Circumventing your customers..While I do not believe that this is a pervasive practice among drop-shipping companies, anecdotal evidence has suggested that some unscrupulous enterprises can cut you out of sales loop. They could they easily substitute your return address for their company logo, selling directly to your customers.

Market saturation..One of largest wholesale drop-shippers in county is B&F System, BNFusa.com. A lot of Ebayer’s started selling their products, one in particular, called Giovanni Navarre leather jackets. At first, it was a profitable item. After a while, everyone started selling same product. Too much of same supply, creates market saturation, ultimately destroying profit potential for seller.

The Giovanni Navarre leather jackets are still being sold on Ebay today, but I doubt that they still provide a very profitable return for seller. Even though B&F carries over 500 products in 14 different categories, they are intimately familiar to Ebay community. You could probably make a great profit from just about any B&F product if you were to sell them off line, and out of auction arena.

When a company becomes too well known to general public it becomes almost impossible to make money from products that have flooded marketplace. In addition to finding a drop-shipper who is close to home, it might be a good idea to find a DS company that is not well known to Ebay market, or who’s products have not been scattered all over cyberspace.

These days however, it is hard to find drop-shippers that will cater to smaller seller. Most will find it more profitable to sell in volume than by piece. The larger wholesale dropshipping distributors are used by retail catalog operations. To get involved with larger operations, you would have to be doing a tremendous sales volume.

If you still want to pursue drop-shipping as a source of supply for your Ebay auction, then I would suggest that you read other opinions, and become as educated as you can about drop-shipping company you do business with.

A good and inexpensive start to finding drop-shipping companies is Drop Shipping News: http://www.drop-shipping-news.com . Remember, when it comes to Ebay auction selling, “own what you sell.” Never leave customer service, or your feedback rating in hands of other people!!

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