In our SaleHoo review, we are going to provide detailed information about their service to ultimately help you decide if it is something that you should use for sourcing products to sell.
Before we dig into this review of SaleHoo, there is an important question to answer first.
Is drop shipping worth it?
Approximately 22-33% of internet retailers have adopted drop shipping as their primary method of order fulfillment. And, 84% of online sellers find that establishing a drop ship supplier or wholesaler relationship is the number one roadblock to starting an online business.
So, yes, drop shipping can be worth it.
What is SaleHoo?
SaleHoo is a New Zealand company that was founded back in 2005. It is a “wholesale directory” that connects you with 8,000+ legitimate suppliers and 2.5 million products. SaleHoo is a “service” and not a direct supplier so they do not sell actual products.
It is an online selling tool that you can use to search for and compare suppliers and products. You can search for products to sell by product name, brand, and category.
While the 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 sell actual 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 I know? I used SaleHoo since 2013 prior to heading into a different business direction (e.g. launching this site to help others with ecommerce).
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, I feel that it is possible, but it will not be easy.
As a real SaleHoo customer, I can tell you that SaleHoo is not a scam. It offers a real product at a recurring cost of $67 a year.
In addition, SaleHoo has been featured on MSN, Forbes, CNBC, and Inc.
I wish that I 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?
I took a few hours to read other SaleHoo reviews and complaints found on the internet. After reading these reviews, SaleHoo has mixed views – both positive and negative.
Here are some of the positive SaleHoo reviews:
And, here are the 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 sign up and set up your account, you can immediately begin searching for products that you are interested in selling. When you find a product that you want to sell or a supplier that you are willing to work with, contact the supplier directly to place an order. Every supplier page includes vital information such as estimated shipping time-frames, minimum order amounts, etc.
It is extremely important to decide whether you want to drop ship products directly to your customer or purchase the products in bulk or wholesale and ship them yourself.
Here are how the two methods work:
Drop Shipping – You sell the item first and then place the order with whatever supplier you are working with. The supplier ships the item directly to your customer. You do not see or handle the product with this method.
Bulk/Wholesale – You purchase the products upfront from a supplier. The supplier then ships the item to your home or warehouse. You sell the item online and ship the item directly to your customer. This method is more complex but tends to yields much higher profit margins.
Is SaleHoo Safe?
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.
Also, SaleHoo’s directory shows a Better Business Bureau (BBB) rating for each US supplier. The BBB is a nonprofit organization that keeps businesses in check, and takes legal action against businesses that conduct illegal and unethical business practices.
Can I Make Money With SaleHoo?
If you are still here reading our SaleHoo review, you are probably eager to see whether you can actually make money using their service.
The answer can be yes or no.
It depends on the amount of effort you put into it. Research, research, and RESEARCH.
There is an increase in the number of consumers that shop online, which benefits those that sell 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 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 like product and niche selection, and competition levels.
You can take a look at the image below for some sample profit margins that you can expect to find on SaleHoo:
The profit margins above do not have any fees factored in (e.g. eBay or Amazon fees, drop shipping fees, payment processing fees, etc.).
Google AdWords (a free Google tool) is an excellent 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.
How Much Does SaleHoo Cost?
At the time of writing this SaleHoo review, there are two plans available:
- $67 per year (access to SaleHoo for one full year, requires renewal every year).
- One-time fee of $127 for lifetime access (most popular choice).
Both of the plans above give you access to 2.5 million products and 8,000 suppliers that are all listed in the directory. Other than the cost, there are no differences.
After you purchase the membership, you get access to their supplier directory, market research labs, members forum, and personal support via email.
You can pay for the membership using any major credit card and PayPal. There is a 60-day money back guarantee where you will be able to receive a full refund if SaleHoo does not live up to your expectations.
Can I Cancel My SaleHoo Account?
Yes – you have 60 days to cancel your membership and receive a full refund. You will not be able to request a refund once the 60 days have passed. To cancel your account, send an email to firstname.lastname@example.org with your receipt number. You can also call them directly at 1-888-881-8703.
How to Get the Best Results With SaleHoo?
I 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 with SaleHoo.
First, you need to familiarize yourself with how drop shipping works (e.g. calculate your anticipated fees) prior to ordering products. 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 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.
I 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. You are interested in this business so that you can make money, so differentiate yourself from other sellers and do YOUR OWN THING. Once you are 100% sure that you are ready, list your products and make as many sales as you can (marketing, marketing, marketing).
SaleHoo Support and Resources
Their customer support department is available via phone, email, twitter, and live chat. The live chat support is available Monday to Friday from 9 a.m. to 1:30 a.m. You can reach them via phone by calling 1-888.881-8703.
SaleHoo offers helpful resources such as the popular 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 thus far.
For instance, I was interested in selling RC cars. So, I contacted their support department for some additional assistance. The support representative recommended multiple suppliers, and provided helpful information on ways of increasing sales, which is beneficial for any type of business model, not just drop shipping.
- Full access to their wholesale directory that offers 2.5 million products and a little over 8,000 verified suppliers.
- With the exception of the membership fee, there are no start-up costs (inventory is not purchased 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 with SaleHoo.
- Easy to find products to sell and suppliers to work with.
- Location-based searching capabilities are missing (e.g. no search option for finding suppliers in specific locations – US, Canada, UK, etc.).
- Certain products are overpriced and cheaper on eBay and Amazon.
- You are paying $67 (or $127 for lifetime membership) a year for a list of suppliers that you can ultimately find on your own.
Frequently Asked Questions
Anyone that is selling products online or in-person.
As of right now, there are no SaleHoo coupons available. Anyone that advertises a SaleHoo coupon is probably getting you to click on their affiliate link.
Yes, if you are able to find any value out of it. The best way to find out is to try the service.
SaleHoo Review – Summary
In short, SaleHoo is as good as you make it out to be. An excellent choice for beginners that are just starting out and do not want to risk losing a lot of money. Their service is one of the better alternatives to importing from Chinese suppliers that you do not know or trust.
A service like SaleHoo allows you to shift more of your focus on other aspects of your business instead of wasting precious time looking for products to sell. SaleHoo is a good investment that usually pays for itself fairly quickly.
Do I recommend SaleHoo?
If you do not mind paying for a wholesale directory, I recommend giving SaleHoo a shot. If everything else fails, you will at least have the opportunity to get your feet wet and build business contacts and relationships with suppliers.
A service like SaleHoo is not recommended for those that are comfortable finding suppliers on their own, have a larger budget, and sell mostly of third-party marketplaces such as Amazon and eBay.
You should use SaleHoo only if:
- You want a drop shipping business with the option to buy products in bulk.
- You do not have enough time to search for suppliers on your own.
- You cannot find products to sell.
- You plan on selling on an online store rather than a third-party marketplace (e.g. eBay, Amazon, etc.).
- You know how to research the market.
You should not use SaleHoo if:
- You do not want to pay for a membership.
- You sell mostly on marketplaces such as 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 still skeptical about SaleHoo and how it works.
How to begin with SaleHoo?
To sign up for SaleHoo, click on the red “Get Started” button, pick a plan, and sign up. You have the option to pay via credit card and PayPal. There is also a 60-day money back guarantee, should you not find the service satisfying.