With the rise of online shops, there are new business models that rise as well. Dropshipping has become one of the lucrative business models.
Dropshipping is essentially a type of business model which allows a company to operate without maintaining an inventory, or owning a warehouse to its products. They also do not have to ship their products to the customers. It simply works by partnering with a dropship supplier. The dropship supplier will later package the products and ship them directly to the retailer’s customer.
For people who are looking for a side hustle, dropshipping can be one of the avenues to gain more money. The reasons are because dropshipping is easy to be set up. All you have to do is to set your own website and start selling the goods. It also does not cost much for you to run the business, but the fee for maintaining your website.
Let´s talk about Salehoo Review
Salehoo is a directory of 8,000 wholesalers, liquidators, manufacturers, and drop-shippers that are based out in New Zealand. The suppliers on their list come from various countries all over the world. The best part about Salehoo is that all of the suppliers have been screened beforehand, thus preventing scam suppliers from getting into the system.
Their membership costs $67 for a year, and your membership will be extended once they hit the deadline. Not only that it provides a huge array of products, approximately about 1,6 million products for sale, they also provide a market research tool that is useful especially if you have just started out.
How does it work?
Once you have bought your membership and are granted access to the service, you can search for products in which you are interested in selling. You can also pick up the suppliers that you are interested in working with. When you have a product that you want to sell, as well as the supplier that you have contacted, you can place the first order.
In each supplier page, you will be given statistics such as shipping time frame, minimum order amounts, etc. This will help you able to manage your inventory.
Salehoo essentially offers two options for you, whether you want to drop ship your products to your customers, or whether you would like to buy the product that you have selected in a huge amount and arrange your own shipping to your customers accordingly.
If you decide to drop ship your own goods, then you simply have to open yous. Your own account on eBay, Amazon, or another online store. After you have received a sale, then you can buy the product from the suppliers in Salehoo. The suppliers will then drop ship it to your consumers directly.
If you decide to go the traditional and old way, then go ahead. This means that you are going to buy the products in bulk, and ship them to your warehouse. You know the drill. Once you have received it, then you have to wait for you to make the sales and then ship the product accordingly.
The main difference between both of these systems is the cost. When you dropship, you do not have to stock up inventory. This means that you are saving your capital. While you decide to ship directly, then you will have have a huge amount of capital to stock the items.
Pro and Cons
Now that you have known better about the whole process of Salehoo, there are some pros and cons of the website. Underneath is the list of the pros:
- You can start selling immediately with suppliers. Once you have decided what products you would like to sell, then you can work immediately with the suppliers. If you to opt to drop ship the products, you only need a minimum order quantity of a single unit.
- Salehoo is quite affordable. It only costs you around $67 for a year. There are no other associated additional fees that you will have to pay. Not to mention that there is also a sixty days refund policy if you are not satisfied with their service. All you have to do is to simply call or email their customer support department.
- A huge array of products that they offer makes it easier if you would like to sell something. It is a very good website if you want to search for a very specific product to sell.
- There are strict measures that Salehoo put for their sellers. This means even tho the products are sold from all over the world, then you will have a guarantee that the products are at least original.
Underneath is the list of cons of using Salehoo:
- There is no location-based searching. That means that you will be able to filter out the location of certain supplier that comes from a specific area.
- There are a lot of complaints that Salehoo has a low-profit margin. The reason is that the amount of money they charge for a certain item is the same as what is being charged on other sites such as eBay or Amazon. This means that you are left with a very small profit margin.
- There are not so many niche products that are available on their website. There are a lot of big brands that exist there, however, this is not usually attractive if your goal is to open an online shop for yourself.
- If compared to other directories, Salehoo does not list that much variety of products. This means that you have limited access even after having to pay a membership fee to the website.
- There is no customer support department that would go out and find suppliers for a niche product that you might be needing. Although, in general, there are no problems with other aspects of their customer service.
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