Starting a Dropshipping Business

soolin

PierreF wrote: »

Im not too sure what you mean. But what i am talking about is me dropshipping for other people. So i would buy the items in bulk from the supplier, and then i would dropship these items. So i would have customers who sell to their customers. When they sell to their customers i send their customers the item.

With those margins I wouldn't bother. You can't sustain a business that is reliant on multiple other people all trying to sell the same item, the unit cost per item on ebay would fall like a stone.

Also, a sub £10 item will get through customs, you don't appear to have factored in your costs for bulk buying and you have still overlooked tax and NI. This seems like a guaranteed way to lose money. Most people on here are sellers, if you can't get any of us interested even as a concept where is your market ?

gymfiend

I think there are a lot of sceptical people out there when it comes to dropshipping, how certain are you that you can get your own customers to buy from you to sell on? Would you not make more profit just selling yourself, since you'll already be doing the legwork in posting? Do you have the time to dedicate to it?

I'd think you would definitely need your own website, how else would you trade? Also, how will you make yourself known to start the business up? With such low profit margins, a large chunk will be eaten into to start with by set up costs and advertising?

PierreF_2

In response to customs, all stock in UK so no customs.
I understand the concept about the price per item on ebay, but we are talking about several thousand items.
Also you look at other dropshippers, are they not just doing the same thing?
Tax and NI will be looked at.

PierreF_2

gymfiend wrote: »

I think there are a lot of sceptical people out there when it comes to dropshipping, how certain are you that you can get your own customers to buy from you to sell on? Would you not make more profit just selling yourself, since you'll already be doing the legwork in posting? Do you have the time to dedicate to it?

I'd think you would definitely need your own website, how else would you trade? Also, how will you make yourself known to start the business up? With such low profit margins, a large chunk will be eaten into to start with by set up costs and advertising?

Im 100% sure that people selling from me would be able to make money. I have contacts in website design so could get one designed dirt cheap. I was thinking maybe at the start, without a large customer base, a trial period you could say, is to just have a price list with pictures of items, and just send it via email to customers. This would only be to see if it would be worth to spend money developing the idea.

gymfiend

So you already have a customer base set up, people who buy from you to sell on? That's what I'm confused on, as that's where the initial cost will be, getting yourself out there and advertised and actually starting the business idea.

PierreF_2

No no i don't have a customer base. I have a few interested people, from when i used to sell on ebay. But at first im not going to spend on advertising, just going to give a trial of if it would be worth while

Hintza

Your example of the plug will have a fairly limited market so you will obviously need a number of lines. Now if all your lines are low priced then even if you just factor in minimum wage you will be knocking your pan in for very little return. When I was selling low value stuff (it was a fad) I bought it for 50p in the US and sold it for over £6 at the start declining to no profit as time went on. It only lasted a few months but that is what got me started.

DaPhenom

Seems like an advert for interest, somewhat of a probe to see what people think. Reading your posts, you see yourself as a success so far. The answer is to keep what your doing - you pull a few figures of your previous sales, and in your last post you say 'from when i used to sell on ebay'.

Not to be sceptical but why don't you just carry on selling on ebay?

PierreF_2

In response to Hintza, thats the feeling i seem to be getting, margins not big enough!
To DaPhenom, The reason why i was thinking about doing this was because if i could make the same margins dropshipping, i would be making the same as before. But without the hassle of advertising, e.t.c just have to post the items.
So it would be the same money for less work in the long run, obviously at first will be more work!

motorguy

PierreF wrote: »

Im not too sure what you mean. But what i am talking about is me dropshipping for other people. So i would buy the items in bulk from the supplier, and then i would dropship these items. So i would have customers who sell to their customers. When they sell to their customers i send their customers the item.

Didnt you say also "for a membership fee"?