Price on dropshipper's website is higher than Amazon

I'm new to the drop shipping business, and had a couple of questions:
A: what are good suppliers to get started with (like suppliers which supply products that will sell well, for a good price)?
B: I've noticed that on many of the supplier websites I've found on Salehoo, the prices on the websites are sometimes even more expensive than the retail price on Amazon. Are the prices that I'm seeing the drops ship prices, or do you have to contact the supplier to get the drop ship price?
Thank you.

Hi Shlomo and welcome to the forum,

Regarding your first question, all of the suppliers in our directory have been fully verified, so you can be confident in dealing with any dropship supplier you find within our directory.

Regarding your second question, dropshipping most certainly has its advantages, but price usually isn't one of them. You have to remember that you are going up against sellers on sites like Amazon and eBay that are buying in large wholesale volume and then selling on a very tight margin, you can be even going up against wholesalers themselves selling direct to the public through these popular avenues.

So you are going to find markets where you just can't come close to competing with a seller on a certain product using a dropship model because of the sales model they are using.

The trick to dropshipping is to chase markets that aren't dominated by sellers using a wholesale model. That's where market research is key, finding those holes in the market that you can exploit with a drsopshipping model

You may also find this link helpful, it's all about using dropshipping to your advantage over a wholesale model to give you a competitive edge..

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Thank you for the response. Which suppliers would you suggest I start out with (meaning which suppliers have item that I can profit from with drop-shipping)?

Others may have some suggestions, but I don't favour any supplier over another. Regarding products, the best advice I can offer there is to research the market really well, that's where you will find the best clues.

Cheers

I've tried finding suppliers but I consistently come across ones which either have items which are priced higher than the counterparts on Amazon, or there is only a slight difference in price, which would amount to close to nothing after Amazon fees. Is this because the prices drop shippers would pay aren't the prices I'm seeing on the website or am I just not finding good suppliers? Regardless, do you have any suppliers from which I can profit from when selling their items on Amazon?

Hi Shlomo,

Do know that wholesalers also sell on Amazon so their prices are normally lower than retail price - it's a tough competition out there when you plan on dropshipping. Also, the prices you see on some suppliers' website are usually on retail. You will have to contact them directly to know their wholesale pricing as wholesale suppliers won't be able to give you an accurate price until they actually know what sort of volume you want to purchase. The same goes with dropshipping thats why sometimes a registration is needed before you can see their prices.

As Marc mentioned with dropshipping, price usually isn't an advantage. You can find out more with the pros and cons of drop shipping here: Link hidden: Login to view

All the best!

Hi Shlomo

I think you will find this post interesting, it is right on topic.

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