The Wholesale Forums

[LewisSellers]

Hi Everyone,

I got a little bored today, so decided to write a bit on my views on dropshipping. I'd also like to see what other people think about it. Is it really worth it?

I started off a couple of years ago by signing up for an account with Chyannes dropshipping service. I tried this for about a year, and in that whole year, I sold around 10 items, and they were all to people I knew! Now, that may have just been down to advertising, I tried eBay, banner swaps and amazon, but i didn't get anywhere.

Eventually, I gave up with Chyannes, because every other order I placed with them, went "missing in the post". They did replace all the lost items and I never had a problem with getting them, however, out of the few items that I actually sold, more than half went missing.

I personally have never found dropshipping useful for the main fact people will always under cut you. I now get people asking on my website whether we will dropship, and the answer is yes, however, we don't offer a discount as they may order one product, and never sell again, which seems pointless to us.

When it comes to games and things, there is already such a small margin, that it seems pointless to dropship the items. Most the games on the website were around £42.00 and they were all UK PAL. Now theres two problems with this:

1) £42 was extremely expensive for a game at that time, especially when it had been out for around 6 months.

2) There are too many imports on the market. A lot of the consoles will play some games region free, and in the case of the PS3, will play all games region free. This makes it hard for people selling UK PAL games at a good price (especially if dropshipping).

Also, I signed up to DVDdropship.com. I went for there ultimate package and decided that I would buy it with the website and everything. I found that a lot of the products were around 15 years old, and that nothing would sell either on eBay or via the website. I don't think I sold one product. The main reason for this, I think, is because they have sold dropship accounts to so many people, that all these people are competiting with each other. This means that eventually, people were making about 50p on each product they sold.... Is it really worth it ?

I personally think the best move is to put some money into your business, because if you really believe in it, you will make it work... You don't have to put a fortune in, but buy some products that you know you can make a decent margin on, and build upwards. The main thing that enticed me into going for the dropshipping was that I could get "150" or "2000" products added to the website straight away, and I'd look like a "big company", but it doesn't really work like that. I think what you have to do is start small and build up.

There are so many posts on this forum about people looking for low cost dropshippers. Does any one agree with me here or am I alone?

Has anyone had look with dropshippers in the past and found that they have helped them get started.

The only thing I learn't from my days dropshipping were that dropshipping was a waste of time


Cheers

Lewis
PS: Sorry for rambling!

[greedyboy]

I am not a fan of dropshipping personally. The whole customer experience is out of your hands. Most dropshippers prey on newbies offering consoles, games, accessories at unrealistic prices in return for a sign up fee. Also people look at dropshipping companies as easy money. There is no such thing as easy money!!!

Dropshipping can work if you find a good product and good supplier. A good supplier is not necessary a dropshipping company. Just a company who will dropship products for you (if that makes sense). Build relationships with them and most importantly build trust with your supplier. You need to speak top them, answer questions etc. Don't deal with some faceless company with flashy graphics that are only interested in your £50 sign up fee. You then just become another number.

In my many years experience in mail order I'd not recommend you run your own show. You can buy stock for a few quid, store it, dispatch and make a few quid. From little acorns...... etc. Plus that few quid you make would probably be the same you would make dropshipping the latest xbox game.

Invest your time and money building you own business and do not rely on someone else.

[LewisSellers]

Hi Greedyboy,

I think I'm in the same frame of mind as you, though I'm not sure.

I think its good if you are the dropshipper... Especially if you are charging a sign up fee as it means that you will get some cash for it. Obviously, quite a few companies make a good amount from this, and as long as you can honour your service, then Its all good.

I agree with you in the way that you said "You can buy stock for a few quid, store it, dispatch and make a few quid. From little acorns...... etc.". I think replying on somone else can cause you a lot of problems. I just read a thread about someone who purchased a White PS3 console from someone after their customer had paid and the guy did a runner.... point proved.

I'm not saying all dropshippers are con artists, or that there aren't good ones out there.. I'm sure there are, I just think there are better ways.

Dropshipping can work if you find a good product and good supplier. A good supplier is not necessary a dropshipping company. Just a company who will dropship products for you (if that makes sense).

By that, did you mean normal suppliers who are willing to dropship? If so, then yes, thats probably better, because your not competing with the other 1000 people who've signed up for an account for £39.99 to sell your products cheaper... At least then you can find something a little more niche.


Lewis

Originally Posted by greedyboy

I am not a fan of dropshipping personally. The whole customer experience is out of your hands. Most dropshippers prey on newbies offering consoles, games, accessories at unrealistic prices in return for a sign up fee.

Dropshipping can work if you find a good product and good supplier. A good supplier is not necessary a dropshipping company. Just a company who will dropship products for you (if that makes sense).

In my many years experience in mail order I'd not recommend this route. You can buy stock for a few quid, store it, dispatch and make a few quid. From little acorns...... etc.

Invest your timer and money building you own business and do not rely on someone else.

[greedyboy]

I would and do dropship some of my products. I am not interested in running a dropshipping business.

However I have customers who don't hold much stock and I deliver for them direct to their customers. These are regulars, just the same as any trade customer but they don't physically purchase and store their own stock. It's not something I promote or wish to promote, it's for serious customers who order regularly.

No doubt there are good dropshipping companies out there. But ultimately they don't give a sh** about your business as much as you do. You sell and item, they are out of stock, who is the one who panics? Who is the one who loses sleep? Who gets all the flack?

If you are intent on dropshipping, find a real supplier, with real stock and real face to face communication. Sell your vision and ask them if they will dispatch the products direct to your customers. They will care more about your £1000 worth of business every month than any company who charges you for the privilege!

[Andy777]

Yep, totally agree with that one - it will be much easier to talk into drop shipping idea a wholesaler than to find a drop shipping company for the same product for a reasonable price. Also, every time I see those sign-up fees to get an account with drop shipping company, I know that it's waste of time. O.k., if they show exact pricing before you handle registration money over, then it makes sense at least. But to pay 100 quid just to see that they sell stuff @ RRP??? Non sense...

[greedyboy]

At the end of the day, if you are giving me business every month why should I charge you for the privilege?

The way I see it, 10 dedicated people selling £1000 each per month is an extra £10,000 worth of business I wouldn't normally have. I should be paying YOU for giving me the business, not the other way around.

[shipmania]

My opinion = dropshipping isnt worth it.
I used to begin with dropshipping, eventually lost money because one high priced item went missing... And i know so many people who ran into the same problem like i did.
Unless like greedyboy says, you already have a reliable supplier you can personally trust and is willing to dropship for you.

[shipmania]

Originally Posted by greedyboy

I should be paying YOU for giving me the business, not the other way around.

How much you offering me so I can dropship those UV markings.

[greedyboy]

Sell £1000 worth a month and I'd happily give you a nice kickback.

[LewisSellers]

Originally Posted by greedyboy

Sell £1000 worth a month and I'd happily give you a nice kickback.

Nice answer

Yeah, I agree with you really. I personally think affiliate schemes are much better and will make you better money. If people can some how drive you to someones site and receive a nice percentage of the profits for it, then isn't that the better option?