Whether you are new to eBay selling, or a seasoned veteran, dropshipping is one of many options available to you for sourcing products to sell. 

"eBay Selling: Dropshipping For Success" - a four-part series, is a must-read for those sellers wanting to learn:

• What Dropshipping Is and How It Works (Part I)

• How to Find a Good Dropshipper (Part II)

• The Pros and Cons of Dropshipping (Part III)

• Is Dropshipping for You?  (Part IV)

PART III - THE PROS & CONS OF DROPSHIPPING

The Pros to Dropshipping:

• No advanced purchasing of products, no physical inventory storage required.

• No packing and shipping supplies needed, no shipping trips to the post office or other carriers.

• Variety of product selection.

• Real-time inventory level reporting - with some, not all dropshippers.

• Product photos and item descriptions provided - little to no editing needed.

• Free advertising - some dropshipping companies will include sellers' inserts in shipments.

• Easy online ordering - no fax or snail mail issues!

...and more!

The Cons to Dropshipping:

• Products out of stock.

• Potential shipping delays due to order volume - especially during holiday shopping seasons.

• Dropshipping Fees - some dropshippers charge a fee for dropshipping products.

• Membership Fees - some dropshippers charge a fee to subscribe to their web site.

• Product quality uncertain.

• Potential for 'refurbished' or 'reconditioned' items being sold as new - should be marked as such, but may not be!

• Lackluster customer service from dropshipper.

...and more!

Noted above are the major pros and cons of dropshipping - food for thought.  Don't be discouraged!

Whether dropshipping is intended as your only product source for selling, or perhaps to be used as a primary or secondary source, many sellers have had excellent experiences with this type of product sourcing - you can too, but you must do your homework!

Dropshipping is not my primary product source, but certainly has served well in supplementing my other product sales.  I do carry physical inventory purchased from other sources, however dropshipping broadens my inventory without having to worry about additional storage.

How can you avoid the disadvantages of dropshipping?

Once I have completed my research and have found dropshippers I would like to use for product sourcing, I call and interview them:

• Do you stock the items you offer for sale, or are they shipped by a distribution center? How often is your available stock count updated? (real-time, hourly, daily, weekly, etc.)  Is shipment tracking information provided?

• What is your return policy for size exchanges, unwanted items, and damaged goods?  Do you refund extra shipping costs paid by the buyer in returning items?

• How well is your customer service department staffed?  When are they available and what is their average response time?

• What is your company's overall service record?  Any legal or consumer complaints filed against your company?  If so, what for?

• Are you registered with the Better Business Bureau?  Any complaints filed against your company with the BBB?

• What industry/professional organizations are you licensed by or a member of?  Have you been denied membership or had your membership revoked?  Have you been sanctioned by any of the organizations you are a member of?

• Does your company sell retail on any online sites - eBay, Amazon, Yahoo!, etc.?

• Are any of your products 'reconditioned' or 'refurbished'?  If so, how are these products marked in your catalog?

• What measures are taken to ensure fast shipping during high sales volume seasons (i.e., Christmas, Valentine's Day, etc.)?

• What fees (i.e., dropshipping, membership, advertising, etc.) do you charge the buyer (retailer) for selling your products? 

• Do you accept PayPal?

The above questions are just a few of the main inquiries I make when contacting a dropshipper. 

I only use dropshippers I have successfully interviewed either in-person or by telephone. 

I do not pay any fees, and prefer to do business with dropshippers accepting PayPal (this is the primary payment source for my buyers, so it is easier to pay my 'suppliers' through Paypal).

If there are any customer service concerns at all, or the dropshipper sells their products online in a retail setting, I move on to the next dropshipper!

If the dropshipper I am interviewing hesitates at all on any question responses, I move on to the next dropshipper!

The bottom-line is that I select dropshippers who operate under the same scrutiny I always view my business practices and product quality under - consistency is the key.  It is my business reputation and feedback that is at stake, no matter what or who I utilize for product sourcing.  Never lose sight of this!

Is dropshipping for you?  Be sure to read Part IV of this series - "Is Dropshipping for You?"

HAPPY EBAYING!!!