Dropshipping Profit Margins - How can these be maximized?

Free Member
leonlevin
Posts: 9
Joined: 24 Mar 10
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11 Feb 11 12:51:43 am
I saw a very difficult competition on ebay So I thought try
open online shop in israel and sale women and man brands
in israel ,
i can sale in 30%-45% or even more from price the in ebay,BAT I still can not find good droopshhiper.
for exsample armani AR0547, AR5866, AR4602... sport mens watch on ebay complite list from 80$-150$
in israel 350-550$ .....tiissot and mor
ITS NOT SERIES BAY ONE BY ONE FROM EBAY SALERS AND OPEN ONLINE SHOPE.....
loking for -prada ed hardy, louis vuitton,gucci,polo , Abercrombie....
clothes watch bag sunglasses....
{I saw some sales closed on good price for me, bat its not one sopplyer its to dispersed ] CAN YOU HELP?
i can pay 2000$ in Advance and start bay or droop shhipe when i have order in my
store ....
Why so hard to find droop shhipers or Wholesaler in good price , if its sales on same price on ebay
can you advice me....
thanks leon

Site Admin
richelle_salehoo
Posts: 5226
Joined: 20 Oct 08
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11 Feb 11 04:38:00 am
Hi Leon,

Welcome to the forum :)

To get the better margins especially for brand name items it is best to go directly to wholesalers. Dropshipping is a great way to start but you will often be left with little to no profit after all the fees.

I'll try to do a supplier search for you but I cannot promise you the margins you expect.

Talk to you soon!


Richelle

Customer Support Manager
SaleHoo Group Limited
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Site Admin
richelle_salehoo
Posts: 5226
Joined: 20 Oct 08
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15 Feb 11 04:08:43 am
Hi again Leon,

Here are a few suppliers that may have the brand names you are looking for -
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Also, you might find this thread helpful - Link hidden: Login to view

Hope this helps you in comparing prices so that you can choose the one best suits your needs.

All the best! :)


Richelle

Customer Support Manager
SaleHoo Group Limited
Sell more with your own professionally designed and search optimized e-commerce website. Check out Link hidden: Login to view now!
Site Admin
fudjj
Posts: 5911
Joined: 27 Jul 07
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15 Feb 11 08:15:41 pm
Hi Leon, welcome to the forum.

The subject of eBay prices is something we discuss quite a lot here on the forum, and you will find plenty written as to why the prices are as they are so I won't go into great detail about it.

EBay prices reflect a wholesale price for the most part, they are not retail prices that you would find in a walk in store. This is essentially because eBay is now used by wholesalers and drop ship suppliers as a sales avenue themselves.

Many will sell products to you as a supplier and then sell against you on a site like eBay to increase their trade, of course they can afford to sell at a price that they have just sold to you at, and in some cases much lower if they are moving good numbers of stock as they can build a volume discount into their prices.

As Richelle has said, wholesale is your best bet, but high volume wholesale is your best bet. You're not just going up against mum and dad sellers on eBay anymore, it's become a massive platform for large business to make money through, and these guys don't mess about buying one item at a time from a drop shipper, they buy container loads at a time to ensure the best possible price, then cut their margin wafer thin to sell turnover.

It's not the same for all products, but that's the challenge with eBay these days, very hard to just turn up and make good money, you need to research and find markets that aren't over exploited.

In regards to drop shipping, their are many that do make money from drop shipping, but that is usually based on a high number of products listed, the more you list the more chances you have of hitting a sale type of thing. This can be a risky strategy as you still need to be competitive with what you offer and there are no guarantees of sales.

If you want to stand out from other drop shippers and the suppliers themselves, maybe consider offering bundled products. Find 2 or more items from a the same supplier that compliment each other and list them as the one sale. What this will allow you to do is drop your margin on 1 or more of the items and make your margin on just 1 or 2.

What this will mean is real terms is that you will be cheaper to buy all these items from you rather than buy them individually from someone else as when listed individually, they will each carry a margin.

You do have to know your market and you would have to know what products to bundle together for this strategy to work, but eBay shoppers look for value above all else, provide them with that and you are in with a chance!


Mark (fudjj)

Community Manager
SaleHoo.com

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Full Member
planes
Posts: 839
Joined: 19 Jul 07
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16 Feb 11 12:50:16 am
Fudjj makes good points as usual. What you might want to consider is selling items which are not the same old thing you see on eBay. For example, if everyone is selling plastic containers nothing really stands out. You look down the item listings and you see basically the same thing over and over which makes it a game of who has the lowest price and or the color one wants.

Most of the traffic will be diverted to the biggest sellers who have been on eBay for years and have 20,000 feedback etc... . They have a lot of repeat customers.

So to make money, one needs to sell a plastic container that separates them from the pack. Maybe it has a thicker wall for storing heavier stuff or is multi colored. Something that attracts and gives more profit.

Sometimes its the packaging or the story behind it.

Free Member
leonlevin
Posts: 9
Joined: 24 Mar 10
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18 Feb 11 10:48:05 pm
Thanks for your response But I noted that I do not want to sell on ebay
and i want open online shop in israel { The prices here are very high,And it is possible to nake profit }
Where can I find good wholesalers

Site Admin
richelle_salehoo
Posts: 5226
Joined: 20 Oct 08
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20 Feb 11 10:29:33 pm
Hi again Leon,

I posted several dropship suppliers for you - Link hidden: Login to view

Please check them out they may have what you are looking for. Brand name items are not the cheapest things to sell online, they often come with a hefty price even at wholesale.

All the best!


Richelle

Customer Support Manager
SaleHoo Group Limited
Sell more with your own professionally designed and search optimized e-commerce website. Check out Link hidden: Login to view now!

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