You have found which products are hot and now are looking to find your supplier but to streamline the whole process, you want the supplier to send the goods ordered directly to the customer while you collect the payment and the order from the customer. You are then responsible for paying the dropshipper for the goods they have shipped.

Great Stuff!

This is great stuff because firstly, you never get your hands dirty with anything except the money and secondly, you never have to have stock on hand which will cost you money to handle and store allowing you to work from the comfort of your own home without boxes of product turning your home into a warehouse facility.

So, let’s take a look at advantages of using a dropshipper first of all.

The Pros

· You don’t need a stock inventory which saves time and money storing it;

· No need for significant outlay investment to get started;

· Dropshippers are likely to be agreeable to sell “light bulk” units i.e. a smaller order size than a wholesaler/manufacturer – you will find suppliers willing to supply 1 unit per order;

· Allows you to concentrate simply on marketing and managing money without any need for involvement in logistics.

And now for the other side of dropshipping.

The Cons

· There are a lot of scams with supposed “dropshippers” taking your money for product which is never dispatched (meaning you have to refund your customer) or more frequently, sending product which does not match those ordered by the customer (again a refund situation);

· You may not be getting such a great discount on the goods to place your mark-up because you are not buying wholesale but in much smaller volume;

· You have no control over the packaging so there is no opportunity to create brand awareness through the products you sell;

· Different dropshippers will charge different shipping fees and these can make the whole proposition unworkable from your point of view – take care you know exactly what you will be charged by the dropshipper;

· Multiple dropshippers supplying multiple products can be expensive when it comes to the dropshipping fees being levied; and

· Delivery issues can arise and you will be out of the loop but your customer will be expecting you to deal with it.

Due Diligence:

You will need to source a reliable dropshipper, not necessarily the cheapest for you but in terms of a supplier delivering what is ordered when they say they will is priceless in the eyes of your customer and this reflects directly on YOU! If the order/delivery process is messed up, the customer will blame you and no-one else so you must develop a good working relationship with your dropshipper – look at this as being a team in partnership to get the goods where they need to be (the dropshipper’s job) and to collect the money and disburse it fast and efficiently (your job) – either one of you fails and you both fail, both do well and you will do very well! Keep in mind that small manufacturers love to work with eBay sellers and often time you have less competition online to deal with either

Sourcing Support: If you prefer to have someone reliable pre-screen manufacturers and suppliers, check out SaleHoo – that’s all they do … getting the stage ready for you to sell up a storm!

Wishing You Rippling Success! Please share your thoughts and ideas in the comment section!

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