What Is a Dropshipping Company?
Dropshipping is an online business where an intermediary sells products they don’t keep in inventory from a wholesale producer to a third party. The third-party company then ships the product directly to the buyer. The intermediary never holds the products, but by purchasing the products at wholesale prices and selling them at retail, the online seller may earn a profit.
As you get started with dropshipping, you will need e-commerce software and a website to sell your products. You will also need access to product suppliers through a dropshipping company.
Is Dropshipping Still a Good Business?
Dropshipping can be a risky business. As a dropshipper, you don’t have control over each step of the sales and delivery process, including the supply chain. You won’t have the chance to inspect every product your customers receive personally, so you will have to rely on wholesale product sellers to ship your products in good condition. You will have to trust the supplier’s authenticity, service, and delivery.
Luckily, many dropshipping companies offer access to thousands of vetted product suppliers. This may reduce your chances of having issues with the quality of your products. You may also rest easier knowing a vetted company will provide your customers with quality service and goods.
How Much Money Do You Need to Start Dropshipping?
While dropshipping companies may claim you don’t need much money to get started, there are some expenses to consider as you’re kicking off your business. You will need a dropshipping company (free to $299) to connect with product suppliers. You will also need a website with e-commerce capabilities where buyers can buy your products.
One advantage of dropshipping is you won’t pay for the wholesale products until after the buyer makes a purchase, so you won’t have to pay for inventory. But you will have to spend money marketing your business and products. This may cost as little or as much as you’re willing to invest across multiple channels to spread the word.
What Do Dropshipping Platforms Cost?
Our research shows the cost of dropshipping companies can vary widely. The pricing may depend on factors like whether you need to access the dropshipping company’s supplier directly, selling products, using data configurations, or accessing automation software.
With a basic free plan, you may get access to a platform’s supplier directory and education resources. However, you should expect to pay a monthly fee for additional services. The pricing may range from $14.95 per month for a basic plan to $499 per month for an enterprise plan.
Depending on the platform, you may save money by signing up for an annual plan versus paying for the service monthly. You may also have the option to add on extra services for a fee, based on your company’s needs.
How We Chose the Best Dropshipping Companies
When you’re searching for the best dropshipping company, it may feel like there are endless options to choose from. As e-commerce continues to grow and dropshipping stays affordable, there may be even more companies vying for a slice of entrepreneurs’ business. These companies may offer access to the dropshipping services you need, along with a trusted network of global wholesalers to make your online business possible.
To craft our list of the best dropshipping companies, we reviewed 20 of the most popular services. To choose the best for each category, we considered each company’s history, reputation, and what makes the company stand out. To narrow down the list, we compared each company’s integrative platform, pricing, quality and number of suppliers, and options for a risk-free trial.
Read More:The 6 Best Drop Shipping Companies of 2021