Sourcing Drop shippers

Full Member
cesione
Posts: 1
Joined: 21 Nov 16
Karma: 
21 Nov 16 08:31:40 pm
I new to the e commerce community, and i am have a hard time finding the right fit for a drop shipper. I am looking to sell on amazon. the drop shippers i have looked into, do not offer a healthy profit margin especially after taking out amazon fees. My question can anyone recommend a cheap drop shipping service, which have good quality products and customer service. I am currently looking into pet products and consumer electronics.

In the future, I plan to go into beauty products, where i can use my own brand name, I don't know if this would be possible while drop shipping. Any advise would be appreciated.

Site Admin
fudjj
Posts: 5913
Joined: 27 Jul 07
Karma: 
21 Nov 16 11:07:12 pm
Hi Chikezie and welcome to the forum,

While dropshipping has its benefits, good profit margins usually aren't one of them unfortunately. You'll find margins on most products with dropshipping are very tight and leave very little room after fees are subtracted with the majority of products. The only time you tend to see any real decent margin on a dropshipped item is when you are dealing direct with the manufacturer themselves, but those are very rare because most manufacturers won't dropship.

The ones that usually will offer dropshipping are smaller start-ups because they are trying to get a foot hold in the marketplace and see dropshipping as a way to increase their footprint quickly and effectively, while saving themselves on marketing expenses. Nothing wrong with that of course, it's a very symbiotic relationship, they are just hard to find and even when you do find them, it doesn't take long for others to also find them and then you end up in a price war with your competition, which of course pushes the price down and there goes your margin again.

I don't want to make it all sound like doom and gloom lol, but it's a market where you really need to have realistic expectations. The way most people make profit from dropshipping is through volume sales. The more products you have in the marketplace, the more your chances increase of getting sales and multiple sales with minor margins can equal decent a margin over all.

So it's margin you are really wanting out of dropshipping, volume listing is probably a good avenue for you to consider. That said, it's not as straight forward has just racking up listings, you still need to do your research to make sure you're competitive or those listings can just sit there and do nothing.

You also need to be aware of listing fees with this strategy because multiple listings equal multiple listing fees and those can add up quickly and bite you hard if the sales aren't following to cover those costs.


Mark (fudjj)

Community Manager
SaleHoo.com

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