Is this really dropshipping?


sunalleycreative
Full Member
  • Posts: 1
  • Joined: 22 Jan 15
  • Karma:
5 Feb 15 06:00:41 pm
Hi everyone, There's this vendor listed in the Salehoo directory with a Trusted rating from Salehoo for dropshipping. I found that their web site is their shop hosted on Shopify. Here's how they want to do dropshipping:

1. Copy their product pictures and put them into my own shop web site.
2. When I get an order on my web site for one of their products, go to their Shopify site and order the product from there, but provide my customer's address instead of my own. No discount on the prices on their Shopify site is given to me.

What do people think of this kind of arrangement? I wondered the following:

1. To make any money, I would have to add margin to their prices.
2. They are on Shopify, which means they are findable by customers. Customers could see that ordering directly from the vendor's Shopify site would be cheaper than ordering from my shop web site, so essentially, my supplier is also my competition, undercutting me through pricing.

Is this really what a drop shipper is? I was thinking that somehow I would have access to product that a member of the public wouldn't have, as some kind of reward and incentive for selling the vendor's stuff on their behalf. Is this the kind of listing that is supposed to appear in Salehoo as a "trusted supplier"?

Thanks!
Rob


fudjj
Site Admin
  • Posts: 6305
  • Joined: 27 Jul 07
  • Karma:
5 Feb 15 09:02:21 pm
Hi Robert and welcome to the forum,

Technically, that is exactly what dropping is!

Unfortunately, dropshippers competing against their own customers is fast becoming the normal. You'll find a lot trading on eBay and Amazon as well, just trading under different names. It's one of the reasons that dropshipping is getting harder and harder to compete in, you're not just competing against other sellers dropping the same product, in many cases from the same supplier, but you're competing against the supplier themselves!

Now not all dropshippers do it, compete against their own customers I mean, but the smaller suppliers will usually use what ever avenue is open to them to sell their products. Whether that's selling through brokers or selling direct to the public. It's really worth while researching as many dropship suppliers for the products you are most interested in to see where you can get the best possible deal because they are all different.

You might be confusing WHOLESALE with dropshipping, vastly different. A wholesale supplier will have better prices, but you have to be trading as a registered business and be purchasing in volume to be doing wholesale business.


Mark (fudjj)

Community Manager
SaleHoo.com

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