Dropshipping Is It Really As Hard As It First Looks?
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by: GrahamWaite
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Dropshipping and Dropshipers what the heck are they anyway. Well unless you've been hiding under a rock and live in the United States you probably already know but for the rest of the world, now that's a whole different story.
Dropshipping is pretty basic really in essence instead of you buying stock and then selling it and sending it out yourself to your customers. What happens instead is you place completed orders with the supplier and then they send the goods out with your labels on your behalf its simple but very effective.
Drop shipping is a very popular option with sellers because it takes a lot of the grunt work out of selling on eBay.No need for shipping goods or buying stock. However, there are some pretty big negatives to drop shipping it's not all plain sailing especially true for new and inexperienced 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.There are no shipping costs getting stock sent to you to sell.However the dropshipping company will charge you or your customer to send out the goods plus a handling fee for saving you all that work.
3. Shipping and packing stock can be very time consuming so having this huge burden lifted from your shoulders can be a blessing and will allow you more time to concentrate on other aspects of your business.
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.
But like everything in life there are always some downsides to consider when it comes to dropshipping goods.
Lets look at the dropshipping negatives:-
1. It can cost quite a few bucks as you will be paying the supplier for their staff to pack and ship your goods.This can be as high as $5 an item or even more and then shipping still needs to be added on top. On occasions this can mean selling the product and making a profit can be almost impossible. So you must look carefully at your margins and work out if you can still make money using this service.
2. Shipping issues can still be headache don't forget the customer purchased from you so they will expect you to resolve any disputes for them. Also be wary of the fact that much of this part of the operation is out of your control so choose your dropshiper wisely.
3. People contact me telling me they found a great product they can sell but can't find a company that will supply on a dropship basis so give up. Remember not all companies want the hassle and paperwork involved that providing a drop shipping service and prefer to only sell in bulk to retailers.
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 free audio mp3 from Auction Wealth Secrets where you'll find cutting edge ideas and tricks for eBay success.
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