Articles on: Intro to SaleHoo

Wholesale, Dropship, Liquidation… what's the difference?

One of the first and most important decisions you’ll make as an eCommerce entrepreneur is choosing how you will source your products. Each supplier model presents distinct pros and cons based on your goals, risk tolerance, and sales channels.

To empower your decision-making, here’s a breakdown of the three main supplier types that SaleHoo connects you with and the SaleHoo products that support each approach.

1. Wholesalers – Buy in Bulk, Maximize Margins

What is it?

With wholesale, you purchase inventory upfront in bulk at discounted prices. You then store and ship those products yourself (or via a fulfillment service like Amazon FBA).
Pros:

Lower cost per unit = higher profit margins
You own and control your inventory
Great for selling on Amazon, eBay, Etsy, or your own store

Cons:

Requires upfront investment
You need storage space
Risk of unsold inventory

Best for:

Sellers with startup capital
Amazon FBA and retail arbitrage models
Growing online stores ready to manage inventory

How SaleHoo helps:

Use SaleHoo Directory to find verified wholesalers in your niche.
You can filter by:

Category and product type
Minimum order quantity (MOQ)
Shipping region and business location

Find wholesale suppliers in the Directory →

2. Dropshippers – Low Risk, No Inventory

What is it?

With dropshipping, you don’t buy inventory upfront. Instead, when a customer places an order, you purchase the product from a third-party supplier, who ships it directly to the customer.
Pros:

No inventory or warehouse needed
Very low startup costs
Fast to launch and test new products

Cons:

Higher cost per item = lower profit margins
Less control over packaging and shipping times
Must choose reliable suppliers to ensure customer satisfaction

Best for:

First-time sellers
Side hustlers and solo founders
Shopify store owners

How SaleHoo helps:

Option 1: Use SaleHoo Dropship

Direct integration with Shopify
One-click product import from AliExpress
Automated order fulfillment
Built-in filters and profit margin tools

Try SaleHoo Dropship →

Option 2: Use SaleHoo Directory

Find non-AliExpress dropshipping suppliers
Use filters to search for suppliers who support platforms like eBay, WooCommerce, or Amazon
Contact suppliers directly to build flexible, scalable relationships

Find dropship suppliers in the Directory →

3. Manufacturers – Build a Custom Brand or Product

What is it?

Manufacturing is the model for sellers who want to create or customize their own products, usually through private labeling or custom product development.
Pros:

Complete control over design, packaging, and branding
Great for building a long-term, differentiated brand
High margins and scalability

Cons:

Higher MOQs (minimum order quantities)
Longer lead times
Requires clear specifications and planning

Best for:

Amazon private label sellers
DTC (direct-to-consumer) brands
Entrepreneurs with unique product ideas

How SaleHoo helps:

Use the SaleHoo Directory to find manufacturers worldwide.
Filter by:

Supplier type: Manufacturer
Product category or niche
Country or shipping region

You’ll be able to review their capabilities and contact them directly.
Browse manufacturers in the Directory →

Get Started with the Right Supplier

SaleHoo gives you everything you need to connect with trusted suppliers, discover profitable products, and build the business you’ve always wanted.

Updated on: 25/06/2025

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