Ok, let me just say right up front that I am not against drop-shipping! I love
concept. If you are dealing with a particular wholesale drop-shipping distributor that is serving your Ebay ambitions well, then hold onto that company with bonds of steel, for truly good drop-shippers are hard to find! Drop-Shipping sounds like utopian business model. No up front investment in inventory. You don’t have to carry packages to Post Office, United Parcel, or Fedex. All you have to do is set up your own business, auction, or retail website and advertise products that company provides. Once orders come in, you forward it to drop-shipper and they send product directly to your customer.But, devil is always in details. Dropshipping is best suited for a stand alone E-Commerce website, mail order, or catalog advertising venue. If you are considering using a wholesale drop shipper for your Ebay auction, then you might want to take a step back and let me provide you with some “points to ponder.”
Back ordered products..The reality is that drop-shipping companies run out of product and will be back ordered. Ebay bidders purchase product in “real time.” They are under impression that item you auction, is item they bought, not a product that is subject to shortages.
One or two customers might be understanding about situation, but most will not. If you happen to run out of product on a regular basis then your negative feedback rating will go through roof, and your reputation will suffer.
One way to combat shortages is to buy a pallet of product in advance, and have drop-shipper store it in their warehouse so that you are assured of an ample supply. This method sort of goes against idea of Drop-Shipping (buying product in advance) but if you are selling on Ebay, you would be best served by employing this method.
Also, if possible, find a drop-shipper in your area, or within a comfortable traveling distance. If you run into any supply or shipping problems, then you could be on hand to visit facility, should any shipping or logistic concerns arise. Fees..Some dropshippers will charge you a sign up, or entry fee of about twenty five to fifty dollars just for privilege of selling their product. You are also charged a “processing fee” for sending product to your customer.
The “price for processing” can range anywhere from seven to twenty dollars per item, depending on type of merchandise you are selling. These expenses, plus Ebay fees, can take a big chunk out of your bottom line. Finding a product that can bring you a profit, as well as offseting these types of expenses, can be a delicate balancing act.
