your business reputation if not sorted out at the right time. Customer satisfaction should be your priority. 

A well-designed return, refund, and exchange policy can encourage brand loyalty, increase sales and attract new customers, help in problem-solving, prevent fraudulent returns, manage customers' expectations, and create a sense of security for customers.

A pro tip from successful entrepreneurs is that you should clearly display your return and refund policy on the website. It’s crucial for building trust and retaining your customers, and your customers will appreciate your upfront behaviour.     

Fast shipping and order processing times

The faster the shipping process, the better for your dropshipping business, especially if you’re a newcomer. Customers don't like long waiting times, so they prefer shopping from online stores that can deliver their parcels at the earliest. So, you should look for dropshipping businesses that work with shipping companies that ship products fast. From reviewing orders to printing labels and packaging products, and arranging shipping, all these things contribute to order processing time. 

When you’re in a dropshipping business, you want to work with legitimate suppliers that can quickly complete the shipping process and hand over the package to a reliable shipping carrier to ensure the package reaches your customer within the stipulated time frame. According to a research study published on the getconvey platform, 98% of the shoppers confirmed that shipping impacts brand loyalty and 84% reported that they’re unlikely to return after a poor delivery experience.    

Efficient integration possibilities

When looking for a dropshipping company offering dropshipping service, finding dropshipping suppliers that offer dropshipping apps and efficient integration possibilities with your ecommerce platform is crucial. A dropshipping integration software connects your online store or dropshipping platform to the supplier, allowing you to take advantage of impressive features such as instant product and inventory sync, automatic shipping fee calculator, and order processing for the smooth functioning of your business. 

Dropshipzone, an Australian-based wholesale and dropship platform offering more than 10,000 products across all your favourite categories, has developed Sofortig: Australia Dropship software that easily connects with your Shopify ecommerce platform. With Sofortig, you can access a wide range of products from the Dropshipzone catalogue, search products using keywords, and import them to your ecommerce store. Our products come with detailed product descriptions and high-resolution images. You can even add your own watermark.

How to identify legitimate dropshipping companies

When you’re searching for reliable dropship suppliers, you may feel like there are endless options to choose from, but finding legitimate dropshipping companies is extremely difficult. Depending on where you're searching, you’re likely to come across hundreds of scammers. In this section, we've listed a few indicators that can help to spot the best and most legitimate wholesalers for sourcing dropshipping products. 

Indicators to identify legitimate dropshipping companies

Look out for the following indicators before you select a dropship suppliers for your ecommerce store to avoid pitfalls and scams.   

Check their online presence

To identify legitimate dropshipping companies, you should check their online presence. Scan through their websites, social media pages, and google reviews. Social media can also provide good insight into their business. A legitimate dropshipping company will have active social media pages with regular posts, awards and recognitions, and pictures of best-selling products. Visit their social media pages and see what comes up. You may not find complete information on their social media platforms, but it’s still a good source of information to check their reliability.

You could also take a sneak peek at the social media pages, online stores, and websites of entrepreneurs who source products from the dropshipping company you’re planning to select for your ecommerce store to get hints about their business performance. Another way to check if a dropshipping company is legitimate is to look on websites that rate and review businesses based on their performance, customer feedback, and other factors.  

Look for how long they’ve been in business

According to Forbes, 75 per cent of new businesses survive the first year, 69 per cent survive the first two years, and only 50 per cent of businesses make it to five years. Therefore, it’s wise to look for dropshipping companies that have been in business for more than five years.

A dropshipping company that has sustained a long time in a fierce and competitive market ensures they’re doing well and have an established loyal customer base that keeps them going. While there’s nothing wrong with choosing a relatively new dropshipping company, make sure you do your research to check their reliability before making a final call.   

Read their FAQs and customer reviews

FAQs and customer reviews are rich sources of information. You should thoroughly read the dropshipping company’s FAQ page to see what they’re willing to offer you. Here, you will find answers to the most common questions regarding shipping, payment, account, warranty, refund, and replacement. Furthermore, the customer reviews section provides direct insight into their current or previous customers’ opinions, enabling you to determine whether or not the dropshipping company is reliable.   

Unrealistic offers and grand claims

Dropshipping isn’t a get-rich-quick business. Just like any other venture, it takes time to scale an ecommerce store and amass good profits, especially in an overly competitive market. So, it’s important to be patient and consistently work hard to achieve your business goals. With consistent marketing efforts, backing from the right supplier, and by delivering good quality products and services to your customers, you can gain trust of your customers and take your dropshipping business to a higher level.

Some dropshipping suppliers may try to deceive you by providing unbelievable offers and making grand claims about high-profit margins. They may set unrealistic product prices to lure you into signing up with them. But once you start getting orders from your customers, they might send inferior quality products to your customers and earn good profits for themselves.

Beware of such suppliers and don’t fall for their false claims. It’s always wise to pay a higher price for the products as long as you get high-quality products.  

Make a small order to evaluate their services

Before you select a dropshipping company to source products to sell in your own online store, you should consider ordering their products. It will help you to determine the quality of the products they offer.

Many dropshipping suppliers may send flawless sample products to deceive you, but in reality, they may deliver inferior quality products to your customers to make a hefty profit. This can lead to excessive quality complaints from your customers and tarnish your brand’s reputation.

Always ensure you choose a dropshipping company that will offer best quality products for the price paid. Most retailers are prone to being swayed by how good a product looks. But if the actual product is of poor quality, then the looks don't matter. So do your due diligence to find the best and most legitimate dropshipping company. 

Check if they’re a licensed business

The simplest and the most effective way to assess the legitimacy of a dropshipping company is by checking their company licence. A legitimate dropshipping company will have its business registered. Note: Some businesses may trade under different names and that should be fine. Remember, the key to find dropshipping suppliers that are reliable and legitimate is conducting an extensive market research.

Before you work with any dropshipping company, always ask for their company registration details and licence number and confirm if they use a different name for doing business. If it’s a fraudulent business, the company may avoid providing you with any business information online due to the fear of being tracked down by law enforcement officials. In this case, it’s best to avoid working with this company.

Some fake dropshipping wholesalers may present false business details. So you should perform a simple check using the details provided by the company to check its authenticity. If you need more information about how to identify a genuine business in Australia, check out this ACCC consumer protection page. 

If you’re planning to work with a China-based dropshipping company, look for their company information on apps such as QiChaCha. It’s a platform certified by the Chinese government that provides information about China-based private and public companies.

For US-based dropshipping companies, you could check on the Better Business Bureau (BBB). It’s a platform that keeps businesses in check, and you can also report frauds. The BBB will take legal action against businesses involved in illegal or unethical practices. 

Dropshipping companies you should avoid

When starting a dropshipping business, it’s important to quickly differentiate between legitimate and fake dropshipping companies, so you can start business on the right foot. We've shared some of our top tips to spot unreliable dropship supplier. 

• Avoid dropshipping suppliers that charge you big upfront or monthly fees. Usually, dropshipping suppliers don’t ask their customers for a monthly fee for sourcing products from them. So when a supplier demands a service fee or monthly membership fee, it’s likely that they’re not legitimate. Note: This is different to a subscription fee which dropshipping marketplaces may charge for access to their broader services. 

• Stay away from dropshipping companies that are hard to contact and don't provide you with direct contact details. You should be able to pick up the phone and speak to a real human. 

• Some dropshipping companies may sell fake or counterfeit products. Avoid such suppliers because fake and counterfeit products may cost you money, lack quality and not work as expected. This might upset your customers, tarnish your brand reputation, and get you into legal trouble. 

• The wholesale dropshippers who only accept wire transfers as a mode of payment are usually scams. Choose suppliers who offer native ecommerce payment methods, such as PayPal, or multiple payment methods. If suppliers’ charge higher processing fees for credit cards, you should avoid such suppliers. 

• Product images can also indicate product quality. A low-resolution product image without zoom can suggest that the product is of poor quality. If you can't find images from different angles, this should raise alarm bells around the quality of products and questions of authenticity.  

Choosing the right dropshipping company for your location

The first thing you should consider when choosing a dropshipping company to source and sell products is its warehouse location. The closer your dropshipping company is to the majority of your customers, the better. Particularly in a vast country like Australia, this will reduce shipping costs and ensure your products reach the customers in a short time. 

If you choose a dropshipping company in a different country, it may take more than a month in the COVID era to deliver the order. And, it’s not a good idea to keep your customers waiting for a long time. So try to find a local dropshipping company for your dropshipping business. 

How to find the right local dropshipping company for your business

Consider following the below-mentioned steps for finding the best dropshipping companies for your location. 

Research

Once you’ve decided what products to sell, the next step is finding which dropshipping company can provide the best services at the best price. Depending on where your potential customers are located, you can target the dropshipping suppliers in a particular location.

A word of advise: Don’t solely focus on the warehouse location, but deep dive into the product range, shipping cost and delivery time, their services, and product sourcing. 

The easiest way to find the right local dropshipping wholesalers or suppliers for your business is to Google search.   

With around 1.5 million results for the 'furniture dropshipper Australia' keyword, it’s hard to figure out which of them is a trustworthy dropshipping company. You’ll have to put each of them through a strict background check to identify the right one, which definitely is a time-consuming process. 

Here are some tips for finding the best dropshipping companies.

• You may require to search extensively. Not all dropshipping companies are great at marketing, so they most likely won’t pop up on the first page of Google. Therefore, you’ll have to dig deep through search results.

• The best dropshipping company won’t necessarily have a great website, so don’t judge by looking at cringe-worthy homepages and poorly designed catalogue pages. Many good businesses grow through word of mouth rather than brand building. A well-designed website may indicate a legitimate supplier, but in some cases, scammers may create a professional website to attract new entrepreneurs hunting for reliable suppliers.

• You could use various related keywords and other alternatives such as reliable dropshipping wholesalers, legitimate dropshipping suppliers, local dropshipping companies, dropshipping manufacturers, local dropshipping resellers, and bulk dropshipping suppliers. Don’t just stop at [product] dropshipper Australia.  

Order from the competition

Are you facing difficulty in finding potential dropshipping suppliers in your location to source your products? You could order from your competitors. It’s an easy way to track down some legitimate dropshipping suppliers in your location.

First, start by knowing who your competitors are and determining the quality of products and services they offer their customers. You could go through their customer reviews to check what their customers say about their products and services and if there are any product-related complaints. This will give you a clear understanding of how good the dropshipping company is and the level of service you need to offer your customers to cut through the competition. 

Then the next step is to track and find dropshipping suppliers to source and sell products. You can do it by placing an order for a product you want to sell in your ecommerce store from your competitor's online store. When you receive the package, search the return address to find out who shipped the product. It could be either the dropshipping supplier you can contact or the seller itself.

You can try out this method for finding the dropshipping suppliers, but don’t rely heavily on it because it might have some limitations. 

Contact the manufacturer

Another way to find dropshipping businesses selling dropshipping services in your location for your ecommerce store is to contact the manufacturer directly. You can gain invaluable information about the products by communicating with a manufacturer. But make sure you have already decided which product to sell in your ecommerce store before contacting them.

Initiate the conversation by sending the manufacturer an email requesting its dropshipping suppliers' list. You could also inquire if the manufacturer offer dropshipping. Dropshipping from local manufacturers can be a good decision because the fewer middlemen you have, the higher your profit margin.  

Once you get the list of dropshipping companies from the manufacturer, drop them an email to inquire about their dropshipping services, shipping costs and delivery times, product range, payment methods, returns and refunds, and other questions that you might have. Make sure you conduct a preliminary background search and shortlist the dropshipping companies.

Then, you can contact suppliers to discuss the business in detail. Based on your research and findings, you can select the best dropshipping company to source products for your business. 

Attend trade shows

Thinking of attending a trade show? Whether you’re a new entrepreneur looking for product ideas or a dropshipping company, there’s much value in attending a trade show for your industry.

A trade show is basically a gathering of industry experts, manufacturers, wholesalers, retailers, suppliers, and media under one roof that offers opportunities to display, discuss, and promote the latest products and services. It’s also a good opportunity to update yourself on the latest technologies, connect with prospects, and build new valuable business relationships. It would be a shame to miss out on all the potential benefits a trade show can offer. 

In Australian ecommerce, Online Retailer in Sydney is a good starting point, as well as Retail Fest held every year on the Gold Coast. If you’re looking for the best way to discover industry-related trade shows, do a quick Google search to narrow down your  options.

You can also search for upcoming trade shows and events on Austrade and refine your search with the help of filters. Pick a trade show that suits your business needs and begin planning. Here’s a handy guide from the Queensland Government that explains how to participate in trade shows and exhibitions, associated benefits and risks, and how to get the most out of exhibiting. 

As an attendee, you’re required to pay a certain cost to participate in a trade show. If a trade show is taking place in a different part of the country, you need to make travel and accommodation arrangements for yourself and those accompanying you. Do your due diligence to ensure you make the best of the event. 

Check supplier directories

While a Google search may list multiple suppliers, it’s hard to determine which are the legitimate ones, leaving you in turmoil. Another reliable way to locate legitimate Australian suppliers for your dropshipping business is to check supplier directories.

A supplier directory is created with the sole purpose of connecting retailers and suppliers for business. It contains information about various suppliers, including their locations, product range, and pricing. It’s easier and faster to search a wholesale supplier through a supplier directory because it offer multiple options to narrow down your search parameters. 

Wondering where to look for supplier directories? Conduct a basic Google search to find some reliable sources. You can search for your industry-related reliable Australian suppliers on Austrade. If you’re planning to source your products from china-based dropshipping companies, consider looking at Alibaba’s enormous B2B marketplace that lists multiple suppliers in China.   

What to prepare before reaching out to a dropshipping company

Once you’ve shortlisted potential dropshipping companies for your ecommerce store, you need to reach out to them to check if they’re a perfect fit for the business you want to build. Rather than waiting for them to answer your call, it would be wise to send them an email. You can request all the information you need through email, followed by a follow-up call to get your doubts cleared. 

A pro tip, when you’re approaching a dropshipping company, never make them feel like you don’t know what you’re talking about. They may charge you higher prices or not even take you seriously. You need to present yourself as a professional with a positive mindset who's ready to tackle the problems that come your way and successfully run your online store.

One way to do this is by asking lots of good, relevant questions and researching the dropshipping company, its products, and the legal things. Here are some questions you can ask the supplier during your scheduled call. 

• Are you the manufacturer of your products?

• Do you sell directly to customers?

• Do you offer customised packaging services or private labelling?

• What are your payment terms? Are they negotiable?

• How will you invoice me for orders? 

• What payment methods do you accept? 

• Are there other costs besides the cost of the product, such as shipping fee, monthly membership fee, duty fee, or product returns fee?

• How long does it take for the orders to be processed or shipped?

• Do you have a robust order tracking system in place? 

• What is your return/refund policy for damaged or missing orders?

• Can you use product photos/descriptions on your online store? 

• What is my gross profit margin?

• How often do product prices change?

• Do your products come with a warranty or guarantee? 

• Do you provide any integration possibilities to run a dropshipping store effectively?  

Get started with Dropshipzone

When you’re just starting out as a new dropshipper with no prior experience in running a dropshipping store, be prepared for things to get messy. The convenience of dropshipping comes at a price. Sometimes, there may be problems with fulfilment, or products may go out of stock. In such circumstances, you should stay calm and composed and find a solution to deal with the issue.

A word of advice: adopt a KISS (Keep It Simple, Stupid) mentality and focus on implementing the easiest solutions even if they aren’t perfect. 

Finding a trustworthy dropshipping company is crucial to the success of your business. If you’re hunting for a legitimate dropshipping company that will provide higher quality dropshipping products and excellent customer service, choose none other than Dropshipzone. We’re here to help you take your business to the next level.

Dropshipzone is an Australia's B2B2C marketplace providing opportunities for wholesale and dropshipping, offering more than 100,000 products across all your favourite categories. We don't have any supplier's minimum purchase requirement or ongoing fees. Dropshipzone is a solution for suppliers, providing the opportunity to wholesale without the hassle, and also a solution for retailers wanting to start and scale without holding inventory.

We have a dedicated quality control team, ensuring product quality, safety and compliance. You won't have to deal with lengthy shipping process or delayed shipping problems because Dropshipzone has partnered with reliable shipping companies that will deliver products directly to your customers in a fast and efficient way.

Our many legitimate wholesalers will source products directly from manufacturers or a wholesale supplier, which means you get access to products at more competitive prices, helping you maximise your profit. Whether in terms of pricing, product range, customer service, order processing times, or integration possibilities, Dropshipzone has got you covered. Sign up with Dropshipzone to create a legitimate dropshipping business.