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Is Dropshipping a Viable Business Model?

Discussion in 'Dropshipping' started by JustCraig, Dec 2, 2010.

  1. bhutia

    bhutia

    Joined:
    Jan 19, 2013
    Messages:
    1
    Good discussion. I am learning...........
  2. AileenSparkles

    AileenSparkles

    Joined:
    Feb 10, 2013
    Messages:
    10
    Excellent thread and very informative, especially for a novice like me!

    I am currently in the process of setting up my own website selling bling jewellery, handbags, shoes, accessories, wedding accessories (celebrity style... to your door!) and hopefully with clever marketing and advertising, I will be able to get enough traffic and sales to earn an income. As I have limited capital, I will be using a drop shipper for the 'shoes' section of my website due to the number of shoes I'd have to buy even for only one style - different colour, different sizes etc. This is purely to bulk up my website until I can afford to buy in more goods myself.

    I think, as already mentioned, finding a good drop shipper is key! Can anyone recommend drop shippers for bling goods?

    Much appreciated.
  3. taurusken

    taurusken

    Joined:
    Mar 1, 2013
    Messages:
    65
    This has been a very interesting thread to read. I see there is a lot of mixed feelings on drop-shipping. I don't have a dedicated eCommerce website and have been thinking of setting one up. with respect to the above post about eBay fees i really do agree. Say you are selling item X, your direct competition is also selling item X ( of which I imagine there is many unless you have a totally niche item the competition is smaller as is the traffic to your site), you have to make sure that you stand out over your competition to make sure you win the confidence of Joe public to buy your product over the other store. I know for one thing that I would go for the person that is higher on my search engine than the person say on page 2 even, not only because I'd naturally think that they are a 'bigger' store and obviously have a lot of sales and repeat ones at that ( which is always a good sign when buying personally ), but also because I can't be bothered to search through pages and pages of stores to save a few pence! This is where the eBayer and Amazon shipper are different! I know that I shop on eBay and Amazon to get a damn good deal for what I am looking for ( remembering that we are in a financial crisis at the moment and more so I, like everybody in the world that hasn't got an eye watering salary, like to think we have bagged a good deal and probably tell everybody who is willing to listen about it).
    So, we can compete with the other sellers on say...Google and after spending a small fortune on Adwords and other advertising may, and only may, get that extra sale; or, we can pay the eBay fees and literally funnel the customers to our page and sell the item that they have searched for by looking at your items picture and description and price etc all in one place which is quicker than doing a Google search and then clicking on a website, then finding the item and then convincing them to buy your product. People want convenience and a good price and that's what eBay and Amazon has given us, a chance to put ourselves out there to a massive amount of consumers, especially if you ship abroad and will probably work out better than paying the numerous advertising leads and time it takes. At around £15 pm at basic level that's cheap and practical and you get a kind of website to boot!
    If you expect everything for nothing and expect everybody to come to you as a result then failure is only around the corner, nothing is free, ever so eBay etc in my opinion, is worth the investment if only a secondary avenue for your primary shop. There's a reason eBay is so damn rich!
    As to drop-shipping, I personally feel that it is a good way for new starters as the up front capital is small compared to bulk and it is a good tool to use until you have enough money to secure bulk deals, Rome wasn't built in a day and nor will your business growth. Drop ship to make smaller margins so you can build larger ones, ie: drop-ship to build the foundations and then you can afford the bricks to build your empire!
    Thanks
    Angelou and CraigJones like this.
  4. susanifiellis

    susanifiellis

    Joined:
    Apr 11, 2011
    Messages:
    18
    Hi Pete,
    I read your response with interest although you did write it a few years ago. Just wondered-did you sell on ebay or your own website. I have tried dropshipping with varied luck over the years and I do know that it can work quite well if you get it right.
    Regards
    Susan
  5. Pete

    Pete

    Joined:
    May 30, 2005
    Messages:
    14,070
    I have never, ever, sold anything on eBay. I am not one to jump through other people's hoops over which I am entirely at their mercy. I have always sold from my own websites. Two are linked in my signature.
  6. susanifiellis

    susanifiellis

    Joined:
    Apr 11, 2011
    Messages:
    18
    Peter thanks and I entirely agree with you and that's why I'm now building my own website.
    Respect to you,
    Susan
  7. thedropshipfactory

    thedropshipfactory

    Joined:
    Mar 15, 2013
    Messages:
    36
    Building your own website should be one of the most important things you do when you become a successful Ebayer, Ebay is just traffic, very good traffic at that but no different than well targeted campaigns in Facebook,Adwords,media buys,classified ads whatever really. Ebay may shut down your account for whatever reason but only you can shut down your own website so your in control.

    This thread asks the question is dropshipping a viable business model ? Well many of the biggest stores online dropship alot of products now a days as it frees up capital to use else were or to spend whatever way you like.

    The one main thing you have to get right is your drop shipper and do deep research on them, then try them out with your own money and not a customers just in case you get burned.
  8. susanifiellis

    susanifiellis

    Joined:
    Apr 11, 2011
    Messages:
    18
    Thanks for your advice.
    Regards
    Susan
  9. magshum

    magshum

    Joined:
    Nov 16, 2011
    Messages:
    10
    Good article.

    Whether dropshipping is viable or not might be more dependant on whether the individual is business-minded enough to make it work for them.
  10. thedropshipfactory

    thedropshipfactory

    Joined:
    Mar 15, 2013
    Messages:
    36
    Godaddy dropship domains. I pushed a domain to a guy last week and they cant change the contact info. Iv pushed hundreds of domains and this has never happened before.

    Anyway i contacted Godaddy and they told me to get my customer to contact them (because they have the domain in their godaddy account) which i did. A day later Godaddy told my customer to tell me to sign into another register and pay £12 to change the contact info.

    Has this happened to anyone else ? Leaves a bad taste in my mouth i must say.
  11. budgetsloving

    budgetsloving

    Joined:
    Apr 24, 2013
    Messages:
    11
    Appreciate it:)
    Really a useful guide for new planners like me!
    Thanks again!
  12. venfair

    venfair

    Joined:
    Mar 12, 2014
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    3
    I totally agree with you on the dropshipper should not cross the line and selling the same products to retail market. dropshipper's job is to focus on the supply chain, source best products and secure good shipping time. In this way the life circle completes and everybody gets what they want by doing what they are good at.
    Clive Osborne likes this.
  13. ellahu

    ellahu

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    Apr 3, 2014
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    The use of drop shipping to satisfy demand among ecommerce retailers has been one of the main advantages of doing business on the Internet.
  14. Ivy2014

    Ivy2014

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    Apr 14, 2014
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    1. Issues of custom and taxes
    2. Return policy for drop shipping
    .
    3. Get pictures without watermark
    I think we should notice these issues when we want to do drpshipping
  15. LWConnections

    LWConnections

    Joined:
    Jun 4, 2014
    Messages:
    2
    Great read! Feel the true value customers of drop shippers off is in the marketing and that in itself leads it to be a viable business model when carried our correctly!
  16. happydeal

    happydeal

    Joined:
    Sep 1, 2014
    Messages:
    1
    i would like to start a drop ship on line?
    Angelou likes this.
  17. B2B GRIFFATI

    B2B GRIFFATI

    Joined:
    Sep 29, 2014
    Messages:
    20
    Hi,
    I invite you to lookup B2B GRIFFATI's dropshipping:
    http://b2b.griffati.it/dropshipping.py?language=en
  18. Transfashions

    Transfashions

    Joined:
    Oct 24, 2014
    Messages:
    15
    Since we are also a dropship company so keeping in view my experience I would rather suggest you the following points before you take decision in selecting of any company.

    1. Ask the company about their product feed and more importantly how frequently they update their product feed because that will greatly reduce the chances of non availability of stock as well as price difference.
    2. Another important factor is shipping cost for which most of the drop ship companies gives you a very complex method to calculate and always try to put it into a grey area which ultimately a benefit for them.
    3. Nearly 95% drop ship companies who asked for initial deposit or paid subscription or even monthly fees; you will find later that most of their promises are simply marketing gimmicks. For example they claim hundreds and thousands of products of all the leading brands on 50% - 70% discount but once you actually cross check on the net you will find that the actual prices are far more less than what they are claiming. Same is the case with pictures; which are not up to that standard which they claim in their initial offers.
    4. Make sure about their response time; when you ask any query about their services or products because this will be a major factor once you actually got an order and then keep on waiting for their response till the time its really getting on your nerves.
    5. Another important factor is the product range and their authenticity; for example if a company is offering you shirt of Tommy Hilfiger while they are sourcing it from China or Turkey then it may result in a nightmare for you because if a customer raise question about the product authenticity and since you are on the front end so its you who not only have to refund the payment but also some negative feedback.

    Last but not least I would like to suggest that finding a good drop ship company is not one or few days task; you have to make a list and then start communicating with them and once you really feels comfortable with some company only then you should proceed by starting the whole exercise.
    Last edited by a moderator: Oct 24, 2014
  19. Leo at Deliveringchina

    Leo at Deliveringchina

    Joined:
    Dec 15, 2014
    Messages:
    50
    Great post! Drop-shipping was a great way for me to get into import/export business a few years ago.
  20. sdrhwrwsj

    sdrhwrwsj

    Joined:
    Nov 19, 2015
    Messages:
    9
    nice one Craig , defo a useful guide for new and upcoming entreprenuers
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