The Wholesale Forums

[Pete]

I have just today been approached by a guy from China who saw my profile on a US wholesale forum that I moderate. He wanted to know what I thought about dropshipping from China.

I told him I thought it was not a good idea, due to customs fees, etc.

Then he tells me he (his company) is a major supplier to a number of US retailers, both online and B&M. Says they are heavy in USB products, but can supply anything from bicycles to fishing gear. No mention of brand name, all no name, house brand, etc.

We talked about several other ways he could go. He says money is no problem, that they get paid up front by these chains and have cash, just not a big deal. Along the way I mentioned fulfillment houses and he picked up on that.

He asked me what I would do. Stock on hand, all sorts of products available, has no need for instant cash. Wants somewhere to put inventory and sell. He asked about the US, where I could make something on it......

I told him that right now, today, if I had the resources he says he had I would set up a dropshipping business in the UK. Told him there were thousands of people dying to get into a real dropship operation, but no real dropshippers.

He jumped right on it. I told him I knew of some people who could put up some good faith money not a bundle, 10 to 29k GBP. He said forget the money. Just needed a plan and what to start selling.

It's true, no joke. I swear. Still more.

I told him a true dropship operation, but could also do regular wholesaling. Same price either way, just to who places the order, or to their customer. One piece at a time, more if ordered. No problem is reply.

Does not want to sell on ebay, but does not mind if< I'm going to call them Dealers, if the dealers want to sell on ebay, that is OK. Or dropship, or buy for resale in their own shops, car boots, etc. Not compete with dealers. No retail sales only wholesale / dropship.

We agreed on all of this. Still up in the air on fulfillment house or other way to handle the actual goods.

He also asked about what range to start with. I said low cost consumer electronics. He jumped on that. His reply - We are on globalsources.com and "the USB section was created by us and we supply 90% of their USB drives as well as the RC products, ipod knock offs, and some other random stuff.

They are not only a manufacturer, more an order consolidator or aggregater. Casn put together whatever is needed. I asked about having a full range, so that it could support a website selling just his products. He said no problem, what they don;t have he can get.

Again, no brands. Prices are right.

So, anyone have any suggestions of any fulfillment houses or commercial warehouses who could keep the inventory under lock and key and be willing to ship one item or larger orders on an as ordered basis?

Or, does anyone have storage space - not the empty bedroom - real commercial storage and be willing to handle an operation like this.

From the ground up. Empty floor to putting in the stock, setting up the computer system, not just inventory but the order entry / packing list / shipping label all in one kind of deal.

The wholesale / dropship prices will not be competitive - they will be everyone else's competition. The price benchmark oters are judged by.

Will alss take some advertising knowledge. Not just online, SEO, etc. but in UK trade publications geared to the business opportunity / car boot seller / ebayer types.

Also, other than mp3's what lines or ranges would be good to go into? I told him I knew of many asking about fishing gear.

Give me some thoughts and suggestions on this. Clean slate, chance to have a real Tier One dropshipper like I keep telling you guys about. Not a middleman, not a wholesaler bumping the price and calling it dropshipping, not a middleman. A real importer selling one at a time and shipping where you want.

BTW - has US and UK bank accounts and US merchant account. Can set up PayPal for orders coming in.

Speak to me. I do not think it's BS, but a genuine opportunity. I could just as easily said UK. EU, whatever. He jumped right on the UK deal and I told him shipping / customs to EU would not be a problem.

Anyhow, I'll shut up. How about some feedback........

[uhafmail]

If all you have said is correct then it sounds like a very good opportunity for all.

Sorry if i am being silly but what does "The wholesale / dropship prices will not be competitive - they will be everyone else's competition. The price benchmark oters are judged by." mean?

[MustHaveMobiles]

I read it as the wholesale and dropship price will be similar not competitive with other. ie. one substantially lower than the other so larger buyers can undercut small buyers.

[uhafmail]

Ah i see, cheers for that, must be a bit tired, brain not working.

[geosamm]

I would be interested in taking a slice of that.... very interested... in fact I'm interested in taking the whole pie.
I can arrange the storage and get the people to run it... also have the cash to facilitate the setup and running costs.

[Pete]

Sorry about that.

No, that is not what I meant at all. What I meant was they will be able to sell for less than what is now available in the UK.

Think of it as the manufacturer having their own warehouse in your country. It's their inventory, so the markup to importers is eliminated. Once things are in place they can have a better balanced inventory at a lower cost than importers. They can combine all sorts of goods in a shipment and replace stock frequently.

Using mp3s, bikes and fishing rods as examples. First, other than department stores and chains, no one is going to offer all three as a wholesaler normally. So, the mp3 guy has to wait till he needs enough electronics to fill a container. Same with the bike guy and the fishing gear guy. But these people can combine it all, meaning they can keep more goods in the pipeline at less cost than others.

They also are not paying any sort of money charges, either borrowing, transfer fees, etc. Also I would think generally easier times through customs. Just any number of ways they can have "landed goods" (all costs from factory to warehouse shelves) costs below everyone.

So, while there may be some order volume incentives for larger purchases, the day to day prices to everyone will be the same, and lower than elsewhere for comparable goods. Everyone does not include retail or ebay. Just resellers, jobbers, dropship sellers, etc.

I keep harping on this here and other forums. I think many don't believe me. In the US many wholesalers sell at the exact same price whether they dropship or send direct to their customers. There is no distinction. Every customer they have can have an item sent anywhere they ask to have it sent. That's really all dropshipping is.

Yes, some may charge a bit of a fee, if they are not really set up for dropshipping. Few do, but it can happen. And many have a small order fee, but that applies to any order under a specified amount, whether dropshipped or sent to the real customer. This is new. It is not what you are used to.

The wholesalers who might charge a fee are not geared for dropship. Their computers aren't set for a bill to / ship to kind of routine. They don't have forms such as packing lists and shipping labels set up for dropshipping. So things that are normally done by their daily processes now takes some human intervention. So they charge a couple of bucks.

But that won't be the case here. From the start it will be geared to ship either way, with no link back to the actual warehouse, using the online seller's address on labels and documents.

I know there are some here who dropship. And others who buy from dropshippers. But how many are truly geared for dropshipping in volume on a day to day basis? I'd bet none, or very few.

No fees, no dues, none of that. Sell the goods, place the order, tell where you want it shipped. Pay the same price as the pound shop down at the corner or the guy at the car boot or anyone else selling the same item. That's really how it is in the US.

So, you should be able to compete with anyone. You can be the low price leader, you can have a larger gross profit, you may even be able to do both.

Or, it all may be a pipe dream......

However, I do take the man seriously. I do think it can come together. I guess we'll see.
.

[Pete]

Originally Posted by geosamm

I would be interested in taking a slice of that.... very interested... in fact I'm interested in taking the whole pie.
I can arrange the storage and get the people to run it... also have the cash to facilitate the setup and running costs.

Doesn't want any money. I suggested that, as I know some here can come up with it.

Says they have money just sitting. Too much, need to get it turning.

Just 20 minutes or so on msn so far. He first contacted me on hotmail and I blew him off, said I wasn't interested in buying anything. He wouldn't give up. Said he read my profile on a wholesale forum, read my posts, what my opinion. First he wanted to dropship from China. I told him too much hassle. So he said then what? And here we are.
.

[geosamm]

Then I am more interested than ever. Have most of the facilities already available.

[Pete]

What's in it for me?

[geosamm]

whatever it takes?