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[MUSIC PLAYING] COREY FERREIRA: There is the conventional method of going out and finding a drop shipping supplier to work with you. This takes more work, which we'll go through together but the payoff can yield an amazing relationship with a supplier. Before going out and finding our supplier, let's look at the pros and cons of finding a supplier through the directory or Google search compared to using Oberlo. First, let's take a look at some of the disadvantages.
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So first a large initial time investment. If you're lucky, you'll find a supplier you want to work with quickly. Even if you find one quickly, there might be a lot of back and forth before you actually start working with your supplier. If you don't find a supplier quickly, it could take days or even weeks before you finally find what you're looking for. However, in this module-- my goal is to help you find suppliers fast by pointing you in the right direction.
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Next more due diligence. When you find a supplier, you need to do your own due diligence. Since you're not using a vetted marketplace like Oberlo Supply. Or you could easily file dispute in AliExpress. You need to ensure you can trust your supplier. I will walk you through this as well, but it's certainly something to keep in mind. Next smaller profit margin. This isn't a universal truth but drop shipping will have a higher cost per unit than if you were to buy the products in bulk from the supplier.
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This is especially true if you find a supplier in the United States. Usually the cost the manufacturer or produce a product will be higher than if the same product was produced in China. This increases your costs but some might argue, you might get better quality products this way. Despite these disadvantages, there are some benefits to finding a dropshipper this way. So first are more options. You're not limited to the pool of suppliers on AliExpress or Oberlo supply.
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While there is more suppliers within or below than you'll ever need, if you have a particular product in mind or you're very picky on what you want to sell, you'll likely find a manufacturer or supplier for it on the internet. It might take a little bit longer to find them but it's possible. Next-- better shipping times. Going out and finding supplier means you can try and find a supplier in location you're planning on targeting.
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For example, if your customers are located in the United States, find a supplier in the US or with a fulfillment center in the US will allow for quicker shipping times. Lastly-- more control. You have more control, when you work with a flexible manufacturer directly. You have more control over the packaging, the quality and the branding. What to avoid when looking for a supplier? Depending on where you're searching, you'll likely come across a large number of fake wholesalers.
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Unfortunately legitimate wholesalers are traditionally poor at marketing and tend to be harder to find. This results in the non-genuine wholesalers, usually just middlemen, appearing more frequently in your searches. So you want to be cautious. The following tactics will help you discern, whether or not a wholesale supplier is legitimate? So first is ongoing fees. Real wholesalers don't charge their customers a monthly fee for the privilege of doing business or ordering from them.
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If a supplier asks for a monthly membership or service fee, it's likely not legitimate. So it's important to differentiate here between suppliers or supplier directories. Supplier directories which we'll discuss shortly our directories of wholesale suppliers organized by product types or market and screen to ensure that the suppliers are legitimate. Most directors will charge a fee either one time or ongoing. So you shouldn't take this as a sign of as the rectory is illegitimate.
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Next-- they sell publicly. To get genuine wholesale pricing, you'll need to apply for a wholesale account, prove your legitimate business and be approved before placing your first order. Any wholesale supplier that offers products to the general public at wholesale prices, is just an a retailer offering items at inflated prices. There are also legitimate practices by legitimate wholesalers that you might still want to avoid if possible.
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The first is per-order fees. So many dropshippers will charge a per-order dropshipping fee that can range from $2 to $5 or more, depending on the size and complexity of the items being shipped. This is standard in the industry as the costs of packaging and shipping individual orders are much higher than shipping orders in bulk and it shouldn't be a deal breaker, but of course, we prefer a dropship suppliers that don't charge this.
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Next is minimum order sizes. So wholesalers will have a minimum initial order size, which is the lowest amount that you have to purchase for your first order. I would avoid this, even though it's legitimate. You want to be able to drop your products from suppliers, not to buy in bulk to do business with them. All right. So let's find some suppliers. In the next lesson, I want to share some of the ways to find supplier and walk you through the process. I'll see you there.
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