Dropshipping, Any good?

soolin

Progressguy777 wrote: »

Alot of people tend to think ebay has better bargins than amazon when its the other way around.

Its called 'show rooming' if you make atleast £2 per item and you sell 10 within a week thats a extra £20.

You would need a big cash buffer though to cover issues, and your model appears to have overlooked tax, national insurance, costs of returns, costs of covering returns listing costs etc. Then of course Amazon prices go up and down all the time, so you would need to make sure you are constantly alerted if an Amazon price goes up, or it goes out of stock.

Personally I think this is very risky, the model appears to overlook business regs and also eBay rules about holding stock. Building in the Amazon delivery times against eBay delivery estimates means the 'late defect' metrics is likely to be an issue.

Lastly, buyers tend to take a dim view of receiving drop shipped items from Amazon, perhaps it makes them feel foolish at having paid so much over the odds, but looking at threads on the eBay forum suggests this is a good way of ending up with poor feedback very quickly.

pickledonionspaceraider

I t hink buyers would be furious if they got a parcel direct from amazon with a invoice clearly showing they have had their pants down

culpepper

On the few occasion when we have bought drop shipped goods, that is the last time that seller has had our custom.
However if a person were to buy say 100 of something via alibaba or similar and sell them ,they would probably do alright as they would already have the stock in hand and looking at that supplier,the items get very cheap indeed if bought in bulk.
Presumably that is what happens when a listing describes all stock is in uk even though the actual item is listed numerous times by other sellers as being in hong kong etc.

hc90

Hi, I have recently started a Facebook page selling kids clothes and am in the process of building a website. I know that I need to register as a soletrader but I'm confused as what else needs to be done.


I am currently importing clothes from China as I have found some good quality sellers on the wholesale sites, however I am now worried that this isn't legal or not allowed. I know I need to keep a record of all stuff ordered (which I have), but the items are coming through without me having to pay custom charges.


How will I put this through when I need to do a self-assessment or tax return (whichever it is I need to do). I know kids clothes don't have VAT over here but what other charges and stuff do I need to be aware of?


I am currently working full time but am due to go on maternity leave, hence why starting this small business up, to bring extra income in. How much will this affect my tax credits?


I want to do everything legit so all advice would be greatly appreciated.

soolin

culpepper wrote: »

On the few occasion when we have bought drop shipped goods, that is the last time that seller has had our custom.
However if a person were to buy say 100 of something via alibaba or similar and sell them ,they would probably do alright as they would already have the stock in hand and looking at that supplier,the items get very cheap indeed if bought in bulk.
Presumably that is what happens when a listing describes all stock is in uk even though the actual item is listed numerous times by other sellers as being in hong kong etc.

The models are completely different. Buying in stock in quantity and then reselling at a profit is standard business practice - It's what we all do. Drop shipping is different, it is where seller does not hold the stock and is reliant on a third party, in the OPs case Amazon to supply the goods. It is not illegal to dropship although on ebay it is a very quick way to lose your business reputation and possibly even your business.

soolin

This link might not work, but it covers some previously asked questions about drop shipping on ebay:

http://ocsnext.ebay.co.uk/ocs/sr/cd?searchstring=dropshipping&query=dropshipping&st=3&_trksid=p2051729.m3926&topicId=0&threadID=2785754

CameronLove

I have looked into dropshipping, there are multiple companies such as Tshirt Companies, Sex Toy companies and Wholesaler companies that all offer drop shipping services.... but I have found (and reviewed from many people) that they are very difficult to make much money on, unless you definitely have a clear and waiting market for it. Because by the time you factor in what you are paying for the goods, before adding your profit margin on top, you are already undercut by 30% by a major retailer. And that is BEFORE you even work out how to get lots of customers, based on the fact that you can't bring them in on "cheaper prices".
Not only that but most dropship companies directly compete for the same business with you and as they sell it at the same price they charge you for it, they are actually undercutting the very people they are going to supply their stock to.

Dropshipping is a great home based business as it avoids warehouse space, stock issues and all the packaging and mailing, all you do is take the cash and settle your own bill with the dropshipping company. But before you dive in you seriously have to consider who you will sell to first. If the dropshipping company is an obscure one that is selling things that are not easily available anywhere with heavy searching for them, and you know there is a market for it. Then it is worth considering as its about supplying a goods that can't be found and bought easily that fills a niche, but if you are going to sell T-Shirts that cost you £12 a T-Shirt and you have to mark up your own profit on top, and then compete in a market where there are 4,000 other T-shirt retailers all selling the same sort of stock, and selling them for £8 a T-Shirt, you are in a saturated market with goods that cost 30%+ more than any of your competitors, and your sales are going to be barren!

And with all the positives that come with letting a 3rd party handle stock, delivery and all complaints....... on the flip side their are big cons to consider too, such as what happens to YOUR business if they end up going bust, decide to drop a lot of lines you sell, and the biggest dropshipping failure that most people fall foul off, is selling too many goods that you can't keep track of wholesale prices and suddenly your dropshipper starts increasing prices of goods they sell to you, you have to remember to keep checking every day the price of all these goods and what you are selling them at, so that you don't end up selling a T-shirt for £14 that now costs you £15 to purchase from the dropshipper, meaning you are losing money on each and every sale! Some dropshippers can provide software that can be added to a website software that will update stock levels and also notify you of wholesale price increases so you can alter your retailer prices, but a lot do not and you have to be the one that keeps checking constantly that what you sell is actually making a profit and not a loss.

Profit can be made at dropshipping, but its not easy and like with any business you set up, it still requires a lot of hard work and a good niche to fit into where you can be sure that can sell stuff people want, and not be undercut by multiple competitors who don't have pay a middle man!

Mrcool

Dvddropship is a con. I signed up with them and started a website. Which they took down without reason after a month. I paid for a year. I only sold there products on the site. DVDs they have are impossible to sell and titles no body has ever heard of. B or less rated movies. Films you can buy in 99p shops. Don't waste your money. Dropship con.

jasperconran

Came across this thread today and thought I would just respond.

I have been dropshipping on ebay for just over a year now and I love it. yes you do have to be careful as there are some companies out there who will promise to help and train you and then just take your money and run. but not all are like that. But ebay now is mostly made up of either dropshippers or importers.

I offer express delivery if customers wish although I find most are happy with my delivery services. Max is 3-5 days. And I have never had a complaint yet. You do have to take into consideration ebay and paypal fees otherwise you will get caught out. I have now got an ebay shop so get so many free listings a month.

I know many people who are making 4 figure sums a month from doing this, some are not so bothered and just want to make a few quid for treats etc.

The company I am with, yes I do pay a monthly fee for training and ongoing support, but its the price of a takeaway pretty much so im happy with that. plus the opportunities to progress into other areas are also very good.

Drop shipping is not for everyone I will say that. and you only get out what you put in, its not a get rich quick scheme. You have to treat it as a business.

I understand why people are so sceptical, I was too!! But I thought what the hell, I can cancel at anytime so why not give it a go. Im so glad I did

krish1117

Hi,
I am krish from India, would like to start dropshipping. i am new to this. Pl explain how to start