dropshippers for electrical goods, not middleman

Full Member
lovethygadget
Posts: 3
Joined: 17 Apr 09
Karma: 
17 May 09 08:17:47 pm
Hi all,

I am trying to find drop shippers for electrical goods; cameras, printers, etc?

i have found some DS, but their prices so high, that by the time you count shipping into it, no margin left. Can anyone help me with this?

Also, dropshippers from china. non-brand name goods. 1 yr warranty. this is the speel i have read from china. what is your experience of these?

i think i am bumping to the middle man too much.

cheers,
sagar

Full Member
aznvcboi
Posts: 54
Joined: 27 Jul 08
Karma: 
18 May 09 09:12:35 pm
Hi lovethygadget,

Dropshipper is like the middle man between you and wholesaler (ie. factory). They bought stuff from wholesaler in bulk with discount prices then resell it to you with a little bit higher price for their profit. They help you start up business without storage or warehouse or inventory cost. Good for people like us with small cash to invest.

I wouldn't recommend dropship from china because the length for delivery is long and high shipping cost.

I would recommend you try Link hidden: Login to view, [url=http://*****LINK DELETED BY ADMIN*****, or Link hidden: Login to view. You could read about them and compare! Don't rush yourself into this business or you'll pay big loss!!

Good luck to ya!!

Site Admin
fudjj
Posts: 5911
Joined: 27 Jul 07
Karma: 
18 May 09 10:50:33 pm
I've noticed that quite a few members seem to struggle with the term middleman.

A 'middleman' as the term is used, can mean quite a few things. In a traditional business structure there are three entities.

Manufacturer:- producer
Wholesaler:- distributor
Retailer:- seller

The wholesaler is the important link between the producer and the seller, ie they are the middleman!

The problem with over priced goods is not dealing with a middleman, it is when you start dealing with the next link in the chain.

For example, as the member has described above. If the genuine wholesaler for the products is not offering the drop ship service themselves, then you are dealing with a third link in the chain.

Plenty of these around to cater for those on small budgets, however you are then paying more for your products because you are now paying their profit as well.

Where this gets really sticky is where you get even more parties involved. This is where the term middleman is often used sometimes, however it should be 'middlemen'.

For example, you have the manufacturer supplying the wholesaler, the wholesaler supplying the drop shipper, but now you have another player entering the game by promoting the products of the drop shipper.

Now you have two extra players eating into a products margin, and who knows how many others?

By the time you, as the retailer, get your hands on the product there is absolutely no margin left, it has been taken up with all the other entities.

When this happens you are dealing with entities that have joined the structure way after the product got to the middle man!

Drop shippers promoting themselves as wholesalers is garbage 99% of the time. They are sourcing the products from a wholesaler at the very best, and who knows from where at the very worst!

If you're inexperienced don't get caught up with terms like 'middleman'. It has unfortunately just become an expression used to by people to indicate in their opinion that the seller is not selling at genuine wholesale prices.

It's very much like the term 'wholesale', it gets used by everybody as a marketing term when what the person is selling has already been purchased from a wholesaler in the first place!

Bottom line, 'middleman' does not automatically mean over priced.

Honestly, if you're not buying in bulk then no one is going to give you a wholesale price, and it's quite simply unrealistic to expect that you can buy one or two items at the same price as someone buying 100's at a time!


Mark (fudjj)

Community Manager
SaleHoo.com

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