Quoting from [discountshopaz]:
So you want to do business with a company that sells the same 200 products in the UK to 2,000 people and then you all try to sell it on Ebay? Oh and btw when you read your agreement with them they usually state that the product is not warrantied against damage or being broken.Does that sound like a seriously good idea?
Quoting from [discountshopaz]:
Dropshipping can be a viable alternative....... Here are the serious problems however1> Most of that market is taken up by only a few companies who offer THOUSANDS of people the same products.... So you are going to be competing with thousands of others in the UK for the same products and to make it a viable idea you will need to run really low margins and high volume...... That certainly won't work on Ebay etc since everyone else is doing the same.
2> The pricing these dropshippers charges you is not exactly cheap........ They build in some decent margins for themselves....... leaving you with not much to work with
3> there is absolutely NO USE whatsoever having a deal with a drop-shipper outside the UK... that is the only way that a shipping cost to your customers will work effectively... So don't even bother asking suppliers in China to be part of this deal.
4> You are much better off getting a select range of products..... preferably in a field that you actually KNOW something about..... and inmporting them for yourself direct from China or wherever......... You need to rsearch the heck out of this so that you are not buying products that are already flodding the market..... Then sc together the money to make a single purchase of a reasonable quantity......... f you can do storage in your own garage or lock-up that keeps you costs down as well.
5> Don't just sell on Ebay....... Think about the small retailers in your local area and what might sell well to them with a reasonable margin (less than your retail margin on Ebay)......... Trunk Sales (Boot Sales)/ Community Fairs/ Church Fetes... All sorts of other places you can sell at reasonable margins... It takes a lot of work and research but the money is all yours and you aren't competing with thousands of others with the same products.
Prime,
My apologies. i meant to write a quick definition of DropShipping.
Basically as a BUYER I purchase 500 units (or commit to buy) of a product from another company... they do not ship me the inventory.... I make sales and THEY ship the product for me (for a fee of course)
It doesn't work outside your own country well at all........and 95% of DropShip companies have THOUSANDS of people (a lot on Ebay etc) who all sell the same product... These DropShippers make good margins and the poor little Ebay sellers are all competing against each other....... To my mind is is just a waste of time.
I prefer to buy my own products and ship them to myself......... My overheads are basically nothing because I run lean and don't have rent/storage/wages or anything to worry about....... which sure as heck helps!
Prime,
It's one way of doing it when you are a small one-person company. Keeping the overheads down is a MAJOR priority..... I literally do everything myself...