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Dropshipping Is It Really That Hard?

Feb 13, 2008
So what on earth is Dropshipping I hear you cry well in the US it is a multi million dollar industry but else where it is very much still in it's infancy.

This is a quick summary of Dropshipping for those who don't know. What happens is instead of you ordering a huge pile of stock and then after you sell it you ship it direct to your customers with dropshipping the supplier send out your orders for you. Once you make the sale you send the dropshipper your customers details and they send out the goods. They even use your shipping labels so your customer won't even know or care you aren't supplying them.

I find that a lot of eBay sellers like the idea of dropshipping as it takes a lot of the tedious work out of selling on eBay which is one of a few pluses to using a dropshipping service. But the less experienced eBay sellers needs to be wary of the negatives also.

Lets look at some of the dropshipping positives first:-

1.You don't need to fill your home with stock or for bigger items pay for storage or warehousing.Obviously this is not that big deal for smaller items but for larger items such as treadmills this is probably the only way to sell them in volume.

2. You won't have to pay for a supplier to ship goods to you. But instead your dropshiper will charge you or your customer to deliver the goods plus a fee to cover their increased labor costs.

3. Shipping and packing stock can be very time consuming so having this huge burden lifted from your shoulders can be a blessing and will allow you more time to concentrate on other aspects of your business.

4. There will be need to buy expensive packing materials, such as bubble wrap, boxes and the like which take up a lot of space and can be very inconvenient if you live in a small home with limited space.

It probably doesn't need me to tell you but like everything in life there are always some negatives to consider.

So here are the dropshipping negatives:-

1. You'll find that the dropshipping costs can add quite a bit to the overall cost of the product as you need to pay for the suppliers staff to send out the product on your behalf. On occasions these might be five dollars or even more and then you need to factor in these costs as well as shipping if you want your customer to swallow them. You need to be careful when working out your profits that you take these costs in to the equation.

2. Shipping issues can still be headache don't forget the customer purchased from you so they will expect you to resolve any disputes for them. Also be wary of the fact that much of this part of the operation is out of your control so choose your dropshiper wisely.

3. People contact me telling me they found a great product they can sell but can't find a company that will supply on a dropship basis so give up. Remember not all companies want the hassle and paperwork involved that providing a drop shipping service and prefer to only sell in bulk to retailers.

4. On occasions you'll find your dropshipper runs out of stock especially with high demand items. This can lead to unhappy customers who may feel agrieved that you sold a product you can't supply.Usually with some careful handling you can keep most customers happy and avoid negative feedback.

Whilst dropshipping can work for some people for others it can be a major headache make sure you do thorough research and you should avoid most of the major problems.
About the Author
Getting started on eBay and considering dropshipping . Discover how you'll can boost you'llr ebay business with the free audio download from Auction Wealth Secrets where you'll find cutting edge ideas and tricks for eBay success.
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