How to Find Reliable and Safe Dropshipping Companies

Looking to start a dropshipping business? It’s one of the easiest ways to scale your online store without the hassle of handling inventory or managing shipping. With dropshipping, you simply take the orders, and your supplier takes care of everything from packaging to delivery, leaving you more time to focus on growing your business.

But here's the catch – the right dropshipping partner can make or break your success. A reliable supplier can streamline your operations and boost your reputation, while a poor choice can lead to shipping delays, poor customer satisfaction, and lost sales.

Wondering how to find dropshipping companies that are trustworthy and align with your brand? In this blog, we'll walk you through the essential steps to find a dropshipping company that offers the quality, reliability, and service your business deserves. Let’s get started!

What makes a good dropshipping company? 

The rise of online shopping has made dropshipping an attractive option for entrepreneurs. But finding a reliable supplier can be challenging, especially when you can’t meet them in person. Experts often recommend working with local dropshipping suppliers to simplify logistics and build trust. Attending trade shows is another great way to connect with top dropshipping suppliers, understand their offerings, and establish relationships.  

Characteristics of a good dropshipping company

To help you filter out unreliable dropshipping suppliers, here are the key characteristics of a good dropshipping company:

Large product catalogue

Amazon’s success is built on Jeff Bezos' Virtuous Cycle - a strategy that starts with providing an outstanding customer experience. A vast product selection attracts more customers, leading to increased sales. This, in turn, drives economies of scale, allowing for lower costs and better pricing, which further enhances the customer experience. By following this approach, a well-stocked supplier enables you to attract more buyers, improve customer satisfaction, and grow your business.

A diverse product range, like Dropshipzone’s multi-category catalogue, helps retailers cater to a broader audience and boost revenue. The more choices you offer, the more likely customers are to find what they need, keeping them engaged and increasing your chances of repeat sales.

Fair and competitive pricing

Product pricing plays a pivotal role in shaping consumer purchasing decisions. Research, such as a study published in Frontiers in Psychology, shows that higher prices typically reduce sales, while prices below the market rate can drive higher sales volumes.

Your pricing strategy directly impacts profit margins and competitiveness. The best dropshipping suppliers offer true wholesale prices, allowing you to set competitive rates without sacrificing profits. Some suppliers may require you to apply for a wholesale account to access these prices, so always check their terms.

Choosing a supplier with transparent and fair pricing helps you attract customers, increase conversions, and optimise your sales potential. Do your due diligence to ensure you're getting the best rates available.

Good reputation

Issues can arise with dropshipping suppliers over time, so it’s crucial to choose the right one. A dropshipping supplier with a strong reputation is key to protecting your business. Picking the wrong one can tarnish your brand’s image and quickly lead to failure. Building a solid reputation takes years, but it only takes a few mistakes to ruin it.

To safeguard your brand, work with a dropshipping supplier that offers high-quality products, fast shipping, and excellent customer service. A reputable supplier ensures you meet these standards and keep your brand’s reputation intact.  

Excellent customer service

The last thing you want is to handle issues your dropshipping supplier should be managing. A great dropshipping supplier will have a skilled customer service team with in-depth industry knowledge. They should be prepared to handle any issues, from refunds and returns to technical difficulties with their dropshipping platform.

Your dropshipping supplier should be easy to contact via phone, email, or live chat during business hours. Quick access to an experienced support team is crucial for resolving issues swiftly and keeping your business running smoothly. Simply having contact options isn't enough, timely, effective solutions are key.

To find reliable, legitimate dropshipping suppliers, thorough market research is essential. Look for those with a reputation for responsive support and effective problem-solving to ensure seamless operations for your business.

Organisation and efficiency

When selecting a dropshipping supplier, it's crucial to avoid disorganised companies, as they can disrupt your operations and harm your reputation. To gauge their efficiency, observe how well they manage their processes.

Check if the dropshipping supplier uses systems that streamline operations and ensure smooth business functioning. Placing test orders with your shortlisted dropshipping supplier is a great way to evaluate their performance. Pay attention to how they handle order processing, shipping times, invoicing, tracking, and packaging. This will give you a clear picture of what to expect when partnering with a particular supplier.   

Return and refund policy

An effective return and refund policy is a crucial characteristic of a great dropshipping supplier. Before choosing a dropshipping supplier, ensure they offer clear and fair policies for refunds, returns, and exchanges. This aspect can significantly impact your business reputation if not handled correctly and promptly. Customer satisfaction should always be a priority.

A well-crafted return policy fosters brand loyalty, boosts sales, and attracts new customers. It also helps resolve issues, prevents fraudulent returns, manages customer expectations, and instils a sense of security.

Pro tip: Successful dropshipping entrepreneurs recommend clearly displaying your return and refund policy on your store. Transparency builds trust, encourages repeat business, and reassures your customers that you’re a reliable, customer-first retailer.      

Fast shipping and order processing times

The faster the shipping process, the better for your dropshipping business, especially if you’re a newcomer. Customers don't like long waiting times, so they prefer shopping from online stores that can deliver their parcels quickly. You should look for dropshipping businesses that work with shipping companies offering fast delivery. From reviewing orders to printing labels, packaging products, and arranging shipping, all these factors contribute to order processing time.

When you're in a dropshipping business, partnering with the best dropshipping companies who can complete the shipping process quickly is essential. Efficient handling ensures that the package reaches your customer within the stipulated time frame, keeping them happy and loyal.

A recent study by Coresight Research (2024) found that offering fast delivery (two days or less) led to a 10.5 per cent increase in cart conversions and a 9 per cent rise in repeat sales. Customers are more likely to return to stores that meet their delivery expectations, underlining the importance of fast shipping in retaining business and building trust.    

Efficient integration possibilities

When choosing a dropshipping company, it’s essential to find suppliers offering seamless integration with your ecommerce platform. A good dropshipping integration software links your store directly to the supplier, providing features like instant product and inventory sync, automatic shipping fee calculation, and efficient order processing to streamline your business.

Dropshipzone is Australia's B2B2C marketplace providing opportunities for wholesale and dropshipping, offering more than 100,000 products across all your favourite categories. We have an in-house app, Dropshipzone, that easily integrates with Shopify, enabling you to quickly access and import products from the Dropshipzone catalogue.

How to identify legitimate dropshipping companies

When searching for legitimate suppliers, it may seem like there are countless options, but finding trustworthy dropship suppliers can be a challenge. Whether you’re browsing directories or supplier lists, you'll likely encounter many scammers. In this section, we’ve highlighted key indicators to help you identify reliable and legitimate wholesalers for sourcing your dropshipping products.

Key indicators for choosing the best dropshipping suppliers

To help you identify legitimate dropship suppliers, here are the key indicators of a good dropshipping supplier:

Check their online presence

To identify legitimate dropshipping suppliers, start by reviewing their online presence. Check their website, social media pages, and customer reviews on platforms like Google. A trustworthy dropshipping company will have active social media accounts with regular updates, customer feedback, awards, recognitions, and images of best-selling products. These give you a good sense of their reliability.

You can also look at the social media pages and online stores of entrepreneurs already sourcing from the supplier. This can offer valuable insights into their business performance and how well the supplier supports their operations. Additionally, visit review websites that rate dropshipping companies based on customer experiences and other important factors. These sources can help you verify the legitimacy of a potential supplier for your eCommerce business.  

Look for how long they’ve been in business

According to Forbes, 75% of new businesses survive their first year, 69% make it through the second, and only 50% last five years. This makes it crucial to choose dropshipping suppliers with a proven track record. Suppliers who’ve been in business for over five years are more likely to be reliable, with a solid customer base that supports their longevity.

While there’s nothing wrong with newer dropshipping businesses, thorough research is essential to ensure their reliability before making a final decision. 

Read their FAQs and customer reviews

The FAQ page and customer reviews are valuable sources of information. Start by reading the dropshipping company’s FAQ section to understand what they offer, including details on shipping, payment, accounts, warranties, refunds, and replacements. Customer reviews provide direct feedback from past or current clients, helping you gauge the reliability and quality of the dropshipping company.    

Unrealistic offers and grand claims

Dropshipping isn’t a get-rich-quick scheme. Like any business, it takes time to grow an ecommerce store and generate consistent profits, especially in a highly competitive market. Patience, hard work, and dedication are key to success. With effective marketing, support from the right dropshipping supplier, and a focus on delivering high-quality products and services, you can build trust and elevate your dropshipping business.

Be cautious of suppliers making grand promises or offering seemingly too-good-to-be-true deals. Some may advertise high-profit margins with unrealistically low product prices, only to send inferior quality items when you place an order. This can harm your reputation and your customers’ trust.

Avoid falling for these false claims. It’s worth paying a little more for quality products that meet your standards and keep your customers happy.  

Make a small order to evaluate their services

Before selecting a dropshipping supplier to source products for your online store, always place a small order first for a product you want to sell. This will allow you to evaluate the product quality and overall service.

Some dropshipping suppliers may send flawless samples to entice you, only to deliver subpar products to your customers once you place a full order. This can lead to customer complaints and damage your brand’s reputation.

Ensure the supplier you choose consistently delivers high-quality products for the price paid. While a product may look great in photos, its actual quality is what matters most. Do your due diligence to locate dropshipping suppliers that are reliable and maintain product standards and excellent service. 

Check if they’re a licensed business

To assess the legitimacy of a dropshipping company, always check their business licence which allows them to sell online. Registered dropshipping wholesalers should be able to provide their company registration details and licence number. If they use a different trade name, confirm it. Fraudulent companies often avoid providing these details, so be cautious.

If you're wondering how to find dropshipping suppliers that are genuine and reliable in Australia, check out this ACCC consumer protection page. For China-based suppliers, check QiChaCha, a government-certified platform for company details. US-based suppliers can be verified through the Better Business Bureau (BBB), which tracks businesses and helps report fraud. 

Dropshipping companies you should avoid

When starting a dropshipping business, it’s important to quickly differentiate between legitimate and fake dropshipping companies, so you can start business on the right foot. We've shared some of our top tips to spot unreliable dropship supplier.

• Avoid dropshipping suppliers that charge you big upfront or monthly fees. Usually, dropshipping suppliers don’t ask their customers for a monthly fee for sourcing products from them. So when a supplier demands a service fee or monthly membership fee, it’s likely that they’re not legitimate. Note: This is different to a subscription fee that dropshipping marketplaces may charge for access to their broader services. 

• Stay away from dropshipping companies that are hard to contact and don't provide you with direct contact details. You should be able to pick up the phone and speak to a real human. 

• Some dropshipping companies may sell fake or counterfeit products. Avoid such suppliers because fake and counterfeit products may cost you money, lack quality and not work as expected. This might upset your customers, tarnish your brand reputation, and get you into legal trouble. 

• The wholesale dropshippers who only accept wire transfers as a mode of payment are usually scams. Choose suppliers who offer native ecommerce payment methods, such as PayPal, or multiple payment methods. If suppliers charge higher processing fees for credit cards, you should avoid such suppliers. 

• Product images can also indicate the quality of products. A low-resolution product image without zoom can suggest that the product is of poor quality. If you can't find images from different angles, this should raise alarm bells around the quality of products and questions of authenticity.

Choosing the right dropshipping company for your location

When selecting a dropshipping company, consider its warehouse location. The closer the supplier is to your customers, the lower the shipping costs and the faster the delivery, especially in a vast country like Australia.

Working with overseas dropshipping suppliers can lead to long shipping times, sometimes taking over a month. Delayed deliveries frustrate customers and hurt your business. To ensure a smooth experience for your online store, prioritise local dropshipping wholesalers that can ship products quickly and efficiently.  

How to find the right local dropshipping company for your business

Follow these steps to locate the best dropshipping suppliers closer to your location.

Market research

Once you’ve decided what products you want to sell online, the next step is finding which wholesale distributor can provide the services you need at genuine wholesale pricing. Depending on where your potential customers are located, you can target the dropshipping suppliers in that particular location.

A word of advice: Don’t solely focus on the warehouse location, but deep dive into the product range, shipping cost and delivery time, their services, and product sourcing. 

The easiest way to find the right local dropshipping wholesalers or suppliers for your business is to Google search.

With around 1.5 million results for the 'furniture dropshipper Australia' keyword, it’s hard to figure out which of them is a trustworthy dropshipping company. You’ll have to put each of them through a strict background check to identify the right dropship supplier, which is time-consuming. 

Here are some tips for finding the best dropshipping companies.

• You may be required to search extensively. Not all wholesale suppliers are great at marketing, so they most likely won’t pop up on the first page of Google. Therefore, you’ll have to dig deep through search results.

• The best dropshipping platform won’t necessarily have a great website, so don’t judge by looking at cringe-worthy homepages and poorly designed catalogue pages. Many good businesses grow through word of mouth rather than brand building. A well-designed website may indicate legitimate wholesale distributors, but in some cases, scammers may create a professional website to attract new entrepreneurs hunting for good dropshipping suppliers.

• You can use a variety of related keywords and alternatives to expand your reach, such as reliable dropshipping wholesalers, legitimate dropshipping suppliers, local dropshipping companies, dropshipping manufacturers, local dropshipping resellers, and bulk dropshipping suppliers, for finding dropshipping suppliers. Avoid limiting yourself to just [product] dropshipper Australia. Broaden your keyword strategy to attract the right suppliers and retailers. 

Order from the competition

Struggling to findpotential dropshipping suppliers in your location? One smart strategy is to order from your competitors. This can help you finddropshipping suppliers that are legitimate and assess the quality of products.

Start by identifying your competitors and analysing their online stores. Check customer reviews to see what buyers say about their dropshipping products, including any complaints about the quality of products, shipping times, or customer service. This gives you insight into the level of service needed to stand out in an overly competitive market.

Next, place an order for a product you want to sell online from a competitor’s ecommerce platform. When the package arrives, check the return address - it may reveal the dropshipping supplier they use. Many wholesale suppliers that offer dropshipping work with multiple retailers, so identifying them can help you find a reliable source for your own online store.

While this method can help you locate dropshipping suppliers, don’t rely on it entirely, as some sellers use third-party logistics providers or may not disclose their wholesale suppliers. Pair this approach with market research, supplier directories, and direct outreach to contact suppliers for the best results.

Contact the manufacturer

Another way to find dropshipping businesses for your ecommerce store is to contact the manufacturer directly. This allows you to gain valuable insights about dropshipping products and potential dropshipping suppliers. Before reaching out, decide which products to sell in your online store to ensure a focused conversation.

Start by sending the manufacturer an email requesting a list of its dropshipping suppliers offering dropshipping service. You could also ask the manufacturers if they offer dropshipping services. Dropshipping from local manufacturers can be a smart move since fewer middlemen mean better prices and higher profit margins.

Once you receive the list of dropshipping companies, email them to inquire about their dropshipping services, shipping companies they work with, delivery times, quality of products, wholesale pricing, payment methods, return policies, and other essential details. Conduct market research and background checks to find the right supplier and avoid working with fake dropshipping wholesalers.

Finally, contact suppliers for a more detailed discussion. Based on your research, choose adropshipping supplier that aligns with your ecommerce business and growth plans. 

Attend trade shows

Thinking of attending a trade show? Whether you’re a new entrepreneur looking for product ideas or an ecommerce store, there’s much value in attending a trade show for your industry.

A trade show is a gathering of industry experts, manufacturers, wholesalers, retailers, suppliers, and media under one roof that offers opportunities to display, discuss, and promote the latest products and services. It’s also a good opportunity to update yourself on the latest technologies, connect with prospects, and build new valuable business relationships. It would be a shame to miss out on all the potential benefits a trade show can offer. 

In Australian ecommerce, Online Retailer in Sydney is a good starting point, as well as Retail Fest held every year on the Gold Coast. If you’re looking for the best way to discover industry-related trade shows, do a quick Google search to narrow down your options. 

You can also search for upcoming trade shows and events on Austrade and refine your search with the help of filters. Pick a trade show that suits your business needs and begin planning. Here’s a handy guide from the Queensland Government that explains how to participate in trade shows and exhibitions, associated benefits and risks, and how to get the most out of exhibiting. 

As an attendee, you’re required to pay a certain cost to participate in a trade show. If a trade show is taking place in a different part of the country, you need to make travel and accommodation arrangements for yourself and those accompanying you. Do your due diligence to ensure you make the best of the event.

Check supplier directories

While a Google search may list multiple suppliers, it’s hard to determine which are the legitimate ones, leaving you in turmoil. Another reliable way to locate legitimate Australian suppliers for your dropshipping store is to check supplier directories.

A supplier directory is created with the sole purpose of connecting retailers and suppliers for business. It contains information about various suppliers, including their locations, product range, and pricing. It’s easier and faster to search for a wholesale supplier through a supplier directory because it offers multiple options to narrow down your search parameters. 

Wondering where to look for supplier directories? Conduct a basic Google search to find some reliable sources. You can search for your industry-related reliable Australian suppliers on Austrade. If you’re planning to source your products from China-based dropshipping companies, consider looking at Alibaba’s enormous B2B marketplace that lists multiple suppliers in China.   

What to prepare before reaching out to a dropshipping company

Once you’ve shortlisted ideal dropshipping suppliers for your ecommerce store, the next step is to contact them to ensure they’re the right fit for your ecommerce store. Instead of waiting for a response to a phone call, it’s best to start with an email. This allows you to request key details about their services, policies, and pricing. Follow up with a call to clarify any doubts.

Present yourself as a professional

When reaching out to dropshipping companies, you need to sound knowledgeable and professional. If a supplier senses you’re inexperienced, they may not take you seriously or could even charge you higher prices. Show confidence, do your research, and approach the conversation with a business mindset.

A well-structured supply chain is critical to running a successful ecommerce store. Asking relevant, well-prepared questions helps establish credibility and ensures you get the necessary information. Before contacting a wholesale supplier, research their products, policies, and legal aspects of dropshipping to avoid miscommunication.

Here are some key questions to ask the dropshipping supplier’s support reps during your scheduled call. By preparing these questions in advance, you can confidently evaluate legitimate suppliers and find the right dropshipping company to help you sell products successfully.

• Are you the manufacturer of your products?

• Do you sell products directly to customers?

• Do you offer customised packaging services or private labelling?

• What are your payment terms? Are they negotiable?

• How will you invoice me for orders? 

• What payment methods do you accept? 

• Are there any additional costs, such as shipping fees, ongoing fees, monthly membership fees, duty fees, or product return fees?

• How long does it take for the orders to be processed or shipped? Is there a lengthy shipping process I should expect, particularly for international orders?

• Do you have a robust order-tracking system in place? 

• What is your return/refund policy for damaged or missing orders?

• Can I use your product photos and descriptions on my online store? 

• What is my gross profit margin on your products?

• How often do product prices change?

• Do your products come with a warranty or guarantee? 

• Do you provide dropshipping apps or integration options to help manage my store efficiently?

• As my dropshipping business grows, can you scale your services accordingly? 

• What legal requirements should I be aware of when working with your company?

• How do you handle potential supply chain disruptions, and what contingency plans do you have in place?

Get started with Dropshipzone

When you’re just starting out as a new dropshipper with no prior experience in running a dropshipping store, be prepared for things to get messy. The convenience of dropshipping comes at a price. Sometimes, there may be problems with fulfilment, or products may go out of stock. In such circumstances, you should stay calm and composed and find a solution to deal with the issue.

A word of advice: adopt a KISS (Keep It Simple, Stupid) mentality and focus on implementing the easiest solutions even if they aren’t perfect. 

Finding a trustworthy dropshipping company is crucial to the success of your business. If you’re hunting for a legitimate dropshipping company that will provide higher-quality dropshipping products and excellent customer service, choose none other than Dropshipzone. We’re here to help you take your business to the next level.

Dropshipzone is Australia's B2B2C marketplace providing opportunities for wholesale and dropshipping, offering more than 100,000 products across all your favourite categories. We don't have any supplier's minimum purchase requirement or ongoing fees. Dropshipzone is a solution for suppliers, providing the opportunity to wholesale without the hassle, and also a solution for retailers wanting to start and scale without holding inventory.

We have a dedicated quality control team, ensuring product quality, safety and compliance. You won't have to deal with lengthy shipping processes or delayed shipping problems because Dropshipzone has partnered with reliable shipping companies that will deliver products directly to your customers in a fast and efficient way.

Our many legitimate wholesalers will source products directly from manufacturers or a wholesale Supplier, which means you get access to products at more competitive prices, helping you maximise your profit. Whether in terms of pricing, product range, customer service, order processing times, or integration possibilities, Dropshipzone has got you covered. Sign up with Dropshipzone to create a legitimate dropshipping business.