Is there any point to dropshipping?

  • avatar

    by: BigZ
    SaleHoo Junior Member
    15 posts

    Is there any point to dropshipping?

    Posted 19 Aug 09 10:44 pm.

    Hi folks, I am getting kinda discouraged with the info I am reading about dropshipping especially where it involves selling on Ebay. I was just reading the first topic under this heading about dropshipping and I am told basically to forget dropshipping through ebay?! Now what? That would leave using a website but then we would run into the same problem as ebay where there are millions trying to sell the same thing as us only using their own sites and everyone wants to be first in the search engines and to sell at the cheapest price. I have been looking for suppliers for the product that I want to sell but like the other posts i have read the suppliers are either too expensive to make it worthwhile or everyone is using them and sellers are crawling over each other to have the cheapest price? Sorry if i seem to be ranting but I am just a bit frustrated with this process of trying to get my business going with the right supplier and all i am finding is a saturated market. According to the first thread in this topic I need to go to a small supplier for my products but how will that help when everyone will want to go there too if they are offering something that the big suppliers can't ..say cheap prices? I am really wanting to find a supplier where I know the prices are honest and they will have the stock when you need it. Any comments out there?
    P.S. If you need to move this thread please do so :)
  • avatar

    by: richellemonfort
    SaleHoo Staff
    3398 posts

    Re: Is there any point to dropshipping?

    Posted 20 Aug 09 12:00 am.

    Hi BigZ,

    You shouldn't let all the information you have read get you discouraged. Rather use the information you find in this forum and elsewhere as your guide towards a good start. I know that the starting out, like deciding what products to sell, where to source it from and where to sell it, is probably one of the hardest points to be at but this shouldn't stop you.

    First, you have to bear in mind that it doesn't mean just because everybody is selling a certain product you should be too. There is no such thing as the # 1 product to sell. You have to factor in a lot of things to make a product sell well, like product presentation (description, photos) and other effective marketing strategies. Also there are other great sites where you can sell your products, not just eBay.

    From the many posts I've read, drop shipping is a great start if you do not have a working capital to purchase products in bulk or if you're not quite ready to take the risk. Maybe you should read SaleHoo's latest blog article, it seems like it was written to answer your post :)

    http://www.salehoo.com/blog/how-to-boost-your-drop-shipping-profits-and-improve-your-margin/

    Here are a few more short articles that may help you out, I know it may seem like a long list but trust me it will be worth your while reading these:

    On what products to sell:
    http://www.salehoo.com/blog/what-to-sell-in-2009/
    http://www.salehoo.com/blog/3-hot-new-niches-to-get-excited-about/
    http://www.salehoo.com/blog/hot-niche-idea-wholesale-gifts/

    Drop shipping on eBay:
    http://www.salehoo.com/blog/the-ebay-drop-shipping-cheat-sheet/

    Other great sites you can sell at:
    http://www.salehoo.com/blog/bonanzle-an-exciting-ebay-alternative/
    http://www.salehoo.com/blog/four-seriously-good-ecommerce-solutions/

    By the way, what products might you be interested in? We'd be glad to help you out in your search for suitable suppliers.

    Hope this encourages you somehow...cheers! :)

    Richelle

    Customer Support
    SaleHoo Group Limited
    Sell more with your own professionally designed and search optimized e-commerce website. Check out SaleHoo Stores now!

  • avatar

    by: grace-salehoo
    SaleHoo Master Member
    334 posts

    Re: Is there any point to dropshipping?

    Posted 20 Aug 09 12:39 am.

    Hi Bigz,

    What are you looking to sell on eBay? The key is to uncover hidden niches that aren’t yet saturated. Then your margins will be large enough to support using a drop shipper, or to order in small bulk quantities, and still make a profit.

    Finding a niche is not nearly as hard as you might think.

    One idea is to turn to Google and search for lists of hobbies. You want to be looking for very specific hobbies here, which usually means a name of 2-3 words. E.g. ‘deep sea fishing’ is a niche within the 'fishing' market.

    When you’ve found a few ideas, start typing them into eBay and take note of eBay’s related search suggestions. For example, ‘how to grow Bonsai trees’ mightn’t be a great market on eBay, but ‘bonsai tools’ is very popular.

    Searching Google and then eBay, it took me all of 15 minutes to come up with these possibilities:

    HOBBY = EBAY PRODUCT
    Mushroom cultivation = Mushroom grow kit
    Photo restoration = Quick search revealed nothing profitable
    Bonsai trees = Bonsai tools
    Trampolining = Trampoline net
    Railway Modelling = Model trains, Lionel train,
    Making handmade wallpapers = Quick search revealed nothing profitable
    Learn to use the Tarot = Tarot cards
    Archery = Medieval Arrow Head Steel, Medieval crossbow

    These are all great examples of markets with potential.

    All the best,
    Grace

    Grace

  • avatar

    by: fudjj
    SaleHoo Staff
    2857 posts

    Re: Is there any point to dropshipping?

    Posted 20 Aug 09 2:56 am.

    Just to throw my two cents worth in, just because you can't find a product available from a drop shipper, does not mean you can't drop ship it. In fact some of the best opportunities for drop shipping products most like lay in the areas that no drop shipping companies are servicing.

    Use some of the tips suggested above, then see if you can find a product that drop shippers aren't offering, but one you would like to try. From there, contact some suppliers that have the product, and see if you can come to arrangement to market the product at your expense, and have them ship to your customers direct.

    Most businesses are in the business of making money, and you make a business an offer that costs them nothing, yet has the potential to increase their sales, you will find a lot of people will take the time to hear you out, and you may just net yourself a drop shipping market with very little competition!

    Marc Ransom

    Community Manager
    SaleHoo.com

    About the Community Manager