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Old 07-22-2009, 01:21 PM   #1 (permalink)
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Drop Shipping Sucks

i googled drop shipping and this is like number two:
Drop Shipping Sucks - and will never work on eBay!
Anyone have any opinions on what this guy is saying?
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Old 07-22-2009, 03:24 PM   #2 (permalink)
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because the profit margin is low, but you don't have to carry any inventory that is the benefit. Also you can try dropshipping see which product sells well. And then contact the manufacturer to get them at a cheaper price
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Old 07-23-2009, 07:50 AM   #3 (permalink)
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why would someone buy off you when they can get it direct from the source at a cheaper price. The problem with dropshipping (as opposed to buying in bulk), the dropshipper also sells to regular consumers.

The whole model is a scam
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Old 07-23-2009, 08:53 AM   #4 (permalink)
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Quote:
Originally Posted by feint View Post
why would someone buy off you when they can get it direct from the source at a cheaper price. The problem with dropshipping (as opposed to buying in bulk), the dropshipper also sells to regular consumers.

The whole model is a scam
Then you don't get the model. The idea is that both reseller and dropshipper would sell at the same price. There is no use for the dropshipper to sell at a lower price really, unless they're stupid.

The more resellers there are, the better for the dropshipper. His inventory is more or less stable when he has more people reselling his items. Plus the marketing costs are made by the resellers.

It isn't a scam, but the margins are usually pretty low indeed.

EDIT: Besides, the site is just a sales-letter ... he's trying to sell you something.
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Old 08-20-2009, 01:56 PM   #5 (permalink)
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Well, I know first hand that dropshipping and ebay are not a good mix. I may be biased but I think the lesson at Drop Shipping Sucks is an important one -- if you buy the guide or not.
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Old 08-20-2009, 06:10 PM   #6 (permalink)
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I have had lots of success with dropshipping online, even on eBay. I get all of my dropshipping contacts from:
Drop Ship Source Directory - Real Wholesale Sources!

You can view my eBay listings here:
eBay Seller: igniteindiana: Computers Networking, Books items on eBay.com
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Old 09-08-2009, 02:50 AM   #7 (permalink)
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why would someone buy off you when they can get it direct from the source at a cheaper price. The problem with dropshipping (as opposed to buying in bulk), the dropshipper also sells to regular consumers.
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Old 09-08-2009, 03:12 AM   #8 (permalink)
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why would someone buy off you when they can get it direct from the source at a cheaper price. The problem with dropshipping (as opposed to buying in bulk), the dropshipper also sells to regular consumers.
Reseller will help to market dropshipper goods... sucessful reseller have lots of customers, means they have buying power... which means lots of discount from dropshipper. Or you can say they buy in wholesale price.

but on the other side, most consumers only buy 1 or 2 pcs from dropshipper, means no / less discount for comsumers.
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Old 09-08-2009, 04:13 PM   #9 (permalink)
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The whole model is not a scam because it is working for people. You cannot deny that it does work...

Dropshipping has to be done directly through the manufacturer for it to be profitable though. If you find a dropship directory, chances are they are charging you a hidden fee that makes profit margins terrible.

That's my experience.
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Old 09-14-2009, 11:05 PM   #10 (permalink)
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Funny that you post this. I wrote an article for my website onlinemoneyhut.com that talked about dropshipping. Dropshipping is better suited for Non-ebay sites where you don't have to compete for the lowest price.

Dropshipping works best for competing retail prices I used to use it for both eBay and my non-eBay site and I saw higher profits for my non-eBay site.

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Old 09-15-2009, 10:18 AM   #11 (permalink)
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A bit off the precise subject here, but in a related story (related to dropshipping.com):

Richard Gabriel Sells DropShippers.com for $1.5 Million - His Second 7-Figure Sale in Five Months

It would have been nice to be a part of that $1.5M sale..on any end.
Sorry if too off-subject, I'm new here.
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Old 09-15-2009, 10:17 PM   #12 (permalink)
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I was hooked up with a major US dropshipper that you will find hundreds of "rip-off" type posts about. I sold their stuff for about 4 years, bought over $90,000 from them and sold it for about $250,000. For awhile I moderated a forum they had, with about 13,000 paid members, no outsiders, had to go through your account with them to get to the forum.

I sold their stuff everywhere, one year I sold 30+ bird houses to the Smithsonian Institution to be used on the National Christmas tree. I sold to the military, to retailers, to clubs and organizations, you name it. And I made money.

I now dropship myself. I sell mp3s and mp4s, phones, game consoles worldwide. I have sellers in the UK, EU, Israel, Indonesia, Singapore, Australia, New Zealand and more.

Dropshipping is a great way to make money with little investment. Many of my sellers are on ebay and do very well.

There are a number of benefits to dropshipping, some of which are conveniently overlooked by those who look down their noses at it. One of the first that comes to my mind, because I know it's true, is that when you sell that way you end up with no shelf-worn, unsaleable goods you the shelf. You don't make any dumb buys that you just knew were going to sell and didn't.

The fact is that some people are condescending talking of dropshipping. These are the same people who will have a Mac and feel superior to someone with a PC. There is no basis in fact, but they make themselves feel good.

I do know the author of the book. We have knocked heads on more than one forum. He is selling a "product", just like everything else. The book is just his foot in the door.

To me, Dropshipping is Great!
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Old 09-15-2009, 11:39 PM   #13 (permalink)
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I'm with you...but, would you not agree that --per time spent--a person would AT LEAST need to move the volume you were ..you know, to be worth the headache and time?
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Old 09-16-2009, 08:51 PM   #14 (permalink)
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Dropshipping is definitively good when you know how to use it right. I am in the niche of mobile phone and used a dropshipper for about 2 or 3 yrs until I found out a way to get better price for the phones than the dropshipper itself and now I have a few resellers that I dropship for.

People will always expected the best of the best... in any situation any given time... they will find bugs in a windows and then move to a mac and will still find bugs...Problems can occur with dropshipping of course but it is up to you to manage it.. yes sometimes there is problem with the flight and there will b a delay or shipping companies lose your items...but hey..its part of life, nothing is perfect and shit happens.

Always deal with a dropshipper who is willing to work with you and make money with you...Not the one that dont care about you and care only about money...

Try to find a dropshipper than you will be at ease with and that will be committed to your business as you do. Those suppliers tend to give an extra mile for a better service for exemple customizing your package, send promotional flyers to your customer, insert your business cards when sending the items etc. Those are little details that will make your company successful..

And yes dropshipping is overrated, nowdays any average Joe will think they can do it and will spend money on their website, products, ebay store etc, but will not succeed... And then they will ask themselves why this didnt work...

The illusion of quick and easy money will always trap the weakest mind...
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Old 09-17-2009, 10:51 AM   #15 (permalink)
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I'm with you...but, would you not agree that --per time spent--a person would AT LEAST need to move the volume you were ..you know, to be worth the headache and time?
No, not at all. I have people around the world who dropship several items a day and have a good second income from it. Some buy refurbed Nintendo DS Lite consoles from me in the $100 range and sell them for close to $200. I have sellers in Eastern Europe who tell me they double their money.

Others in the Netherlands and Denmark who claim 75% or so profit or they won't bother with an item. So, even 2 a day is over $100 profit to them. Not bad for a side job where you sit at home, or work on the boss' time.

They are selling on ebay, also. There is a misconception that you have to be the lowest priced guy there to sell anything, but I have many sellers who do very well with good profits. They just know how to present their goods and don't act as if they are another "me too" kind of seller, but rather offering a premium product at a good price.

With the company I mentioned above, the people who were successful on ebay would bundle things together, getting far more for 4 or 5 or 6 pieces that tied together in some way than others were selling the individual pieces for. They would take their own photos, use their own descriptions and their own item codes. And make some good profits on goods they never touched.

There is no reason why, at the end of a year, someone dropshipping and someone buying for stock and maintaining an inventory cannot end up with the same net income.

Big difference is the one buying for stock WILL end up with dead inventory (anyone who tells you otherwise is lying), damaged goods and money tied up that if they had to liquidate they would get a dime on a dollar, if lucky. The person selling dropshipped goods could walk away clean at any time and have nothing to worry about.

Let the snobs walk around with their noses in the air, while you are down and dirty, making money they wish they were and have zero invested in inventory. The banks and financiers look at Return on Investment, yours will trump theirs anytime, since your investment is a PC and possibly a website.
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