Each and every day I get folks asking me why dropshipping is not good for eBay and every single working day I give them the same list of five factors. So, I considered I would publish it as an post so every person can understand. Below are the five reasons eBay sellers ought to stay away from dropshipping (in reverse get).
#five – Out of Inventory Equals Poor Opinions
Dropshippers often operate out-of-stock on popular things. This implies that following you sell the product on eBay and then go to your supplier to have the merchandise dropshipped you find out that the product is not in inventory. You then have to notify your customer the undesirable information and will generally get some poor comments in return. The eBay community forums are crammed with sellers who have been wrecked by the bad comments they acquired by trying dropshipping. They are also stuffed with issues from buyers who did not receive the merchandise they ordered because the vendor was employing a dropshipper — and after the sale informed the buyer that the product was not accessible.
shopify mentor – PayPal Will Maintain Your Funds
About a yr back, in January of 2008, eBay and PayPal issued some new procedures. A single of which is to set a Maintain on money. Listed here is the quotation from eBay’s coverage:
“In a tiny proportion of situations the place it has been determined the chance of dissatisfied customers is higher, PayPal could delay launch of the payment cash to the seller till the purchaser has still left a positive feedback or 21 days have handed without a dispute, assert, chargeback or reversal submitted on that transaction.”
Any new eBay seller who tries making use of dropshipping as a approach for sourcing their merchandise will find that they are not able to accessibility their cash right up until after the product has arrived at their customer’s doorway. This eliminates a single of the most attractive factors of dropshipping – the ability to promote a merchandise and THEN use the buyer’s payment to fund the buy. With PayPal holding your cash for 21 times this will not be achievable.
#three – Direct from the Resource Competitors
This is a reasonably new phenomenon that has appear about by the modern explosion of “immediate from China” dropshippers. Just set, this means that many of these dropshipping businesses are really promoting the products on eBay right by themselves. They are “double dipping”. While they supply a web site that will dropship merchandise to your eBay buyers immediate from China, they are also promoting the exact same goods on eBay by themselves. To witness this a single only demands to seem in the electronics group on eBay. Numerous of the listings have the item area demonstrate Hong Kong or some other place in China. Of course, the dropshippers themselves are competing with their clients.
#two – Earnings Margin is Below $
That is not an error. The revenue margin you will face when making use of dropshipping to market on eBay is most usually zero. Nothing. Nada. In truth, most people who very first attempt utilizing a dropshipper to provide their eBay merchandise end up getting discouraged and crying “the price my dropshipper is promoting the product for is Far more than the price the item is selling for on eBay.” And they are proper. You see wholesale is all about buying in amount. When you use dropshipping you are buying just one of an product and cannot assume a wholesale price tag.
Now why paying out a little bit far more for an product could not be a large offer if you are marketing it for leading dollar at your regional store, it is a Huge offer when making an attempt to promote on eBay. eBay is a location folks go to get a deal. They do not want to pay entire retail cost, and possibilities are they can uncover the merchandise at a rock bottom cost if they just appear around eBay for a little bit. Due to the fact even if you can not promote an merchandise for the lowest achievable cost (because you are utilizing dropshipping), there are countless numbers of other eBay sellers who can. So it is correct. The value you get from your dropship provider will often be far more than the product sells for on eBay.
#1 – Dropshipping Does Not Operate on eBay
Considering the other 4 motives not to use dropshipping when offering on eBay this might seem to be clear. And it must be! The base line is that dropshipping and eBay are a poisonous combination. Although eBay is the place to market goods to folks who want a deal, dropshipping is the way to get items at the highest achievable “wholesale” value. And, whilst your dropshipper might provide thousands of products — they possibly have 1000’s of clients like oneself who are also listing the items on eBay. It basically will not work.
Effectively, I hope I have certain you to continue to be absent from dropshipping when it comes to promoting on eBay. For a lot more details on why dropshipping on eBay is a negative organization choice please go to DropShipping Sucks and read through the website page. Not only will it explain in element why dropshipping will by no means guide you to eBay success, it will also offer you you an option that operates.