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Big companies and drop shipping ?
6 posts
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Well all know people don't really make a profit with drop shipping, and thanks to big companies that flood the market with popular products, and retail them cheap, most of us are not able to get good a wholesale price, with out a lot of capital. It is because of this, that i am in the process of creating my own product that targets a niche market. Anyhow, when purchasing products on line for personal use, i noticed that some of these companies, send every order from the manufacture, rather than from there address. With out mentioning names, these companies sell tools, computer parts, and automotive parts. Could these companies be using drop shipping, or something else ? what are your thoughts on this ?
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Dus65 wrote:We all know people don't really make a profit with drop shipping...
You are dead wrong. I have and still do make money by using the dropship method. There are also many ebayers that do this as well. You just have to use a good dropshipper and you have to know how to target the right markets and sell the right things.
Dropshipping has been around way before the internet and it ain't going anywhere anytime soon because the fact is that it works. It is hard work and not for everyone, but then again, the same thing goes for business in general.
Good luck on your new product but don't sit there and bash dropshiping becuase you never tried it or because it just didn't work for you.
It is bad dropshippers and inexperienced comments like yours that give dropshiping a bad name.
Then again, maybe tat is a good thing now that I think about it
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I think you need to re read my post, as my intent was not to bash drop shipping. My intent for this post is to find out how some of these companies, might be using it successfully. In fact I've never used drop shipping before, as most I found aren't all that great. But from the many post that i have looked at, and from some conversations with other business owners it seems that most people agree, that you do not make a good profit with drop shipping. In fact I hope my opinion on drop shipping is wrong. Since drop shipping works for you, would you care to share more knowledge, advice, etc, on this subject ? with out giving up your suppliers of course. Do you make more money per item, or by the quantity that you sell ? what type of products do you sell ? I am also not going to sit here and have a message board argument with you and if I've offended you, well then to bad, we cant please everyone can we ? but by all means if you care to in lighten me on the subject of this post, please reply. Have a nice day and lighten up man

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You probably never dealt with reputable dropshippers who actually sell wholesale. People do make good living from it, it's not for everyone because like the other post mentioned, "It's not for everyone". But if the person is ready to invest some time, than it will all pay off...........
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These companies that you'e speaking of, could they be using a central warehouse for distribution?
And in some way you are correct. The little guy can't compete with the Walmart's of the world.
In order to win on eBay, 90% of your time is researching and analyzing sales and determining which product WILL produce a profit.
I mean geez, If I see one more "Navarro leather chaps pants" for $18 I'll just scream! LOL Those poor people are getting eaten up by listing fees, and will probably take a loss on the auction and OWE the dropshipper a few bucks per item.
Done ramblin!
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heavenrse wrote:I mean geez, If I see one more "Navarro leather chaps pants" for $18 I'll just scream! LOL
LOL
Ain't that the truth!!!
However, If you market these products the correct way on ebay an dyou utilize some of the tools that ebay offers, you could make a decent living from selling this stuff. I say "could" because it is hard to say for that item. I know of some successfull ebayers that use dropshippers. they either do not warehouse a thing OR they warehouse very little, yet they are profitable. They use various ebay tools and they sell alot. ANd that is one thing to remember THEY SELL ALOT and their profict marines are thin. But the volume makes up for it, if you like whoring yourself out like that. IMO, that is no way to make a living, but to each his own. I prefer fewer orders and bigger margines.
If you do go the VOLUME route, the more organised you are, the better off or else you'll be working waymore than you have to and wasting good time that is better spent on other things both business related and personal.
Leave the volume to the big guys. I am not about to work for ebay and give all my time to them anytime soon.
As for the post telling me to lighten up...Uhhh..yeah.
As for what do I sell....
Consumer goods.
As for how am I successful???...
Sorry, I will leave that one to the ebook gurus. Too much time invested in learning how to become successful at dropshipping and at ecommerce in general to lay it out in a public forum. That is good information and is worth money. If I had an ebbok, I would sell it.
However, I can tell you that you should focus on a niche. Forget about selling everything to everyone. However, selling alot of thigns or only a few things to a certain demographic is a different story and well worth your time and research.
Oh, and by the way. If you have 2 dropshippers who sell the same exact thing and are both pretty popular, if you sell alot, they will give you discounts on your stuff as long as you miantain a certain amount over a period of time.
Yes, I agree. most of the dropshippers out there that advertise all over the web are just plain terrible when it comes to customer service and logistics. You gotta avoid this because it directly affects your business.
I know of plenty of these dropshippers and they mostly suck. Some suck no matter what, others only treat their high volume customers well and leave the slow movers out in the cold (some even ship out thier "seconds" and defectives for the low volume customers). What a crock, I know. But that is the way they work.
Also, there are some dropshippers out there that try to say they have low prices, and they actually do. However, they nickel and dime you with excessive charges. Like you have to buy a warranty if you want to be able to return it. Then they will charge you for "better packaging" (like, AS IF!, right?) and then they charge you for insurance on top of that. To boot, they pad the shipping
. Once you factor in the dropship fee on top of all that, well, need I say more??? You're better off working at the local burger joint 40 hours a week because if you can sell the items at all, you will be working for the dropshipper (and for ebayif that's where you're selling). ALl your making ins pennies.
In my opinion, if you want to be successful and not have to worry about all the extra fees, stick witha dropshipper that gives you one price, charges actual shipping, and then adds the dropship fee.
I avoid most internet advertising dropshippers and I find my own. Some wholesalers will dropship for you. They do not advertise it (very smart move), but they do it. You gotta approach them correctly and you gotta show them that you are serious somehow and some will require an inital purchase within their minimum order in order to be set up to drop ship.
Good luck. It isn't easy by any menas and not only does it require time, but it does require some capital as well in order to get off on the right foot and also to be able to test different dropshippers out to see which one works best for you (if any at all).
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