The boost in the number of retail sellers online is probably a direct result of the growing number of retailers who are able to commission wholesale dropshippers. Wholesale dropshipping can be summed up in a few words – wholesale prices, pay when you purchase and outsource packaging and shipping. Just by the definition, the potential for expanding profit margins is clear. Wholesale dropshipping can translate to lower cost, therefore, higher profits plus greater convenience for any online retailer. The question now is, why would you want to cut part of the profit to pay for not so cheap access to wholesale dropshipping directories?
Certainly, there are cheaper lists out there, some of which offer a one time fee for lifetime access. Think about this, though – what quality list do you think you are going to get for a lifetime access fee of $5? As a businessman, you should know better. Maintenance and upgrading of services cost money! Obviously, with no money to maintain or upgrade that list, it is going to be outdated and limited.
There has been much controversy and praise for the more expensive dropship directories. Let us examine Salehoo, for example. For about $70 a year, you get a list of about 8,000 wholesale dropship suppliers offering a variety of products across the world. You also get access to online resources and easy search tools. Whatever you cannot get from these resources, you can glean from members forums or query from expert sellers which form part of the site staff. For a little over $5 a month, I would like to think that this is value for money. There are negatives to these larger directories, as well, of course. For one thing, Salehoo and others like it usually do not distinguish true wholesale suppliers from middlemen. Nevertheless, you are at the minimum, guaranteed that the supplier is active and real.
Imagine the alternative: frustrating calls to an obsolete supplier or getting a much higher price for a product your competitors got a rock-bottom prices on the better directory; or worse, commissioning a scam artist listed as a supplier in an unverified list. Certainly the $5 you spent for a lifetime membership can balloon into hundreds of dollars lost in opportunity costs or even lost sales.
So to the question on why you should pay more for a good wholesale dropship directory, I would say it is because you want to get what you pay for – efficiency, convenience and increased profit margins.
