How To Start and Operate a Dropshipper Business: Make Your Fortune Drop Shipping
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Would a dropship company actually make me money.?

Question: Would a dropship company actually make me money.?

(Posted by: on 2011-12-09 03:01:59)

I know they are not 'get rich quick' but is it actually worth using a drop ship company to supply a start up? or is it better to start small and hold stock. 2 out of the 5 top performing ebay businesses look like they are using drop ship suppliers as they have thousands of product lines. Is it worth it, or is the profit margin so small it only give an couple of hundred a month after lots and lots of sales?


Answers:

Posted by: Richard on 2011-12-09, 09:06:02

Personally, I am not too keen on dropshippers. I have 4 big problems with them: 1. They sometimes charge you just to be a part of them, THEN they also charge you for every order you place. And these fees can be steep. 2. You have no guarantee that they will have an item you sold in-stock. And that can translate to upset customers. 3. They service so many other eBay sellers, that you are already walking into a highly competitive (and possibly saturated) field, and this usually means razor-thin margins. 4. Some dropshippers actually have a side business where they sell their items on eBay as well! I can't imagine a worse scenario than trying to complete with your own supplier on eBay!!! I looked into dropshipping and found that the prices are not all that great. You would have to sell a LOT to make any decent money off of them. And you'd need a LOT of sales (and Positive Feedbacks) to offset the inevitable Negatives you'd get from customers who aren't getting their items. There are a few good dropshippers out there, but for my business model, none of them are for me. I always suggest to people that they should start small and grow. Get a feel for how to run things on eBay, what the markets all look like, and what your competition looks like. You can always start small with a dropshipper and build from there. Just don't get too committed financially to one...otherwise you won't see any profit for quite some time. Hope this helps.

  

Posted by: CasualDeckandPatio.com on 2011-12-09, 12:06:37

Richard has some very good points. I run an online store and all my products come from a drop shippers. I have focused on one particular set of products. I have about 2 dozen companies that have products in my specific category. I did research and found them all individually. I suggest that you focus on a very small, or specific niche and get to know those products well so you can help your customers by being an expert.

  

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