Dropshipping Is It Really That Hard?
So what on earth is Dropshipping I hear you cry well in the US it is a multi million dollar industry but else where it is very much still in it's infancy.
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.
I find that a lot of eBay sellers like the idea of dropshipping as it takes a lot of the tedious work out of selling on eBay which is one of a few pluses to using a dropshipping service. But the less experienced eBay sellers needs to be wary of the negatives also.
I will look at the positives of using a dropshipping service first:-
1. There is no need to hold huge stocks of goods or pay for storage or warehousing of goods. While not as important for less bulky goods it can be very useful for bigger items.
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. A large number of eBay sellers find the worst part of running an eBay business is the sending the items to their customers (packing and shipping). When you use the services of a dropship company they deal with all that for you.
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.
However as with most things in life there is always a downside and dropshipping is no exception to the rule.
So here are 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. 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. Dropshippers may not have stock of products when you need them. If you find a hot in demand item you may find others have also found it and 'out of stocks' may lead to unhappy customers. If you have sold products you have to put on back order this can mean you have to apologise to customers and may receive negative feedback if not handled correctly.
Many people find dropshipping works well for them and others never really get it to work for them for various reasons. My advice is check the company you intend to use for your products well and you should avoid most of the difficulties people experience.
Article Source: http://www.search-raven.com
About the Author
Selling on eBay and thinking about dropshipping . Discover how you'll can boost you'llr ebay business with the special free audio download from Auction Wealth Secrets where you'll find cutting edge ideas and tricks for eBay success.
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