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Can I Use Multiple Suppliers for My Shopify Store?

As an ecommerce consultant with over 7 years experience helping Shopify merchants scale their businesses, I am often asked if relying on multiple dropshipping suppliers is a good strategy. In my expert opinion, the answer is absolutely yes, it’s complately fine and very common to use multiple dropshipping suppliers for a single Shopify store. Diversifying your supply chain allows you to offer a wider range of products, take advantage of quantity discounts, and protects your store from reliance on just one supplier.

If you are unaware about how to start dropshipping on Shopify, you may like:

How to Start Dropshipping store [expert guide]

Based on the many successful Shopify stores I have worked with, diversifying your supply chain across several complementary suppliers has huge advantages and is something I always recommend to clients.

In this article, I’ll use my expertise in ecommerce operations to explain the benefits of multi-supplier dropshipping and provide best practices for managing it based on industry standards.

Why Multi-Supplier Dropshipping Mitigates Risk

Relying on just one single supplier comes with substantial risk. According to survey from Anvyl, 60% of merchants reported supply chain disruptions from a top supplier, resulting in average revenue loss of 15%.

As an ecommerce consultant, I have seen firsthand how disruptions like supplier bankruptcy, inventory mismanagement or sudden product unavailability can completely derail merchants dependent on one supplier.

Spreading your orders across several suppliers mitigates this risk through diversification. It prevents business-breaking disruptions should any single supplier encounter issues. Based on my experience, here are the biggest benefits:

Expanded Product Selection

Every supplier specializes in certain product categories…

Improved Shipping Times

You can offset slower shipping from international suppliers by also using US-based warehouses…

Competitive Pricing

Comparing the same items across different suppliers allows you to source the lowest price on each product…

Reduced Risk

If one supplier suddenly closes their business, you have back-up suppliers already integrated to take on order volume…

Volume Discounts

As you scale order volume across multiple suppliers, you become eligible for bulk pricing discounts from each of them…

Global Expansion

Region-specific suppliers allow you to optimize operations across different countries as you expand internationally…

With over a decade collectively advising and observing leading Shopify merchants, I am confident a multi-supplier strategy delivers significant advantages.

Overview of Dropshipping Supliers (Table)

Below is an overview of popular Shopify dropshipping suppliers and their key benefits:

SupplierLocationProductsPricingShipping Times
AliExpressChinaBroad assortment of low-cost general merchandiseLow unit costs, bulk order discounts available15-30 days
OberloGlobalAggregator for AliExpress and other brandsLow costs, integrated with Shopify15-30 days
SpocketUS & EU warehousesCurated selection of products for western marketsHigher unit costs, volume discounts1-7 days
DropifiedUS SuppliersIntegrates with thousands of US stores and wholesalersHigher costs but fast shipping2-5 days
SaleHooGlobalHand-vetted directory of manufacturers & distributorsMembership fee but trusted suppliersVaries by supplier
Overview of Dropshipping supliers

Strategic Shopify Supplier Options

As an ecommerce consultant, there are certain suppliers I routinely recommend to merchants based on extensive due diligence and client results. Here are top options to consider mixing and matching:

AliExpress & Oberlo

With 10+ years experience in the dropshipping industry, these China-based suppliers offer established product sourcing operations with proven order fulfillment…

Spocket

I recommend Spocket to clients who need faster US/EU based shipping. My research indicates they provide above-average supplier reliability within their niche…

SaleHoo

SaleHoo has earned my endorsement as a reliable supplier directory. Their strict vetting process gives merchants confidence in new supplier onboarding…

Best Practices for Multi-Supplier Operations

Managing multiple suppliers does require operational diligence. Based on assisting high-volume merchants, here are my expert tips for smooth operations:

  • Cross-reference similar products across suppliers to easily pivot during stockouts…
  • Use a dropshipping app to automatically route orders to the fastest supplier based on customer location…
  • Onboard new suppliers gradually and thoroughly vet them before relying heavily…

By implementing these industry best practices, ecommerce merchants can optimize multi-supplier workflows and minimize disruptions.

Evaluating Suppliers on Key Trust Factors

When advising clients on adding new suppliers, I guide them to evaluate candidates on these crucial criteria:

  • years in business
  • order fulfillment speed
  • packaging quality
  • inventory availability
  • discount opportunities
  • customer support responsiveness

Vetting suppliers thoroughly on these trust factors provides the confidence to integrate and scale them as a core partner.

Conclusion and Expert Recommendation

Given my extensive consulting experience within ecommerce, I strongly recommend merchants utilize multiple suppliers to reduce business risk and open new growth opportunities. While requiring diligence to manage, the long-term payoff is well worth the effort.

By implementing prudent supplier diversification and following my expert guidance in this article, Shopify merchants can operate more flexible and resilient supply chains. Please feel free to reach out if you need any help applying these best practices in your business!

Video Gudie to Handle Multiple Supliers in 2023?

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Janak Uparkoti

Janak Uparkoti is Shopify expert and writing articles on ecombuilderinsider.com, a site that helps you build and grow your e-commerce business. He also expert on about Shopify design, development, marketing, optimization, and more. He is also Book author at Amazon.

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