Dropshipping

[jimbobuddy]

I have been told that it is very difficult to start a drop shipping business on Ebay. Why is that? If there is anyone with experience drop shipping on Ebay will you let me know?

Thank you

[slippinjimmy]

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@jimbobuddy wrote:

I have been told that it is very difficult to start a drop shipping business on Ebay. Why is that? If there is anyone with experience drop shipping on Ebay will you let me know?

Thank you

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1 - Dropshipping companies are unreliable, you have no control over their ability to keep items in stock or their ability to ship quickly, pack properly or generally do a good job .

2 - If you are buying from a dropshipping company you can be sure that there are dozens or hundreds of sellers buying the same thing,  the competition will be fierce and the profit margins extremely low.

Can it be done? Yes it's possible but the success rate is very low, those that try generally end up either losing money or getting suspended by eBay because of so many delivery issues.

[ebooksdiva]

I don't have experience myself, but being in this forum I have read a lot of posts about sellers being restricted due to drop shipping. Most drop shipping from Amazon, Walmart and Alibaba. 
Because many sellers who tried are no longer allowed to sell. 
Drop shipping is very risky, you have no control over inventory, if the item your buyer  buys  is sold out from where you are drop shipping from you're basically screwed. Because of this you will have to cancel the transaction for out of stock, too many out of stock defects will cost you, meaning you will be permanently restricted from selling. 

[tinsoldierunderground]

Depends on your definition of the term ; if you list something for sale here, and it sells, and then you go and purchase it from another source to fulfill the order, and they ship directly to your buyer, that's not allowed.  Many sellers have done this through amazon, with their buyer receiving a 'gift return receipt' with the item.  That's a red flag.

If you are sourcing your items in conjunction with a supplier that warehouses them for you, and ships when you sell on here, that's allowed.

[slippinjimmy]

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@tinsoldierunderground wrote:

If you are sourcing your items in conjunction with a supplier that warehouses them for you, and ships when you sell on here, that's allowed.

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Allowed...Yes

Successful...Rarely

[tinsoldierunderground]

No argument.

[inhawaii]

There are lots of things I don't have first hand experience doing, but I know they are not a good idea.

Drop shipping is one of them.

[ckimodog]

@jimbobuddy 

Those people are absolutely correct.  You have no control over your inventory, since it is not in your possession.  Maybe your vendor will ship, maybe not.  Maybe they'll ship the item purchased, maybe they'll ship the wrong item.  Might be past your shipping time frame too, depending on how busy your vendor is.  Don't do it.  Do you see all the replies you are getting?  That would convince me, as most here are veteran sellers here on eBay and are knowledgeable about selling.  Again, don't do it. 

Happy Selling

[onefootflippers]

Anything you can dropship someone in a 3rd world country who only needs to make $400 a month to live can also dropship. 

This competition from other countries will drive the profits on anything you can dropship down to microscopic.

[kensgiftshop]

It's pretty easy to get started, but you have to know what you're doing and stay on top of everything.

Did it for a few years and made good money.

Would I do it again, no.

You need to get a reliable supplier and watch their inventory close or you could be in big trouble.

[ten_o_nine]

Pros:

* Low overhead costs (no inventory storage or shipping)
* Wide range of products to sell
* Flexibility to scale quickly
* Minimal risk of inventory obsolescence

Cons:

* Quality control issues (since you don't handle products directly)
* Shipping and delivery issues (since you rely on suppliers)
* Low profit margins (due to competition and supplier costs)
* Customer service challenges (since you're not in direct control)
* Potential negative impact on brand reputation if suppliers don't meet expectations

[theteamsetguy]

@jimbobuddy ,

Just curious why would you want to drop ship if you can make a lot more money selling your own items.

I would never want to be at the mercy of my suppliers. I want to have control of my inventory and order fulfillment. 

[psfhobbies]

Here's my 2 cents: nearly everything I buy anything new here except for repeat purchases from unique  favorite sellers its seems to come from Amazon. Guitar tuners..Amazon...small boxes..Amazon...guitar strings Amazon,,,T-shirt..Amazon and many others few have been from other vendors but were dropped shipped so its happening and one guy was from Thailand ...(I didn't notice when i bought)but his site / Items is copied directly from Amazon and he is outselling me in terms of his monthly feedback shows.

[simba6]

Starting is not hard at all.  You just list items for sale and if they sell, you pay the drop shipper to send them to the buyer.  There lies the problem.  If they don't, your account gets dinged and you refund.  If it lost or damaged in shipping, you refund.  If it does not match the description, your refunding. If it's out of stock, your account gets in trouble.  If they don't ship on time want to guess who makes good?

Easy yes  but not so wise....

[janet9988]

You should not drop ship items if you do not know the process and the pitfalls.