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The 5 Best Dropshipping Companies of 2024 (Unbiased review)

August 16, 2020

The Best Dropshipping Companies of 2020 Reviewed by Ippei

SO you’re sick of being stuck at home - not earning the money you should & you’ve decided to give this Dropshipping thing a go…

But where to start?

There are so many things to do - from finding products, suppliers & setting up your store to marketing; it’s kinda overwhelming…

How about we start at the beginning & take it from there…

First things first: if you've done any dropshiping, you'll know that it's a massive undertaking that eats a lot of your time.

A solution to being more productive, is using a dropshipping company that helps you to find and use winning products and vetted suppliers.  

There are a lot to choose from: Doba, Oberlo, Dropship Direct, Wholesale 2B, Megagoods, etc… & they all come with some good & bad.

Now, because I’m such a nice guy, I’ve decided to do some proper research & share some of my best choices…

PS: I’ve kept the current US/China trade situation in mind.

For those of you that’s not sure what I’m taking about, this is what’s happened so far: the US has slapped tariffs on US$550 billion worth of Chinese products. China, in turn, has set tariffs on US$185 billion worth of US goods…

IOW, shipping & import duties are set to increase...

I kept that in mind when choosing these 5 Dropshipping (fulfillment) companies.

DISCLAIMER: I AM NOT AN AFFILIATE

As background, you should know that I've made two successful 6 figure Shopify eCommerce stores to date with my business partner. So, we have some experience in the dropshipping business model.


However, this doesn't mean I know everything there is to know about dropshipping. All I can offer is my personal opinion, based on my own online business experience. 

Most importantly: I'm not an affiliate to any dropshipping company, so you can expect nothing but honest and unbiased reviews from my side.

My Top 5 Dropshipping Companies of 2020.

#5 Dropshipping Company

DOBA

"Drop Shipping. Simplified. Instant access to hundreds of dropship suppliers and millions of products in one catalog."
Pros
  • It provides helpful educational resources for dropshipping
  • It’s easy to customize your own inventories for quick reference.
  • Low inventory notifications. 
  • Massive list of products; the site has millions of products and thousands of sellers.
  • You can export data from other platforms and make the changes automatically.
  • Built for dropshipping; all suppliers ship on retail.
  • The supplier scorecard allows you to make important business decisions based on real data.
  • There are many shipping options that different suppliers use; this gives you more flexibility
  • The system works with many platforms.
  • Some suppliers offer free shipping.
Cons
  • Membership isn’t cheap.
  • You pay a fee of $0.99 per transaction.
  • The products are expensive and difficult to compete with on major platforms.
  • The general across-the-board online opinion of Doba isn’t that favorable.
  • Shipping times are long: +/- 2 weeks. For some customers the wait will be too long.
DOBA details:

Doba is a great solution for finding the right suppliers, mainly because it was made with dropshippers in mind.

Not only does it provide a detailed directory of manufacturers and wholesalers but also offers a platform to simply add the products you want, without having to partner with multiple suppliers.

You usually have to ask suppliers whether they’re open to working with ecommerce retailers. With Doba, you only see the dropshipping wholesalers who are prepared for it.

Doba also has a handy feature that allows you to add products to your list, and integrate them with your eCommerce solution.

Pricing

Doba offers 4 pricing plans available: Basic, Advance, Pro & Enterprise.

The Basic Package starts at $29 per month & give you access to millions of products & hundreds of suppliers.

Their Advanced Package goes for $69 per month, which comes with eBay data export and access to elite seller support.

The Pro package jumps to $249 per month, that is bundled with Amazon data export and batch order updates.

As for the Enterprise package…you’d have to contact them directly

The Bottom Line
Best selling point
  • Massive list of products; the site has millions of products and thousands of sellers.
Biggest Issue
  • Added costs of expensive membership & transaction fees per sale.

Conclusion:

Doba is a good option if you don't want to spend hours looking for trustworthy suppliers. 

DOBA rating: 3.5/5

Visit the site here.

#4 Dropshipping Company

OBERLO

"Find products for your store in minutes."
Pros
  • Simultaneous integration with your Shopify store.
  • Quick and secure product imports from Aliexpress with a single click.
  • Huge time and effort-savings by using the app.
  • Automated product order fulfillment.
  • Pricing and inventory automation.
  • Free Chrome extension.
  • Customizable products.
  • Sales and Shipment tracking.
  • ePacket filter.
  • Oberlo supply marketplace.
Cons
  • Only supported on Shopify stores.
  • None of the products are actually edited within Oberlo, you are redirected to your Shopify product description page.
  • Only Aliexpress is supported … but it is possible to integrate your store with Amazon.
  • Long shipping times
OBERLO details:

If you haven’t heard about Oberlo whilst researching or running your dropshipping business, then you haven’t truly been dropshipping.

The Oberlo brand was originally launched in 2015 by a group of friends.

The application became popular quickly, thanks to a wide selection of powerful features. In no time, it became the leading dropshipping application in the Shopify app marketplace.

The primary feature you get from Oberlo is the importing from AliExpress option.

Pricing

There are 3 payment plans available. The Free plan, Basic & then Pro

The free plan offers an amazing free account but you’re limited to 500 products and 50 orders per month.

Basic is from $29.90 per month. You’ll be able to manage up to 10,000 products, incl. real-time order tracking & affiliate program support

Pro jumps to $79.90 per month & gives you a product limit of 30,000 allowing you to scale with your sales performance. You’ll also have access to multiple staff accounts.

The Bottom Line
Best selling point
  • Import AliExpress products with ease.
Biggest Issue
  • Only features products from AliExpress.

Conclusion:

Oberlo is a great tool to use if you are an exclusive AliExpress and Shopify dropshipper. Oberlo saves you tons of time with their integration features. Their pricing structure is also very reasonable.

Oberlo rating: 3.7/5

Visit the site here.

#3 Dropshipping Company

SALEHOO

"Find Your Perfect Product and Supplier in Minutes! 
SaleHoo is a powerful research tool, supplier directory, and online community for dropshippers, wholesalers, and e-commerce stores."
Pros
  • Access to the “hot items” product sourcing tool (Market Research Lab).
  • Discover which products have the highest profit margins.
  • Organize supplier details.
  • Get insider deals from suppliers.
  • Smart Seller Training.
  • Access unlimited one-on-one support via phone, email, live chat, and Facebook.
  • 8,000+ Pre-vetted Suppliers.
  • 2.5 million Products available.
Cons
  • Location-based search is missing.
  • The database needs to be refreshed.
  • Certain products are overpriced and cheaper on eBay and Amazon.
SALEHOO details:

SaleHoo is all about helping aspiring entrepreneurs create their own businesses online.

Whatever you’re looking for; educational and training materials, sourcing products, advice from their knowledgeable support staff; it’s all available through this platform.

SaleHoo is a New Zealand company that was founded back in 2005. It is a “wholesale directory” that connects you with 8,000+ legitimate suppliers and 2.5 million products.

SaleHoo is a “service” and not a direct supplier so they do not sell actual products.

They have a unique business model that involves a mandatory verification of all suppliers before being added to their wholesale directory… that helps cut out bad suppliers.

The support area is also brilliant. They have 50 step-by-step guides and videos as well as a fantastic online forum about selling tactics, trends and suggestions on suppliers.

Pricing

SaleHoo’s pricing is super easy… there’s only one package & you can either pay $67 yearly or $127 once off & have lifetime access.

Both of the options give you access to 2.5 million products and 8,000 suppliers that are all listed in the directory. Other than the cost, there are no differences. 

Your membership gets you access to the supplier directory, market research labs, members forum, and personal support via email.

They also provide you with 60-days Money-Back Guarantee – a full refund policy!
The Bottom Line
Best selling point
  • Cheap price for access to a massive database of suppliers and products.
Biggest Issue
  • Unclear where suppliers are located. You need to contact them directly. 

Conclusion:

SaleHoo is a great platform to find new products and suppliers. At the price, SalesHoo can be forgiven for some shortcomings.

SALEHOO rating: 3.8/5

Visit the site here.

#2 Dropshipping Company

SPOCKET

"Top dropshipping suppliers of original US/EU products.
Spocket allows you to choose the best products to sell from thousands of dropshipping suppliers all over the world."
Pros
  • Dropshipping products are guaranteed quality tested.
  • Faster shipping to customers in the US, UK, and EU.
  • Automated order & pricing processing.
  • Integrates with Shopify and WooCommerce platforms.
  • Worldwide shipping is available.
  • The system tracks and updates your inventory in real-time.
  • A free plan is available.
  • You can order samples from suppliers.
  • Suppliers can add personal note to the package before shipping.
Cons
  • Shipping to customers outside the US & Europe will cost more and will take longer.
  • Customs duty and taxes are not included in the product.
  • You can’t sell on Amazon, eBay, Etsy, Groupon, and Wish.
  • No option for customized packaging allowed as yet.
  • You cannot communicate directly with suppliers; only through Spocket’s central support team.
SPOCKET details:

Spocket is a dropshipping app which integrates with WooCommerce and Shopify stores, which are some of the more popular independent retail platforms available to e-commerce entrepreneurs.

You can sort by country and simply upload into your Shopify store. Spocket makes it easy to find US and EU items that’ll ship within your country rather than from China.

Spocket is still growing, which allows them to pay more attention to the quality of suppliers and products.

If you need a product your competitors can’t source, you can probably find it on Spocket.

This is a great option if you have customers in the US & Europe!

Best thing - You decide where your products are sent from. This means products are fulfilled quicker and it’s a lot easier to manage returns and refunds.

They have a dedicated help center with easy to reach support teams. They even provide you with some tips & tricks to get you going.

Pricing

Spocket offers 4 plans; Starter, Pro, Empire & The Unicorn

The Starter option comes in at $19 per month. You are limited to 25 products but with unlimited order processing, sample orders, and real-time inventory updates.

Pro is $49 per month for 250 products plus 25 premium products, branded invoicing & currency exchange

Your Empire plan unlocks unlimited products for $99 per month. Limitations on the unique & premium products are removed.

The Unicorn at $299 per month, is for the Big Boy stores. You get unlimited, well everything, plus your own account executive & product requests

The Bottom Line
Best selling point
  • Featured suppliers from the EU and USA.
Biggest Issue
  • No direct contact with suppliers.

Conclusion:

Spocket offers an amazing service to dropshippers. Suppliers are vetted and based in the US or in Europe, which means shorter shipping times than suppliers from China/AliExpress. You can also ask the suppliers to add your own notes (like branded thank you notes/receipts) to customers.

SPOCKET rating: 4.0/5

Visit the site here.

#1 Dropshipping Company

MODALYST

"The Best Dropshipping Suppliers to Transform Your Online Store."
Pros
  • High-quality products & unique suppliers.
  • Private label dropshipping program.
  • Higher profit margins.
  • Fast Shipping.
  • Products shipping from the United States. Mostly US/EU Suppliers - some with free shipping.
  • Automatic tracking info, even at the lowest pricing plan.
  • Integrate with Shopify, Wix & BigCommerce.
  • Inventory level notifications.
  • Directly communicate with suppliers.
  • Fair product prices set to 60% MSRP.
Cons
  • 5% transaction fee on all pricing tiers.
  • No access to premium brands on bottom two pricing plans.
  • Limited selection of low-cost products.
  • No free trial
MODALYST details:

From the startup store looking to build a niche; to the established e-commerce business testing demand for a new category, Modalyst has something for everyone.

If you want to run your online business on autopilot and connect with the quality suppliers, this is a perfect platform.

These guys pay attention to the quality of products. They offer a curated marketplace of handpicked suppliers from the US and Europe. With a large directory of the best drop shipping companies, including Made-in-America brands, luxury international labels, handmade & unique designers.

Modalyst is the only drop shipping platform with almost complete automation, offering brand names that are delivered to your US customer within 3 business days -  guaranteed.

You can set pricing and shipping rules to increase your margins & customize product details before adding them to your store.

Since Modalyst has a free plan you can take it for a test drive. After that, the pricing isn't bad, and you know you're partnering with great suppliers

Pricing

They have 3 pricing plans available; Hobby, Start-up & Pro

The Hobby plan is free and you’re offered an extension in Google Chrome to source millions of products. The downside is that it applies only up to 25 products from the curated marketplace Modality.

The Start-Up policy is priced at $35 per month & you can source up to 250 products from Modalyst’s marketplace.

The Pro plan costs $90 for per month & gives you unlimited products & access to all the premier suppliers. You also get faster shipping times. This and is aimed at the large-sized stores

The Help Center of Modalyst operates round the clock. The help center is a knowledge place thanks to a large number of articles on a variety of topics. It's a great resource combined with their blog full of dropshipping advice.

 If you still need help after that, just email them – team@modalyst.co - for some direct, personal support

The Bottom Line
Best selling point
  • Local suppliers mean fast delivery times.
Biggest Issue
  • 5% transaction fee per sale.

Conclusion:

Modalyst is a great platform to use for your dropshipping needs. You not only get local suppliers in the US and Europe, and the subscription fees are reasonable for what you get.

MODALYST rating: 4.2/5

Visit the site here.

So. Which Dropship Company is right for you?


First things first: Why would you use a dropshipping company? Why even consider one?

If you know anything about dropshipping, it's that it is not as easy as the gurus would have you believe. It takes a lot of hard work & dedication & man hours to be successful at it. 

A dropshipping business also has tons of moving parts that need to be checked & maintained and replaced from time to time. 

Using a dropship company that takes the hassle out of finding products, and suppliers, and sorting out your shipping, is a huge win. 

But, it comes at a price!

You will be limited by the number of suppliers you can use and it takes a chunk of your profits through subscription fees &/or transaction fees.

My Dropshipping Experience Selling Shark Onesies

At the beginning of this post, I mentioned that I had two 6-figure Shopify Stores.

One of them sold shark onesies.

I capitalized on the "Baby Shark" song that went viral and swept the globe. Yes, that irritating kiddies song that even Josh Groban and Sophie Turner sang together at one stage...

By accident, I found a supplier on AliExpress selling shark onesies at the height of the song's popularity (before everyone got irritated with it).

I created my eCom store using Shopify: shopcattywampus.com (Weird name, I know. But sometimes weird works. People tend to remember it... Ps: It's not live anymore, it served its purpose.)

I then went ahead and started running FB ads to it. Throwing money at it, because I was convinced these shark onesies would sell like hotcakes.

Getting traffic with paid ads isn't always cut-and-dry. It actually took a while before I was profitable.

I soon realized that dropshipping takes much more upfront capital in ad spend than I expected... But, I was already committed to this product and I pushed on. 

I probably spent around $5k before I had my first profitable day. Crazy, right?

What positively set the ball rolling, was when I started running Video Ads.

Thanks to the Video Ad and the fact that it was September and Halloween was quickly approaching around the corner, pushed it over the edge.

The best month was $49K in sales in 30 days!!!

It sounds like a dropshipping success story, doesn't it?

BUT, Here's the breakdown of my costs & profits on average:

  • Each onesie sold for: $36.55
  • Each onesie cost: $19.55
  • (Net Profit of 1 onesie sold): $17 (sounds pretty decent right?)
  • Net Profit Before Ad Cost: 1340 * $17 = $22,780

Net profit of $22,780! That sounds like I was Mr. Moneybags at that stage. Oh, wait. That was before Ad Spend...

  • Total Facebook Ad Spend: $17,320
  • Final Net Profit: $22,780 - $17,320 = $5,460

$5,460 in one month sounds pretty good on the surface, but unfortunately, that was my best month.

Sales began to teeter off the next month, and within 2 months I had to stop the ads because it was no longer profitable.

This is when I realized how fickle the traffic using FB Ads can be (and I'm not even talking about the FB Ad Costs!) Selling on an eCom platform is HARD:

  • Yes, you can scale relatively quickly, but you also exhaust your audience pretty quickly as well.
  • Products that are fads don't stay fashionable long term. You have an achingly small window of opportunity. Once that window is closed, you need the next hot/trending product. 
  • Constantly looking for the next "Big Product" is tiring. It takes constant product research AND a bit of luck...
Yes, I made a few dollars in those two good months, but when I factor in the cost of testing different ads, it definitely wasn't the Ballers income I had hoped. (Far from it...)

I also discovered the "super exciting" (I'm super sarcastic here) world of product order fulfillment and dealing with purchase charge-backs, complaints, and returns from customers...

These new headaches were issues I had not dealt with before, in my lead gen business...

In the beginning, when the first problems started rearing their ugly little heads, I wasn't quite prepared for the mayhem and admittedly, I didn't know what I should be doing. It took dealing with quite a few irate customers before I was able to handle the situation better. (If you were one of them, I'm sorry. I was way out of my depth in the beginning...)

After the Shark Onesie Frenzy, I understood that you are not going to get rich off of one Shopify Store.

You need to have at least two to three going at all times, and constantly be on the lookout for the next trend.

Is the juice worth the squeeze..?

If you're still stuck at a 9 to 5, I'm pretty sure ANYTHING is better than being chained to that desk.

And in my opinion, that is why these dropshipping courses do so well. People are desperate to take control of their financial lives again and have that freedom to enjoy the fruits of their labor. 

No one wants to be a slave. 

But for me, the whole dropshipping model wasn't cutting it. It honestly wasn't worth all the time and effort I had put in for the (measly) returns I got.

If you want more detail, I wrote the entire journey of creating my onesie dropshipping business. Just click on the button below:

Competitors stealing your dropshipping business

Most dropshipping courses even the top ones like eCom Hacks & eCom Elites teach the method of researching the competition and copying what's already working. Jared calls it "surfing the wave" of your successful competitors.

You can literally rip (clone/steal) someone's FB Ad, Sales Funnel, their ENTIRE store, and even their products, in a couple of hours.

This takes all the guesswork out of it. There's no skill involved. A teenager could do it...

It sounds great on the surface, but I'm not a fan of this business practice.

Why?

Well, what's preventing someone else from coming in and doing the same thing to you? 

This makes dropshipping more of a short term play to me.

A business model where someone can come in and literally copy your business within hours, simply cannot be a long term business option.

Eventually, that niche will get saturatedCPC will go up, and the product becomes unprofitable.

Therefore, the dropshippers that have created a sustained business, have invested serious capital to create their own unique product(s) and sites that make it difficult to be duplicated.

You need to be a savvy product creator / innovator and have at least $25K for product design and production.


In business, you don't want "Easy". Because if a business model is so easy that literally, anyone can do it, it gets saturated quickly.


You don't want to get into a business where the barrier of entry is so low.


Why do you think plastic surgeons make tons of money throughout their careers?


Because they have a skill that not too many people can acquire.


This is why I hedge towards businesses that actually require a high skill level to operate, like lead generation. It's near impossible for someone to come in and copy your business...

So What the Heck is Lead Generation?

I personally don't like the up and down nature of relying on Facebook ads with the dropshipping business

So as of 2020, my entire focus is on lead generation which has always been my best money maker.

Here's what it is...

You build and rank simple websites at the top of Google that generate leads for small businesses. There's nothing like free traffic by ranking in Google... Most consistent traffic on the internet.

I've owned the above tree service site since 2015, and its been total passive income, paying me $2000 per month on autopilot.

You rank these sites and you can forget about them, which is not possible with dropshipping because you constantly have to monitor ads and fulfill orders.


Here's why I love lead generation more than dropshipping...

Here's a short list of why I quit dropshipping (and why you should think long and hard before starting with this business model):
  • Product research: To stay on top of trends, dropshipping entails a constant search for new products. It never ends, and it's an exhaustive process that eats up a lot of your time.  
  • Supplier research: You need suppliers that are locally based, offers quality products and can handle the packaging and shipping of a large amount of products.  
  • Marketing: In 2020, you need to be a master marketer, specializing in different online advertising platforms. Just using Facebook Ads is a complex process. I've identified 11 "choke points" that cause your FB Ads to fail - and that's just FB! So, you have to know what you're doing...
  • Rising Ad Costs: before talks of the recession, digital marketing was becoming more expensive. According to Forbes, FB saw an increase in Ad costs of 90% year-on-year. This eats away at your profits.
FB Ad Costs rise 90 percent year-on-year
  • Revenue vs Profits: The gurus will have you believe they make thousands of dollars per month, but they only ever show you their Revenue, not their Net Profits. The ROI for dropshipping is very low, as profit margins are anything between 5% and 20% (if you are extremely lucky). Look at the store below that's for sale on Flippa. It's been running for 4 years and only manages 12.6% Net Profit...
  • Then there's also Retargeting and Email Marketing, Placing Orders, Shipping issues, Chargebacks, After Sales and Additional Costs that no one talks about, such as Shopify Apps subscriptions.
DROPSHIPPING

Lots of effort. Inconsistent results.

  • Limited niches, only trending products.
  • Ads are expensive with no guarantee of profit.
  • Low Barrier to Entry. (Anyone can duplicate product)
  • Low Profit Margin (5%-20%).
  • No Control - Shopify can freeze your store.
  • Ads require a lot of maintenance.
  • Constantly looking for new products.
Here's how the business model works; it is easy & scalable.