Dropshipping Turorial

I have noticed that a lot of people want to know more about dropshipping companies. I have experience with a few myself and have some tips. First lets go through what dropshipping is exactly:

• Company A is a large company that holds a lot of stock in various items.
• You research what items would be in demand. Check out past and current sales on Ebay if you want to sell on Ebay.
• Find something on Company A’s website that you think would sell for a profit on Ebay.
• List that item on Ebay. Don’t buy the item from Company A yet. When the item sells on Ebay, go to Company A’s website and have them ship the product directly to the customer. No investment except what you spend to post the ad on Ebay.
• Start small by listing a couple things and if they sell make sure they get to their destination and you receive positive feedback.
• To find your own dropshipper try a search of dropship free on google.com

Pros to Dropshipping:

• If you work with a good dropshipping site, they will send a replacement to the customer if they receive damaged goods or have proof the customer didn’t get the item. If the postal service says it was lost en route.
• No need to pre-buy the item you’re trying to sell

Cons to Dropshipping:

• You are at the mercy of the dropshipper: Going with Company A’s word (and receipt sent to you) that the item was shipped. It’s difficult to know for sure if the correct item was sent.
• On Ebay you have to disclose you don’t hold the item in your possession and some buyers may not be comfortable with that.
• Stiff Competition on Ebay for items you may want to dropship. You can find items to undercut them on, but profit is pretty small. You have to rely and selling a lot of something in order to make a great profit.

General Tips:

• Do not pay money to join a dropship site or for a company to sell you a list of dropship websites. Enough of them are free and you can find them if you look hard enough. I’ll even help you.
• Compare prices between dropshippers. Many of them hold the same merchandise so see who is the better company: price, delivery time, sophistication of the website, cost of delivery. For example: Site 1 is $19.99 for product + $6.99 shipping. Site 2 is $16.99 for product + $12.99. On the surface it seems like site 2 is the better buy, but you have to look at the shipping before you decide. Ultimately Site 1 is the better choice if you’re going by price. And competition is so tight over there I generally only based my decision on price. Shipping times honestly didn’t very enough in my opinion. Oh and some add a $1 processing charge that adds to what you’ll pay and should weigh on your decision to use them.
• Try to use a Dropship site that has a phone number.
• I don’t recall coming across any that were not in the United States but I would make sure the company is based in your home country.
• Ideally you want to find something on a dropshipper’s website that nobody is selling on Ebay and everyone is looking for.
• Make sure you do you research your competition before you post anything.

WARNING:

If you start posting stuff on Ebay (particularly new stuff) you might get a lot of emails from people that want to sell Lacoste shirts and other high end merchandise and they’ll drop ship them for you. Stay away!!! I was scammed by someone this way (her name is huajing zhu). Stay away! Only go through reputable websites.