Wholesale & eBay Forum Drop Shippers & Drop Shipping Amateur dropshipper seeking guidance

 

Amateur dropshipper seeking guidance


donmiddlemissjr
Full Member
  • Posts: 1
  • Joined: 25 Nov 17
  • Karma:
26 Nov 17 01:35:06 am
Hello & thank you in advance for your kindness if you are able to offer any insight.

I am brand new to drop-shipping and ready to start selling on E-bay! As of right now I am using SaleHoo's Lab's to source product's that may be profitable for me to sell. An issue that I am encountering is that when I cross reference the avg. price given by SaleHoo's lab the e-bay price is always much lower. This leads me to confusion as to how I'm able to generate profit on these backwards margins. As I am writing these it is 8:33pm and I am unable to contact most distributors, I believe that a few phone calls to potential distributors tomorrow to shop for prices may solve my issue. We'll see (:

If you can offer any guidance to someone who is brand new to cut the learning curve I would gladly appreciate it, and of course generate a circulation of kindness by paying it forward.

Thanks Again,
Don


pufai
Directory Approved Supplier
  • Posts: 4
  • Joined: 21 Nov 17
  • Karma:
26 Nov 17 01:26:23 pm
As a Pufai International ; We are manufacturing plastic and paper products. Mostly , we are focusing to produce disposable cigarette filters for normal and slim size cigarettes and same size tobacco products and nasal strips. You can find product catalogue in our profile page, or visit our web page.

We are manufacturing our all products in our brand but also we are giving private label service if you request.

If you would like to sell our products in your location, we would be pleasure to give service to you. You can contact with us via Link hidden: Login to view or in this web page.

Thank You


fudjj
Site Admin
  • Posts: 6433
  • Joined: 27 Jul 07
  • Karma:
26 Nov 17 08:26:39 pm
Hi Don and welcome to the forum,

In regards to your eBay/Labs question, eBay is a very complex market to work in and can be extremely hard to understand for new inexperienced sellers. The first thing to really come to terms with in regards to eBay is that it's more of a wholesale market, rather than a retail market, as many new sellers believe it to be.

What I mean by "wholesale market" is that the majority of prices you will find on eBay are marked at wholesale, not at retail. This happens for various reasons. I'll run through some of the main ones below.

Competition: When we're talking about eBay, especially eBay USA, then we're talking about one of the most competitive online markets in the world and that's down to drop-shipping mostly. The vast majority of drop-shippers in the world, no matter where they live, will be selling on eBay USA.

The huge market potential draws sellers to it and of course, drop-shipping makes it easy for anyone, anywhere to access that market.

So now you have a marketplace full of drop-shippers from all over the planet all selling pretty much the same things and of course, all competing against each other in the process. Competition on that size scale has the effect of pushing profits to an absolute minimum as sellers get more desperate to make sales.

You also have to look at where drop-shippers are located as well, for example, someone living in India (for example) may accept making as little as 0.50cents profit on an item to get the sale. Now, most would consider 0.50 cents as not worth the effort, but remember, in India that 0.50 cents USD holds a lot more value than it does in the USA itself.

So you have multiple market factors affecting that eBay market just considering Drop-Shipping alone.

Now add to that mix, large volume sellers. Those cashed up enough to be able to either buy in wholesale volume (which of course, provide better prices than Drop-Shipping) Some may even be buying directly from manufacturers and then you also have actual wholesalers and manufacturers themselves using eBay as their own sales platform, squeezing out any middlemen and selling direct to the public at wholesale price.

So now you have even more market price compression, but it doesn't end there.

Now you also have sellers using marketing techniques such as loss-leading (selling products at cost or below) in an effort to get the sale and then use those sales to market their own website for future sales potential, so in essence, using eBay as a market tool to promote their own website.

Now, believe it or not, that's really only scratching the surface as to how complex the market is on eBay and just how difficult it is to get a foothold, most especially with Drop-Shipping.

Can it be done?
Absolutely, but it takes a lot of research and the areas you will usually find best for Drop-Shipping tend to be the slower moving markets. I see a lot of new sellers wanting to get into the market by Drop-Shipping the hottest selling items, but what they don't understand is that the hottest selling markets are full of the big chased up sellers who buy in large volume, then cut their margins to sell cheap and dominate those markets, leaving no space for Drop-Shippers to breath.

So yes, eBay can be used for Drop-Shipping, but it's important to understand the market your dealing in and all of the forces at play and then anyone who is ultimately successful will usually spend many, many weeks and months researching.

So this isn't just a walk up and start type of business, takes a lot of understanding, a lot of research and a whole lot of graft. If you're prepared for all those three things, then you give yourself the very best chance of ultimate long-term success.

I hope that gives you some insight into how the eBay market forces effect prices and why many prices on eBay are already lower than many supplier's Drop-Ship prices.

You also have to bear in mind that while eBay is certainly popular with online sellers, there are still many other avenues outside of eBay and online in general that suppliers service. For example, storefronts, markets and so on, so not every supplier is going to be able to give you prices to compete on an eBay, especially with Drop-Shipping, which already have very small margins for the most part.

Cheers


Mark (fudjj)

Community Manager
SaleHoo.com

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juanico1404
Full Member
  • Posts: 2
  • Joined: 06 Oct 17
  • Karma:
5 Dec 17 11:39:59 pm
hola a todos he tratado de buscar dropshipping pero no he podido encontrar ya que mis dropshipping serian mis primeros competidores y no tengo margen de ganar, me interesa articulos de belleza accesorios por si conocen de algunos dropshipping

gracias


shane_salehoo
Site Admin
  • Posts: 644
  • Joined: 10 Jun 14
  • Karma:
6 Dec 17 04:50:29 pm
juanico1404 wrote:hola a todos he tratado de buscar dropshipping pero no he podido encontrar ya que mis dropshipping serian mis primeros competidores y no tengo margen de ganar, me interesa articulos de belleza accesorios por si conocen de algunos dropshipping

gracias


Hello, please find below some dropship suppliers for beauty accessories and related merchandise:

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To find specific products on the other websites, I recommend using the search function or browse through their categories. The prices listed on the suppliers' websites are mostly in retail so contact them directly for their dropshipping price.

As you are probably well aware of, dropshipping is not the same as wholesale in terms of pricing and the profit margin you can have. Rather, it allows you to test a market without too much risk, and expand your product range without having to invest heavily in stock.

Just a tip and for future reference, should you request any assistance for supplier searches please start a thread here: Link hidden: Login to view

Hope this helps and all the best!


 

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