struggling to find a profit in drop shipping electroics

Hi this is Joshua Jones I'm repeatedly running into the same situation, wondering if anyone can help me! I obtained a business license in hopes of become a drop shipper in the electronics category. I've searched for over a month and consistently run into the same issue, low or non existent profit margins!

I've spent weeks applying to dozens of different distributors only to find out that there pricing does not allow me to even turn a profit on ebay. I've read that ebay has basically turned into a whole sale site and the only way to be competitive is to order in bulk. What are other selling platforms that are profitable for someone new to drop shipping?

I don't have a ton of capital to invest into inventory, my selling preference would be phone, tablet, laptop accessories, blue tooth devices, gadgets but I am open to selling just about any type of electronics/accessories. I've landed quite a few accounts with varied distributors only to find out I can't compete. Does anyone have any suggestions for distributors that allow drop shipping or distributors that sell mixed lots with a moq of around $500 that I could turn a profit on?

I see the potential of e-commerce but I'm seriously struggling any points in the right direction would be greatly appreciated! One last thought on the subject. Is it the that I've chosen to pursue selling electronics the reason I'm struggling so much? it seems the electronics category profit margins fail to produce with drop shipping, name brand or off brand, Is a $1 - $3 an acceptable margin??

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Thank you for your reply I will look into it!

Hi Joshua and welcome to the forum,

You've really got a few things in play here and you've pretty much identified some of them in your post. For all intense and purposes, eBay has pretty much evolved into a wholesale site, that doesn't mean you can't make money through Drop-Shipping, but it does mean that you've got to be smart about it.

The category you've picked, electronics, is a HOT market and HOT markets mean quick turnover on products because of the popularity of the products. Now, if you're a cashed-up reseller buying in large volume to ensure you are at the top of the barrel margin wise and you have all this stock to clear now, what market would you want to be selling in?

It stands to reason that cashed-up resellers swarm over hot markets because they need to sell all that stock they have purchased as soon as possible. So now what you have is a market full of cashed-up resellers, playing with wholesalers themselves, all cutting their margins down to try and clear stock, making their profit on fast turnover.

Drop-Shipping has its advantages, but high-profit margins, like those you may attain with large wholesale buying, don't exist in the real world. So do you see the picture unfolding here of what you are going up against in the market and the marketplace you have chosen to deal in?

You've picked a super popular road for Drop-Shippers as many want to move into that same market, but you've got some serious work cut out for you to make it in a market like that when you are up against the type of sellers you will be competing with.

Drop-Shipping has its place and that place is where the big fish aren't fishing. No one wants to outlay cash on stock that is a slow turnover. Especially not when there are fast turnover markets available to them to take advantage of,

So what does a smart Drop-Shipper do?

It's just my opinion, of course, and I am NOT a Drop- Shipper myself. But if I were, I would be fishing in the pond where the big boats weren't, not where they were. Yes, much slower markets, but when you're Drop-Shipping in those types of markets, it's about identifying as many of them as you can to create your turn over that way, rather than have all your eggs in the one basket that is being raided by Foxes right under your nose!

Just something to consider in moving forward in your venture :)

Hi Joshua,

We are Neo Innovations, suppliers of tattoo related electronic products: Tattoo Needle / Ink Depth Tool and Tattoo Removal Products. We dropship and offer wholesale prices for those who may be interested.

We charge $119.00 for our Tattoo Needle Ink Depth Tool. You can charge $15 - $20 extra on eBay and we'll take care of the shipping. This is just one example of how we could work together when it comes to eBay.

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I'm the marketing manager of E.P.Light. If you are interested in drop shipping, please feel free to contact us. Also our product is unique and brand new on Amazon, eBay market and we could help you upload product on Amazon/eBay/Shopify by one click.

Your profit margin is up to 50%

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