Drop Shipping Companies – Good or Bad

When you first start using eBay and are looking to make money, you may think about drop shipping as a perfect solution.
 
Well it seems like a good idea, but in reality, they aren’t.
 
Have you ever heard of the term ‘drop ship’ or ‘drop shipping?’
 
Even if you have, do you know what that is?
 
To be honest with you, drop shipping is a rather simple concept. This is a method of supplying goods to a customer without ever having to touch the product yourself. You simply transfer your eBay customers order, with shipping details; the order is then processed and shipped directly to the buyer.
 
Your profit comes from the difference of the manufacturer’s price and your selling price.
 
Sounds like a great course of action for your eBay business, right? WRONG!
 
I used drop shipping before and know how hard it is to get a profit by using this method. That is why this is one of those times where you need to learn from someone else’s mistakes.
 
Now please don’t get me wrong, I’m not trying to say that you will fail. I am just saying that using such services will cost you a lot of money and energy.
 

I discovered two types of drop shipping companies – subscription based and free. Subscription based drop shippers want you to make monthly, yearly or sometimes life time payment to start using their services – browsing products catalog.
 
On the other hand, there are free services and if after you read this article you still decide to try, choose only the free, without any subscription.
 
I would like to stop and explain why.
 
For example, if you go to the local store to buy some food and for upon entering the grocery store someone says, “Stop, there is a $10 entrance fee.”
 
Or better yet, if you want to buy shoes, you will pay for every shop you enter; hundreds of dollars will be spent just for entering. And this is absolute nonsense.
 
Drop shippers want to make money by you just entering their site because they know how hard is to earn money from using their services.
 
If you want to pay for entering their website, check all the available information about them on Google first.
 
However, I suggest not use drop shipping method at all.
 
Why?
 
Let’s start from at the foundation. A drop shipper is a company that buys products directly from the factory or wholesaler at very low prices. They have a lot of workers because they need to process the order, handle the website, pack the product, management jobs, etc.
 

They do everything so you don’t have to worry about anything. You don’t even have to have a place to store all of the products, pack them, ship them, etc.
 
The only thing you have to do is list the item on eBay, sell it, and collect the money, that’s it. Everything is done on your side. All the work will be done without touching anything.
 
But the price for that is huge.
 
I tried a few drop shipping companies and I can tell you that getting any kind of profit was very hard. At first, the competition is high, most of the time these products are popular, like cameras, computers, and other kinds of electronics.
 
Other eBay sellers go and buy directly from factories or real wholesalers, this way they can offer lower prices.
 
Yes, I made few bucks, but only few.
 
The risk is way higher. For example, you can only use the fixed price format, but eBay was created with an auction philosophy, and people like auctions more than fixed price listings.
 
If you list in an auction format, how can you control the price? If you sell lower than expected and buyer pays immediately, what should you do? The answer is you either get negative feedback or you lose money.
 
Also, you can’t control the shipping process, such as if it is delayed.
 
Although the biggest problem is, for example, after you have sold an item on eBay and you get back to the drop shipper, you see that this is out of stock. This is where all of the stress comes from.
 

What do you tell the buyer or buyers?
 
How will they respond?
 
It is very easy to get a lot of negative feedbacks that will hurt your eBay account.
 
You never have control over it; they control everything. Finally, this is not your eBay business. This is their business and you are simply helping them make money.
 
You are their slave.
 
Do you prefer to have your own eBay business or to work for someone for next to nothing?
 
Your best bet to start a legit and profitable eBay business is to do the footwork yourself. Taking control of everything is the best way to ensure that everything is done properly.
 
Use China as a source, buy direct from factories and this will be the best way for you.
 
Best wishes.
 


 

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