# Supplier Evaluation Guide

A structured approach to vetting dropshipping suppliers before committing to a product launch.

## Why Supplier Evaluation Matters More Than Product Selection

Many failed dropshipping stores chose the right product but the wrong supplier. A great product paired with a slow, unreliable, or dishonest supplier produces:
- 3-star reviews about shipping times
- Refund rates that destroy margins
- Inventory stockouts after you've scaled ad spend
- Customer service nightmares you have no control over

This guide gives you the scoring framework to avoid those outcomes.

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## Phase 1: Initial Supplier Discovery

### Where to Find Suppliers

| Platform | Best For | Typical MOQ |
|---|---|---|
| AliExpress | Validation stage; low MOQ | 1 unit |
| CJdropshipping | Scaling; faster US/EU shipping | 1 unit |
| Zendrop | US-warehoused products; faster delivery | 1 unit |
| Spocket | EU/US suppliers; higher quality | 1 unit |
| SaleHoo | Vetted directory; mix of MOQs | Varies |
| Alibaba | Custom products; bulk pricing | 50–500 units |

**Recommendation**: Start with CJ or Zendrop for US/EU markets. AliExpress for early-stage validation when margin allows for slower shipping.

### Initial Filter Criteria

Before messaging any supplier, check:
- [ ] Listing age: prefer suppliers active >2 years
- [ ] Order count: prefer >500 orders processed
- [ ] Feedback score: prefer >97%
- [ ] Response rate: prefer ≥95% (shown on AliExpress)
- [ ] Has product photos that match real product (not just renders)

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## Phase 2: Supplier Inquiry

### The 4-Question Inquiry Message

Send this message word-for-word (personalize the bracketed parts):

> Hi, I'm evaluating suppliers for [product name]. I'd like to ask a few questions before placing an order:
> 
> 1. What is your current stock level for this item?
> 2. What is the typical delivery time to [target country] using your standard shipping method?
> 3. Do you offer white-label or custom packaging? If so, what is the minimum order for customization?
> 4. I'm targeting [X] orders per month initially, scaling to [Y]. Can you handle that volume consistently?
>
> Please answer each question directly. I'll be comparing several suppliers and will follow up with a sample order from those who respond promptly.

### Evaluating the Response

| Response Quality | Signs |
|---|---|
| **Excellent** | Answers all 4 questions, gives specific numbers, asks a clarifying follow-up |
| **Acceptable** | Answers 3 of 4 questions; minor template language but includes real info |
| **Poor** | Template message, misses questions, vague ("delivery depends on many factors") |
| **Red flag** | No response in 24h, refuses to answer stock/shipping questions, asks you to call WeChat immediately |

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## Phase 3: Supplier Scoring Matrix

Score each supplier from 1 (poor) to 5 (excellent) on each dimension:

### Dimension 1: Communication Quality (weight: 20%)

| Score | Criteria |
|---|---|
| 5 | Responded in <4 hours; answered all questions with specifics; professional tone |
| 4 | Responded in 4–12 hours; answered 3/4 questions with useful detail |
| 3 | Responded in 12–24 hours; some vague answers but covered the basics |
| 2 | Responded in >24 hours OR sent a template that missed 2+ questions |
| 1 | No response OR response was rude, evasive, or asked for phone number before any info |

### Dimension 2: Pricing & Margin Potential (weight: 25%)

| Score | Criteria |
|---|---|
| 5 | COGS enables ≥60% gross margin at target selling price |
| 4 | COGS enables 50–59% gross margin |
| 3 | COGS enables 40–49% gross margin |
| 2 | COGS enables 30–39% gross margin |
| 1 | COGS enables <30% gross margin; not viable |

### Dimension 3: Shipping Speed (weight: 20%)

| Score | Criteria |
|---|---|
| 5 | ≤10 days to target market with standard shipping |
| 4 | 11–15 days |
| 3 | 16–20 days |
| 2 | 21–28 days |
| 1 | >28 days OR unable/unwilling to provide estimate |

### Dimension 4: Flexibility & Scalability (weight: 15%)

| Score | Criteria |
|---|---|
| 5 | No MOQ; offers custom packaging; can handle 10× volume spikes; has warehouse stock |
| 4 | MOQ ≤20 units; custom packaging available at scale; handles reasonable volume |
| 3 | MOQ 21–50 units; standard packaging only; reasonable volume capacity |
| 2 | MOQ 51–100; limited customization; uncertain about high volume |
| 1 | MOQ >100 OR won't commit to volume capacity |

### Dimension 5: Track Record & Credibility (weight: 20%)

| Score | Criteria |
|---|---|
| 5 | 2,000+ orders; 99%+ rating; active for 3+ years; recent reviews mention fast shipping |
| 4 | 500–2,000 orders; 97–98% rating; active 2+ years |
| 3 | 100–500 orders; 95–96% rating; active 1–2 years |
| 2 | <100 orders OR 93–94% rating OR active <1 year |
| 1 | <50 orders OR <93% rating OR listing age <6 months |

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## Phase 4: Backup Supplier Identification

Never launch with only one evaluated supplier. Before approval:

1. Identify at least one backup supplier who scored ≥21/35
2. Note their pricing differential vs. primary
3. Document their current stock level
4. Keep their inquiry thread open; maintain relationship

**When to activate backup**:
- Primary supplier goes out of stock
- Primary raises COGS by >15% without notice
- Primary shipping time increases beyond acceptable range
- Customer complaint pattern suggests fulfillment failure

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## Red Flags Summary

Decline any supplier who exhibits these behaviors:
- Refuses to provide sample before bulk ordering
- Can't answer basic questions about their shipping carrier or transit time
- Dramatically undercuts every other supplier (signals quality issues)
- Pushes you to move to WhatsApp/WeChat immediately
- Has fewer than 5 reviews or a newly created account
- Lists your target product under 10 different variations with no consistency
- Product images are stock renders with no real-world photos