Whether you are new to the dropshipping business or already hands deep inside, you probably know about the high-profit margins when working with Chinese suppliers, since their prices are lower than most suppliers worldwide. While it is a good business model to adopt, it is not the only good option we have as dropshippers.
American dropshipping suppliers have plenty of advantages than Chinese suppliers, especially when selling to the US market.
Therefore, in this article, you will learn about all of the perks that come from working with American suppliers, so you can profit more with your dropshipping business, grow, and increase your number of satisfied customers.
The Benefits of Dropshipping from US Suppliers
Dropshipping from American suppliers comes with many benefits. Also, there are many American suppliers that you can work with to level up your dropshipping business. Let’s go over the benefits; then we will talk about the suppliers themselves.
Faster Shipping and Delivery Times for US Customers
When dropshipping on the US market, American suppliers will ship and deliver the products faster than any other supplier in different countries. That’s because you are dealing with domestic shipping, so the products ship from and to the US.
Therefore, instead of waiting 2-3 weeks and sometimes more to receive packages than Chinese suppliers, domestic shipping times usually take just a few days. Most customers are willing to pay more for faster shipping times.
Faster delivery times to help gain customer satisfaction, which is essential for your business’s long-term success.
Reliable Tracking Information
Working with US shipping companies like UPS and FedEx allows the buyer to stay informed in detail on his package’s delivery status.
Most American suppliers work with highly dependable shipping companies who offer detailed tracking information, so you won’t have to worry about packages getting lost and reimbursing your customers.
eBay supports tracking numbers by most US shipping companies, which helps keep a high seller account ranking. Thus, the buyers won’t need to worry about what’s going on with their packages, as they can trust the tracking events.
Multiple Shipping Options Available
US shipping companies support faster delivery times for those who can’t wait to get their packages. Including blazing-fast one-day to two-day delivery options. American suppliers have the option to offer such delivery times for the domestic market.
Usually, one to two-day delivery comes with an additional price shipping price. Buyers who need their packages fast have no problem paying the extra cost. Therefore, it is wise to have more than one shipping option available, so long as your supplier supports it.
US suppliers are more accurate when it comes to stock status. The logistics run better and more precisely than Chinese suppliers, so you can always expect the stock not to run out so fast. Even if it does, it usually refills quickly.
To compare, when dropshipping from Chinese suppliers, sometimes you may notice that an item is in stock, but right after you order it, the Chinese supplier starts to search for the item within his suppliers. If he cannot find it, you will have to search within different suppliers or cancel the order for your buyer, which won’t make him too happy is risky for customer satisfaction.
Therefore, you can rely more on US stock and logistics. And reliability is something that every dropshipper needs. Customers who know they can depend on your product availability have a higher chance of returning to purchase.
Higher Quality Products
Today, almost everything is made in China. Even so, products sold from US warehouses are usually of higher quality than products from Chinese warehouses, as they undergo more testing before being put out on the market.
However, do not stereotype Chinese warehouses. Just because it’s made in China doesn’t mean that the product quality will be poor. Even your brand new iPhone and Macbook are made in China!
Though when it comes to eCommerce, most sellers need to make the biggest bang for their buck, which means buying products in bulk at the lowest prices from China. It usually comes at the expense of product quality.
Since Chinese products go through more product testing before receiving permission to sell in the US, their quality is usually higher than those shipped from China directly to the end consumer.
Americans Appreciate ‘Made In USA’ Products
Americans carry a lot of pride in their country. Their patriotism leads to significant support in companies and manufacturers in the USA. They know that buying from American manufacturers helps strengthen the American economy, instead of doing it to the Chinese.
Therefore, most Americans will prefer to buy products made in the USA. Even if it means paying a higher price tag – saving and strengthening their economy is worth spending a few bucks. Thus, there is a lot of pride and value in “Made in USA” products from American suppliers and manufacturers.
Sell Products For a Higher Price Tag
One of the things that stand out the most when selling on the American market is selling products with a higher price tag.
There is always competition on any market, but selling more expensive products yields higher profit margins since the profit is a percentage of the product price.
Unlike the Chinese market, which goes by the rule, “The lower you go, the higher chance you have to close a sale”
Americans know that products shipped from the USA are worth more than products shipped from China. Also, they want to support the American economy as much as possible to pay more for American products.
Therefore, the American market is more profitable than other markets, even when the competition gets tough. The prices don’t drop as low as Chinese products, so the profit margin is almost always higher and worth it.
Better Customer Support
When running an online store, dealing with damaged goods/items not arriving on time/replacement and return requests is part of the business. And, anyone in the dropshipping business knows how challenging handling returns can be.
When customer service is initiated between different countries, there are longer waiting times until each case is resolved. Even then, the return is usually at the buyer or seller’s expense, which makes the whole return/replacement process complicated and uncomfortable for both sides.
Thankfully, American suppliers offer better customer service than any other supplier when it comes to the US audience. Many American suppliers offer free returns under certain conditions, and the return process doesn’t take too long.
All in all, dealing with customer service and returns are easier with the American market. Hence, US suppliers are at the top of the list when it comes to overall customer satisfaction.
The Top 9 American Suppliers For Dropshipping
Now that you’re familiar with all of the benefits when working with American suppliers let’s learn about some of the best suppliers that you can work with to enjoy the fruits of higher profit margins.
We recommend working with three suppliers. So if you already have a Chinese supplier, add two American suppliers to your list. If you want to work only with American suppliers, test out some of the recommended ones below and keep your top three suppliers.
Wayfair is a dropshipping friendly supplier with warehouses around the world. They offer fast two-day shipping within the US, making them a top choice for the American consumer. Wayfair has plenty of categories in the home niche, and they also offer outdoor categories. You can find pretty much anything that you’re looking for.
Also, don’t miss their daily sales to find profitable products to sell. Plus, you can pay using PayPal, which is the payment method of choice for most sellers. Check out our full overview of dropshipping from Wayfair if you want to learn about how to work with them successfully and profitably.
Our favorite suppliers are the dropshipping friendly ones, and Costway is definitely one of them. They are waiting to work with dropshippers such as yourselves, as the platform was created by dropshippers themselves.
There are a handful of benefits while working with Costway. For example, cashback on your orders, pay using PayPal, free shipping on everything, clearance sales, etc.
Not to mention the fact that they can supply you with an official dropshipping agreement. So if for any reason you were asked to show business agreements between you and your supplier, you can use this special feature to have it taken care of.
Overstock is another dropshipping friendly American supplier offering fast domestic shipping, easy PayPal payments, a price match policy for higher profiting, and daily deals to help you profit even more. Plus, their customer support has a live chat option, enabling a quick and easy solution for any problem that you may have along the way.
If you want to learn more about Overstock and how to maximize profits with them, read our Overstock full overview and start working with this dropshipping friendly supplier. After all, they have some good advantages over other American suppliers.
Walmart is a gigantic online retailer with a vast selection of products in different categories. They even have a Next Day Delivery option on many of their products, which American consumers are looking for.
Amazon is another huge online retailer which many dropshippers use to source their products. That is because they have millions of products and very good customer service. Their Prime products ship within two days for anyone with a Prime membership, enabling fast delivery and satisfied customers.
Furthermore, they have the best sellers section to start your product research and find products similar to best sellers. This is a great method to find your first winners before expanding.
Costco is a gigantic American wholesaler with hundreds of warehouses around the world. With fast two-day shipping times to most US locations, you’re bound to find many hidden gems within this supplier that you won’t find in others.
They also have great deals for online shoppers in their online offers page, so check if your product is listed there before purchasing.
HomeDepot is an additional American supplier which many dropshippers use for their eCommerce business. On the one hand, HomeDepot is all around the home niche. On the other hand, they have pretty much everything you can think of for home improvement products.
You can always see what’s hot in their top-selling categories, read product recommendations, and read customer reviews on their products to sort and source the high-quality items.
Target is another online marketplace with tons of categories and products to choose from. There are always great finds in their top deals page, so keep an eye out.
Additionally, they are always ready for the holidays ahead of time, with ready-made categories full of holiday products months before the events. Use it for your holiday preparation before your competition to generate more sales and profit.
Lowes is an American online retailer focusing mainly on the home niche (similar to HomeDepot) with a large selection of products in different categories. They also like to prepare ahead of time before the holidays, so use them for holiday preparations in your stores, too.
In addition, Lowe’s new arrivals section holds all of the new products, where you can find your next bestseller. Not only that, their daily deals page has their best deals which you can sort by category. Take advantage of both worlds to find the best sellers and super-profitable items.
To sum up, the American market is one of the biggest and most profitable markets to run your eCommerce business. On one hand, it may seem saturated at times, but when you open your eyes and learn about more suppliers, new product releases, and finding products similar to those that you are selling, you can always find your spot in this industry and make a killing.
Henceforth, research the American dropshipping suppliers in this article. Start with two suppliers, then make your way to three suppliers once you’re profitable enough from the first two. Put a lot of work in product research, and watch your business grow with one of the best markets in the world.
If you don’t know how to start your Shopify dropshipping business, we encourage you to check our step by step guide to start your Shopify store.