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| Dropshipping on eBay the DRAWBACKS |
One drawback is the upfront fees that some dropship companies charge, you can see their point, it puts
people off from ordering stuff for their own use at reduced prices.
But for resellers it's not so great, you have to fork out the fee before you get sight off their prices - before you
know what the profit margins are. There are some dropshippers who don't charge upfront fees but the
drawback here is; loads of other ebay traders are offering the same products and that leads to another
drawback - the amateur element who price products at a little more than cost price.
To test this, check out the free dropshippers, choose a product that you fancy selling then estimate how
much you could sell that product for on ebay and make a reasonable profit, taking into account ebay and
Paypal fees.
Go to ebay and type the product into the search box and in all probability, loads of other people will be
offering the same product at a lower price than you would. I do this excercise regularly and am amazed at the
prices people list at. I do the maths, total cost price including shipping cost, eBay final value fee and Paypal's
slice of the pie and often see that the seller is only making a few cents profit - have thay failed to consider
final fees or are they just stupid and happy to work for nothing and in doing so, kill the market for everyone.
I've found products at free dropship sites that are not being offered by anyone else on ebay and I've listed
them with reasonable profit margins and sold plenty until noticing that sales suddenly dry up. A quick search
usually reveals that someone as listed the same product with a tiny profit margin and cut out the competition
(me), what's the point? At this stage, I stop selling the product - I'm not prepared to work for nothing, I'll leave
that to the idiots, there are plenty about!
Another problem with dropshipping is the pricing, that is to say, the price dropshippers charge for the
products. In a lot of cases, when you check out the selling prices on eBay, you'll find that you can buy
products from sellers on eBay cheaper that from the dropshipper. Usually in this case, the sellers are not
fools or amateurs, they are people who buy at wholesale prices or job lots or import the products direct. If
you've got the buying power, this is where the profits can be. Not everyone has the buying power though and
that's why dropshipping looks so attractive.
Dropshipping can be profitable but you have to do your homework and be prepared for someone to jump on
the bandwagon and steal your profits in an instant! Your homework should consist searching out lesser
known dropshippers. Check their products and prices and check their reputations. If you find lesser-know
suppliers you have a better chance of holding on to your place in the market and your profits. The amateurs
won't take the trouble to find sources, they will use the well-known companies, you will have the edge.
So, dropshipping can and does make money but you have to be on the ball and keep one step ahead - never
take anything for granted. For more info about dropshipping and finding products to sell CLICK HERE.
people off from ordering stuff for their own use at reduced prices.
But for resellers it's not so great, you have to fork out the fee before you get sight off their prices - before you
know what the profit margins are. There are some dropshippers who don't charge upfront fees but the
drawback here is; loads of other ebay traders are offering the same products and that leads to another
drawback - the amateur element who price products at a little more than cost price.
To test this, check out the free dropshippers, choose a product that you fancy selling then estimate how
much you could sell that product for on ebay and make a reasonable profit, taking into account ebay and
Paypal fees.
Go to ebay and type the product into the search box and in all probability, loads of other people will be
offering the same product at a lower price than you would. I do this excercise regularly and am amazed at the
prices people list at. I do the maths, total cost price including shipping cost, eBay final value fee and Paypal's
slice of the pie and often see that the seller is only making a few cents profit - have thay failed to consider
final fees or are they just stupid and happy to work for nothing and in doing so, kill the market for everyone.
I've found products at free dropship sites that are not being offered by anyone else on ebay and I've listed
them with reasonable profit margins and sold plenty until noticing that sales suddenly dry up. A quick search
usually reveals that someone as listed the same product with a tiny profit margin and cut out the competition
(me), what's the point? At this stage, I stop selling the product - I'm not prepared to work for nothing, I'll leave
that to the idiots, there are plenty about!
Another problem with dropshipping is the pricing, that is to say, the price dropshippers charge for the
products. In a lot of cases, when you check out the selling prices on eBay, you'll find that you can buy
products from sellers on eBay cheaper that from the dropshipper. Usually in this case, the sellers are not
fools or amateurs, they are people who buy at wholesale prices or job lots or import the products direct. If
you've got the buying power, this is where the profits can be. Not everyone has the buying power though and
that's why dropshipping looks so attractive.
Dropshipping can be profitable but you have to do your homework and be prepared for someone to jump on
the bandwagon and steal your profits in an instant! Your homework should consist searching out lesser
known dropshippers. Check their products and prices and check their reputations. If you find lesser-know
suppliers you have a better chance of holding on to your place in the market and your profits. The amateurs
won't take the trouble to find sources, they will use the well-known companies, you will have the edge.
So, dropshipping can and does make money but you have to be on the ball and keep one step ahead - never
take anything for granted. For more info about dropshipping and finding products to sell CLICK HERE.
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