In this article, we take a look at 11 biggest dropshipping suppliers in USA. You can skip our detailed analysis of the dropshipping industry and go directly to the 5 biggest dropshipping suppliers in USA.
The global dropshipping industry has a market size of $225.99 billion and is run by retailers on e-commerce platforms such as Amazon.com, Inc (NASDAQ:AMZN), eBay Inc (NASDAQ:EBAY), and Shopify Inc (NYSE:SHOP) who source their products from the biggest dropshipping suppliers in the USA and across the globe.
Latest Developments in the Dropshipping Industry
Dropshipping has become a highly profitable, fast-growing industry over the past few years, and has attracted hundreds of new investors, suppliers, and consumers. The industry gained overnight popularity in the wake of the 2020 Covid-19 pandemic when online shopping saw a 52% increase in the number of customers.
Three years later, the dropshipping industry is still growing and helping dropshippers make millions of dollars annually. However, the industry is also becoming increasingly competitive and experts have estimated that the average dropshipping success rate is only 10-20% at present.
There are various e-commerce platforms that offer dropshipping services, with Shopify Inc (NYSE:SHOP) being the most popular, and eBay Inc (NASDAQ:EBAY) also being favored by retailers. The cost of these platforms ranges from $14.95 to $599 per month, with certain discounts offered for annual subscriptions.
Experts at Shopify Inc (NYSE:SHOP) suggest that building a successful dropshipping business depends upon the products that you choose to sell and how effectively you market them to your target customers. Other contributing factors to a successful dropshipping business include time and patience, since it is a low-risk, long-term business model.
According to an estimate by Shopify, dropshippers need to invest approximately 15 hours every week to establish a successful business and to earn a monthly revenue of $2000 on platforms such as Shopify Inc (NYSE:SHOP) and eBay Inc (NASDAQ:EBAY).
Amazon.com, Inc (NASDAQ:AMZN) has also launched its own service called Fulfillment by Amazon (popularly known as FBA), which allows retailers to eliminate dropshipping supplier companies from the process altogether.
Retailers can use this service to contact various product suppliers directly through the Amazon.com, Inc (NASDAQ:AMZN) platform and the FBA team takes care of the shipping and customer service hassle.
Ali Express is also a leading company which provides dropshipping services to US-based dropshippers through its US warehouses, but since it is a primarily China-based e-commerce company, with the majority of suppliers based in China, it is not included in this list of the biggest dropshipping suppliers in the United States.
Benefits of Using Dropshipping Suppliers from US
US-based suppliers have a lot of benefits to offer to dropshipping retailers from the United States. For starters, they deliver products to end consumer much faster compared to international suppliers. For example, US-based vendors take between 2-7 days to deliver a product which would take 4-6 weeks if it was supplied from China.
These suppliers also comply with return policies which are convenient for customers and necessary for dropshippers to establish brand trust and credibility. Retailers who source their products from American suppliers can guarantee high product quality to their customers and can label their products “American-made”, which improves the sellability of products from a market perspective.
Lastly, US-based dropshippers can easily keep track of their supply-chain which comprises of suppliers based within the country, can easily verify their authenticity using reviews on Google, and establish a direct communication with them.
Outlook of the Dropshipping Industry
Starting from a mere $128 billion in 2020, the dropshipping industry has grown and expanded in 2022, reaching a global market size of USD 196.78 billion. Industry experts believe that these figures will only increase in 2023, reaching USD 243.42 billion. This 23.7% growth rate is likely to continue in the future as well, which means that the dropshipping industry will almost double its market size to USD 476 billion in 2026.
Between 2022 and 2031, the industry is expected to grow at a rate of 27.1%, eventually reaching a market size of $1670.1 billion. At present, the products pertaining to food and personal care categories are widely popular for dropshipping, as they are expected to drive approximately 30% of the industry’s compound annual growth rate (CAGR) until 2025.
According to Grand View Research, the global dropshipping market will have an expected worth of USD 1,253.79 billion by 2030, provided it maintains the anticipated CAGR of 23.4%.
Copyright: bialasiewicz / 123RF Stock Photo
Methodology
For our list of the 11 Biggest Dropshipping Suppliers in the USA, we included the top names from Shopify Inc (NYSE:SHOP) and Adobe Business’s lists of dropshipping suppliers. These companies are ranked according to their annual revenue figures, the data for which has been collected from different sources like Datanyze and Kona Equity among others.
Here are the 11 biggest dropshipping suppliers in USA:
11. Dropified
2022 Revenue: $1 million
Based in Alabama, United States, this dropshipping solution allows you to integrate your store with Shopify Inc (NYSE:SHOP), BigCommerce, and other such platforms, helping you to import suppliers’ products directly into your online store. You can use Dropified to build a dropshipping business on Alibaba, Etsy Inc (NASDAQ:ETSY), eBay Inc (NASDAQ:EBAY), Wish, and Amazon.com, Inc (NASDAQ:AMZN).
You can also transfer your previous product reviews from AliExpress to Dropified without investing more time and capital. If you’re new to the dropshipping realm, you can use Dropified’s 60-day training feature which helps equip new dropshippers with the latest online business-development skillset.
10. Sunrise Wholesale
2022 Revenue: $1.55 million
Sunrise Wholesale offers roughly 30,000 products from different suppliers which pertain to more than 20 niches. For a starting price of $49 per month, a retailer can either market these products on their personal websites or integrate their Sunrise Wholesale account with eBay Inc (NASDAQ:EBAY) and Amazon.com, Inc (NASDAQ:AMZN) accounts, thus capitalizing on their brand identity and the huge demand for US-based original products.
While working with Sunrise Wholesale, not only can you dropship products from luxury brands such as Dior and Versace, but you can also utilize the automatic product update and analysis features to keep track of your business progress.
9. Inventory Source
2022 Revenue: $2.46 million
Inventory Source is famous for its automation tools, which are a huge aid for dropshippers in growing their businesses. They help retailers quickly process their orders by syncing the suppliers and their inventories with the dropshipping store, automatically notifying suppliers when an order is received, and providing data to track the order in real-time.
Retailers can choose from more than 230 integrated US-based suppliers providing products from different categories. Inventory Source also offers integration with 25+ e-commerce platforms including eBay Inc (NASDAQ:EBAY), Shopify Inc (NYSE:SHOP), and Amazon.com, Inc (NASDAQ:AMZN).
8. Worldwide Brands
2022 Revenue: $2.5 million
Based in Florida, United States, this company has been providing dropshippers with vetted US-based suppliers for 24 years. It has over 16 million certified suppliers which you can access by paying $299 for a lifetime access account. To minimize the risk for retailers, Worldwide Brands gives a 60-day money-back guarantee for new dropshippers.
It is important to note that Worldwide Brands mainly offers access to product suppliers, which means that retailers will have to independently draw up their contract details with the suppliers. However, the platform does provide training to dropshippers to set them up for successful business.
7. Modalyst
2022 Revenue: $2.67 million
Modalyst is the ideal dropshipping supplier for retailers who wish to source their products from high-end and trendy brands like Dolce & Gabbana and Calvin Klein. This platform has also collaborated with AliExpress Dropshipping for their Booster Program, which gives retailers a chance to add millions of products to their catalogs.
Based in San Fransisco, United States, Modalyst ensures product delivery within 6-8 days to its domestic customers and also binds the suppliers to accept product returns for up to 2 weeks. Their website is popular among consumers and received a total of 0.2 million visits in February 2023.
6. Spocket
2022 Revenue: $3.15 million
Spocket is a trusted source of dropshipping suppliers, which is frequented by more than 100,000+ online retailers. It provides them access to original products from 16 niches, 60% of which are supplied by United States and Europe-based wholesalers.
To retailers’ advantage, Spocket products have an inherent discount of 30-60% on their standard retail price, which gives dropshippers a chance to gain healthier profits on each product.
You can start your dropshipping business using Spocket for free, but their paid plans with additional benefits range from $24-79/month. Retailers can also integrate Spocket with Shopify Inc (NYSE:SHOP), Amazon.com, Inc (NASDAQ:AMZN), and other e-commerce platforms.
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Disclosure: none. 11 Biggest Dropshipping Suppliers in USA is originally published on Insider Monkey.