SaleHoo is a wholesale supplier directory that started in New Zealand. If you are selling online unless you are creating your own products you will need to find a wholesale supplier. This is one option, but what’s the verdict, should I give it a try.
Who Are They
SaleHoo is now based out of Los Angeles, California and has been in business since 2006. The owners are Mark Ling and Simon Slade. They have an A+ rating with the Better Business Bureau. Their directory lists over 8000 suppliers and has over 1.6 million products. They are a legitimate business that takes a lot of the legwork and time out of finding you legitimate wholesale supplier.
What do they offer
The SaleHoo Directory offers over 8000 wholesalers, dropshippers, liquidators, and manufacturers. I was a little disappointed that not all the suppliers offered dropshipping but other options also open more possibilities for diversity down the road. Even though not all the wholesalers offer products for dropshipping there are a large number that do. Here is a breakdown of the difference in case you are not just dropshipping.
- Dropshippers – You can ship individual items to your customer once they pay you so you don’t have to stock any merchandise or have any upfront costs. Buying items individually you will pay a higher cost than if you were buying a large quantity of products from the merchant.
- Wholesalers – you can purchase inventory in volume to get a better discount, or bulk items that you can then sell individually for a higher profit margin. The larger the quantity the better price you can negotiate.
- Liquidators – you can get great deals on damaged, returned, discontinued products but you may not have the option to return these items if the inventory doesn’t sell, so its important to know your market. May not be the best place for a beginner to start.
- Manufacturers – you get great prices but be ready to invest because you typically have to buy in volume to get the best deals. You may want to start with smaller manufacturers that will work with you on smaller orders than well-known brand names where you will need a larger investment and often still don’t have the higher profit margins that you can get with less know companies. Through the manufacturer you may also be able to get your own brand or label on the products. You need to do your homework and ask questions make sure they will have consistent levels of product to fill your requirements.
Their suppliers are based out of the US, UK, and Australia.
What are the benefits of using Salehoo
- First of all they have done the research on the 8000+ wholesalers in their directory.
- They have a low initial investment of $67 for a 1 year membership
- They have a huge amount of training available for the beginner and the seasoned online seller
- They have great support
- They have an active member community
- They offer a research lab to help you identify trends and suppliers
- They do anonymous reviews on their suppliers by ordering products and checking up on customer service
- They save you time as they do a lot of the up front supplier research for you
- There is an option to create an online store for a monthly fee
What Are Their Wholesale Prices Like On SaleHoo
In general Salehoo has done their research and brings you wholesalers that offer good prices. The thing with dropshipping in though is that you are not getting rock bottom prices. In fact, you may find that someone is selling an item on eBay for less than you can get it at wholesale. That is one of the reasons the research lab on SaleHoo can really help you check to see what is trending and what kind of competition you will have if you sell that product. Finding products that have a high demand and lower competition will allow you to have a higher profit margin.
The best answer to this question is that they wholesale prices will vary and you need to do your research and evaluate whether it will be worth your time to try to sell a product. Dropshipping doesn’t always give you the highest profit margin and the platform you sell on will also impact the markup you can put on an item.
Once you have a relationship with a supplier you can potentially get a lower wholesale price if you are doing a high volume in sales.
To sell online you have to create an edge for yourself. Price is not the only thing your customer is looking for, they want a great description, they want lots of photos, someone they can contact. You can build a following and brand over time and people will often pay a little more for a product from you because they trust you. Selling on different platforms, marketing through social media are ways that you can increase traffic and sales.
You will need to browse the suppliers websites and then contact the ones you are interested in to get a catalog with their wholesale prices. You can then decide whether there is enough of a profit margin working with a supplier. You will make money in dropshipping through volume and finding the right products, this like any business takes time and experience, not every item you choose will be a winner.
What Are SaleHoo Cons
With over 8000 suppliers not all of them are going to be the best for your needs. This is one of the drawbacks of dropshipping in general you are at the mercy of your supplier. Although SaleHoo does its research and all the suppliers are legitimate they may have manufacturing problems, or inconsistent supply available. There is nothing more frustrating than making a sale and then having to go to your customer and tell them the item is on back order.
For some an annual fee of $67 is a drawback, I feel like it is a relatively small amount for what you are getting however you could do the work yourself for free and create relationships with wholesalers. If you build a web store it can get a little more expensive because now you also have a monthly fee for that. One of the reasons people start online business is that that cost is low but over time when you invest in programs and products it can add up. There are some free directories available and you can also do some research and contact wholesalers on your own.
From what I have found so far they don’t have a system set to link with an eBay or amazon store allowing you to easily add new items and track inventory supply. I have worked with Sunrise Wholesale Merchandise and for an annual fee you can link your accounts with eBay and/or amazon.
Even though they have 1.6 million products available there are some product areas not available. For example, I had wanted to open a journal and writing store and have not found suppliers on SaleHoo for that market.
Final Verdict – Is It Worth It?
They have over 75,000 members who thought SaleHoo was worth a try, myself included. The have some great training for on selling on EBay, finding a niche, and setting up your business to get you up and running whether you want to start out slowly or dive in. They have great live, one on one, customer support. They have a community forum where you can also get support, feedback on suppliers, ask questions from people who know what you are dealing with. The research lab gives you an edge in finding the right products and check the competition. You can trust that the wholesalers are legitimate. Finally, they offer a 60-day money back guarantee which gives you some time to see if this is for you.
There is an investment with SaleHoo and it is also worth mentioning that many of the suppliers require you to have a Tax ID and possibly a membership fee to sell their products. If you are going to invest there should be at least some serious desire to do dropshipping. If that isn’t there yet do some more research.
- Website: www.salehoo.com
- Owners: Simon Slade & Mark Ling
- Price: $67 annual cost (additional fees for webstore)
- Overall Rank: 9 out of 10
- Who’s it For: Beginner and seasoned online retailers
Disclaimer – I am an affiliate marketer as well as a dropshipper so there are links on this page that will take you to SaleHoo if it seems like something you want to check out further and I will receive credit.