Drop Ship From USA Internationally

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karmachess
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1 Jan 16 07:17:43 am
Can anyone here please share your experience when it come to do DS on ebay outside USA and use USA online retail ie Wallmart and Lowes and use GSP to ship globally?

I lived in New Zealand and want to do DS by sourcing my products from USA online retail store such as Wallmart. Home Depo and Lowes and use GSP to ship it world wide. I have a few problems if i try to approach these method here are the following:

1. Since i am not in the USA the USA retailer sometime wont accept non USA paypal or credit card and the only way to get around these is to use the option of purchasing a gift coupon whether thats from the Online Retailer right away or site such as gyft.com. Even than i kept hearing a horror stories that even when you try to purchase gift coupon it only accept USA paypal/ CC. Some suggestion that i heard from the community is to use VPN to change your online physical address or using google chrome extension like Hola.

Can anyone here confirm if these really actually happen to you when trying to make a purchase and it wont allow you just because you are outside the USA? Can you share the solution other than the above if you have one?

2. Before you can make a purchase on the online shop you first need to create an account and that means you need to state your physical address and if they see you are not from the USA it wont allow you to make any purchase. because many USA online retail only ship domestically

Same question as above any solution to these like buying virtual USA address or something?

3.Is these type of DS technique is still reliable or best to use the actual supplier that are wiling to DS and dont have to face these kind of problem?

4.Is there away to hide the address where the product that i buy it from like Wallmart for example? i know the trick on using buy as gift. but is these always the case and is it always provide you that option?

5.How much did you resell the product say for example
Product = $100
Shipping = $10
Ebay Fee = 10%
Paypal NZ Fee = 4.4% + $0.30

Did you multiply by at least 40% or more? is there any extra fee that i need to include in the calculation?

Site Admin
fudjj
Posts: 5913
Joined: 27 Jul 07
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1 Jan 16 07:36:59 pm
Hi Hikaru and welcome to the forum,

I don't DS internationally myself, but I can assist to a certain degree.

Payments
Paypal and credit cards, Visa and Mastercard, are all international payment options. It doesn't matter if you were visiting the US or not, if the retailer accepts these types of payments, then you should have no issue at all using either to process your payment.

Address
Now this is a problem area, many retailers will not send internationally, however you can use freight forwarding companies such as Link hidden: Login to view as a solution. These companies provide you with a US address, so you have a registered US address where you can have your items sent and then on-sent to you.

The thing to bare in mind here is the added expense. It might be a good option when purchasing for yourself, however when you are trying to make margin on a DS product, then this is an added cost to you. So any margin you may have in the purchase can be eaten up by using the freight forwarding company.

That's something you really need to carefully examine.

The best supplier's to use
Well that comes down to where you can get the best possible deal for yourself. If you can use someone like a Walmart as you plan to, combine that with a freight forwarder and still get a better deal than a direct dropshipper can offer you, then go for it. This really comes down to researching both models so you fully educate yourself on the best option before moving forward with either one.

Hiding the address
This is a problem dealing with a non-dropshipper. Chances are that, even if you can convince them to blind ship (send you the invoice separately, not include it with the packaging itself) the packaging or item will have some branding on it somewhere.

Question 5
Well this one I can't help with as it requires personal experience to answer. That said, you should be able to work out this equation accurately enough through researching both options, then comparing your costs against wheat others in your market are selling for.

What you do need to be aware of when comparing is any import taxes that will be applicable. Now they are not your problem to pay, they are applicable to the buyer, but you need to have them in your calculations when researching your competition.

For example, you find one seller selling an item for 69,99, you find that you can dropship the same for 59.99. That looks fine on paper, but is the seller sending nationally where by there are no import duties applicable to them, but will be to yours?

Yous see, the customer will be taking that into consideration, because they will know that although your product is $10.00 cheaper at lit price, they will then have to pay duty on it, where as they won't with the other one, meaning that the other one may end up being cheaper in total.

So it's those types of things that you need to carefully calculate when doing your research to make sure you are REALLY competitive.

Cheers


Mark (fudjj)

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karmachess
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Joined: 14 Jul 15
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1 Jan 16 08:36:31 pm
Hi i am actually want to utilize the power of GSP or Global Shipping Program of Ebay for international shipping since GSP only allow products to be send using their service if it physically located within USA. So like you said if i combine it with freight forward to do DS i dont think i can make any profit with it since i send individual items and not bulk. It would be great though if i buy from wholesale and combine it with FF say from China to the USA.

Even if i try to make attempt to purchase the products by using non USA paypal/ CC they wont allow it because they not ship internationally only within USA address only. But if i send the products from Home Depo or Wallmart to GSP i can because its still within the USA address. I am not sure if i can send the products to USA FF address maybe i can but again GSP provide free international shipping but not for FF.

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fudjj
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3 Jan 16 01:20:21 am
Yes, wholesale would definitely be better option for freight forwarding. However, most wholesaler's will in fact ship international and even if they don't, it's easy enough to get your load transported to a shipping company and get them to ship for you. So there really isn't any need to work with a freight forwarder in that case.

In NZ, you could use Taurus Logistics to ship wholesale lots for you. You'll be able to get a consolidated load to NZ (shared space in a container)

You're right with the address. Paying by credit card or PayPal isn't the problem, it's the international shipping that is the problem where the supplier doesn't provide it. Yes, there should be no problems in having US suppliers ship to GSP or any other US Freight forwarder, which ever you prefer. However, if GSP offers you free shipping, then they have to be the better option


Mark (fudjj)

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karmachess
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3 Jan 16 03:56:50 am
1.So my question now is if i go to wholesale way and not DS that means first i need to buy the bulk and send it to where i lived which is NZ home address and store the product in my own garage. Than when the customer from Ebay buy my product i can just use simple shipping such as Fedex. DHL or UPS. Did i get the whole process right?. So what happen if you dont have enough space to store the product that you just bought from the supplier?. Can the WS actually store it for you in their own warehouse without charge?

2. So there is no where for me to store the goods in the USA warehouse such as Amazon FBA that way i wont have to pay double ship and it also help to automated the purchase and fulfillment and customer service. Maybe there is an option to rent the space for storage overseas but will that be convenient when you first start as it will cost alot of money for monthly storage fee? .

3.When you are doing WS that means your option of products that you can list on ebay is limited to just 1 or 2 compare to DS where you can list as much as you can to experiment which product that sell well is that right?. So how do you make sure that product that you pick to source from WS will be the product that people want to buy?. So its in the end its all about market research before attempt to buy bulk just like when you try to do private label?

4.In alibaba you can ask for sample to test the quality of the product before ordering high MOQ but how about when you are doing WS can you do the same? Is there any different between piggyback and WS from China like alibaba?. In the end its all about order in MOQ even when you are doing private label it also had its own MOQ but you can slap your own brand on it on the generic product.

5.Its WS means you buying a BRAND name and not a generic product in bulk with resell right without getting into lawsuit?. So if i buy kitchen utensil which is very generic and not dominate by brand name. What is the different than between going to alibaba and order that similar generic product. but still give you the option to put your own logo compare to WS where they only provide cheap price base on your MOQ and they give you the limitation on how much the minimum that you can sell base on MSRB?. If i buy many kind of generic product from alibaba they never require you for your resell licence or business entity. So what makes the different or benefit than between piggyback on alibaba and buying bulk from WS?

Site Admin
fudjj
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4 Jan 16 08:17:23 pm
Yep, if you purchase in wholesale you will need to store it somewhere, so if you have the space at home to do so, it's the most convenient and cost effective way. Once you make a sale, you pack the item and use whatever shipping method you want to go with. Everything from post to courier is an option for you, just depending on the dimensions of the item and the speed and which delivery is promised.

Wholesaler won't store products for you, that's essentially what a dropshipper does and there is the big difference between them. With a wholesaler, you have to buy in volume and have the order all sent together to a single address. That of course gives you storage problems and no guarantee of selling all the items you've purchased, but you get the benefit of getting the best possible price.

A dropshipper holds the stock and then sends it order by order to your designated address, so you don't have storage problems and there is no risk of having stock left over that you can't sell. But of course you pay them for that level of convenience and service, so you don't get the same discount as you do with a wholesale order, less discount equals less profit potential.

So you have to weigh up the pros and cons to each supply model to see which best suits you.

Storage space. no matter where it is, will cost you money. There is no way getting around that and then when you add a fulfillment service in (someone unpacking, repacking and distributing) for you, then you have that cost on top of your basic warehousing fees.

It's true, buying in wholesale will limit the amount of products you can list on eBay because you will have to purchase X amount of the one item to secure the best price. You could of course consider both wholesale and dropshipping by using dropshipping to add to your WS listings to give yourself a larger stock profile.

Regarding test batches, one word of advice I would say in relation to test batches is to not be all your confidence in one batch. Try to keep your MOQ (initial minimum order quantity) as low as possible, even if you're happy with a test batch. You need to see how the product stacks up over multiple sales to really identify any issues.

What, if any are the problems being reported. How many, if any, need returning for replacement or refund and how well the supplier responds to you concerns about and products. These are things that will never show up in a test batch. Yes, you might get 6 good units and then make a large purchase and find that you're getting a return per every 3 sold.

Yes, getting a test batch is always a good idea, but it's also a good idea to remain cautious until you know the product and service inside out yourself and that only comes from longer term sales, not from any test batch.

You can buy anything wholesale pretty much, both branded and non-branded items. Wholesale essentially means (buying in volume) where as Dropshipping means (buying in single item only) When dealing with a wholesaler or dropshipper with branded (licenced) products, you cover yourself upfront by asking for "proof of authenticity documentation" from the supplier, if a supplier can't do that, then don't purchase. If you are talking about buying branded items from a Chinese supplier, either WS or DS, my advice would be NOT TO DO IT.

If you want to buy wholesale from China, you can also use a sourcing company like IMEX Link hidden: Login to view They are a Chinese sourcing agent, so they can validate suppliers for you.

It's important to understand what Alibaba is, it's not a supplier in itself. It's a directory of independent suppliers. Each supplier there works on their own terms, they don't work for Alibaba itself. All Alibaba does is advertise their business's in their online directory essentially.

Have you considered liquidated (surplus) stock?


Mark (fudjj)

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Full Member
lap.phong.nguyen
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Joined: 21 Nov 16
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30 Nov 16 03:17:49 am
Hi Hikaru,

I am in the same situation as you now. I am planning to dropship in the US using Homedepot as a source, just don't know how to get around the payment option with them and how to use GSP if you are not living in the State. If you have solved all of this problem, please help me!!!

Thank you
Phong

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