Each working day I get folks asking me why dropshipping is not very good for eBay and each and every day I give them the exact same listing of 5 motives. So, I imagined I would submit it as an write-up so absolutely everyone can discover. Right here are the 5 factors eBay sellers ought to stay away from dropshipping (in reverse get).

#5 – Out of Stock Equals Poor Feedback

Dropshippers typically run out-of-inventory on well-known products. This means that right after you market the item on eBay and then go to your supplier to have the merchandise dropshipped you discover that the merchandise is not in stock. You then have to tell your consumer the bad news and will usually get some undesirable suggestions in return. The eBay community forums are filled with sellers who have been destroyed by the poor opinions they acquired by trying dropshipping. They are also filled with complaints from consumers who did not obtain the product they purchased since the vendor was making use of a dropshipper — and right after the sale informed the customer that the item was not accessible.

#four – PayPal Will Keep Your Funds

About a yr back, in January of 2008, eBay and PayPal issued some new insurance policies. A single of which is to place a Maintain on cash. Below is the estimate from eBay’s policy:

“In a modest share of circumstances where it has been determined the chance of dissatisfied consumers is larger, PayPal could delay release of the payment money to the seller until finally the purchaser has still left a optimistic opinions or 21 days have passed without having a dispute, assert, chargeback or reversal filed on that transaction.”

Any new eBay vendor who tries utilizing dropshipping as a approach for sourcing their items will locate that they can’t accessibility their cash right up until following the product has arrived at their customer’s doorway. This gets rid of one particular of the most appealing elements of dropshipping – the ability to promote a item and THEN use the buyer’s payment to fund the purchase. With PayPal keeping your money for 21 times this will not be feasible.

#3 – Direct from the Source Competition

This is a comparatively new phenomenon that has occur about by the current explosion of “immediate from China” dropshippers. Merely set, this indicates that numerous of these dropshipping organizations are really selling the products on eBay right on their own. They are “double dipping”. Whilst they supply a internet site that will dropship goods to your eBay buyers immediate from China, they are also promoting the exact same items on eBay themselves. To witness this 1 only wants to seem in the electronics category on eBay. Several of the listings have the product spot display Hong Kong or some other location in China. Indeed, the dropshippers them selves are competing with their customers.

#2 – Earnings Margin is Underneath $

That is not an mistake. The income margin you will experience when using dropshipping to market on eBay is most usually zero. Nothing. dropshipping beauty products Nada. In truth, most people who first try out utilizing a dropshipper to offer their eBay merchandise conclude up receiving frustrated and crying “the value my dropshipper is marketing the product for is More than the cost the product is promoting for on eBay.” And they are correct. You see wholesale is all about getting in quantity. When you use dropshipping you are purchasing just a single of an product and can’t count on a wholesale price.

Now why spending a bit far more for an merchandise may not be a big offer if you might be offering it for prime greenback at your nearby shop, it is a Massive deal when striving to market on eBay. eBay is a area folks go to get a deal. They do not want to pay full retail value, and chances are they can find the product at a rock bottom cost if they just seem around eBay for a little bit. Since even if you cannot sell an product for the cheapest feasible value (because you are utilizing dropshipping), there are countless numbers of other eBay sellers who can. So it is true. The cost you get from your dropship supplier will often be more than the item sells for on eBay.

#1 – Dropshipping Does Not Function on eBay

Considering the other four reasons not to use dropshipping when offering on eBay this may possibly look clear. And it need to be! The bottom line is that dropshipping and eBay are a poisonous mixture. While eBay is the area to market merchandise to individuals who want a offer, dropshipping is the way to purchase products at the maximum attainable “wholesale” value. And, whilst your dropshipper could offer countless numbers of items — they almost certainly have countless numbers of clients like by yourself who are also listing the items on eBay. It just isn’t going to operate.

Effectively, I hope I have persuaded you to stay away from dropshipping when it comes to offering on eBay. For far more details on why dropshipping on eBay is a poor business decision remember to go to DropShipping Sucks and read through the page. Not only will it explain in depth why dropshipping will in no way lead you to eBay achievement, it will also offer you you an substitute that works.