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Dropshipping Is It Really That Hard? |
By:
Graham Waite |
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Dropshipping Is It Really That Hard?
Graham Waite
Dropshipping what is it anyway, now that's a good question if you live in the US you might well of heard of it but much of the rest of the world hasn't caught on to the idea yet.
Dropshipping is pretty basic really in essence instead of you buying stock and then selling it and sending it out yourself to your customers. What happens instead is you place completed orders with the supplier and then they send the goods out with your labels on your behalf its simple but very effective.
Drop shipping is a very popular option with sellers because it takes a lot of the grunt work out of selling on eBay.No need for shipping goods or buying stock. However, there are some pretty big negatives to drop shipping it's not all plain sailing especially true for new and inexperienced ebay sellers.
Lets look at some of the dropshipping positives first:-
1. You'll find no need to hold vast stocks of goods or have to pay to store bulk goods. Whilst this might not be that significant if you sell small items it could be if you sell gym equipment or things that take a lot of room.
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. A large number of eBay sellers find the worst part of running an eBay business is the sending the items to their customers (packing and shipping). When you use the services of a dropship company they deal with all that for you.
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.
But like everything in life there are always some downsides to consider when it comes to dropshipping goods.
So here are the dropshipping negatives:-
1. It can cost quite a few bucks as you will be paying the supplier for their staff to pack and ship your goods.This can be as high as $5 an item or even more and then shipping still needs to be added on top. On occasions this can mean selling the product and making a profit can be almost impossible. So you must look carefully at your margins and work out if you can still make money using this service.
2. It is inevitable sometimes things won't work out with deliveries or goods. It is important you understand that any problems will be yours to sort out as your customer will expect to deal with you and not the dropshipping company. So make sure you thoroughly research the company you are using both for their dropshipping service and products.
3. Limited Choice is another negative when it comes to dropshipping you may find a perfect product to sell but are then unable to find a suitable company that offers dropshipping. Many distributors prefer to sell in bulk and don't want the hassle and extra paperwork involved with dropshipping.
4. Dropshippers may not have stock of products when you need them. If you find a hot in demand item you may find others have also found it and 'out of stocks' may lead to unhappy customers. If you have sold products you have to put on back order this can mean you have to apologise to customers and may receive negative feedback if not handled correctly.
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.
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Article Source: http://www.statssheet.com/articles/article69623.html |
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