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Not Seeing Any Advantages to Dropshipping

  • avatar

    by: jnls4
    SaleHoo Junior Member
    33 posts

    Not Seeing Any Advantages to Dropshipping

    Posted 27 Feb 10 10:14 pm.

    If anyone can clarify this, please let me know. When I had the idea to start my own business selling products online, I thought drop shipping would be a good start. Since researching several drop shippers here on Salehoo, I really don't see how to make any money with it. When I find a product I would like to sell, I check Ebay and do some research. I either find a ton of listings for what I want to sell, completed listings showing that few of the items have sold, or the asking price of other auctions is lower than what I can get the same item for from the drop shipper. Because of this, I haven't even tried to sell anything yet.

    I don't have the space or money available to buy direct from a wholesaler. I also didn't want to focus on any particular item to sell yet until I got a better idea as to what sold well (another reason why I thought drop selling would be a good way to start). As far as deciding on a niche, I have no idea. What am I missing?
  • avatar

    by: fudjj
    SaleHoo Staff
    2859 posts

    Re: Not Seeing Any Advantages to Dropshipping

    Posted 27 Feb 10 11:17 pm.

    Hi jnls,

    Unfortunately you're not missing to much at all, every product sourcing platform has its advantages and disadvantages, with Drop Shipping, zero or low cash outlay, and no storage space or distribution requirements are the big advantages.

    Because of those advantages it makes it an extremely popular platform for a lot of sellers to use, especially when just starting out. What that does of course is mean that you have thousands on thousands of sellers all trying to do the same as you, combine that with everyone wanting to sell on the most popular online marketplace of all, and you end up with a completely saturated marketplace where even breaking even at times is a struggle.

    There are some that do make some money from it, I really don't know how much or how regular that income is, but if it's Drop Shipping that you want to use to get into the market, then I would suggest that ebay is not the best way to go.

    I know someone who built their own specialist kitchenware website, and stocked it with nothing but drop shipped kitchen products, spend a lot of time and a decent amount of cash on marketing it and they now have moved that platform into wholesale.

    Drop Shipping does still provide opportunities to get into the market, but sellers are having to be a lot more creative in doing it these days. It's no longer just a case of dumping a load of DS products on ebay and making money anymore.

    I would suggest you start exploring other selling opportunities and see if you can develop a plan centred around one of those, either that or you are going to have a find a product not saturated on ebay to have any chance, and I'm not sure I like those odds very much

    : )

    Marc Ransom

    Community Manager
    SaleHoo.com

    About the Community Manager

  • avatar

    by: jnls4
    SaleHoo Junior Member
    33 posts

    Re: Not Seeing Any Advantages to Dropshipping

    Posted 28 Feb 10 5:57 am.

    Thanks for the input fudjj. At least I know not to waste much time on dropshipping from now on and to focus my energy elsewhere. Not sure where that is yet though!
  • avatar

    by: pcostie
    SaleHoo Junior Member
    20 posts

    Re: Not Seeing Any Advantages to Dropshipping

    Posted 28 Feb 10 10:35 am.

    Hi i use dropshipping quite a lot it does have some advantages that is you can see a new product advertise it straight up without having to purchase it this method is good for testing market without investing in stock if it sells well then i will buy in stock at wholesale if it doesnt then all you lose is your Ebay fees but at least your not stuck with stock you cant sell i also find that sometimes a new product takes a while before it becomes accepted Ok disadvantages of drop shipping are smaller profits and you cant get your product to Customers in your own backyard as fast as sellers with stock on hand
  • avatar

    by: userexists
    SaleHoo Master Member
    227 posts

    Re: Not Seeing Any Advantages to Dropshipping

    Posted 3 Mar 10 11:44 pm.

    If you really want to dropship, get up from behind your computer and find some local businesses who may have unsold stock at the back of their factory. warehouse or store and ask the owner or manager if you can sell it for them for a percentage of the profits. It works. I've done it in the past. Trying to find dropshippers online will always be fraught with disappointment because, if they are easy to find and have a prominent online presence, everybody and his wife will be able to easily find them and then offer the same products on ebay. These products end up with little if any profit and the effort is not worth it.

    Difficult I can do right away. Impossible takes a little longer