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Dropshipping what is it anyway, now that's a good question if you live in the US you might well of heard of it but much of the rest of the world hasn't caught on to the idea yet.
Here's how it works instead of ordering a pallet of product from a supplier they send out your orders direct to your customers and you pay them an agreed fee to do this for you. All you do is make the sale and then order at the agreed price from your supplier. They even use your shipping label so as far as the customer is concerned the product came from you.
Many sellers like dropshipping because they don't have to hold stock or packaging materials and can just concentrate on selling. There are quite a few positives to dropshipping but also several negatives which shouldn't be ignored especially by eager rookie eBay sellers.
Lets investigate some positive points of dropshipping first:-
1. You'll find no need to hold vast stocks of goods or have to pay to store bulk goods. Whilst this might not be that significant if you sell small items it could be if you sell gym equipment or things that take a lot of room.
2. You won't have to pay for a supplier to ship goods to you. But instead your dropshiper will charge you or your customer to deliver the goods plus a fee to cover their increased labor costs.
3. Many sellers find the packaging and taking parcels to the post office tedious and time consuming. When you use a drop shipper they handle that side of your business saving you time and hassle.
4. No need to pay for or store packaging materials: Packaging can be quite costly and also very bulky so not having to worry about this can be really important, even more so if you don't have much storage space.
It probably doesn't need me to tell you but like everything in life there are always some negatives to consider.
These are the dropship negatives:-
1. You'll find that the dropshipping costs can add quite a bit to the overall cost of the product as you need to pay for the suppliers staff to send out the product on your behalf. On occasions these might be five dollars or even more and then you need to factor in these costs as well as shipping if you want your customer to swallow them. You need to be careful when working out your profits that you take these costs in to the equation.
2. It is inevitable sometimes things won't work out with deliveries or goods. It is important you understand that any problems will be yours to sort out as your customer will expect to deal with you and not the dropshipping company. So make sure you thoroughly research the company you are using both for their dropshipping service and products.
3. Limited Choice is another negative when it comes to dropshipping you may find a perfect product to sell but are then unable to find a suitable company that offers dropshipping. Many distributors prefer to sell in bulk and don't want the hassle and extra paperwork involved with dropshipping.
4. On occasions you'll find your dropshipper runs out of stock especially with high demand items. This can lead to unhappy customers who may feel agrieved that you sold a product you can't supply.Usually with some careful handling you can keep most customers happy and avoid negative feedback.
Lots of ebay sellers find that dropshipping works for them while other just can't seem to make it work. I always find that when things go wrong it is usually down to not having done thorough enough research. Do this and you should find dropshipping is another great way of selling.
About the author:
Getting started on eBay and considering dropshipping . Discover how you'll can boost you'llr ebay business with the special free audio mp3 from Auction Wealth Secrets where you'll find cutting edge ideas and tricks for eBay success. |
