How to Start A Dropshipping Business with Salehoo?

One of the easiest ways to sell online is through dropshipping. A hassle free technique – that doesn’t require you to maintain a warehouse for the products you sell or worry about their packaging and shipments.

With dropshipping, you just need to focus on marketing, customer services and devise ways to improve your profits and customer reviews. It’s a great business opportunity for people with limited budget and time.

Dropshipping typically is a retail method where you partner with the Wholesalers and Suppliers who stock their own products – that you can avail at wholesale prices. You can then sell these products on your marketplace at a premium.

Once you receive the orders from the customers and the payment is cleared, you then send the customer details and their addresses to these Suppliers, and pay them the pre-decided wholesale price while keeping the profits.

The Suppliers would then handle all the packing and delivery of the orders directly to the customers from their respective warehouses. In most cases, the customers never get to know where the shipment is actually coming from – since the invoices are customized too as per your store details.

Isn’t that a convenient and an efficient way of doing business? Instead of investing your time and money in storing inventory that may or may not sell, you could use your resources for SEO, advertisements and content marketing that can help in increasing the organic traffic to your e-store!

But one of the most important aspects of this business model is to find genuine Suppliers and Wholesalers.

These are the ones who can either make or break your business since your orders are processed by them directly. There could be instances when the product delivery is delayed, or the products that are sent are of poor quality/ damaged, or the products are low on inventory/ out-of-stock etc. In such cases, it is YOU who gets the blame and suffers a loss, not the Supplier.

So even though its taxing, it becomes imperative for you to hunt for reputable Suppliers who are legitimate, trustworthy, supportive and can also offer good wholesale prices.

In the following section, we will talk about Salehoo and how you can use it to start your own dropshipping business.

Salehoo is a ‘complete dropship and wholesale solution’ & one of the best dropshippers database. It provides a platform and other training resources for the Retailers to do business online and connects them with Wholesalers and Suppliers across the world. It has a huge online directory of over 8000 verified Suppliers and Dropshippers from over 100 countries, and you can get access to about 2.5 million products.

To start your dropshipping business with Salehoo, you would need to take the following steps –

1. Make up your mind –

Actually, this is important for any type of business. You need to be absolutely sure that you want to sell online and are willing to invest both time and money (though not too much). You should be willing to take certain risks and be prepared to wait a couple of weeks before things began to pick up. Of course it would be better if you start small (or as a side business) and then slowly attempt to scale up. This way, both the risks and the losses would be minimal.

2. Search for Suppliers /Wholesalers/ Dropshippers –

This is where you can make use of the Salehoo directory of wholesale suppliers. The Suppliers listed here are genuine and verified for their authenticity. You get access to each Suppliers complete information, product range, as well as how they operate.

You can search for the Suppliers either through the product category or by manually entering the product name or brand.

The directory also has several filters that you can use to sort the list according to your requirements. This information is extremely useful and can save a lot of your time while deciding who you would prefer to work with.

For instance, “Supplier’s Type” can sort the list as per Dropshippers, Wholesalers, Liquidators or Manufacturers. The “Region” filter can be used to identify the specific regions a particular Supplier would cater to (locally, internationally etc).

You could also filter as per ‘Minimum Order’ where the Suppliers would make a deal only if you buy a certain number of products. The ‘Sale Tax ID’ filtering will let you know which all Suppliers need you to have a Tax ID before you can partner with them.

Once you have your prefered list of Suppliers, contact them directly. Speak to their salesperson and get their best wholesale quotes. Most importantly, understand their way of working and ask questions. You may want to know things like –

  • How long will they take to process an order?
  • What shipping methods do they use? Would they provide tracking numbers?
  • Do they do a quality check before dispatching a product?
  • What are their damaged/return policies?
  • Would they customize the invoice with your store name/ brand?
  • Can you use their product images and product descriptions for your e-store?
  • How do they want you to place an order?

3. Apply for TAX ID –

Earlier we mentioned that some Suppliers demand Tax IDs from their traders before they agree to do business with them.

Sales Tax ID (also known as Resellers license or Vendor’s license or Reseller Certificate) is a legal document issued by the state’s Tax Department, that gives you the right to collect sales with taxes and purchase inventory.

Having said that, many states like Alaska, Delaware, Montana, New Hampshire etc. don’t have Sales Tax and hence do not follow this norm. If you are doing business from these states, inform your Supplier and look for an alternative.

For more information on Tax ID click here.

4. Choose Your Products –

Knowing what to sell has never been easy. You need to do a thorough market research to identify the most profitable products to sell online. This can either be done manually (which is quite a tedious process) or by using a product research tool.

You may use SaleHoo Market Research Lab to analyse the sales trends, competition stats and get ideas for new niches. This data, collected through multiple APIs running through several large e-commerce websites, is shown in real time enabling you to take accurate and better decisions.

The tool (covered under Salehoo membership price) allows you to search for products through various filters like Product Type, Sales Rate, Average Price, Competition etc.

Ideally, products having low cost and high profit margin (30-50%) or low competition but have good sales rate are considered as profitable products. Apart from that, opt for lightweight and sturdy products as they are easier to ship and have low shipping costs. Use keyword tools to identify specific niches for better opportunities.

And if you like a product, you can immediately SAVE the product as well for easy future access. You can even compare the saved products against each other to finalize the ones you want to sell.

5. Fix Your Marketplace (Auction Site or Own Store) –

The next step is to figure out the platform where you want to sell the products. You may want to consider the popular marketplaces like eBay or Amazon where the setup requirement is minimum and you get a huge traffic already flowing in. But for selling on these sites as a third party means you might also be paying a small fee.

However if you want to have your own ecommerce store, you could use Salehoo Store. This service provides several templates and tools that can be used to build an online professional looking store where you get your own business logo and upload endless products.

The service obviously comes with a monthly subscription plan ranging between $27 to $97. However, you can avail their 30-day free trial period to create and test your online store and sell products immediately.

6. Product Listing

Once your products are uploaded, you are pretty much ready to start the sales. But before that, you need to ensure that the product descriptions are also mentioned on the product pages in a way that entices a customer.

Now since the curating process can be time consuming, the best way is to use the data provided by the Supplier and start selling. Over a period of time, you could enhance and optimize the product descriptions so that they are capable of drawing more traffic to your product page. Also, make sure to categorize and sub categorize your products while using filters for easy access.

Another important thing to mention in your listings is the location of the product and the approximate processing time. This way, the customers would be aware about the number of days it might take for their orders to be delivered. It’s a great tip to avoid a negative feedback.

Final Words

Salehoo membership comes at a price of $67 /year. While it may seem on a higher side, the benefits you get are significant.

As a newcomer, you get almost everything you need to get started with your dropship business. From the educational and training materials to setting up your own store; from obtaining the list of genuine suppliers to millions of products to choose from – you already have everything laid out for you.

In addition to that, you also get help from their most supportive staff who ensure that you tread forward with minimum risk.

Experienced sellers too can make use of the directory to expand their businesses across other regions and save time in looking for authentic dealers. With Salehoo, they just need to concentrate on their profit making.

Divya Dube

Divya Dube is a writer at It's almost a decade since she has been connecting and experimenting with online marketing & tools that help increase revenue & productivity. Before picking any kind of software or gadget for use or suggestion, she compares all the features with its counterparts and ensures it serves the desired purpose. She is also a gadget freak, a traveller, loves chocolates & music and has an immense passion for writing.