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The Pro's and Con's of Dropshipping!

by: *eaglerock*( 303Feedback score is 100 to 499)
18 out of 20 people found this guide helpful.
Guide viewed: 2560 times Tags: Dropship | Dropshipper | Wholesale | Supplier | Whats Hot


If you are new to eBay, chances are at some point you will be interested in also selling products for a profit.  There are many ways to do this, some people use their weekends going around to garage sales and flea markets while others invest in product inventory whether it be baby clothes to movies and so on.

Eventually, you will hear alot about "Dropshipping" meaning you don't have to stock any of the product that your selling because your supplier does this for you.  You then mark up their questionable wholesale prices to try to make a profit.  Below I have listed some Pro's and Con's to using Dropshipping.

Pro's:

You don't have to stock any inventory thus saving you storage space.

A good Dropshipping supplier won't have any dropshipping and handling fee because they pay pennies on the dollar and then marked their products up to wholesale price.

A good Dropshipping supplier will keep track of their inventory and notify you when their inventory is running low on any particular product.

Con's:

You will find that there are many eBay users who use dropshipping thus saturating the market most likely with the same items you are selling.

Often times, you'll be lucky to make a couple of dollars on products you have marked up for a profit when you take into consideration your listing fees, final value fees. Don't get me wrong, their are some good suppliers out there.....you just have to research and find them.

Solutions:  Research your product interests before you invest a little money in your own inventory.  You can research by using eBay's "What's Hot" Catergory to give you an idea of what's actually hot.  You can also search thru Completed Listings to see how well an item or catergory is doing. 

The fact is that Dropshipping can be a good way to start if you do your research and learn where to find good suppliers and products.  The key is to finding that one "HOT" item is when you don't see it all over eBay being sold by everyone else!  Personally, I like to sell what I would be interested in buying meaning if it catches my eye then I'm sure it will catch someone else's.

You target market is already there with eBay, it's just a matter of putting the right item at the right time.

I hope and wish you Success!

                                                                            


Guide ID: 10000000001923432Guide created: 09/29/06 (updated 08/05/09)

 
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