How to find dropshippers that i can make a profit with?

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jplautz
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13 Aug 16 04:14:35 pm
I'm not sure if there is one single dropshipper that has low enough prices to make a profit and if I do find something to sell with a low price no one wants to buy it.


Last edited by fudjj on 14 Aug 16 06:23:16 am, edited 1 time in total.
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nobodypanic
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21 Aug 16 07:54:34 pm
I think the trick is not selling on places like ebay or amazon, but to work your own online store. Of course I am finding that a challenge based on how some of these dropshippers have their data set up. They just dont import well in to a store database with just really poorly set up and inconsistent categories and sub categories . And 2 of them I have been dealing with dont seem to understand why I would need both the normal selling price as well as the sale price in the data (if it is on sale of course).

Would love to hear other peoples thoughts on this as well

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fudjj
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21 Aug 16 09:53:24 pm
That question really comes down to how much profit you want to make?

Dropshipping has its advantages, but making a very healthy profit usually isn't one of them, especially on platforms like eBay and Amazon where you are up against some very stiff competition.

That said, if you want to try dropshipping on the big platforms, then you might try a marketing stratgey like bundling, read more here Link hidden: Login to view

As NP suggests, selling through your own site is always going to be the best option because you have less fees to consider and less competition. Of course it's not as easy as just setting up your own site, you need to have a very good plan to drive traffic because you can fill your own site up with great value products, but if you don't have the traffic, then you won't have the sales.


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youshopsales
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22 Aug 16 12:06:30 am
Hello, new to SaleHoo!

Regarding this topic and especially the last couple of posts.

I have been selling on Ebay for some time now and wondering if it would be in my best interest to first purchase an item in small quantity and make sure it sells then first, then drop-ship the item as not to tie up my money in inventory?

In this model I could sell a lot of different items to make up the difference in profits for holding inventory.

Thanks
Katie


Last edited by fudjj on 22 Aug 16 12:47:35 am, edited 1 time in total.
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fudjj
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22 Aug 16 12:45:14 am
Hi Katie and welcome to the forum,

Most people do it the other way, use dropshipping to test market products and then if they find a strong product, then they will stop dropshipping it and move to a wholesale model and buy in stock. Of course the advantage of buying in wholesale is a cheaper price than dropshipping offers you, so you're making more margin that way.

A big problem you might find trying to test market in this way is that you may well get stuck with stock that isn't selling at all well, so then you have your money tied up in inventory that you can't move or that you may well lose money needing to move cheaply to regain cashflow to move froward. So it could have the exact opposite effect as to what you are trying to do.

I wouldn't recommend doing the way you are suggesting personally. Yes, you won't have your money tied up in inventory, but you won't have the same profit margin per sale either and loosing margin on a platform like eBay is crtitical to success. You really need as much margin as you can get to insulate yourself from competition when or if ever needed.

Cheers


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youshopsales
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22 Aug 16 04:50:14 pm
Thank you Mark for the insight on this matter. One way or another this is going to be successful.....

Katie

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fudjj
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22 Aug 16 06:40:57 pm
Good attitude to have Katie, good luck with it :)


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jplautz
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24 Aug 16 02:43:26 am
I would just like to find a product I can sell a bunch of and make a small profit on each sale but it seems like whenever I find a product and research it online there are people who I can't compete on the price with. I was sent some info on getting a tax Id# telling me the prices are better but I'm just starting out and I don't want to mess with getting that. I just want to make sure it's possible to make some money with drop shipping before I go to the next level.

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fudjj
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24 Aug 16 02:52:16 am
Hi Jeremy,

E-commerce itself is a super competitive business to be in and dropshipping is probably the most competitive part of it because of the easy no up front or low upfront cost. Having a tax id will unlock access to wholesale prices, but they are all based on volume purchasing, so if you don't have the cashflow available to meet wholesale MOQ amounts, then even a wholesale account isn't any use to you.

Best advice I can give witj dropshipping, stay away from saturated markets and concentrate of finding products that might be much slower movers, but still have a market. If you can find enough of those types of products then you give yourself half a chance.


Mark (fudjj)

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jplautz
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24 Aug 16 02:56:06 am
So pretty much what you are saying is drop shipping is not a good idea at all if you want to make any money?

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fudjj
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24 Aug 16 03:55:52 am
I really don't know how to answer that.

People do make money from dopshipping, but of course the potential to make more from wholesale is there simply because it provides a much better purchasing price. However, you also then have to consider the complexities of wholesale, which include tieing up your cashflow, holding stock and then being in a position of having all this stock that may all of a sudden get very difficult to sell if the market changes, which it quite often can.

So yes, wholesale gives the best potential for making money, but this is a business and it doesn't come with any guarantees.

Dropship can't compete with wholesale in most areas, but the advantages are that you retain your cashflow and you are not stuck with stock if the market turns sour.


Mark (fudjj)

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