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SaleHoo Review 2019: Experimenting With the Drop shipping directory leader

Is Salehoo a scam?  Is it Legit? Does it integrate with Shopify?  Can you make money with it or is it a waste of time?

You are about to find out…

At Ecomgalore: we buy the products, we test them, and you make the ultimate decision.

There seems to be ton of reviews online that are outdated and / or bias.

So I set out to find out if it was worth purchasing SalesHoo instead of competitor products or even just… Googling.

Let’s get started.

How Did SaleHoo Start?

SaleHoo was started by Simon Slade and Mark Ling, both of whom are serial entrepreneurs.  They also founded Affilorama, a popular affiliate training course.

Simon had ran into several problems trying to find suppliers for his online business:

  1.  Many suppliers’ prices were expensive and did not reflect wholesale prices
  2.  Suppliers often had a large MOQ (minimum order quantity) which was not ideal for drop shipping
  3.  Some suppliers would run off with the money
  4.  Did not know what products to sell
  5.  Ton of outdated information or misinformation

Even with these obstacles, he eventually found a way to successfully build a drop shipping business.

He packaged the solution to all of his initial struggles and him and Mark founded SaleHoo.

SaleHoo has been in business for more than 14 years.

SalesHoo is rated A+ by the BBB (Better Business Bureau) and has an average of 5/5 rating over 30 customers.

What is SaleHoo and Who Is it For?

SaleHoo is a platform where you can search and do business with wholesale suppliers. These suppliers are vetted by SalesHoo and are accustomed to doing business with e-commerce store owners, especially drop shippers.

Besides their directory, they have a handful of features like training guides, creating your own store, and other resources to help your e-commerce business get off the ground.  For example, their Labs tool allows you search for products using handful of filters.

In simpler terms, this tool is for drop shippers looking for products and suppliers for their e-commerce business.

It’s important to note that SaleHoo does not directly sell you products.

This leads us to an important question…

Is Drop Shipping Worth It In 2019?

Drop shipping will be a viable business model for a long time. BUT– and this is important – there are certain drawbacks of the drop shipping model that should be addressed in order to run a successful e-commerce store.

Drawbacks / Cons

  • It’s competitive.  There are so many tools that help you look for products, ideas, and suppliers.  Products like JungleScout have made it easier than ever to search for products to drop ship, effectively saturating the market.
  • Long shipping time.  Amazon recently announced same-day delivery.  Customers expect fast delivery, couple days at most, for their purchase.  Because many suppliers are from China, the shipping can take more than several weeks.
  • Thin profit margins.  Since you are paying for each products as it is being bought from the customer, you won’t able to cut costs by purchasing in bulk.
  • Less control, less branding.  Because the entire process of supply chain is handled by someone else, you get less control of the products.  Things like quality, boxing, and even returns are out of your control.

Drop shipping became popularized because it was really easy to get a store up and running.  It’s relatively low risk and you can find ton of products to sell on the market.

Pros

  • No inventory.  Because the product ships from the supplier directly, you don’t have to manage inventory. This equates to low start up costs.
  • Less employees.  Employees are often needed to handle the logistic of inventory and customer support.  Since drop shipping removes those two out of the equation, less employees are needed.  Hence less cost and overhead.
  • Cutting costs.  Since you don’t have to purchase in bulk, you don’t have to take on the risk of unsold inventory.
  • Faster iterations of testing the market.  Because you have so many products to choose from, you can quickly test the market without incurring too much costs.

How Much Does SalesHoo Cost?

You can access SaleHoo wholesale directory platform for $67 a year.

They also have a 100% satisfaction guarantee policy where they will accept a full refund if not satisfied within 60 days.

SalesHoo Review

In total, SalesHoo has 5488 suppliers.  It’s not quite the 8000 that Simon advertises but it’s still a lot.  Also, to be fair, this list probably fluctuates often.  

This debunks the popular Reddit post that claimed SalesHoo only had couple hundred suppliers.

In total there are 5 products or main navigation items in SalesHoo:  Directory, Labs, Training, Stores, and Resources.

The Directory contains all the suppliers broken down by 22 categories.

Selecting a category brings you to page of suppliers that fall into that category.  There is a second tab that will only show you all the products.

Clicking on the supplier profile gives us several key pieces of information:

  • Supplier Type
  • Minimum Order
  • Worldwide Shipping
  • TaxID Required
  • Years in Business

Recall that an important part of this product is that they provide suppliers you can trust.  A lot of reviews online state SalesHoo has a vetting process.

Clicking on hundreds of suppliers’ websites, I found them to be professional and functional.  It also looks like the key metric they use is years in business, which is a good measure to indicate trust.

Once you find a handful of suppliers you want to potentially do business with, you can contact them via phone, email or through their live chat system.  Keep in mind, most suppliers will take some time to respond because they’re not always logged onto to the site.

What’s really neat is that they have email templates you can use to send emails to the suppliers.  This is handy for beginners because SalesHoo will provide the body of the email with a template that is tested to get good replies.

So the Directory is more than just a list of suppliers.  It provides an abundant amount of tools to properly build relationships with suppliers who are vetted by SalesHoo.  You can favorite suppliers, manage all communications with them, and store specific notes about each of them.

SalesHoo is more of a Customer Management Software (CMS), a platform where you can manage your relationships with suppliers as an online seller.

More often than not, drop shippers are looking for quick products to test and sell.

Instead of looking up a list of suppliers, it’s more useful to just look for products you can quickly cross-reference on Amazon or eBay to calculate the profit margins.

That’s exactly what the Labs tool is for.

This is no JungleScout.  It’s a simplified filter tool for all the products that all the suppliers on SalesHoo offers.

You can filter by four things:

  1. Product Type
  2. Sell Rate
  3. Average Price
  4. Competition

One useful analytics is the Amazon competitors metric.  They give you number of competitors on Amazon and the sell rate % on Amazon.  For those who follow the FBA (Fulfillment By Amazon) model, this statistic is useful.

Since SalesHoo is primarily catered toward budding entrepreneurs, they have selection of “How to” guides.  This is the Training section.

I’m a training course junkie so I have quite the number of opinions when it comes to learning guides.

I like that it reads easy and the tone feels more like a conversation rather than a professor reading directly from a textbook.  I found myself more engaged with the content, especially the beginners guide to to starting a business selling things online.

It’s also convenient to be able to skip around.  Most of the guides have a course navigation, where you can jump around if you’re already familiar with the ideas presented.

Overall, the content in the training guides is valuable.  It’s clear that they are written by someone with expertise in e-commerce.

Personally, I enjoyed the course on getting a Tax ID since many suppliers require a Tax ID to do business with.

The Store section is available for those who want to build an online store without knowing how to code or do anything technical.

There are three plans to host your own online store:  Basic, Standard, and Premium.  The costs are $27 / month, $47 / month, and $97 / month, respectively.

Includes features like phone and email support, free set up, custom domain, free business logo, free $100 Google Adwords voucher, and more.

The store product is similar to Shopify but with a lot less features.  It’s SalesHoo’s branded web hosting product.

Although I like SaleHoo’s other suite of products, the store product seems the most lacking.  Shopify seems like a much better alternative to getting a store up and running online without hiring a developer.

Finally, the Resources section contains the forums where online marketers talk about various business related issues and topics.

Topics include:

  • SaleHoo Stores
  • General Selling Advice and tips
  • Products for Sale
  • Supplier Wanted
  • Importing and Customs
  • Selling Products Online and Marketing
  • Drop Shippers And Drop Shipping
  • Supplier Reviews, Complaints and Scams

Although there are thousands of posts on the forums, is it not super active.  There are a handful of posts made every week.

SaleHoo Vs Alibaba

Alibaba is also a place where you can search for products and wholesale suppliers.  Except it’s a lot bigger.  Their product category and supplier lists is massive compared to SaleHoo.

SaleHoo is different from Alibaba because SaleHoo has a more strict process of vetting suppliers.

To test that, we simply picked a random product on SaleHoo and tried to find it on Alibaba.

“Condor Tactical Belt” was the product we randomly chose.

It turns out we could not find it or anything really close on Alibaba.

Conclusion

SalesHoo is worth it for those who are just starting out in e-commerce.  In particular, if you are just dabbling with drop shipping.

It’s a good platform where you can quickly test products in order to find the winning product with large profit margin.

Hi!  My name is Kenta.  I’m an internet marketer.  I love business and programming.  I hope that you’ll join me on this journey to internet success.  If you have questions or just want to say hi, feel free to reach out via the contact form!

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