Why Bother With Dropshipping?

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fm1234
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Joined: 14 Dec 05
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10 Sep 07 06:13:25 am
Hasn't dropshipping pretty much jumped the shark at this point? I mean, it seems I have heard maybe one story in a hundred of people trying to set up dropshipping arrangements that actually work out and make money.

Decades ago dropshipping was a great idea; in the age of the Internet most of the dropshippers you find are simply buying from the same wholesalers you won't, then marking the product up and either charging exorbitant fees or a membership fee (or both!)

Maybe I'm just jaded, but what possible benefit can be had from dropshipping?

'No minimum order' is kind of a silly one if you're making $ 0.75 per order after all the fees.

'They handle the shipping' is at least a legit service, but there are lots of legit services that do this, often cheaper than a dropshipper -- you just have to stock them (I recommend checking out Link hidden: Login to view which is part of Amazon.com's business services division.)

I guess I'm just not seeing it. It seems like a giant waste to me, a sucker bet for newbies.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
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jimmy_huber
Posts: 2867
Joined: 11 Mar 10
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10 Sep 07 07:08:16 am
your right, the market for dropshippers has declined because the real dropshippers are basically gone and they have been replaced by greedy companies that prey on those that want to make money.


Link hidden: Login to view by SaleHoo
Full Member
fm1234
Posts: 838
Joined: 14 Dec 05
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10 Sep 07 05:15:15 pm
Some legit distributors (like DBL) dropship, but I think you've hit the nail on the head: the dropship business by and large is nothing to do with wholesaling products and everything to do with selling memberships and 'handling services' to the uninitiated.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
Free Member
victortaylor
Posts: 4
Joined: 01 Oct 07
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1 Oct 07 10:36:56 pm
I'm new to dropshipping and selling products (have been providing bespoke web design services for a few years but want to sell 'products' now)...

With zero capital, dropshipping seems like a great opportunity. Aren't the companies here on Salehoo legitimate and worth using?
I've just joined, expecting to find dropshippers who don't charge membership fees etc.


Isn't it at least a good way to get off the ground? There are products that will make you more than $0.75.

Do you have any advice for a newbie with no capital?

Full Member
fm1234
Posts: 838
Joined: 14 Dec 05
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2 Oct 07 03:36:08 pm
Dropshipping as a concept is a great idea; the problem with dropshipping in practice is that the industry has filled up with b*s suppliers thatare all working off of the same manifests, offering prices on which you cannot make a decent profit. Many charge huge membership fees and some charge ongoing fees for access to the inventory.

These companies, regardless of how they are being packaged, are not offering any serious opportunity to entrepreneurs; all they are doing is suckering newbies into doing all the marketing for their products for them.

So I guess that the advice on dropshippers is not so much 'avoid at all costs' as it is 'do lots and lots and lots of homework.'

There's no such thing as 'starting with no capital.' Your time is capital. You'll probably pay listing fees and such at an auction site, spend time and money on building your knowledge base (you bought a Salehoo membership) etc. Your capital is already being invested in this, and you need to guard it jealously against companies that are just looking for someone else to do their marketing for them for free, or even worse suckers who will pay those companies for the privilege.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
Free Member
f-opflopsally
Posts: 2
Joined: 02 Oct 07
Karma: 
3 Oct 07 01:39:18 am
I'm new to dropshipping and selling products (have been providing bespoke web design services for a few years but want to sell 'products' now)...

With zero capital, dropshipping seems like a great opportunity. Aren't the companies here on Salehoo legitimate and worth using?
I've just joined, expecting to find dropshippers who don't charge membership fees etc.


Isn't it at least a good way to get off the ground? There are products that will make you more than $0.75.

Do you have any advice for a newbie with no capital?

Free Member
victortaylor
Posts: 4
Joined: 01 Oct 07
Karma: 
13 Oct 07 09:30:24 am
I've discovered 2 UK dropshippers that sell stuff that would fit my idea to sell 'giftware'.

One of them charge

Full Member
iluvmykids
Posts: 48
Joined: 06 Apr 06
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10 Dec 07 10:54:21 pm
Have you made any money.???? Any luck with this dropshipper?


[quote='victortaylor':15424ac8]I've discovered 2 UK dropshippers that sell stuff that would fit my idea to sell 'giftware'.

One of them charge

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