Fees, fees, and fees - Oh my!

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  • Joined: 23 Sep 13
  • Karma:
9 Oct 13 03:12:19 am
Hey everyone!

So I started dropshipping some products on ebay this month and to my pleasant surprise I sold 7 products within these past couple of weeks! Yay!!! I figured out after all of the ebay and pay pal fees that I have made a profit of just over four dollars! Anyone else find this ridiculous or having the same challenges??

Thanks everyone. :)

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  • Joined: 25 Sep 13
  • Karma:
9 Oct 13 05:10:16 am
I sell on eBay acquiring my own product via wholesalers and I'm exhausted. I thinking of using drop shippers since I live in Okinawa, Japan. So you find drop shipping so expensive that it's not worth doing?


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  • Karma:
9 Oct 13 07:13:39 pm
@MTL, yours is a classic tale of dropshipping "success" -- in almost all cases, even when you're winning, you're just getting the bronze medal rather than the gold. I don't know why dropshipping gets recommend at all, frankly. The "no cost" aspect of it has obvious appeal, but the reality of a "no cost" startup is that those costs were borne by someone else, and will be paid before the seller makes any money, usually in the form of much higher than wholesale pricing.

If you can't afford to buy wholesale, try affiliate marketing-- you are building sales skills, making comparable (or even better) margins than you will dropshipping, and can keep looking for good wholesale suppliers as you go rather than getting bogged down with the penny ante crap that most eBay dropship operations comprise.


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

--J.J. Luna

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  • Karma:
10 Oct 13 03:47:56 am
That is why I have decided to not use ebay. It just seems to be a race to the bottom to see who can sell the cheapest and of course that will be the wholesalers who sell for prices that most could never afford to sell for.

As for fees in general I guess you need to mark that into your price to cover it. Which is once again why I will not be using ebay the race to cheapness would mean that hardly anyone can make money. I have also noticed many wholesalers listed here are not genuine wholesalers as they sell to individuals. They are actually our competition and by giving them money we are actually making it harder on ourselves. I say if they sell to individuals we should not buy off them.

The rule is manufacturers sell to wholesaler and wholesalers sell to retailers and retailers sell to end customers. Not wholesalers sell to end customers therefore undermining retailers.

If all online retailers refused to do business with wholesalers who also sell to end customers at the same price or pithily sales tax off I can guarantee they would stop the business. The online retail stores are their biggest business.

But paypal fees, shipping fees, import fees I will be adding to my price. I have priced some items from China and yes they are always from china to be priced fair enough and compared them to online stores (not ebay). I have found that yes I can in some cases make a profit.

For example a Corset selling from a chinese wholesaler for $8 found the same one selling on an online store for 58 dollars I think I could get the costs in there and still make a little profit.

I have also thought of a way to include shipping without making it appear to dear. As I have learned shipping costs must be past on to the customer but the trick is to magically make them believe they are not paying it or they are getting it very cheaply. It is all an illusion.

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  • Karma:
10 Oct 13 02:57:33 pm
Hey everyone, thanks for replying to my post. I realize that with any start up business nothing comes for free so to speak and there is a lot of hard work and dedication that you need to make this work. I'm a real estate broker here in Montreal and I have a TON of competition with my career and I have not given up on that yet just seeing if I can make this online business work along with my career....why not right?!!
@lepearl yes, the shipping can kill the profit margin! That's why you need to find that diamond in the rough wholesaler to give you that larger profit margin that can absorb some of those killer shipping fees.
At least this forum has good people on it giving their honest opinions and advice to help out their fellow members!


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