Why do i need a dropshipper ?

lenchuk

i am a complete newbie.

just a small question: why do i need a dropshipper?

why can't i just advertise a product (on ebay or elswhere), and if there's a sale i'll buy it and give the shipping address of the buyer?

thanks

mhasdemir

Welcome,

you can do it but there is one problem that your consumer will get origin of product so you will lose that consumer.

lenchuk

what do the dropshipper do differently when acting as dropshiper?

and do i get better prices than the price advertised on his site?

if i get the same prices as advertised on his site, the customer can buy directly from him and avoid my commision.

thanks, i'm really new to dropshipping

lenny

mhasdemir

Lenny most of time dropshippers give some discount and that discount grows in time every time you reach for mile stone you get some more or get some other things.

and most important difference is at blind shipping which makes dropshipper invisible for you consumer.

for advice before start any action read education part of this site that will give you a lot of information how it works.

richelle_salehoo1

Hello guys,

@mhasdemir Thank you for stepping in and helping Lenny out :)

@Lenchuk Wholesale dropshipping is a very popular form of product sourcing because it allows you to pay only for the items that you sell.

It works like this: You find a dropshipper and set up an account. Different dropshippers have different setups but usually you can choose to credit your account, or, you can simply leave it empty and pay for each item as you sell it. Once you've created an account, all you need to do is grab the dropshipper's provided photos and product descriptions for the items you wish to sell and list them on eBay or your website.

After you make a sale and receive payment, log into your dropshipper account, select the product you have just sold and take it through the checkout and pay for it. Enter the buyer's shipping details, and the dropshipper will package it up and post it.

Basically, the big advantage of dropshipping is that the dropshipper takes all the responsibility for handling and managing stock, saving you a heck of a lot of time!

Note that you have to add a certain percentage on top of your dropshipper's price so you can have some profits for the sale you make. If you lead your customers directly to your dropshipper's site then what's the point of you selling online? :)

Like mhasdemir suggesteded it might be best that you go through our guides so you can get a better grasp of what dropshipping is as well as what ecommerce truly is :) If you haven't please go to Link hidden: Login to view and the first one is our Dropshipping Handbook.

Hope this helps!

lenchuk

i've been selling online for many years, my own physical products. both in my shops and on ebay.

i know ecommerce.

but i never used dropshippers.

i now go through your index, and suprised to see that dropshippers request prices higher that the prices on ebay, up to 60% (!!!) higher than the price on ebay, and that's BEFORE my fees (ebay+paypal+money transfers) and of course my profit.

I can't seem to find a product in a price that enables me to be competitive AND profitable.

i'm lost.

also, sites like dealextreme and focalprice etc. (they don't dropship, just wholesale), are offering more or less the same prices like ebay (or higher !!!), before my fees and commission.

so how do you do a profit?

how do you find a product with a price low enough that enables you to add your fees and profit and still be competitive?

sorry, i'm really lost.

thanks

lenny

richelle_salehoo1

Hello Lenny :)

Yes that is one of the major downfalls of dropshipping, you have little to almost no profit margin. Plus if you are selling on ebay where many wholesalers or dropshippers sell directly to end customers apart from other sellers like you, your market (price) competition would be very steep!

Please note that DealExtreme was and has not been added to our directory so we cannot vouch for their offered services. As for FocalPrice.com, they do offer dropshipping as shown on their site - Link hidden: Login to view

so how do you do a profit?
how do you find a product with a price low enough that enables you to add your fees and profit and still be competitive?

If it is a big challenge selling on ebay it might be best that you try to sell on other auction site other than eBay â€“ there are heaps to choose from and profit margins are usually better. Craigslist is also a good place to sell if you live in the USA. Or you migh consider buying through liquidators â€“ this lets you get product for pennies on the dollar and this is how lots of powersellers make money on eBay these days.

Another option is to burn your night candle and really set aside time to do research to find a niche market with few competitors.

You might find these guides helpful -

Link hidden: Login to view

All the best!

lenchuk

You wrote:

"It might be best that you try to sell on other auction site other than eBay...".

"You might consider buying through liquidators..."

That's disappointing, because my main reason for joining Salehoo was searching for dropshippers for eBay.

The sellers who sell on eBay with those low prices - how do they find their suppliers?

Thanks

Lenny

richelle_salehoo1

Hello Lenny,

I'm sorry to disappoint you but I was just sharing other options you can take in case you find it a bit of a challenge to compete on ebay through dropshipping.

Otherwise you might have to consider other products on ebay to stay competitive.

The sellers who sell on eBay with those low prices - how do they find their suppliers?

What makes you so certain that sellers offering low prices are dropshipping their products? They might actually be sourcing trhough liquidators and not dropshippers.

You have to also take into consideration that many of those newer sellers you saw may be selling cheaply to help boost their feedback and not necessarily to gain profit.

As to how other ebay sellers are sourcing their items, sorry but that I cannot give you a specific answer. Many including our members are not too willing to share how they found their suppliers since everyone is a potential competitor. It all boils down to research! :)

All the best!

SaleHoo Directory

SaleHoo Dropship

SaleHoo Educate

SaleHoo Market Insights NEW