How to choose the right vendors for your Shopify store
Figuring out Shopify so you don't have to: a bit about me
Hi! I'm Kat, part of a team that's built a Shopify product management automation tool. I'm creating my own Shopify store to understand daily operations firsthand. Our customer feedback is valuable, but hands-on experience will enhance future product features. I love learning and doing things right, so I'm sharing what I've learned, best practices and my implementation to help other people learn about creating a Shopify store.
One of the most important early decisions when opening a Shopify store is choosing the right vendors. In this guide, I'll focus primarily on Shopify stores using a dropshipping or marketplace model, where vendors ship directly to customers. If you're planning to buy inventory wholesale and manage it yourself, many of these considerations will still apply, but your approach may differ.
Unlike many Shopify store owners who hand-pick a small product selection, we've decided to go for syncing an entire vendor catalogue (Spire Technology) using automation. I'll share our experience and provide a step-by-step process for selecting the best vendors for your own shop, including how to achieve real-time synchronisation with your suppliers.
Why we're starting our own Shopify store
We're doing this because we want to see what running a Shopify store is like for our customers, along with full automation with our solution (MeldEagle). This hands-on approach ensures we're covering all angles to make our product work best for our customers, particularly those looking to scale their Shopify store without manual overhead.
Also, selling tech equipment is a nice addition to our existing offerings as a small tech business. We like to embrace the full spectrum of geek. Through automated product management, we can offer thousands of products without the typical administrative burden.
Understanding different Shopify business models
Before diving into vendor selection, it's worth understanding the main ways Shopify store owners source products:
Dropshipping
You never handle inventory; vendors ship directly to customers when orders come in
Wholesale/Inventory-based
You purchase inventory upfront and manage it yourself
Print-on-demand
Products are created when orders come in (common for customised items)
Hybrid approaches
Many successful stores combine multiple models
This article focuses mainly on dropshipping and marketplace models, where vendor selection is particularly important to your success. Proper supplier integration is crucial for maintaining real-time inventory sync and preventing overselling.
Note: I'm going to assume you've already made the big decision on what to sell, or what your niche is. We're obviously selling tech equipment, and if you're trying to decide what you should sell, my advice is choose something you love and understand well, but do also think about what sells well.
Step-by-step process: choosing the right vendors
Step 1: Understanding the role of suppliers in your store
Before you start reaching out to vendors, it's important to understand what makes a good supplier and how this can drastically impact your store's success. Regardless if you're picking a specific selection or syncing an entire catalogue like us, suppliers will affect:
- Product availability – Can they consistently supply the items you need?
- Shipping speed & reliability – How quickly do they fulfil orders?
- Profitability – Are the wholesale prices competitive enough for a healthy margin?
- Integration capabilities – Do they offer API access for seamless automation and real-time sync capabilities?
Because we're integrating full catalogues, we're particularly focused on suppliers that offer strong automation support and reliable stock availability through vendor catalogue sync and automated vendor updates.
Step 2: What to look for in a supplier
Here's what we considered when reviewing Lenovo, Ingram Micro, and Spire, and what you should look for in your own suppliers, especially if you're planning to automate your Shopify tasks:
Product range
- Does the supplier offer a broad selection within your niche?
- Do they have high-demand products that people are actively searching for?
- Is their inventory regularly updated?
We chose Spire Technology (to begin with) because they have an extensive product catalogue in the tech space, allowing us to offer everything from laptops to peripherals without having to manually choose each item. Note however that we intend to add more suppliers later, as our tool MeldEagle easily allows us to manage multiple different vendor catalogues across our store through multi-vendor management.
Stock availability & reliability
- How often do products go out of stock?
- Do they offer real-time stock updates?
- How do they handle backorders and delays?
One key reason we chose these suppliers is their consistent inventory which is super important when you're syncing thousands of products via automation. Real-time inventory management is essential to prevent overselling and maintain customer satisfaction.
API & automation compatibility
If you're running a really small store with a few hand-picked products, you might not need to worry about this. But for larger catalogues, this becomes essential for product feed integration and automated data import.
An API (Application Programming Interface) is essentially a way for different software systems to communicate with each other automatically. In e-commerce, APIs allow your Shopify store to connect directly with your suppliers' systems to update product information, pricing, and inventory in real-time through Shopify API integration.
If you are dealing with, or planning to deal with hundreds or thousands of products, manual updates will quickly become a nightmare. APIs solve this problem by keeping your store in sync with your vendors' data stream through supplier feed management, so consider:
- Does the supplier provide an API for automatic product syncing?
- How frequently does their system update stock and pricing data?
- Is their data structured well for Shopify integration through XML feed integration or CSV automation?
As mentioned before, we will use MeldEagle to sync multiple vendors. With vendor sync in Shopify, it can become a nightmare if you have more than one because you have to manage multiple disconnected systems. MeldEagle provides a single platform with consistent product formatting, custom pricing rules, and centralised monitoring through its Shopify connector technology. Something you might want to consider in the future if you want to expand your product range on Shopify.
Shipping & logistics
- Where are their warehouses located?
- How fast can they deliver orders?
- Do they offer tracking and reliable customer service?
Shipping matters, especially when dealing with high-value tech products. We made sure our supplier has strong logistics networks to provide fast and reliable fulfilment, essential for any successful dropshipping automation strategy.
Pricing & profitability
- What are the wholesale prices compared to market rates?
- Do they have bulk order discounts?
- What are the associated fees (transaction fees, shipping, storage)?
Syncing a full catalogue is great, but margins still matter. We analysed each supplier's pricing to ensure we could remain competitive while making a sustainable profit. With automated pricing rules and dynamic pricing on Shopify, you can maintain healthy margins even as supplier costs fluctuate.
Step 3: Testing & launching with a supplier
Once you've chosen a supplier, the next step is integrating them into your Shopify store. Here's how we're approaching it with our Shopify automation UK solution:
Full catalogue integration first
Rather than starting with a small batch of products, we're integrating everything from the start through automated product upload. This lets us see exactly how Shopify handles large inventory syncs and identify any technical challenges before scaling marketing efforts.
Monitoring market trends
Even though we're offering everything, we'll still strategically market high-demand categories like premium work-from-home peripherals, gaming accessories, and streaming setups using data from Google Trends, Ahrefs, and SEMrush.
Automating inventory management
With thousands of products, manual updates aren't an option. MeldEagle ensures inventory levels stay updated automatically through live inventory sync, product details remain accurate, and new product arrivals are added seamlessly through automated inventory management.
Step 4: Scaling with supplier automation
With full catalogue syncing and product data synchronisation, growth becomes about optimisation, not manual management. Here's how we plan to scale our business automation on Shopify:
- Maintain real-time stock updates – Our integrations ensure we never sell out-of-stock items through instant product updates
- Refine marketing efforts – Based on early sales trends, we'll double down on high-performing categories
- Optimise customer navigation – With a vast catalogue, search functionality and category structuring are key
- Expand to more suppliers – Once we refine our process, we may bring in additional vendors through supplier data sync
Different supplier relationship models
Depending on your business approach and whether you're pursuing wholesale Shopify automation or dropshipping, you might consider different supplier relationships:
Direct dropshipping
The supplier ships directly to your customer with no branding
Private label dropshipping
The supplier ships with your branding materials
Managed inventory
You purchase wholesale but the supplier handles storage
Traditional wholesale
You buy products in bulk and handle all fulfilment
Each model has different implications for your cash flow, control over customer experience, and operational complexity. With the right Shopify automation tool, any model can be managed efficiently.
Managing multiple suppliers efficiently
When you're ready to grow beyond a single supplier, managing multiple vendor feeds becomes critical. Here's how to handle multi-channel sync and marketplace integration effectively:
- Centralise your data management – Use a single platform to manage all supplier feeds
- Standardise product information – Ensure consistent formatting across different supplier data
- Implement automated rules – Set up pricing, inventory, and product rules that apply across all suppliers
- Monitor performance metrics – Track which suppliers provide the best margins and customer satisfaction
With proper Shopify data feed management and a robust Shopify PIM (Product Information Management) system, you can efficiently handle thousands of products from multiple suppliers without the complexity overwhelming your operations.
Next steps
If you're opening a Shopify store, choosing the right suppliers is one of the most important steps. Whether you hand-pick products or sync an entire catalogue through supplier product feeds, your suppliers determine your product availability, pricing, and fulfilment speed. For those looking to reduce manual work and save time on Shopify, automation is the key to scaling successfully.
Quick recap
- Evaluate supplier reliability – Stock consistency, shipping speed, and reputation matter
- Check for automation compatibility – APIs and real-time updates save hours of manual work through automated supplier updates
- Analyse pricing & margins – Make sure there's room for profit with dynamic pricing capabilities
- Test before scaling – Integrate, monitor trends, and adjust your strategy
I'll be sharing updates as I continue on our Shopify journey, and if you're looking to expand your store using automation to manage thousands of products on Shopify, feel free to get in touch!
Are you running a Shopify store? What challenges have you faced in finding the right suppliers? Drop me a message at hello@redeagle.tech
