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    7 Replies Latest reply on Sep 24, 2009 1:18 PM by Biz_Op

    If Sellling on eBay, Don't Use DropShipping!

    nobrain Newbie
      I see a bunch of posts on this site on dropshipping so I wanted to throw my 2 cents into the mix. And get a cheap plug for my site in here!

      Many eBayers who are just starting out look to dropshipping as an easy and low risk way to get started. Let me assure you that using dropshipping is neither easy, nor is it profitable. In fact, the easier it is, the less profitable it becomes.

      Some dropshipping companies offer the ability to basically post an auction on eBay with a simple button click... Sound good? Well, the problem is that everyone can do the same thing. You get dozens of the exact same auctions competing with each other -- and guess what!? None of them sell.

      Oversaturation mixed with the poor prices that dropshipping can provide are a deadly combo for eBay.

      You can read my entire rant on the subject and my sexy anti-dropshipping sales pitch at http://www.dropshippingsucks.com

      Thanks!
        • Re: If Sellling on eBay, Don't Use DropShipping!
          gymrat Adventurer
          Although we offer dropshipping, I totally agree. :) I think in general, people shouldn't use eBay at all. For sellers, their fees are exhorbitantly high and are more interested in protecting the buyer. For buyers, eBay is the worst because you have way too many fraudsters selling initimations and claiming them to be the real deal. Kudos to ebay for making a marketplace for people to start their home business. But they are not what they used to be. There service is terrible. One reason why I started my own site.
            • Re: If Sellling on eBay, Don't Use DropShipping!
              nobrain Newbie
              Yes, eBay is not what it used to be (fro a seller's perspective)!! It
              used to be an easy place for small businesses and individuals to get
              started making some extra income... Now, it is flooded with
              professional sellers, and even big businesses selling their wares on
              the world's largest online marketplace.

              However, there is still money to be made there. The secret is filling
              in the gaps -- most new eBay sellers immediately migrate to what is
              popular and end up finding they cannot compete; not even a little bit.
              What you need to sell is products you can get for less than anyone else
              or products in a select niche that is not yet cornered.

              But be WARNED, if someone knows that your niche is a good one -- they
              will try to steal it! I learned the hard way. I had a niche that was
              netting me $800 - $1500 per sale and making 2 sales per week on
              average... Well, in my
              dropshipping guide[/url] (more shameless self promotion) I decided to share this niche and guess
              what!?! It only took about 2 months before the niche was destroyed by
              people who bought my guide competing with me! I have since removed the
              niche from my guide (it was inflatables, btw).

              So, find a good niche -- and keep it to yourself!!!
            • Re: If Sellling on eBay, Don't Use DropShipping!
              v-guru Newbie
              I run a business that uses dropshipping extensively, although not exclusively. We are a multi-million a year revenue business. However, it is not easy nor is it big margin. It can be done, but, I would heed the advise above and avoid the herd and avoid the so easy a caveman can do it scenarios. In other words the click a button and post to e-bay is something that quickly becomes saturated. Think differently.
                • Re: If Sellling on eBay, Don't Use DropShipping!
                  SiteSmart7 Wayfarer
                  Be careful who you work with too. There are some pretty bad drop shippers out there that can end up damaging your reputation.
                    • Re: If Sellling on eBay, Don't Use DropShipping!
                      sellingitall Wayfarer
                      You can use a variety of sales channels like- http://www.inventorysource.com/index.php/Partners/Marketing-Channels.html

                      Ebay is typically the one that has the least room for margin but does sell in high volume. Price Grabber and Amazon Seller central tend to sell better with still more margin room. With any sales channel you make less then you would from your site directly but the selling or listing fee should be thought of like a marketing expense...rather then advertising your site and getting a sale you pay the sale processng fee on a market place and get instant traffic....then you can follow up with the client and tell them about your site so next time they go there directly. ;)
                      • Re: If Sellling on eBay, Don't Use DropShipping!
                        Biz_Op Newbie
                        Yes SiteSmart you are correct about being careful and always not have just one supplier. Have at least 2 or more that you can fall back on in case the product you are trying to sell goes out of inventory so at least you can offer a close alternative or better yet have the same product offered by another supplier. Never rely on just one supplier or dropshipper. And always watch your bottom line!

                        I also agree to stay away from eBay if you are new to the game. It can be overwhelming and very difficult to make any money with eBay and dropshipping because of the competition and the fees.

                        There are a couple of great dropshipping and wholesaler services that pre screen their suppliers. I wrote a review about them at my website http://www.bbbapproved.com/dropshipping-wholesale/ if you are interested. They are BBB Accredited A+ and A.

                        Then there is the choice to have your own storefront and just buy inventory and sell it. Much more involved because you are responsible for everything such as Taxes :( merchant accounts, support, shipping, purchasing and so on. But if you like to have full control this would be the way to go. I found this Free shopping cart software called Prestashop which has come up in the ranks of Open Source software. It looks by and far as one of the best out there. www.prestashop.com

                        I hope I helped a little bit here :)

                        Rob