When people start dropshipping, the supplier question tends to arrive as a single choice: "AliExpress or something else?". In practice there are three common routes, and each one fits a different stage of a store. Picking the wrong one for your stage is not a disaster, but it explains a lot of the frustration people report.
Here is how they differ, in plain terms.
Option 1: Marketplace sellers (AliExpress and similar)
This is where most people start, and for good reasons. The catalog is huge, there is no minimum order, and you can have a product in your store the same afternoon.
What works well
- Easy to test many products with almost no upfront cost.
- Buyer protection on the marketplace, which helps when something goes wrong.
- No negotiation or contracts.
What gets in the way
- Prices are not the lowest, because you pay retail-style rates.
- Quality varies between sellers even for what looks like the same product.
- Sellers can change prices, raise shipping or delist items without notice.
- Limited ability to brand the package or the invoice.
This route suits testing. You are learning what sells, and a bit of friction is the price of speed. When you see a product take off, that is the signal to look at the other two.
Option 2: Sourcing agents
A sourcing agent is a person or a small company that sits between you and factories or wholesale markets. They find the product, negotiate, check quality and ship to you or to your customers.
What works well
- Lower unit prices once volumes grow.
- Someone looks at the goods before they are shipped, so fewer surprises.
- Custom packaging, inserts and sometimes private labelling.
- A single contact for several products.
What gets in the way
- You depend on one person's honesty and organisation. Choosing a bad agent is a bigger loss than choosing a bad listing.
- Many agents want a minimum spend or a first batch.
- Setting it up takes more work: samples, quotes, payments outside a marketplace, usually without the buyer protection.
Run the checks in our supplier vetting guide twice as carefully here, and always test with a sample before sending real orders.
Option 3: Local or regional suppliers
Wholesalers or warehouses in or near your customers' country. Costs are higher, but delivery is quick.
What works well
- Delivery in days instead of weeks, which lifts conversion and cuts support tickets.
- Easier returns and exchanges.
- No customs surprises for the buyer.
- A stronger story for products where speed matters, such as gifts or seasonal items.
What gets in the way
- Higher cost per item, so margins are tighter.
- A smaller catalog, so less room to test trends.
- Some require a business account or a minimum order.
Side by side
As a rough guide, and individual suppliers will differ:
- Unit price: marketplace is highest of the three for the same item once you account for shipping, an agent is lowest at scale, local is the highest but with a lower total cost of returns.
- Delivery speed: marketplace and agent are both slow by default (see shipping times from China), local is fastest.
- Quality control: low on a marketplace, good with a reliable agent, usually good locally.
- Effort to start: lowest on a marketplace, highest with an agent.
- Risk if the supplier disappears: lowest on a marketplace where you can swap sellers, highest with a single agent.
How to pick for your stage
- Still testing products: marketplace. Do not spend time negotiating for products that may not sell.
- A few products are selling steadily: order samples from an agent or direct factory contact for those products only, and compare landed cost and quality.
- A customer base that expects speed: add a local supplier for your best sellers, even at lower margin.
Many stores end up with a mix, for example a local supplier for the top three products and a marketplace for the long tail. That also protects you when one source falters, which happens to everyone. We cover the practical side in what to do when a supplier raises prices or goes out of stock.
One question to ask before switching
Is the problem the supplier type or the specific supplier? Switching from a marketplace to an agent because one seller was unreliable can be a step sideways. Look at what actually went wrong: the speed, the quality, the price or the communication. Then choose the route that fixes that.
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