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Introduction
Getting your dropshipping business off the ground is exciting—but sourcing the right suppliers? That’s where things really start to click. Let's walk through what it takes to do it right.
Understanding Product Sourcing
Product sourcing is the process of finding, evaluating, and partnering with suppliers who can provide quality products for your online store. When done right, good sourcing practices can give you better profit margins, reliable inventory, and happier customers.
Sourcing goes beyond just finding products. You need suppliers who understand your business model, can ship directly to your customers, and maintain consistent stock levels. Plus, they should provide accurate inventory updates and handle returns professionally.
Why Proper Sourcing Matters
Your success as a dropship retailer largely depends on your sourcing strategy. Working with the wrong suppliers can lead to shipping delays, quality issues, and inventory problems that damage your reputation. But when you partner with reliable suppliers, you can focus on growing your business instead of putting out fires.
Types of Suppliers You Should Know About
Manufacturers
These are companies that actually make the products. Working directly with manufacturers often gives you better prices and more control over product specifications. Many US manufacturers now offer dropshipping services to retailers, making them valuable partners for your business.
Wholesale Distributors
These businesses buy in bulk from manufacturers and sell to retailers. They typically stock products from multiple brands and can become great partners for scaling your business. Most distributors have established systems for handling dropship orders.
Specialized Dropship Suppliers
Some companies focus specifically on providing dropshipping services. They usually have streamlined processes for order fulfillment and inventory management, making them excellent partners for growing retailers.
How to Find Suppliers You Can Rely On
The best place to start your search is industry trade shows.
These events let you meet suppliers face-to-face, check out products in person, and build real relationships. Some popular trade shows include ASD Market Week in Las Vegas and NY NOW in New York City.
For a list of must-attend events, check out our blog: 2025 Ecommerce & Retail Trade Shows You Should Be Attending.
Another great option is joining industry associations and networking groups. These communities often have directories of verified suppliers and can connect you with established businesses in your niche.
You can also reach out to manufacturers directly. Many US-based manufacturers work with dropshippers and might be open to partnering with you, especially if you have a solid business plan and marketing strategy.
Evaluating Potential Suppliers
Once you find potential suppliers, you need to evaluate them carefully. Here are key factors to consider:
Product Quality: Ask for product samples and test them thoroughly. Check the materials, packaging, and overall quality. Remember, these products represent your brand to customers.
Shipping Capabilities: Your suppliers should offer reliable shipping times and tracking information. Ask about their average processing times and shipping methods. Make sure they can handle your expected order volume.
Communication and Support: Good suppliers respond quickly to questions and concerns. They should have clear communication channels and dedicated support for their retail partners.
Integration Capabilities: Modern suppliers should offer ways to sync their inventory with your systems. This helps prevent overselling and keeps your store updated automatically. Check whether they integrate with dropship automation platforms and supplier directory platforms like Inventory Source.
Such platforms often verify suppliers, giving you an added layer of confidence. Additionally, evaluate what kind of technology they use—API, EDI, or CSV—and how frequently they update their inventory to ensure real-time accuracy.
Financial Terms: Understand their pricing structure, minimum order requirements, and payment terms. Factor in all costs when calculating your potential margins.
Building Strong Supplier Relationships
Creating lasting partnerships with suppliers takes work but pays off big time. Stay professional, pay on time, and keep open communication about your business goals and challenges.
Regular check-ins with your suppliers help spot potential issues early. Share feedback about what works and what needs improvement. Good suppliers appreciate partners who help them grow too.
How to Manage Multiple Suppliers with Flxpoint
Managing multiple suppliers just got a whole lot easier. Let me walk you through how Flxpoint helps you handle everything from inventory tracking to order routing, all in one place.
Getting Started with Supplier Integration
The first step in managing your suppliers through Flxpoint involves bringing them into the platform. You can add new suppliers through a straightforward process that gets you up and running quickly.
First, navigate to your source section in Flxpoint. From there, head to the integrations tab where you will find the Get Inventory Primary option. This sets up the initial connection to import your supplier's inventory data.
Once you select Run Sync from the three dot menu, Flxpoint starts pulling in all the inventory information from your supplier. After the sync finishes, you can review everything that came in and either link these items to products you already have or create new listings for your sales channels.
Customizing Your Supplier Data
Every supplier handles their data differently.With Flxpoint's no-code mapping templates, you can clean up and organize supplier data—without a single line of code. Also, you can create custom fields and set up rules for how different supplier data should appear in your system.
For example, if Supplier A uses a different naming convention for their products than Supplier B, you can create a mapping template that standardizes these names across your system. This makes it much easier to keep track of similar products from different suppliers.
Setting Up Smart Workflows
Workflows in Flxpoint act like your personal assistant, automating tedious tasks and making sure everything runs smoothly. You can create rules that automatically adjust inventory levels, update pricing, or route orders based on specific conditions.
Let's say you want to maintain a safety stock level for certain products. You can set up a workflow that automatically adjusts the available quantity shown on your sales channels when inventory drops below your specified threshold.
Real Time Inventory Management
One of the biggest challenges in working with multiple suppliers comes from keeping track of what's actually available. Flxpoint handles this by maintaining real time connections with all your suppliers, so you always know exactly what's in stock.
The platform continuously updates inventory levels across all your sales channels, helping you avoid the dreaded out of stock situations that can frustrate customers and hurt your reputation.
Order Routing Made Simple
When orders come in, Flxpoint automatically figures out the best supplier to fulfill each one. The system looks at factors like inventory availability, shipping costs, and delivery times to make smart routing decisions.
You can also set up custom rules for order routing. Maybe you prefer to use Supplier A for orders in the western United States and Supplier B for eastern states. Flxpoint makes it easy to implement these kinds of strategic decisions.
Monitoring Supplier Performance
Keep track of how well your suppliers perform with built in analytics. You can see metrics like fill rates, shipping times, and order accuracy for each supplier. This information helps you make informed decisions about which suppliers to use more frequently and which ones might need some attention.
Automate Your Multi-Supplier Business with Flxpoint
The beauty of having everything integrated in Flxpoint is how easily you can scale. Want to add another supplier? No problem. Need to connect new sales channels? We have got you covered.
Our automated tools handle the heavy lifting so you can focus on building relationships with suppliers and growing your sales. Let the platform manage the day to day details while you work on the big picture.
Ready to streamline your supplier management? Book a product demo and we will show you exactly how Flxpoint can work for your specific setup. We love helping dropship retailers find easier ways to run their businesses.
Curious what this could look like for your business? Book a demo and we'll show you how Flxpoint can simplify your supplier setup, no matter where you're starting from.