We know that finding products to sell and making an actual profit is difficult to do. That is why we are posting this SaleHoo review so that you can get as much information as you can and ultimately determine a service like this is for you.
But wait, is drop shipping worth it?
22-33% of internet retailers have adopted drop shipping as their primary method of order fulfillment. 84% of online sellers find that establishing a drop ship supplier or wholesaler relationship is the number one roadblock to starting an online business.
What is SaleHoo?
SaleHoo is a New Zealand company that was founded in 2005. It is a wholesale directory that connects you with thousands wholesalers, drop-shippers, liquidators, and manufacturers. SaleHoo is not a direct supplier so they do not sell you any products.
It is an online selling tool that you can use to search for and compare suppliers and products. By using the available tools, you can search for products to sell by product name, brand, and category.
While that company is located in New Zealand, a lot of the suppliers in the directory are located in the United States, United Kingdom, Canada, Australia, and China.
Is SaleHoo Legit?
It is really important to understand that SaleHoo is a product sourcing tool for online sellers, and they do not actually sell you products.
SaleHoo offers a nice referral program, so there are a lot of SaleHoo reviews that you can read on the web. We have read them all, and we can tell you that some hype up the product while others feel the service is a scam. We can tell you that SaleHoo is far from being the best tool for sourcing products, but it is definitely a legit service that you can use to find products to sell.
How do we know? We have been using the service for five years.
SaleHoo gives you the opportunity to become your own boss and set your own hours, which is something that a lot of us are looking to do. While the drop shipping business model has changed over the years, you can still make a substantial amount of money using this system. Whether you want to be your own boss or are just looking to add an extra income flow to support your family, we feel that it is possible, but it will not be easy.
As a real SaleHoo customer, we can tell you that SaleHoo is not a scam. It offers a real product at a recurring cost of $67 a year.
We wish that we had the necessary resources to tell you that SaleHoo will work for you, but that is just not possible. The only way to find out is to sign up for the service and decide if it is worth the cost.
What Others are Saying About SaleHoo
We took a few hours and searched the internet to see what others are saying about SaleHoo. We found that the service has mixed reviews.
Here are some rave SaleHoo reviews:
Here are some bad SaleHoo reviews:
Carolyn Gaza states: “They try to help but couldn’t find me any drop shipper that deals with name brand unlocked cell phones can be depressing after a while.” (Commenter on Best Company)
Selfless Marketer states: “I have used and do not think much of it. It’s very difficult to find products that you can make much of a profit with.” (Commenter on Warrior forum)
Carol Smith states: “I can say that i tried out Salehoo for a while and was not impressed. I was attempting to find products to resell on eBay. I looked for weeks without finding much at all. I would not recommend it if your plan is to sell on eBay.” (Commenter on Warrior forum)
How Does SaleHoo Work?
After you gain access to the service, you can search for products that you want to sell and suppliers that you are interested in working with. When you find a product that you want to sell or a supplier that you are willing to work with, contact the supplier and place your first order. Every supplier page provides you with various statistics such as shipping time-frames, minimum order amounts, etc.
You have to decide if you want to drop ship the products directly your customers or buy the products in bulk and arrange your own shipping. In short, drop shipping to your customers is easier whereas buying products in bulk usually yields better profit margins.
This is the process for drop shipping your goods:
You sell a product on eBay, Amazon, online store, or wherever else you plan on selling. After you make a sale, you buy the product from one of the suppliers in the directory and they will ship the product right to your customer. For example, you sell an item for $100 on eBay, but it only cost you $50 on SaleHoo. You keep the difference, but you have to subtract any fees (eBay fees, credit card fees, PayPal fees, etc.).
This is the process for buying the products in bulk:
In order to qualify for wholesale pricing, you have to buy the products in bulk and ship them to your warehouse. After you receive the products, you store the inventory in your warehouse. After you make a sale, you ship the items right to your customers. This method is riskier because you have to buy the products upfront and you have to have enough space for inventory. On the positive side, this method usually yields better profit margins.
Is SaleHoo Safe?
If you have ever imported or bought anything from China, you already know that the process is unsecure because you do not know who you are dealing with. In addition, Chinese technology has improved and they can make counterfeit products look exactly like the originals without you ever knowing.
That is not the case on SaleHoo. Every supplier that is listed in SaleHoo’s directory undergoes a strict verification process, which eliminates fraudulent activity and Chinese counterfeiters. This ensures that the supplier is an actual company, selling authentic products.
Can I Make Money With SaleHoo?
If you are still reading our SaleHoo review, you are probably itching to find out if you can make money using SaleHoo’s wholesale directory. We are here to tell you that you can make money, but it will all depend on the amount of effort you put into it. It is definitely not easy because a lot of people want to do the same thing as you.
There is a dramatic increase in the amount of consumers that shop online, which benefits those that sell their products online. There is a high level of competition, and the market is over-saturated with thousands of sellers selling the same products. That does not mean that you cannot grab a chunk of the market share for yourself.
That is where a service like SaleHoo comes into play for those that have a hard time finding real products to sell. SaleHoo offers millions of products that you can sell. They give you tools for checking competition insights and other market analysis tools.
Nobody can tell or predict how much money you can actually make because profit margins vary by factors such as niche, product selection, and competition levels.
You can take a look at the image below for some sample profit margins:
Keep in mind that all of the fees are not added to the above profit margins. We feel that it is the best to calculate all of the fees that you are going to pay before making an order. That way, you will know what to expect.
We recommend using Google AdWords (a free Google tool) to do your research and see competition levels and other key statistics.
How Fast Can I Start Selling?
After you create your SaleHoo account, you can start working with suppliers immediately. The drop shippers do not require you to make an initial investment (e.g. no need to buy in bulk, the minimum order quantity is a single unit). In addition, over 80% of suppliers sell internationally, so no matter where you are, you can start selling right now.
How Much Does SaleHoo Cost?
Access to the SaleHoo wholesale directory of 1.6+ million products costs $67 a year. There are no other fees associated with their wholesale directory service.
You can pay for the membership using PayPal and all major credit cards. You also get access to their seller training center, community forum, ecommerce blog, tutorials, and market research tools. With the exception of the 60-day money back guarantee, there is no free trial or test period available.
What About the Online Store Builder?
SaleHoo offers an online store builder that costs $27 a month for the Basic plan, $47 a month for the Standard plan, and $97 a month for the Premium plan.
You do not need any experience to set up a store. You get 15 professionally designed store templates. In addition, you get many built-in marketing tools. While there are better options for building a store, we feel that SaleHoo Stores is good for building a simple store in a short amount of time.
Can I Cancel My SaleHoo Account?
Yes, you can cancel your SaleHoo account at any time for whatever reason. If SaleHoo does not meet your expectations or you are unable to find products to sell, you can cancel your membership by calling or emailing their customer support department.
Your purchase is covered by a 60-day money back guarantee. If you cancel before the 60 days are up, you will get a full refund. They will ask you for your sales receipt number that you get when you purchase your membership.
How to Get the Best Results on SaleHoo?
We want this SaleHoo review to be the most detailed go-to article that everyone reads to answer all of the uncertainties about SaleHoo. That is why we are going to share some tips that we use to get the best results on SaleHoo.
First, you need to familiarize yourself with how drop shipping works (e.g. look at the fees) before making any orders. Our advice is to go through all of the guides in their seller training center so that you can familiarize yourself on how things work on the SaleHoo end.
Write down your product ideas and the suppliers that you want to work with. The general rule that we have the best success with is to find at least two to three suppliers for every product that you want to sell and compare the costs.
After you narrow your search down, try to see what other users think by posting questions and asking for feedback in ecommerce forums.
We cannot stress this last part enough: just because John Doe is having success selling video games does not mean that you will have the same results. Try to think outside of the box.
Only when you feel that you are 100% ready, you need to list your products and try to make sales. If competition allows, we recommend marking up your products by 10% to increase your profit margins.
SaleHoo Support and Resources
The customer support department is available via phone and email Monday to Friday between 5:30 p.m. to 1:30 a.m. Eastern Standard Time. You can reach them by calling 1.800.322.7952.
SaleHoo offers helpful resources such as the market research lab, seller training center, community forum, and an ecommerce blog that is dedicated to helping you sell online.
Due to the nature of the service and the number of available resources, you will not need to contact the support department on many occasions. We have contacted their support team about three times through our four years of using the service.
For instance, we were interested in selling RC cars. We contacted their support department for some additional assistance. The support representative directed us to a handful of suppliers and provided us helpful information on ways of increasing our sales, which we found useful for our drop shipping business.
- You get access to a complete wholesale directory that offers 1.6 million genuine products from 8,000 verified suppliers.
- With the exception of the annual membership fee, there are no start-up costs (you do not purchase any inventory upfront).
- Every supplier that is listed in the directory undergoes a strict verification process, which eliminates Chinese counterfeiters and fraudulent suppliers.
- The 60-day money back guarantee protects your purchase in the event that you are not pleased by SaleHoo.
- It is simple to find products to sell and build relationships with different suppliers.
- Location-based searching capabilities are missing (there is no way of searching for suppliers in specific locations – US, Canada, UK, etc.).
- Some of the products listed in the directory are cheaper elsewhere.
- You are paying $67 a year for a list of suppliers that you can ultimately find on your own.
Okay, so were are almost wrapping up our SaleHoo review, and if you do not think it is for you, maybe the SaleHoo alternative below is.
Cost: $249 for lifetime access (one-time payments)
Why Use Worldwide Brands?
Much like SaleHoo, Worldwide Brands offers a wholesale directory that you can use to find products to sell. The difference is that the directory is much larger and more suppliers are willing to work with Worldwide Brands users. In addition, Worldwide Brands is more active in finding products to add to their directory.
WWB suppliers have been featured on the Travel Channel, Brides, and Entrepreneur.
SaleHoo Review Final Verdict
SaleHoo is good if you are just starting out and do not want to risk losing a lot of money. It is a great alternative to importing from Chinese suppliers that you do not really trust.
The over saturated market and Chinese counterfeiting has made the process of finding products to sell difficult. A service like SaleHoo eliminates all of the risk for the seller because it connects you to suppliers that sell genuine products. When you make a purchase from one of the suppliers in the directory, you know you are dealing with a verified supplier that sells real products.
However, if you have a lot of time and know where to look, you can find legitimate suppliers without having to pay for a service like SaleHoo. We know a lot of sellers that import genuine products from China without any issues whatsoever. But when you factor in all of the custom fees and risk, importing products from a foreign country may not be something everyone is willing to try.
If you do not mind paying $67 a year for a wholesale directory, we recommend using SaleHoo. If SaleHoo does not work for you, you can get always get your money back. At least, you will get the opportunity to get your feet wet and start building business contacts and relationships with suppliers.
You should use SaleHoo only if:
» You want a drop shipping business and the option to buy products in bulk.
» You do not have the time to search for suppliers on your own.
» You have a difficult time finding products to sell.
» You sell more on an online store than on third-party marketplaces (e.g. eBay, Amazon, etc.).
» You know how to do proper market research.
You should stay away from SaleHoo if:
» You do not have a budget to pay $67 a year for the membership.
» You sell mostly on eBay and Amazon.
» You do not feel comfortable running a drop shipping business.
» You want to sell popular products that many other sellers are selling right now.
» You are skeptical about SaleHoo (the best decision maker is your gut feeling).