Dropshipping - Return On Investment

Full Member
asi
Posts: 6
Joined: 15 Jul 13
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5 Nov 13 12:16:43 am
Hi everyone

I have a problem with that system cos where ever i checked for products
to sell ,it looks like not enough ROI

the companies offer between 5%- 20% discount for any product
witch turns out to be a very small profit!!!!!
some of them even want you to pay a fee every month (20-50$) for those discounts!!!!

I don't get it !!?? to me it looks like it's not worth it, so, i haven't done anything so far
and really want to!! just don't wanna waist my time for nothing

Please tell me what should i do cos i'm lost with this entire system

Tnx

Site Admin
fudjj
Posts: 5919
Joined: 27 Jul 07
Karma: 
5 Nov 13 01:04:39 am
Hi asi,

As a general rule, no Drop Shipping product is going to have a very big margin, especially when marketing through sites such as eBay. Massive competition keep margins right down, the more popular the product, the less the margin usually There is pretty much two models sellers use for Drop Shipping, the first being to find more niche markets. That is a market that has buyers, but is currently under supplied. Not easy to find, usually requires taking on some oddball products to do some test marketing with.

Option 2 is to mass market. That is is to take on quite a lot of products at a very thin margin and work on volume turnover to create profit.

Either way, you really do have to do quite a bit of research to give yourself the best possible chance.


Mark (fudjj)

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Full Member
asi
Posts: 6
Joined: 15 Jul 13
Karma: 
5 Nov 13 09:23:55 pm
Hi

So as a start would you recommend me to deal with higher roi products like tv's or laptops etc...???

and let's say i wanna deal with small roi products but lot's of kinds, it's kind of scary when you don't really know how the supplier is
going to deal with you

Tnx

Site Admin
fudjj
Posts: 5919
Joined: 27 Jul 07
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6 Nov 13 05:41:21 am
Maybe I've mistaken what you mean by ROI. If it is as I thought, Return On Investment, electronics of any kind would be the last thing I would recommend. Margins on consumer electronics are typically low to moderate at best, combine that with Drop Shipping prices and competition in the electronics field, and your chances of any sort of decent return are minimal I would suggest.

I can't really suggest any product, it's only something you're really going to find by researching. You have to balance the size of the market, your competition in that market and the the best suppliers to source the product from. That's the only way you're really going to be able to guage where you will have a chance at the best possible return on investment.

Just bare in mind that there is very little investment with a Drop Shipping model. The only out of pocket you are is the advertising fee.


Mark (fudjj)

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SaleHoo.com

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Full Member
asi
Posts: 6
Joined: 15 Jul 13
Karma: 
6 Nov 13 09:43:45 pm
Hi

so how would you suggest me to start (ebay,amazon,website,etc...)?

should i start with cheaper products but more kind?

it looks like every product is already selling and has competition so
how should i do the research market the best way?

Tnx

Site Admin
fudjj
Posts: 5919
Joined: 27 Jul 07
Karma: 
7 Nov 13 03:06:03 am
I think platforms like eBay and Amazon are good for mass market exposure, but the long term aim should be to develop your own independent site for sure. For now, I would suggest narrowing down some products and start doing some basic research by checking what competition you have on eBay, Amamazon or where ever you are going to market.

Check to see what your competitors are offering on your chosen products and then match those prices against suppliers to see if there is an opportunity. Remember, always take your listing fee and successful sales fee into consideration when doing your research on product prices.


Mark (fudjj)

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SaleHoo.com

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