Salehoo Review 2017 – A Legit Dropshipping Solution Or A Scam?

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Salehoo Review 2017 – A Legit Dropshipping Solution Or A Scam?

A snapshot of Salehoo

Salehoo is one of those services that is a real must for serious drop shippers. Especially if you’re new to drop shipping and you’re trying to get your store built and making you money. It’s going to take a lot of sweat and due diligence when looking for the right supplier.

Salehoo does all that work and due diligence for you. They also have a really impressive training center and support team that wants you to succeed. Most importantly, it’s really affordable (click here for best price)

Trust me, you should be using a directory, whether it’s Salehoo or another and in this review, we’re going to look at the good, the bad and the ugly of Salehoo. For those who can’t be asked to read through everything, let me just say this. It’s the perfect directory for some people, but not for everyone, and in this

For those who can’t be asked to read through everything, let me just say this. It’s the perfect directory for some people, but not for everyone, and in this article, we’re going to explain who it benefits and who should be looking elsewhere.

At The Lazy Plumber, we’re all about earning more by doing less. So when we decided to investigate and review Salehoo, we were immediately excited by the concept of someone taking out all the hard work that comes with drop shipping.

But does Salehoo actually deliver on its promise? How does it compare to the other drop ship and whole directories online? Let’s jump right into it and see.

logo of salehoo

What exactly is Salehoo?

I’m glad you asked. Salehoo is not a supplier of wholesale products, they do not own anything or sell anything. They are a platform. A directory of wholesalers that allows you to be able to search for products, or product ideas, and then compare the prices of various suppliers.

They offer a tool to make your life easier. That’s the crux of it. But, with over 2.5 million different products, they actually do it really well. You gain access to Salehoo, search for what you’re looking for and you’ll find the different suppliers of that product. Then, you access the supplier’s details and figure out lead times and minimum order quantities, etc

Salehoo in numbers:

  • 8000 suppliers
  • 5 million products
  • 100 countries represented
  • 100,000 registered users

pictures of various dropshipping companies

You know it’s all about the brands, about the brands… No fakes

What Salehoo really do well is they have hunted down all the major brands and have them on the platform. That makes it great for eBay, Amazon and your own e-commerce store. I could start to list all the major brands they have on the platform, to get you excited and spark your imagination, but it’s just too many.

It’s really difficult to find the suppliers of genuine brands or products that actually are licensed. Either they are unbranded or they are fakes. Fakes are a killer because if you end up selling a fake that you’re advertising as the real deal you’re opening yourself up to some legal issues down the line. At the least, an aggressive letter from some serious lawyers.

Having the peace of mind that your product is what it claims to be has to be worth the subscription fee, never mind the time you save not having to check out the supplier for every product in your store.

Get The Best Price For A Membership >

 

Amazing for noobs

If you’re new to drop shipping then you’re going to want to simplify the process. You don’t want too many options to have to play around with at the start, you need to master the basics. Over time, you can obviously build your knowledge base and really refine your drop shipping business but let’s just KISS ( Keep It Simple Stupid!) when we are starting out on our drop shipping journey.

This is where Salehoo helps, they start by removing the frustration of trying to find the right supplier. They verify the supplier for you,  to make sure they are the real deal, that their products are genuine and they have the right licenses in place. All you need to do is search the directory to find the right product for your market or audience.

From there, they have tons of free training and support from real experts who have run a successful e-commerce business with popular platforms like WooCommerce and Shopify. Unlike others, they want to really help you. Which is strange because if they help you too much you’ll probably end up going to find your own suppliers and negotiating a better deal which means better profit margins. So they’ll actually train you to not need them in the long term. But in the short term. It makes them the best directory for beginners.

The same guys are behind the extremely successful website Affilorama. It offers extensive training to help entrepreneurs make money promoting affiliate products. It’s one the best training solutions online today and has been for a while. That means they are experts in how to present products, how to target an audience and how to generate traffic that delivers an ROI. Masters at it. And they share a lot of that expertise with the members of Salehoo because a lot of the skills are very similar.

inside look at saheloo marketing lab

The Marketing Labs

It’s all very well having great suppliers offering great products at competitive prices. But the art of e-commerce is being able to spot a product that will sell. It requires a lot of knowledge. You can do the research by checking out your competition, what’s selling on platforms like eBay and Amazon and that will give you a starting point, but you will need to make a small leap of faith.

Salehoo has made it a lot easier. They actually have a team that is collecting data on sales, profits, trends, so when you’re a Salehoo member you’re getting some great insights into which products are selling and making good margins. It just helps to remove a little bit of the doubt you might have in adding a product to your store and spending money on advertising it.

It’s another example of Salehoo going the extra mile to help people setting up and running an e-commerce business. They act like they really do care if you’re successful or not.  You have to respect that.

 

Protection against fraud

If you’ve ever tried to drop ship from China you know it’s the land of opportunity. But it’s also the land of a quick buck. There are as many authentic product suppliers that are the real branded products as there are suppliers of fake products and with today’s technology being so advanced, it has become increasingly difficult to tell the real deal from a cheap imitation.

The problem is, you’ll have to purchase a test product for yourself, or take the risk and send it to the customer and keep your fingers (and legs) crossed it’s the genuine product, otherwise you’re having to deal with the legal side of selling a fake, giving a refund, having a bad review, and all that negative stuff that no one wants to deal with when running a drop ship business.

This is where Salehoo really shows their worth. They take away all the risk and stress. They have verified each specific supplier and put them through a really vigorous vetting process to ensure they are only selling genuine products. You can order and shop with ease knowing there are going to be no nasty surprises.

 

picture of worldwide brands

Competition

There’s a few. Worldwide Brands is probably the biggest competitor and the most well known. It’s a bigger directory but it’s geared to power drop shippers who have done it a while, rather than beginners. They have over 16 million products to search through.  It’s also a touch more expensive setting out, there’s a one time fee that’s more than 3 times more than what Salehoo ask for their directory and support services.

Other than that, another worthy mention is Orbelo, they offer a similar kind of service but they are a little more focused on making it easy to add to your e-commerce store, so the practical side of things.

 

pricing for salehoo

Pricing

Right now, they’re offering the directory for $67 for the year. That’s significantly less than their competitors. As I’ve mentioned, their biggest competitor is Worldwide Brands and it’s over 3 times the price. Yes, they have a larger directory but when you’re starting out you need all the support you can get and your budget is probably tight. A lot of people of prefer to spend less than $70 than over $250.

They also offer a 60-day money back guarantee. Whenever I see a guarantee like that it gives me the impression that the company knows how good they are because they put their money where their mouth is.

Get The Best Price For A Membership >

 

Summary

We give them a thumbs up. In fact, we give them 4 thumbs up with a score of 4 out of 5. If they have a slightly larger directory, so you’d have more choice as your e-commerce store developed, then we’d give them the full 5 stars.

This New Zealand based team take all the stress and concern out of the drop shipping process. They’ve done all the hard work for you by validating the suppliers and their products. You know you’re selling genuine branded goods. That’s always the main concern when dealing with Asian suppliers because the fakes are just so good and you don’t want your customers to be duped.

The other thing they do is over deliver in terms of customer service and free training. They want to help you get your drop shipping business up and running and it really shows because they actually put in the effort.

Overall, they are the perfect startup directory. They have 2.5 million products, 8000 suppliers and a platform that’s really user-friendly. They give you a ‘safe space’ to find decent and respectable suppliers. There are larger directories but none that give the same level of service and support as Salehoo. To sign-up and get more information about Salehoo click here 

Show Frequently Asked Questions

Show Frequently Asked Questions 

Frequently Asked Questions

We’ve covered the meat of what Salehoo is about and whether it’s worth your investment. But in case you have any other questions, we’ve put together a quick FAQ to cover everything we can think of. If there’s something that we have haven’t covered then feel free to comment or contact us, we’d be happy to help.

Why do I need a directory for drop shipping?

You could start drop shipping without a directory. But why would you? When you’re drop shipping it’s about finding the right product, at the right price, targeted to the right audience.

There are a lot of moving parts. You find the right product, then you go out and have to find the right supplier. You need to be able to check the quality of their product and the efficiency of their product, customer service, refund policy.

Then there are the delivery options. If you’re drop shipping you need to have that all worked out. These days, people hate waiting. The problem is, it’s ok to go through this process a couple of times, but if you have an e-commerce store with hundreds or thousands of products, you need to do this again and again.  It’s time-consuming and soul destroying.

The time-consuming part comes with vetting the quality of the supplier and the authenticity of their product. You don’t want to start growing a reputation as a retailer offering poor quality or fake goods.

Whilst you’re doing this, you’re having to set up your branding, your e-commerce store, which is time-consuming as well. For each product, you need a separate page. That’s enough to make you give up the will to ever do e-commerce.

Don’t even get me started on SEO and setting up your website to rank in Google. It’s a minefield but getting it right could mean being given the keys to the kingdom.

On top of that, it’s then all about marketing. If you’re using paid adverts you’ll be spending a good amount of time setting them, making your targeting super focused and on point to get the best possible ROI. Split testing, the list goes on.

The point is, with so many things to have to focus on, you should be using tools that are going to take on some of the burdens or make tasks quicker and easier. That’s what a directory does, especially a directory like Salehoo. You don’t have to trawl tens or hundreds of suppliers to find the right one, offering the right product, at the best price. When you do find them, you don’t need to concern yourself with checking the authenticity and quality of the supplier because Salehoo has done that for you. It’s merely about pricing and delivery. Are they able to offer you the product you want at the price you need? And can they deliver to the time frame your clients would be happy with?

By using a directory, you’re literally halving the time you need to spend on product and supplier search which means you have a lot more time to spend on other parts of your business. That’s worth its weight in gold.

But let’s not talk about generic savings, let’s get specific.

The most expensive commodity you have is your time. It’s limited and you should consider it expensive, especially with e-commerce. For the sake of this example, let’s say you value your time at $20 p/hr. I imagine it’s a lot more, and rightfully so. In fact, if it’s not then you are completely devaluing yourself.

So, $20 p/ hr. Let’s say it takes you 2 hours to check everything about the potential supplier for a product you want to drop ship. Often you might even buy a product for quality control. You want to check it’s the real deal if you’re going to put your brand’s reputation on it.That’s a $40 cost per product, at least. Just on the time, it takes you to check the supplier.

Now, let’s say you have 100  products in your store. That’s $4000 in cost. Just in your time to validate the suppliers and the quality of the products and service. You’d spend $4000 in time. WOW. You can do that, or spend $67 and have Salehoo do it for you.

Not the most difficult choice to make. Using a Directory is a must.

 

Why Drop shipping?

If you’re not sure if drop shipping is the right path for you, you’re going to want to read this. We’re about to lay out your options and what benefits you might find with drop shipping so you can make the decision for yourself.

Dropshipping is the ideal solution for someone who is looking to make money online by selling things people actually want. You don’t need to be a master salesperson. If you are selling fidget spinners then you’ll be showing the fidget spinner to people who might want to buy one. If they do great, if not, then no worries. No hard sell and no special sales skills required.

The other important aspect is the cost of set up. With a standard store or e-commerce store, you have to pick a product to sell that you’re sure people will want to buy, then buy inventory and deliver. That requires financial investment up front. Not a lot of people have that kind of cash free.

If you’re not really sure if drop shipping works then you’re mistaken. Websites drop ship millions of dollars of products each day. That’s not from ‘gurus’ making videos about how great they are, and then selling their secret sauce to drop shipping. Obviously, they are going to inflate their successes. These figures come from neutral platforms who just record data.

Let’s delve a little deeper. Here’s an example of the difference between drop shipping and standard e-commerce, with stock and fulfillment. Very simply:

George decides to start a standard e-commerce store. He buys 100 t-shirts, stores them in his garage. They cost him $1000 dollars.  ($10 per t-shirt)

George puts them online and sells 20 of them at $20 each. BOOM. Great. He makes back $400 in a week. He’s happy if things carry on like this, he’s going to convert $1000 into $2000. Which is a pretty decent return for someone just setting out. Slap on the back. Job well done.

But, the other T-shirts don’t sell. They are not very popular. It happens. After all, we’re making a judgment call when we pick a product, the proof is in the testing.

In this case, George can’t seem to shift these t-shirts, the advertising costs are too high so he can’t really drop the price too much. At this point, he’s $600 down struggling to really get his money back never mind make a profit.

Next time, he tries again, but this time he goes the drop shipping route.

Let’s replay the same situation but assuming he went the drop shipping route. He sells the very same t-shirt online. But he doesn’t need to spend the $1000 for the 100 t-shirts. He just puts the product on his e-commerce store and promotes it.

Same thing happens, he sells 20 t-shirts but can’t seem to sell anymore. Not really a big seller this one. It happens.

This time, he only pays for the product as someone buys, he doesn’t need to buy any stock. The cost is a little higher. They cost $12 to buy and drop ship rather than the $10 to buy in bulk. But that’s not completely true because he’d have to ship them himself if he paid $10 and bought stock.

Still, he sells 20 t-shirts for $20. That’s $400 in sales and a cost of $240. Which is a profit of $160.

It’s not an earth shattering amount, but the risk of failure is far less. At the same time, when you have your numbers right, every sale is bringing your profit. Then you’re always going to make money, the only determining factor is picking the right products to make the most money.

Between those two examples, the first made a loss, the second, a small profit.

Drop shipping allows you to be flexible too.

Let’s say, you see that people are going crazy for fidget spinners. But you’re not sure if you can tap into that audience. It’s not something you’ve tried before.  This is where Dropshipping really stands heads and shoulders above other types of e-commerce

You just need to find your supplier on Salehoo. Add the fidget spinner to your store and send some traffic to it. A great way to do that is to create an advert on Facebook. The fidget spinner is really hot and promoting it on social media means it can be shared.

You spend $5 on an advert. If it goes well you have sales. Then you can spend $20, $50, $100. You can scale it up and up. You don’t need to guess or estimate how successful it will be, test it, for very little cost.

Someone jumped on fidget spinners at the right time and made hundreds of thousands of dollars using this exact same technique. No risk, massive gains.

Who wouldn’t want to make a quick buck with very little risk?

 

How frustrating is dealing with shipping?

In the example, George bought 100 t-shirts and decided to do the shipping himself. That means he’s a slave to his business. He can’t really go anywhere, or if he does he needs to find someone who’ll ship the sales he makes. As soon as someone makes a purchase, the clock is ticking.

He has to physically pack up the t-shirt and get it sent. It’s an added cost and added frustration. If you only sell t-shirts then fine, but if you have products of varying sizes you need to make sure you have the right packaging to be able to send the various sizes.

The the other option is to pay to have someone else store and ship your products. Fine, it’s an option and if you’re sure something is going to sell. It can be the best option. Amazon FBA is a perfect example. But again, you need to be sure you’re going to be selling products.

Drop shipping just takes this whole headache away. The suppliers do this for hundreds, probably thousands of products a day, They are better at it, and they have the system in place to do it. You have nothing to stress about, you just focus on selling the products.

If you’re not sure e-commerce is for you, or you want to keep things flexible, then drop shipping has to be the go-to option for e-commerce.

 

Exactly who are Salehoo?

They are actually a New Zealand based company, They are a team of 29, working out of Christchurch. Founded in 2005 they’ve been doing this for 12 years now, so they’re damn good at it. They are a genuine success story, a “rags to riches tale”. The founders, Mark Ling and Simon Slade started out by investing $500 each. They had to beg and borrow to get things going but within a year they had 10,000 members. Now they don’t just offer the directory, they have Salehoo Stores, they have a platform to help you setup your store so you don’t need any technical expertise, which is pretty awesome.

At the same time, these very same people brought the world Affilorama. The best platform for training and building an affiliate business. They truly are experts at marketing. And that can be found in their own marketing lab where they are always trying to find new and profitable ways to make money with drop shipping.

 

 

Do they have a community or forum?

Yeah, they do and it’s pretty active. Having experience of Affilorama I know the company is into being able to share experiences and you can see that with Shophoo. They put a lot of time and energy in promoting their community and getting people to share. It’s something they’re proud of and a great tool.

It’s an interesting split to get your head around. You would think that the other people in the community are your competitors, and they might be. But in many ways, the community want others to do well. They want to help if they can. There are hundreds of thousands of e-commerce stores, sharing your experiences and learning from others in a community of a few thousand is going to help everyone, it’s not going to destroy your business. They get that at Salehoo and it’s another feature to being a member.

Infographic of Salehoo

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By | 2017-08-17T04:00:36+00:00 August 12th, 2017|Dropshipping, Reviews|

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