The Wholesale Forums

[CNDMtrade]

Is there really any money in Dropshipping, Obviously there is because people do it, but is there any money in dropshipping on the likes of Ebay? I was going to list a 69.99 product for 75.99, still cheaper than most of the very same product on ebay, I have my own template for ebay so it looks good too, I have went through many lists to figure out the best way to sell etc, but on looking at the profit/loss I can really understand why some people have to sell the same 69.99 product for 100.00 +. Ebay and paypal alone wanted all my profit, plus extra. I would of been 13.00 or so down by the time the listing was finished.

I'm just wondering if its worth it? I have no capital to begin with and on learning about dropshipping I thought it was a great idea. I have a mail order catalogue throughout the nursing home company I work for and I make a few £££ from that, which is where dropshipping does come in handy, however for auction sites i have to say I dont think it is worth it.

What do you think?

[Ramaveli]

I do dropshipping on eBay. For me it is perfect as I am a student and any extra money is a bonus. To be honest with dropshipping I don't see how you can really lose. a BIN listing costs 40p, if I sell then great, if I don't then it is a 40p loss.

I sell things like mp4s and mobile phones and profit varies specially as I offer the best offer option. I think of it as.. a profit is a profit, regardless of how much it is, I don't lose out so yeah.

Yesterday I sold two mobile phones and some wholesale tops. Made £90. Today sold one mobile phone and made £40 profit. Also answer many questions to potential customers.

Anyways, give it a try, make sure you do however make at least a small profit. Maybe if your feedback isn't great sell some cheap things or do 99p listings to boost your feedback.

[CNDMtrade]

the way you do things is what i had in mind, however when you consider ebay fees and paypal fees there isnt much in it, if anything at all. Ebay and Paypal take so much, its nearly impossible to make anythng

[Ramaveli]

Yeah I know, sadly. But as others on this forum will tell you, you don't have to be the cheapest, make sure you provide a good service and make your listings look professional.

Do some more research on certian items, I'm sure you'll find some stuff with a decent amount of profit available

[CNDMtrade]

Thanks for your advice man. Much appreciated

[rayloveday]

This entirely depends on the type of product you are selling. Some people are happy with a £5 margin on a £75 sale. If you are a start up company with one or two staff or work for yourself as a sole trader then IMO selling high value items with a low margin is a total waste of time even if you are using a dropshipper. It's "easy money" when you're getting sales but if there's problem you could find yourself in trouble especially if you do not have the capital to absorb the odd set back. For example if you are selling £75 items at £5 margin and one gets lost in the post. Say the dropshipper says they sent it and can prove that they did and the buyer insists they don't have it - you're stuck in the middle. The buyer files a claim and you are £75 down. To make that back, that's another 15x £75 sales you've got to do before you're in profit again or £1,125 of sales. This can be quite a sobering thought. If you start to see a lot of success, you're going to approach VAT registration and not have taken advantage of the treshold.

We use dropshipping in our business but only as a supplemental income. Our lowest mark up is 100% on total cost so through ebay we still make a minimum 70% odd margin. Some people list at 10 - 30% markup. They get triple the sales but also triple the work and more potential for problems. They do of course benefit from more feedback but the rest of our business makes up the deficit.

Expanding your catalogue business sounds like a much better way to go unless you can find a more profitable product line to target ebay with.

[x_Emily_x]

Rameveli has hit the nail on the head perfectly there!

[Games Giant]

Originally Posted by Ramaveli

I do dropshipping on eBay. For me it is perfect as I am a student and any extra money is a bonus. To be honest with dropshipping I don't see how you can really lose. a BIN listing costs 40p, if I sell then great, if I don't then it is a 40p loss.

I sell things like mp4s and mobile phones and profit varies specially as I offer the best offer option. I think of it as.. a profit is a profit, regardless of how much it is, I don't lose out so yeah.

Yesterday I sold two mobile phones and some wholesale tops. Made £90. Today sold one mobile phone and made £40 profit. Also answer many questions to potential customers.

Anyways, give it a try, make sure you do however make at least a small profit. Maybe if your feedback isn't great sell some cheap things or do 99p listings to boost your feedback.

£40 Profit from one phone with drop shipping mmm ok

[Ramaveli]

Originally Posted by LakelandTraders

£40 Profit from one phone with drop shipping mmm ok

I do not need to justify myself to you but this is less than 10% profit. And as I said, you do not need to be the cheapest, instead offer a better service than others.

mmmm ok

[CNDMtrade]

Thanks for help to all... hoefuly i can start making profit soon