DROPSHIPPERS - the pros and cons of selling this way

You would like to sell on eBay but don't have the time, space or inclination to pick up stuff and stock it in your limited space.

Or you just like the idea of not having to deal with all the shipping and handling.

Then dropshippers may be the answer for you.

Why use a dropshipper?

• The advantages are that you don't have to have a lot of money tied up in inventory. You can set up an eBay store with listings and as the orders come in, process them through your dropshipper. Quick, neat and easy. This is a shoestring business at its best.
• No inventory means no storage costs, lowered overhead, larger profit line.
• Using a dropshipper is like having a warehouse full of employees working for you.

Problems with dropshipping?

• Just because a firm says they are a dropshipper, doesn't mean they are. If they are charging you an extra fee for their service over and above what you are paying to them for the item and for the shipping and handling to get the item out to your customer, then they aren't really a dropshipper. So don't fall for the "only $1.00 extra to drop ship this item for you or a monthly fee" line.

• The item isn't in stock. You will have to shop around until you find a dropshipper that will give you good service. A company that can't get the item to your customer within a week is not one you should consider dealing with.

              You can test a company's ability to deliver and also see how they package the items and so on by    ordering one item to be sent to you or preferably a friend or family member. That way you can see what info they include in the packages. After all, you want your customers to remain your customers.

• The catalog is out of date: This is related to the item not being in stock. You have found a dropshipper and they send you a catalog. If you see that it is a year or more since it was published, call them up and ask if all items are available. I once had a company tell me that over 90% of their items were in stock at all times. The reality was more like half of the items had to be back ordered or substituted. You certainly don't need that kind of headache. There is nothing worse than a customer purchasing and then you find your dropshipper does not have the ability to deliver that item in a timely fashion. Who is going to be blamed? Certainly not them.

HOW TO FIND A DROPSHIPPER

Books - One that I have and use even though it is a few years out of date is "Buy Wholesale By Mail" by HarperCollins Publishers. Many wholesalers are also dropshippers. This book helped me find some of the ones I have used.

Internet: You can use google to find many articles online about dropshipping.  Where to find a dropshipper, what to watch out for and more. One place to start is wholesale411. There is also a forum area for users of the site to discuss dropshippers that have disappointed them.

Library: A few hours spent in the reference section of you local library and talking to the reference librarians will give you much up to date information on manufacturers and whoelsalers who will drop ship. reference librarians have a talent for digging out the info for you. All you need to do is read it and use it.