So you’re considering SaleHoo to source products for your business? In this honest and unbiased SaleHoo review, I’ll talk about some key points about the service including what it is, how it works, and pros and cons.
What Is SaleHoo?
SaleHoo is a New Zealand based company that was launched in 2005. It offers two different services: a wholesale directory and a drop-ship program that connects to Shopify and Amazon.
Looking at the numbers, SaleHoo’s wholesale directory has 8,000 pre-vetted suppliers and 2.5 million products. Moreover, a little over 137,000 entrepreneurs have used their wholesale directory to source products and suppliers.
It’s important to keep in mind that SaleHoo connects you to these suppliers. They don’t sell any products to you. SaleHoo is essentially the middleman between you and the suppliers.
Is SaleHoo Legit?
This is where SaleHoo gets a lot of skepticism, and it’s for good reason. Drop shipping and wholesaling is not the same it was 10-15 years ago.
Today, everyone is trying to sell online. Competition is through the roof.
Marketplace fees don’t help but make the industry nearly impossible to succeed in.
But, I can say that SaleHoo is not a scam. It’s a legit company that provides a real service; access to a wholesale directory filled with 8,000 suppliers and 2.5 million products.
What you do from there is solely up to you. It’s not for everyone. Thus, not a lot are able to succeed.
There’s two services that SaleHoo provides: a wholesale directory and a Shopify drop-ship program.
The wholesale directory costs and features are:
- $67 per year or $127 for the lifetime membership.
- Full access to wholesale directory.
SaleHoo Dropship costs and features are:
- $27 per month of $270 per year.
- 1 sub-account (ideal for 1-2 people).
- Import up to 500 AliExpress products.
- Fully automates a single store.
- $97 per month or $970 per year.
- 3 sub-accounts (ideal for teams).
- Import unlimited AliExpress products.
- Automate up to 3 stores.
Moreover, SaleHoo also offers an educate program. This program costs $47 (one-time payment). It’s a step-by-step guide to assist you in starting a dropshipping business on Shopify or Amazon.
✅ SaleHoo Pros
These are the pros of using SaleHoo to source products for your online business:
1. Over 2.5 Million Products
The SaleHoo directory features over 2.5 million genuine, high-quality products which you’ll have access to right away. These products can be purchased in bulk or drop shipped anywhere including Shopify, eBay, Amazon, Bonanza, Wal-Mart, and Newegg.
Here’s a brief look at the product categories available:
- Apparel & accessories
- Automobile & motorcycles
- Beauty & health
- Cellphones & telecommunications
- Consumer electronics
- Home appliances
- Home & garden
- Pet products
- Security & protection
- Sports & entertainment
- Weddings & events
Those are just some of the categories available. You can visit their website to find a complete list of products and categories.
Although there’s a large number of products available to source, you’ll not be able to squeeze a profit out of every single product. I recommend focusing on a specific niche in the beginning and narrowing your products down to that niche. Over time, you can then branch out into other niches.
2. Market Research Tool
The market research tool helps you find profitable products that are easy to source and sell online. It’s included with the SaleHoo membership.
This tool can be configured to find products with a set percentage sell rate (0-100%), specific profit margins, various competition levels (low, medium or high).
The tool is not perfect and at times can show inaccurate date (e.g. average sell price for the Motorola Moto G shouldn’t be $184).
Nonetheless, if you’re new to drop shipping or don’t have to time to sit around searching for product ideas, their market research tool is probably ideal for you.
3. Low Minimum Orders
This is a great benefit of SaleHoo, especially for wholesalers. Most suppliers offer low minimum orders whereas others don’t have order minimums at all. In reality, this makes it possible for anyone to start a wholesale or drop shipping business.
So, even if you have a limited startup budget, you’ll be able to get things rolling or at least get your feet wet.
4. No Overhead Costs
For those that plan on drop shipping products directly to customers have very little to no overhead costs. Since you will not be storing any products, there are no overhead costs associated with the drop shipping model.
Obviously, if you plan on buying products in bulk, you’ll need to have some kind of space to store your products. Thus, you’ll more than likely have some kind of overhead costs.
This is going to be a benefit of any service similar to SaleHoo (e.g. Worldwide Brands).
5. 8,000+ Vetted Suppliers
At the time of this SaleHoo review, there are over 8,000 vetted domestic and international suppliers. Every supplier undergoes a strict verification process which eliminates scammers and other fraudulent businesses.
Every supplier that is in the database has their updated contacted information that you can use to reach out to them. The supplier page also has various search filters that you can use to narrow your search by supplier location, product type, etc.
Moreover, most suppliers ship internationally so you’ll have the option to deal with suppliers globally.
Another benefit is the fact that most of these suppliers are not searchable on Google. So, unless someone is using SaleHoo, they will not be able to locate the supplier which helps alleviate competition to an extend.
6. 60-Day Money Back Guarantee
You have a full 60 days to try SaleHoo and get a full refund if you decide the service isn’t for you. If you decide to cancel your membership, simply contact their support department.
In all honesty, I believe that 60 days is more than enough time to test out the service and place a few orders to see how things work. It’s basically a risk-free membership for 60 days.
So, if you’re on the fence right now, you have nothing to lose by trying SaleHoo.
❌ SaleHoo Cons
here’s plenty of skepticism about SaleHoo and for good reason. Here are the cons of SaleHoo to help you decide:
1. Low Profit Margins
When it comes to “paid directories” like this, the profit margins are going to be very thin. Now, in no way am I saying that you can’t make a profit. There are over 137,000 businesses and entrepreneurs using SaleHoo, so obviously people are able to squeeze a profit selling products found in their directory.
The problem is the fees you have to pay to sell products on marketplaces such as eBay and Amazon. You’re losing over 10% for every sale you make which is a big chunk.
The fees are much lower when you sell products on your own store using a platform like Shopify. But even then, profit margins are going to be on the thin side.
At the end of the day, you have to do your research and stay away from “hot products” that everyone else is selling.
2. You’re Paying For A “Supplier Directory”
This goes without saying. You’re paying a fee to access a directory that’s filled with suppliers. Although the suppliers are verified and trustworthy, that’s basically it. Other than the market research tool, you don’t really get any other value out of SaleHoo or any other similar services.
If you have time on your hands, you’ll be able to find suppliers (maybe not the same ones) on Google. However, you may have to do some due diligence and cold-calling. You’d also have to screen the suppliers you find on your own.
But you’re not going to be tied to paying for a service.
3. Higher Competition
Anyone that uses SaleHoo or somehow finds the same suppliers you use is going to be your competitor. And with 137,000 businesses and entrepreneurs using SaleHoo, chances of someone selling the same products as you is going to be very high.
4. Resale Certificate
Not really a major deal breaker but I figured I should at least point out that you’ll probably need a resale certificate for larger orders. You should have this anyways if you plan on selling in person or online. This only applies to sellers within the United States.
Who Is SaleHoo For?
If you’re trying to establish a drop shipping business and understand the whole concept of drop shipping, SaleHoo is definitely something you should take a look at. The good thing here is that you don’t have to invest a lot of money to get started so it’s suited for both beginners and more experienced online sellers.
Moreover, it’s for those that are not comfortable searching for or calling suppliers on their own. A service like SaleHoo does all of that for you. Not only that, SaleHoo ensures that all of the suppliers in their directory are real and legitimate. In a way, it adds a sense of security.
Obviously all of these added benefits because you pay for it.
Who Is SaleHoo Not For?
If you can’t afford the membership, then it’s not something you should force and invest into. SaleHoo is not a good fit for those that are already able to find suppliers on their own.
Moreover, SaleHoo is probably not the best choice for those that plan on selling solely on eBay or Amazon. The fees on these marketplaces will only discourage you as profit margins are already thin.
At the end of the day, if you can’t find any value out of SaleHoo, I’d recommend staying away.
SaleHoo Review Conclusion
When compared to other similar wholesale directories, SaleHoo is very attractive because of its low cost and huge product and supplier availability.
On the plus side, SaleHoo is for those that have trouble finding products to sell or want to dip their toes in the world of ecommerce.
To sum things up, if you’re able to find some kind of value out of SaleHoo or any similar services, it’s not a bad investment.
SaleHoo is absolutely not for everyone and for good reason. You’re paying for a wholesale directory that’s filed with vetted suppliers and a few extra benefits (e.g. market research tool).
SaleHoo Alternatives For Drop Shipping
SaleHoo Review: FAQS
1. What is SaleHoo used for?
SaleHoo is mainly used for sourcing products through their wholesale directory.
2. Where are SaleHoo suppliers from?
While most suppliers are located in the United States, you’ll be able to find suppliers from across the globe.
3. Is SaleHoo a good service?
Yes and no. It definitely has potential but you have to put in the work to have any chance of finding value out of it.
4. Does SaleHoo work with eBay and Shopify?
Yes – SaleHoo works with both platforms.
5. Is SaleHoo a scam?
Although there’s a lot of skepticism about drop shipping in general, SaleHoo is a legit service and not a scam.