How to profit when drop shippers compete?

Hello Everyone,

Here's my observation: I have searched and found a few of what I believe to be good, legitimate wholesale drop shippers (some are in categories for which there are just no suppliers in Salehoo yet). I've even had Salehoo help me out by verifying their legitimacy. I haven't opened an account with any of them yet (though I have my sales license and am ready). But, some show prices on their websites, when giving things like "example check out carts." When I go to Amazon and/or eBay, I find their products listed, either by them or their manufacturers, for the same price they sell them wholesale - or even worse - lower.

Here's my thinking: If they represent both the wholesaler link in the chain and the retailer link (my link) in the chain, they, having much more money than I have and lower costs to pay, will undercut me and make it impossible for me to gain traction/get profits. Their claim to be a wholesaler/drop shipper seems fake to me when I find this happening.

Here's what I want to do: I need to work drop shipping in order to build enough profit to buy in bulk for wholesale discounts, probably use a fulfillment center, then design my own website, and eventually (possibly) open my own warehouse(s) to ship it out. Some of this is down the road and will require me to keep building and learning to get where I want to be.

Here's my question: I know competing wholesalers/drop shippers is common, because I've read Marc's posts and other material. I've read much of Salehoo's training material and found it very useful. But, I want to know how to profit with drop shipping, despite this apparent dilemma.

Here's my disclaimer: Maybe it's simpler than I'm thinking. Maybe my thinking is a little wrong. Whatever the case, feel free to correct any of that. I'm trying to learn.

Thanks a bunch!!

Hi Brandon,

You've identified one of the real issues with some supplier today and it's not a simple one to counter, especially if going up against a wholesaler, but perhaps this idea is something you might consider.

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Cheers

Thanks a lot, Marc. Followed your link and the one Richelle posted in your post. I see this can work. The fact that it is not easy seems to be one of the things that puts those willing to work at an advantage.

If it were easy, everyone would be doing it. But, if it were impossible, we wouldn't be talking.

Bundling, unique niches, adding great value and quality, lots of research - sounds good.

Appreciate it!

Cheers Brandon, you've got the right attitude and that makes up a large percentage of any success!