You may have probably heard about dropshipping if you have been interested in the eCommerce industry. This business model has recently grown popular as some entrepreneurs have written their success stories here.
For newbies, dropshipping is a concept that allows business people to operate their stores without the need to manage inventories and keep their products in the store. Dropshippers do this job on their behalf instead. So each time a dropshipper sells a certain product in their store, they will buy this from their supplier. Then, the supplier will directly ship the item to the customer.
Finding a good dropshipping company is difficult. You may have to run into hundreds of scammers and intermediaries before finding a good one. Two of the most popular dropshipping platforms today are Salehoo and Worldwide Brands. And we will discuss each on this review.
Salehoo
Salehoo is a New Zealand-based company founded in 2005. Its wide network features more than 8,000 companies to give access to over 1.6 million products. Most of its suppliers hail from Australia, China, Canada, the US, the UK, and New Zealand.
It has an extensive directory of products in major categories such as technology, computing, and home supplies. For an annual fee of $67, you can also access market research tools, forums, training, and online store programs.
Pros:
- Get access to a long list of the wholesale directory with 1.6 million products from around 8,000 verified suppliers
- No start-up cost, only an annual membership fee
- Suppliers undergo strict verification process, eliminating Chinese counterfeits and other fraudulent suppliers
- 60-day money back guarantee
- Responsive customer service with phone and email support
- A long list of top brand products like Sony and Victoria’s Secret
- User-friendly and clean interface
- Provides helpful educational resources including free access to its Market Research Lab and Seller Training Center
Cons:
- Retail price is not competitive against big marketplaces like eBay
- The membership fee is yearly, which will cost much when added up
Worldwide Brands
Worldwide Brands is a Florida-based company established in 1999. Its database contains around 8,000 suppliers with more than 16 million products available. That being said, the company has almost all forms of sub-categories including obscure ones such as ‘dreadlock care products.’
Before being listed, Worldwide Brands scrutinize its potential suppliers well. The company will even pay a visit to the supplier’s warehouse and check the quality and legitimacy of the products to be sold.
Pros:
- Officially certified by eBay
- Flaunts an impressive directory of genuine suppliers and wholesalers that are updated every week
- Responsive and helpful support system
- The membership fee is offered for a lifetime without any other annual, monthly, or middleman fees
- Follows a refund policy
- Goes out and find new suppliers if there are none
- Guaranteed scam-free as all dropshippers and wholesalers are reliable
- Offers ‘light bulk’ buying option
- 60-day money back guarantee
Cons:
- Membership fee can cost a staggering $299
- Perks are limited and not that useful
- Tends to up-sell other services to their members
Comparison of Salehoo and Worldwide Brands
Price
Signing up at Salehoo costs $67 annually, while Worldwide Brands charges $299. Initially, Salehoo sounds cheaper. But this fee is billed for every year that you are a member. On the other hand, Worldwide Brand’s membership fee is for a lifetime. This means you only have to pay once, and you will no longer incur any additional fees.
If you do the math, five years with Salehoo will cost you $335, which is way pricier than Worldwide Brands. If you are serious about your online business, you would likely want to operate for more than five years.
So comparing these two platforms at a five-year time period, Worldwide Brands clearly is a good option to pick.
Profitability
Both Salehoo and Worldwide Brands have a wide array list of wholesalers and dropshippers. The two offer genuine wholesale prices that are very cheap compared with in-store items. However, Worldwide Brands has a little edge as it specializes in light bulk wholesaling. This allows suppliers to sell very low minimum orders at wholesale prices.
On the other hand, both have a slim profit margin when being competed against major online marketplaces such as eBay and Amazon.
Meanwhile, not all suppliers would be willing to bring their prices low enough to re-sell on these marketplaces for a profit. Thus, we think that signing up with Worldwide Brands is a better option. It has the biggest product directory with 16 million listed items and is the only one to be officially certified by eBay.
Supplier
Salehoo suppliers undergo a series of assessment before being accepted into the Salehoo directory. Salehoo places a seal for its approved suppliers. These are the ones that met the company’s standards and are put in a select group.
These are some of the standards aspiring suppliers of Salehoo should meet. The supplier’s online business should be operating for at least 2 years. They should be legitimate wholesalers, liquidators, and manufacturers. They should have several valid contact options. The payment method they offer should be safe. All their products should be either genuine or designer-inspired. Fakes are not accepted.
Meanwhile, Worldwide Brands is known to have the most stringent supplier verification process. It goes to the extent of visiting warehouses and offices. It places test orders for the dropshippers and wholesalers too. The company also attends trade shows and product warehouses to invite potential wholesale suppliers.
In this category, we think Worldwide Brands wins. An ocular survey of the actual site and products ensure the credibility of the supplier and top-notch quality of the products.
Customer Support
The two have a solid help desk. Salehoo offers a 24/7 customer support via email, phone, and even social media. Phone lines, however, are only active on weekdays. You can also find a small chat box at the lower right corner of its website. Here, you can instantly talk to one of their representatives. You can also actively participate in Salehoo’s online forums or read through their blogs. Useful tutorial and guide materials are also readily available on its Free Online Seller Training portal.
On the other hand, Worldwide Brands also has very helpful customer service. For instance, its customer support can send you a list of suggested suppliers if you cannot find what you are looking for. You can send your queries via toll-free phone calls, live chat, or email.
In this category, both platforms offer high-quality customer service with fast turn-around times and satisfactory and appropriate answers to your concerns.
Conclusion
Choosing what is the best platform between Salehoo and Worldwide Brands is technically a personal choice to make. It all depends on what you are actually looking for in a supplier or dropshipper.
Salehoo offers a low initial cost with millions of legit products from thousands of verified suppliers. It has an easy-to-use interface making it great for beginners.
Worldwide Brands, on the other hand, has millions of products to offer with the highest level of supplier verification process. Again, it is the only wholesaler and dropshipper certified by eBay.
Whatever you choose, make sure you have a full understanding and knowledge of what online business selling, wholesaling, and dropshipping are all about.
