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My Thoughts On Drop Ship Supplier Directories In 2021

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In today’s episode of the eCommerce Lifestyle, Anton talks about drop ship supplier directories are changing… but is it for the better?

The podcast is also available on all major podcast players including, Stitcher and Spotify.

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Transcript

What's up guys, Anton Kraly here from DropShipLifestyle.com. And today I want to talk about Drop Ship supplier directories, and my thoughts on them in 2021. If you've seen any of my older stuff, you're probably aware that I am not a fan of directories, and that hasn't changed. Don't use them. They're not worth your money. They're not worth your time. The end. But if you are interested as to why we don't recommend them and how we actually do find suppliers, then stick around because that is what I'm going to share in this episode. So when I'm referring to Drop Ship supplier directories, I'm talking about the companies that you would find if you were to go to Google.com and search for something like Drop Ship suppliers or Drop Ship supplier directory or Drop Shipper list, and typically surprise, surprise the directories are the companies that you're mostly going to find in the sponsored section of the search results, meaning where people pay to put ads there and what these directories are, 99% of the time, are middlemen.

These are companies that basically promise you the world, and in my opinion, don't even come close to delivering. So what hasn't changed, we'll cover that first with these Drop Ship supplier directories is that they'll always charge you for access. So you'll go to their website, they'll say, Oh, you can have access to millions of products from hundreds of brands, and you can make these potential margins and they'll show you numbers. And then it will say, click here to give us $200 a year or $60 a month or $15 a month. The prices are all over depending on the directory. But what hasn't changed is that they always charge for access. They always promise the world and they're always middlemen. So the thing that people need to know, especially if you're first getting into Drop Shipping, is if you sign up with one of these companies that you find as a supplier directory, you're not actually approved, meaning you, your business, is not approved to sell for whatever brand. You are now going through this middleman that has a connection to the products.

And even their connection to the products might not be direct. There might even be another layer between them and the companies whose brand name is actually on the products that they're then marking up for you to then sell and mark up that they're showing you potential profit margins are that don't actually exist because there's no pricing controls because there's no relationship with you and the brand. And when I say the brand, I mean that brand's name on the product that you're putting for sale on your store. So a lot hasn't changed there. I almost wish I could say since the last time I made a video about supplier directories, when was it? Probably three years ago that this amazing company came out and revolutionized the game. But no, a lot of it's just stayed the same. These companies pick up that search traffic from new Drop Shippers that are looking for directories that sign up with them because Hey, it looks like an amazing offer only to find out down the line that I'm never going to make money going through a directory.

So again, that's why I don't recommend them. Now what has changed though, again, this is not for the better. My thoughts on Drop Ship supplier directories in 2021 is that more has actually changed for the worse. So in addition to those big promises that I was talking about, there's even more of them now. And that's because a lot of these directories now offer more automation and they offer more promises and they really provide even less results. So what do I mean by this? Back in the day, when I say back in the day, I mean, even 12 months ago, two years ago, when you would sign up with the supplier directories, they would basically give you a list of products that you can then upload to your store. Usually it would be just a massive CSV file and you would then be expected to take that product feed, upload it to your store, manage it, basically make modifications if you wanted to, but there would at least be some work assumed on your end or something for you to basically do, right, some control, something unique about it.

And even then, again, not good back then, but that's what was there. The way it works now is these companies are promising so much more. Basically what they're saying is you sign up, you give us money, you click a button and we're going to connect to your e-commerce store, and we are going to populate it with these products. So there's really nothing for you to do. Obviously manage the business, but on the product sourcing side, on the supplier approval side, on the deciding what you want to sell and what you don't, they're basically promising you don't even have to worry about that. Again that would sound great. It sounds like an amazing offer. It sounds like something that a beginner would be super thrilled to hear and jump all over, which they do, which is why supplier directories have been growing so much.

But again, it's not for the right reason. And this is my opinion. It's not for the reason that people using these directories are seeing amazing results. It's because their targeting is good. They're putting their ads in front of the right people. The people that are seeing the ads see it as an amazing opportunity because that's how it's presented. The problem is as people start to use these directories, start to actually invest money into getting traffic and website visitors to their stores, they realize that there's no money to be made because nobody even wants most of the products they offer because they're not priced competitively at all. Typically the wholesale costs that you would pay the middleman, the directory, is more than you could buy the product for somewhere else. Because again, in this model, everybody is adding their markup in. So it's simply just not worth it at all.

Again, it's gotten even less worth it over the years. So in 2021 do not use Drop Ship supplier directories. Opinion is that's not changing anytime soon. Maybe I'll do another video four years from now sharing an update with how things are working then, but I'm sure you want to know if you're watching this well okay, that stinks, Anton. I can't use a directory. How can I find the best suppliers? So I have a really good resource on the Drop Ship lifestyle blog. I'll actually link it up in the description here. You can click it. You can go through them all, but the short of it is that what you want to do is work directly with the brands that you're going to be selling for, no middlemen at all. That'll ruin your margin. That'll ruin the relationship. That'll ruin pricing controls. Now to locate them, you want to reverse engineer your future competitors' stores, and then find suppliers through them and then form direct relationships.

Again, that's the short summary of it, but I have a lot of resources on the Drop Ship Lifestyle blog that I think would help you. They'll be linked up below. And also if you're not a member of my coaching program, Drop Ship Lifestyle, I would highly recommend you check that out to get in-depth trainings on how we find suppliers. And more importantly, how we get approved with them because you do have to become an authorized retailer. So I'll link that up in the description as well. So that's it for today, guys. Hope you got value. Sorry to disappoint anybody that thought they found the dream solution to their product sourcing challenges, but it does take some real work, but it's worth it. So that's all for today, guys. Thank you. I appreciate you. And I'll be back on Thursday with another episode. See you, everybody.

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