The Myth About Dropshipping on Ebay
For those who don't know what dropshipping is; Drop shipping is simply where companies have people selling their products, without the overhead costs of traditional employees. Once that salesperson makes the sale the parent company ships the product to the customer.
Companies like this still exist today. Mary Kay, Kirby, PartyLite, Lia Sophia, etc are all examples of drop ship companies that still run the "old-school" model of business. Catalog & door-to-door sales driven by real people.
But with the advent of the internet dropshipping took on a new face but the method is still the same. Now what typically happens is, the salesperson (Ebay Seller) sells a product and then the parent company ships the product to the consumer and the salesperson (Ebay Seller)gets to keep the difference, (hopefully it's a profit)
But in order for Dropshipping to work it must have a secured market. That is selling their product exclusively through personal sales reps and not through retail outlets, to wholesalers or to the public. This is what makes them work the whole thing is controlled.
But this is not how dropshipping works with the internet. Now, Drop shipping companies litter the internet with outrageous claims of huge profits selling popular items such as iPods, laptop computers, jewelry, etc.etc. This is exactly why dropshipping will not work. Any product that is not controlled by the manufacturer and sold exclusively through personal sales reps (AKA. drop ship sales) will not be profitable online.
Click Here to Learn More About Why Dropshipping Sucks
Learn The Real Secret Behind How to Find Products For Re-Sale for the Right Price...Once you Learn How You'll never Dropship Again
Here's How to Make Money Dropshipping..Or So They Say
A Quick Primer on Dropshipping, about Dropshipping and How it Should Work
The dropshipper (Ebay Seller) lists his item for auction on Ebay. Assuming for the moment the item sells, the buyer then pays for the item to the Ebay Seller. The Ebay Seller then once he receives confirmation of payment then calls up his source (the dropshipping company) places his order for the item and the parent company company ships the item direct the the Ebay Buyer. Whatever the difference in the price is, and hopefully that is a profit the Ebay Seller gets to keep. Below is a simple Diagram that explains the process.

Sounds like a great working model right? After all as long as you sell the item for more then it costs you make a profit right? Well true in part but the problem is it never seems to work out that way.
1. Most of the time, once the Ebay Seller figures in the listing and Paypal Fees, plus the cost to re-list unsold items his profit margin in many cases is all but gone.
2. He never is truly buying the item at Wholesale. Most dropshippers are really only selling you item marginally below retail so in the end it's the Ebay Seller that loses out.
What has been Your Experience With Dropshippers?
Share your stories and experiences if you have used a dropshipper on eBay
Have you tried using a dropshipper on ebay? We and others would like to know. Share your experiences good or bad so that others can gain from your experiences and learn and grow.
Learn what it takes to make money on eBay.
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- mariajennifer mariajennifer Jun 18, 2009 @ 3:35 am
- well try shipping international!! international moving ensures fast and safe shipping.
Great Books on Buying and Selling on Ebay
Learn to Make Money on eBay the Right Way
Poll: Have you Ever Used a DropShipper on eBay
Here's Why Drop Shipping Does Not, Can Not, And Will Not Work
This is Especially True if Your Dropshipping On Ebay

Here's the Number One Reason Why Dropshipping Sucks
Buying Power
Resale (buying and re-selling for a profit) is all about buying power. Guess what if your an Ebay Seller and using dropshipping to try and buy and sell you have none. Zero! Because you are usually just buying one of an item and the so you give up your buying power. That's the number One Rule to buying and Selling for a profit and don't let anyone tell you otherwise, buying in bulk is where you get the deals.
A huge established retailer, like Wal-Mart for example, has extraordinary buying power. They don't just buy one iPod at a time, they buy thousands...
Let's look at the numbers using a gold widget as an example...
Let's say a wholesaler's cost on a gold widget is $10.
The Wholesaler sells the golden widgets to a famous store like walmart for say $11.50 a piece (cost +$1.50) with a quantity of 10,000 pieces. The wholesaler will profit around $15,000 on this sale.
The diagram below helps to illustrate this.

But You are not a huge famous department store your just an Ebay Seller trying to make a go at buying and selling. In most cases you just want one Golden Widget for $11.50. But here's the cold hard truth. You will never get the golden widget for that. The wholesaler would not only just profit just $1.50 on a single widget, but he probably would have to break a case just to do so. NO SERIOUS COMPANY is going to do that.

That is why Dropshipping is not true Wholesale. With dropshipping you can buy just one Golden Widget. But you can expect to pay at least 25% more for the product.
That would bring the Ebay Sellers cost up to $14.75 in our example.
But it get worse, most times the dropshipping company will charge a handling fee of $2 or so and the next thing you know the Ebay Seller is buying the supposed item for Wholesale at $ 16.75. This is why many Ebay Sellers getting started that buy into the Dropshipping Hype complain that they could have bought the item cheaper for retail.
It doesn't end here either...
Click Here to Learn the Number TWO Reason Why Dropshipping Sucks
Click Here to Learn More About the Right Way to Find Products to Sell Online. And it's not what you think -- not even close!!
Vote on Your Favorite Wholesale and Dropshipping Guide
Have you found a book on buying and selling on eBay that made a difference for you? Have you found wholesale distributor sources that could help others make a profit on ebay, then..share your knowledge.
Vote for your favorite book on buying and selling on eBay and help others find the right resource to help them make money.
How to Buy, Sell, and Profit on eBay: Kick-Start Your Home-Based Business in Just Thirty Days by Adam Ginsberg
<p>A lively insider's guide to starting a su more...0 points
Learn How to Buy and Sell on eBay for 5 Bucks (Learn for 5 Bucks) by Stephen Gregory, Larry Becker, Jim Workman
<p>In order to make money you need to spend more...0 points
How to Buy and Sell on eBay: All You Need to Know by Larry Becker, Jim Workman, Stephen Gregory
This four-color guide serves as a quick reference more...0 points
Now for the Good News, There is a Real Way to Buy the Products
Yes You can Buy and Sell on eBay and make Insane Auction Profits if You Know How
Ok, enough of that long drawn out explanation behind dropshipping let's get to the nitty gritty.The truth is you can make serious money
online buying and selling. So if you really want to have access to a steady stream of products you can sell on eBay or anywhere else (including your own website) then the guide, Better Sources is the answer.
First what Better Sources is not. Better Sources is definitely not a Wholesale a list of wholesalers. let me repeat that, It is NOT a list of Wholesalers.
Rather the guide is a complete manual for finding profitable products you can sell anywhere. If you are simply looking for wholesalers list then let me save you trouble for finding the best one go to Worldwide Brands. Their OneSource product is $299 for a lifetime membership and it is by far and away the top wholesale sourcing tool on the internet.
However, if you are looking to get started selling products on eBay right away and want as little overhead investment as possible (in other words you don't have $5000 to start with) then the guide Better Sources is the way to go. I guarantee it.
Here's what is contained inside the guide. A short, sweet and to the point manual that not only tells you where to find products, but it gets you in the right mindset and gives you real-world examples.

This guide is not like anything else available.
It was developed using my unique insider's perspective from eleven years in the industry and several years of experience as a top eBay seller.
Click here to Learn More About Better Sources and How it Can Change the Way You Sell on Ebay Forever
Need some Sources for Buying Wholesale Items to Sell on eBay?
Need help finding items to sell wholesale on eBay? Here are some auctions with wholesale distributor information perhaps you can find the right source for the right price to buy and sell on ebay and make a profit.
Check them out
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- rebepa333 rebepa333 Jul 2, 2009 @ 9:50 pm
- Drop shipping is fine if you are smart about it! and creative! I've also had a lot of great luck with this webpage:
www.bestcashonthenet.com/lazymakemoney.html
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- rydigga rydigga Apr 3, 2009 @ 5:53 pm
- Hi Troy,
Excellent lens. A very thorough analysis of dropshipping.
Thanks for sharing your insight :)
Ryan
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- dropshipsucker dropshipsucker Feb 19, 2009 @ 1:56 pm
- I love Dropshipping Sucks!
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- cannedguds cannedguds Oct 26, 2008 @ 10:51 pm
- World Wide Brands is the best drop shipping! I've used it and it helped me a lot! anyway, thanks for the info you have shared here! Very very informative lens!
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- Portable_eBay Portable_eBay Aug 20, 2008 @ 11:47 pm
- A bad experience with a dropshipper has made me shun dropshippers forever. If they have that product then I find there source. Much better that way. Your "Better Source" might be a good product but I doubt if its applicable in the Philippines.
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