this is not answering my question: i do understand very well how dropshiping works and its differences with wholeselling, but dropshipers are supposed to be selling products a lesser prices than retailers, as they are one of the middle mans, but not the end retailers, and that is the reason why people like me now subscribed to SaleHOO or other sites.
So far every single product I have seen on SaleHoo is not only not cheaper than on Amazon but more expenssive as even some double than those on amazon, so whats the point in subscribing to SaleHoo? in fact some products even have misleading information stating one is saving 1 dollar from the retail price, when in fact they are cheaper on amazon.
it sounds like I am not missing a point here but that this membership other than for wholesaling is not worth it when attempting dropshiping. I understand well the profits margins my not be as high as when wholeselling as it is logical but same prices or higher prices on Salehoo drophshippers than on Amazon? this is not making sense.
If you can explain why products are more expenssive here than on Amazon Id love to know. if not Im thinking of asking for a refund, only 2 hours after registering.
quote="fudjj"]Hi Susana and welcome to the forum,
You're confusion is something we see from many new members, so you're certainly not alone. I think this link will give you a much better understanding of how the market actually works and will explain what might be happening in this circumstance.
One really important factor to always consider with a Dropshipping supply model is that while Dropshipping offers some great advantages, profit margin is rarely ever one of them. The only way to have a good Dropshipping margin is usually buying direct from an actual manufacturer of a product because then you only have two people in the chain.
Most Dropshipping companies are NOT manufacturers, they are essentially a third party that buys in the stock from manufactures in bulk and then Dropships for their customers, so now you have 3 people in the chain and that of course means much less money to go around. From there it only gets worse, because you can have situations where another party will then buy in smaller volume from the actual Dropshgipper and then on-sell to their customers, meaning that you are now 4th in the chain and all the potential margin as evaporated along the way before you even get a chance.
So Dropsihipping can be a very intertwined network of parties and is why researching suppliers is of the utmost importance to ensure you are as far up in the food chain as you can possibly be. That said, as the post points out in the link above, Dropshipping will only ever give you a chance of competing against other Dropshippers, it will rarely, if ever, give you a chance of competing effectively against a seller using a Wholesale supply model.