How to Use Multiple Suppliers for Dropshipping in 2022?

By: Tasmia S

Home » How to Use Multiple Suppliers for Dropshipping in 2022?

In 2022, it is more common to find entrepreneurs dropshipping with multiple suppliers. People have hesitated to use more than one supplier in the past because they were concerned about their orders not arriving on time or at all.  

But as technology has improved and merchants have understood how their inventory works, this fear is lessening. With the right software and a system in place for managing your inventory across different channels, you can successfully use multiple suppliers without slowing down your dropship business!  

Running a successful business with more than one supplier can be tricky. This article will help you know how to choose the right channel partners, connect them, and become a successful drop shipper. 

Dropshipping With Multiple Suppliers: How it Works? 

Dropshipping With Multiple Suppliers

Dropshipping means you are the online retailer of your dropshipping products, not the merchant. This means that when customers buy from you, they are dealing with you directly instead of a third-party company to process the payment. 

As an online store owner, it’s not necessary for you to buy your inventory; you’ll order it from your suppliers. So, when an order is made from your dropshipping website, the store goes through suppliers of products to find a matching one, and ships theirs out to the customer. The customer then receives their package from this middleman company. 

How dropshipping works

You can work with a single supplier or multiple suppliers for your eCommerce business; the process is almost the same. However, instead of sending your orders to just one supplier, you will have to send them to multiple suppliers. Furthermore, two or more suppliers may have to ship your single customer several products if they order various items. 

In order to find a good supplier, you need first to do market research for the best drop shipping products in your niche that are most popular and attractive among potential buyers. Your dropshipping success depends most on finding the best dropshipping profitable products for your own online store. You can then use this information when searching through the different extensive databases for the right supplier.

In today’s global economy, with the internet being such an easy way of finding necessary goods from anywhere at any time, there has been more competition than ever before. This means companies have also been vying harder to differentiate themselves by appealing directly to their target audience/market segment. They are trying hard enough to make their customers buy and keep coming back again even without any advertising strategy.

Dropshipping with multiple suppliers: worth it or not? 

Dropshipping with multiple suppliersDropshipping business has been getting a lot of buzz for its ability to reduce costs and maximize profit. Some people think it is worth the time, while others believe running your own Shopify store with multiple dropshipping suppliers will take more work than just selling on Amazon alone. 

But in our opinion: you can start dropshipping with a single supplier; if you can find trusted suppliers who offer great dropshipping products at competitive prices, then go ahead with multiple suppliers- as long as they are reliable. If you own an online store, it’s essential to do market research and analysis Google Trends data before making any crucial decisions. 

Dropshipping with multiple suppliers is one of the significant trends in eCommerce. Numerous suppliers are used not only because some online retailers want to diversify their inventory but also because they can also take advantage of more competitive pricing from different vendors. Multiple suppliers are inevitable for Shopify store owners who want to expand their business in the online marketplace. It’s always good to have backup suppliers for your eCommerce store. 

However, it doesn’t mean that you can sign up with as many suppliers as possible. Multiple suppliers create many challenges, and it isn’t easy to manage all orders across different channels and fulfill them on time. 

Discover the reasons for using multiple suppliers 

Discover the reasons for using multiple suppliers Multiple suppliers provide greater product selection for your customers. 

Multiple suppliers provide retailers with more choices, especially for products that are in high demand. In addition, customers love to see your products on different channels and compare prices. Multiple suppliers allow you to compete with other, more prominent brands for this reason alone. 

Multiple suppliers make it easier to manage your store. 

Doing business with multiple vendors is much more convenient than doing wholesale orders from a single supplier. 

Multiple suppliers provide you with better business opportunities. 

 If you dropship from multiple suppliers, your customers will see your store as a full-service retailer and increase traffic to your store. In addition, numerous suppliers can create cross-sell and up-sell opportunities for growing your business while helping each supplier attract more customers and generate more profit. 

pros & cons of using the single supplier to dropship

Pros of using the single supplier to dropship 

  • Single supplier to dropship allows you to create a more efficient and sustainable product line and specifically target your customers.  
  • Other benefits of using a single supplier for dropshipping stores are that you’re in complete control of your leading supplier. 
  • Single supplier means less responsibility. You can send all the orders of your customers in one package.  

Cons of using a single supplier to dropship 

  • Dropshipping can be expensive if not careful because of the limited flexibility with inventory rounds and replenishment costs.  
  • When you’re sourcing from one supplier, their decisions can have an impact on your business- for example, if you’re not diversified, if your current supplier closes down, then it might be hard to find another supplier. 
  • Risks also include conflicts if budgets/prices change suddenly or inaccurate inventory levels due to something getting lost in shipping. 

Pros of using multiple suppliers to dropship 

Pros of using multiple suppliers to dropship 

  • Numerous suppliers have exclusive products and services, so customers can buy from different channels to access more value-added services. 
  • They can help you build up a large customer base quickly. You can use vendors from other countries and expand your business globally. 
  • Multiple dropshipping suppliers help you to minimize stock-outs. You don’t have to wait for an order from one supplier when you already have inventory in hand from another vendor. Multiple suppliers may share data, which makes it easier for you to handle shipping. 
  • Multiple dropshipping suppliers create a stable and scalable business model. They can help you expand your market, even if one drops out. You don’t have to worry that reliance on a single supplier will take a chunk out of your revenue stream overnight if they stop working with you. 
  • They can give you more opportunities to grow your business. They can help you find new ways to improve your margins and incentivize vendors to push sales in different channels. 
  • Multiple dropshipping suppliers create a better relationship between merchants and their partners, working to everyone’s advantage! They also give you more control over the inventory management process because there are fewer chances for mistakes. 

Cons of multiple suppliers for dropshipping in 2022 

  • More vendors for dropshipping increase inventory management complexity. You have to monitor each channel’s inventory each product data. 
  • Multiple suppliers increase your workload because you have to communicate with more vendors to place, track and fulfill orders. If you have external software or apps that could help you manage inventory across different channels. 
  • They can increase shipping costs. You have to pay separate shipping fees for each channel. 

How to get multiple suppliers for your dropshipping business? 

multiple suppliers for your dropshipping business

All the big eCommerce platforms have several dropshipping tools to find suppliers and products. You can also use Google Trends for finding winning items and their vendors for your dropshipping store that are trending in your niche, making it easier than ever before! 

If you are experienced with dropshipping, you can find reliable suppliers easily by yourself. You can also talk to other suppliers in the Alibaba community or post a request on Facebook group pages or other sales channels. 

If you don’t have experience running an online business, consider hiring a business consultant who can help you use different channels and tools for dropshipping. They can also help you reach out to potential suppliers and negotiate better deals for your business. 

The benefits of using more than one supplier 

The benefits of using more than one supplier 

As a dropshipper, you are the one making all of the money. And you are also responsible for all product-related difficulties that might arise. Essentially, there’s no reason to continue being dependent on just one supplier because it will always be limiting in some way or another.

As soon as something goes wrong with an order, they’ll be your only point of contact and supply service which will cost you more time and effort in dealing with delays or unsatisfactory customer response issues. For this reason, sourcing from multiple suppliers is the wisest move possible when it comes to dropshipping! 

The future of multiple suppliers is bright! As technology improves and eCommerce platforms expand their services, using numerous suppliers will become more accessible than ever. Multiple suppliers also help you reach more customers and increase your exposure to build a thriving business! 

How to Choose the Right Channel Partners? 

Choose the Right Channel Partners

It’s a good idea to choose several suppliers who have different strengths and weaknesses. That way, if one supplier is out of stock but another has an item in stock, you can offer your dropshipping customers the option of choosing different shipping speeds or shipment dates. 

If you dropship using more suppliers for your online store, it is necessary to check what will happen if one dropshipper fails to supply your order? 

You can use apps for drop shipping which allows you to connect your drop shippers and control all your inventory and orders in one place. 

Best apps allow dropshipping with multiple suppliers. 

 The core principle of dropshipping is to purchase goods from suppliers and then sell them for a profit online. Multiple suppliers mean that you can scale your business up or down by simply adjusting the number of products you’re selling through different platforms. 

However, there are applications available which support multi-channel inventory: 

 

 Using dropshipping software to manage multiple suppliers 

There are several ways to send drop ship orders to one another for dropshipping. For example, you can use communication software or even an order management tool. Order management tools allow you to easily manage your dropship orders from different suppliers and coordinate with them as needed. 

Dropshipping software will centralize the suppliers you’re purchasing from, interact with your clients to provide an automated experience, monitor inventory to ensure that nothing goes out of stock, and organize everything in one place. In addition, some platforms will allow you to fulfill orders by sending them through wholesalers or factories to produce goods on demand.  

To manage more suppliers for your online business, find a drop shipment tool like Oberlo, which provides wholesale integration for shops selling physical products. With Oberlo’s channel partnerships, it can be easy to quickly become registered with hundreds of wholesalers without spending too much time managing anything yourself! And best of all, Oberlo will do all the work for you- when products are launched at your online store. 

The importance of a good supplier relationship  

The importance of a good supplier relationship  

Without an established supplier relationship in the dropshipping business, suppliers may likely refuse to provide you with the quantities of products you need at any time. 

The important thing about relationships is talking to them regularly so they won’t go “sour.” This may seem intimidating, but it’s not that tricky if you are diligent about contacting suppliers once or twice each month. Remember to do this whether they owe you money or not! Losing that trust could be catastrophic for your e-commerce business. 

The whole point of dropshipping is to capitalize on volume, and if their margins are bad enough, it could be equivalent to doing the type of marketing that’s seen as spammy or not ethical at all. 

As such, developing a strong relationship means both parties will be able to work together to find ways in which they can both succeed, and you’ll end up happier and more secure in the long run. 

Of course, any business and supplier should keep things cordial at all times; but there’s nothing like having something standardized so contracts will never go unfulfilled. 

 Is your supplier trustworthy?  

 Is your supplier trustworthy

Many people will tell you, “Just ask for their contact information, google it, and call them.” These are essential steps in verifying someone’s identity when you have never met them before. But doing this only provides the bare minimum in terms of verification.  

The problem with this process is that criminals can find your contact info online and give you a fake name of an international company such as Nike or Sony – anything to get your money! If you verify by phone alone without checking out other factors on the list below, then they could be stealing from someone else at the same time as robbing from you! 

To find dropshipping suppliers look for the following valuable information: 

  • Use a known, trustworthy supplier. 
  • Verify that they provide a website and social media accounts with photos, logos, and expectations of privacy on their website.  
  • Seek references from individuals you trust who have previously worked with them.  
  • Check the BBB or other reputable rating sites to see if they have any complaints or open cases against them currently available.  
  • Ask for some shipping option details as well–if they can’t offer some shipping options upfront, this could be a sign of something sketchy going on behind the scenes. 

Is it possible to ship products using multiple suppliers simultaneously? 

It is inevitable that when customers order from different suppliers, it will be impossible to arrive together. Instead, you can convince your customer that warehouses or carriers are shipping their items in separate shipments with tracking numbers, so they know precisely where each package was sent once delivered! 

For example, a customer may order from your store from two sellers. One seller from the customer’s own country and one seller from another country. There could be up to a few days difference between these orders arriving at their doorstep since multiple suppliers are used from different regions. In that case, you should convince your customer of the time needed for delivery. 

How can you deal with multiple country suppliers? 

can you deal with multiple country suppliers

  • Firstly, you should have knowledge about different countries’ policies.  
  • Secondly, you should make it consistent in your shipping and processing. For example, when an order comes into your store from one country or region. You process all product data, including payment and shipment, to the receiver’s address the same way for every single order. That way, no matter where an order came from, everything will always be consistent.
  • You’ll get the best results when you create an international e-commerce store. Keep in mind that this will require more work on your part. The benefits, however, are well worth the time and effort it takes to build a truly international website capable of expanding across various countries without language barriers. Get suppliers that ship internationally.
  • This is a selling point and a differentiator for your store over others who do not offer international shipping. And it is excellent advertising marketing that can help future fuel sales! In addition, you can make changes to your store’s landing page like the site’s language, currency displayed, and even more. 
  • Make sure you have a process in place for taking each order from your different suppliers. When you use multiple drop ship sources simultaneously with long shipping times between them, things can get missed. You can also implement a system for automatic messaging to your customers when their order takes longer than expected. Again, it should not be seen as an inconvenience, but rather something you do to keep them updated and ease their worries. 

That’s it! You should feel confident that you can use more suppliers for dropshipping in 2022. Just make sure that no matter how many suppliers you work with, you’re always aware of their reputation and making intelligent decisions when dealing with them. And again–make sure to take your time out for meetings and let each other know you’re open to working together! 

Conclusion: 

Using multiple dropship suppliers is beneficial for drop shippers because it allows them to sell to a larger market. However, sometimes you need to take risks and diversify your dropshipping income sources to make more money with dropshipping. In this case, adding international dropship suppliers can be a great way to expand that into different countries simultaneously. 

It’s good to know that various tools and resources are available to help make this process easier for you! 

Thank you for checking out this article! We hope you have found it helpful. We would like to hear about any questions, concerns, or things we missed on this article so that we can improve your dropshipping experience! Feel free to contact us in the comments section if any questions, concerns, or things we missed. 

>> Start your dropshipping business with Shopify here!

Leave a Comment