Dropshipping difficulties. Any advice?

vincentvdn · 14-08-2007, 12:07 AM

Hi

i want to use the dropshipping technique to make some extra money selling mobile phones on eBay.
I found some good reliable HongKong dropshippers with very good prices.

Though, when I would import a product from HK to Belgium, there'd be are a lot of extra costs
1) first 21% Value Added Tax is added to the cost of the product
2) then there is another 12,8% of import-taxes at the customs

this means there isn't much profit left if you'd compare the prices with the mobile-shops in Belgium...
Is this only in Belgium or are these extra costs in every country?

Also, the dropshipper only accepts Bank Transfers,
this means when a customer wins an auction on ebay,
first he has to send the money to my Belgian bank account,
and then I have to send it to an UK-account of the HongKong dropshipper,
which would take like 2 weeks. Then the product still has to be shipped from HK to Belgium...

This would mean the customer has to wait way too long to get his phone

How do you guys do it?
Any advice or tricks?

Thanks in advance

Beneddie1112 · 14-08-2007, 12:23 AM

What are the suppliers prices? It sounds like a scam to be honest.

vincentvdn · 14-08-2007, 01:47 AM

MKenterprise.com

they ask 476$ for LG prada phone
it costs 688$ on a popular belgian multimediasite

476$ + 21% + 12,8% + 31$ = 680$

**thejudge** · 14-08-2007, 01:55 AM

another thing to think about is returns - you can quickly loose profit by having to post back rma products and/or being stuck in a situation with DSR and having to sometimes refund the customer