Dropshipping, Any good?

tommysmith80

Hi

I've only imported from China once before dealing with a factory direct that I found through alibaba too so by no means an expert on this matter but I know there are some additional charges to be aware of.

Are the prices that you've agreed with the factory FOB? This basically means that the factory is responsible for the costs of getting the goods to the Chinese port and then you can appoint a UK based forwarding company to deliver the goods from the Chinese port to you. I was advised to do this but afraid I can't remember the reason why as it was over a year ago now!

I ordered about 300kg of goods on FOB terms and on top of the duty and VAT which was proportional to the value of the goods, I was charged:
£113.14 for shipping from China to UK port
£80.11 delivery from port to London - I think you can arrange to pick up from port yourself but I would have needed to take day off work and hire a van and it wasn't clear when it would arrive/clear customs etc
£52.80 UK Terminal Handling Charge
£40 Documentation
£45 Customs clearance

It looks like you should still save some money but definitely worth getting some quotes from UK freight forwarding companies to ensure you're aware of all the costs involved and see if the potential saving is worth the hassle. My goods weren't available in from a UK supplier so for me it was worth it but for all kinds of reasons the process took a whole lot longer than I was expecting!

ms_night_ryder

Get a forwarding company as suggested, at least the first time, so you know how it works.

Check where exactly they stop handling your goods from that is very important.

Paaarp

I know a few people who are drop shipping in the US - selling to US based customers using US based suppliers.

I'm keen to give it a go as they are making a few $x,xxx a month from it.

But as I am not from the US there are quite a few hurdles involved in getting approved for being a drop shipper, such as forming an LLC, opening a US bank account, etc.

The next best thing would be to start drop shipping in the UK but I can't find what documentation etc I would need to get approved by the wholesalers for my store.

Does anyone have any information about this? I would be selling the products though my own online store, rather than on ebay or Amazon FBA.

Any info much appreciated.

Thanks.

Paaarp

Just wondered if anyone gave this a shot?

I'm looking into it now with the idea of creating an online store website promoting a specific product type i.e. tennis racket, and then listing the products available from drop shippers I have accounts with and doing the transaction with the customer, with the drop shipper sending them the product.

Just looking for suppliers/wholesalers at the moment to see how viable it is.

Any advice from those who started appreciated!

soolin

Paaarp wrote: »

Just wondered if anyone gave this a shot?

I'm looking into it now with the idea of creating an online store website promoting a specific product type i.e. tennis racket, and then listing the products available from drop shippers I have accounts with and doing the transaction with the customer, with the drop shipper sending them the product.

Just looking for suppliers/wholesalers at the moment to see how viable it is.

Any advice from those who started appreciated!

Most of your questions are actually covered in the thread.

A couple of things to consider though is that as a UK business (I am assuming you are in the UK) you must abide by all the relevant distance selling rules- so you need a way to manage returns and you will of course have to be upfront about where items are being shipped from and the time delay so that buyers are aware and don't start claiming their money back before your items arrive. You also need to be upfront , if coming from overseas, that there will be tax and duty to pay.


Also check out your wholesaler carefully, how secure are your payments to them- what happens if they default or send damaged goods. Have they a history of shipping delicate items that can be damaged (as you would be liable for the damage ), and lastly avoid anything from the Far East that is branded- they are likely to be fakes. Your goods will then either be destroyed at customs inspection or returned to you in the UK by unhappy customers wanting their money back.

mrwood24

Ive been looking into dropshipping, does anybody know the pros and cons of dropshipping services?

oldharryrocks

https://forums.moneysavingexpert.com/discussion/1175399

pol-zeath

I believe it can be profitable if you can find a trustworthy supplier who won't let you down. Do not pay for any of these scams you see advertised.
I have a friend who does dropships shoes from an Ebay business account she has a lot of "sales" and a high proportion of negs.

Don't forget you have to factor in returns etc, with the distance selling regulations the buyer is king.

working_at_home_mom

I have been doing some research on drop shipping and im looking for a complete business solution as im not a techy. Anyone know any complete solutions? I have come across droptec, but not seen any reviews on them anywhere. Anyone had experience with them?

fragmented

working_at_home_mom wrote: »

I have come across droptec, but not seen any reviews on them anywhere.

First result on that name in google is a review, which does not recommend the product as it is very new and still buggy ... and far to risky to use on places like ebay.