Dropshipping

suewtt

I was wondering if anyone uses a dropshipping company?
Do you make any money from it and is it easy?
And which company would you recommend?

Artofdookie

I used to but theres very little to no money in it. If youre using ebay as your outlet youre wasting your time, its flooded with all the same items at the same price. After listing and selling fees you were lucky to clear 5p on dvds and cds BTW the rrp they quote are WAY out of line

suewtt

Oh so would it be better to buy from a wholesale and sell things that way?

Artofdookie

You need to buy so many of each item to get decent discount and by the time you add vat on at checkout theres not a big mark up.

geordie_joe

suewtt wrote: »

Oh so would it be better to buy from a wholesale and sell things that way?

Yes but you should be aware that there are many web sites that claim to be wholesalers simply because they give a discount if you buy more than one item.

These places usually sell things at slightly less than you can buy from ebay and ebuyer and many other outlets.

The thing to remember is real wholesalers don't want the general public to know their prices. This is because the retailers they supply don't want it. They also don't sell to anyone who isn't a genuine retailer.

Before they will "let you in", see their prices they will want proof you are a genuine retailer. So don't be surprised if they want a copy of your company cheque and references from other companies.

The rule of thumb is, the easier it is to see their prices and buy from them the less likely they are to real wholesalers, and the higher their prices will be.

mrrsx2006

Very hard to sell on ebay with drop shipping. profits are so little that if you don't sell at the pright price you lose.

soolin

Mrssx please remove the links from your signature as they are not allowed on MSE.

BlackLily_2

I've just signed up with a dropshipping companie. I am doing plenty of research to compare prices to other peole who are selling the same items & even though I won't be making alot of profit, I will be making a small profit.

I'm not doing it to make alot of money, i'm just doing it so I can start paying my own NI contributions while i'm unable to work because of illness. Also to do something to pass the day.

Alot of hard work & research is involved & it is nowhere as easy as it seems.

If I had the oney, I would rather buy from a wholesaler, but I don't have the spare cash at the moment. As soon as I do, I will no longer be dropshipping.

soolin

If you are drop shipping on ebay then please remember all the basics as ebay just purge accounts now where they perceive problems.

If items are coming from overseas then make sure you clearly state that as otherwise you are in breach of item location misrepresentation. Also, people need to be aware that if the item is over a certain amount and is coming from outside the EU then tax and duty may well be payable. Make sure you are using a properly designated business account, don't try drop shipping on a private account as it is very obvious. As a business seller you will obviously have to offer a full refund service under the Distance selling regulations and ebay rules state that means they expect you to refund within 14 days in full for any purchases. You need to build those returns into your business model otherwise your small profit will soon disappear.

Make sure you can easily have the goods shipped within 7 days as otherwise you will fall outside the paypal seller protection scheme. Also as a business seller you need your address visible, on your 'about me' page is sufficient. Before you start to sell make sure your paypal accounts is at least a premier (and remember to build the fees into your profit calculations) you probably won't need a full business account at this stage Lastly remember you need to register with HMRC within 3 months of starting up otherwise they impose penalties on you.

lastly make sure you register with HMRC within 3 months of starting to trade otherwise they will impose penalties on you.