Dropshippers Powersellers Hate me for revealing their Secret. I have spent hundreds of hours researching the subject of Drop Shipping and EBAY. Of course wholesalers charge more to allow you access to drop ship products, and EBay is so competitive on price, that it's hard to compete. But is it impossible? NO!

Wednesday, May 16, 2007

Here is some practical advice when it comes to dropshipping as a business.

First, Find something that you can sell in sufficient quantity to make a profit. Just because you find a supplier or plaster wishing wells, does not mean that you
can find a lot of buyers for it. If you find an item at a great price, look at the completed auctions on EBay and see if that product is selling, and what it is selling for.

Start with a fairly targetted market that you can get to know. I would find a couple of reputable suppliers in that market, research that market, and become an expert in it.

Be prepared to deal with returns. Understand how your drop shipping supplier will deal with these issues, or if you have to bear the entire burden yourself. One example: I did well selling a collapsible canoe. One thing I liked about the item is the supplier had set a Minimum Allowable Retail Price, so nobody could legally undersell me. I also like the unique product. It did sell. However, one man who bought it was very large, and he said the product would not support him and he would like to return it. The supplier would not take a return for this reason, but only if the product was broken. I had to handle the return myself, which meant refunding the client the whole amount, and then reselling and shipping. Believe me, the time, money, and hassle ate up a lot of my other profits. I'm sure you can think of ways to avoid this issue, but I wanted to protect my seller
reputation, so I ate it.

Be prepared to deal with back ordes. If you are dependant upon one supplier you may hit a back order on a popular item. One way to avoid this is to have more than one supplier for a dropship product. If only one supplier has the product, you really need to be able to watch the stock. If you do hit a snag, think of how you can handle it. You may have to inform your customer the item is on backorder, and offer
them a chance to cancel the order.

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