Dropshipping Is It Really That Much Of A Headache?
Dropshipping what’s it anyway, now that’s a good question if you live in the US you might well of heard of it but much of the rest of the world hasn’t caught on to the idea yet.
This is a swift summary of Dropshipping for those who don’t know. What happens is instead of you ordering a massive pile of stock and then after you sell it you ship it direct to your customers with dropshipping the supplier send out your orders for you. Once you make the sale you send the dropshipper your customers details and they send out the goods. They even use your shipping labels so your customer won’t even know or care you aren’t supplying them.
Drop shipping is a very popular option with sellers because it takes a lot of the grunt work out of selling on eBay.No need for shipping goods or buying stock. However, there are some pretty massive negatives to drop shipping it’s not all plain sailing especially true for new and inexperienced ebay sellers.
Lets investigate some positive points of dropshipping first:-
1. You’ll find no need to hold vast stocks of goods or have to pay to store bulk goods. Whilst this might not be that significant if you sell small items it could be if you sell gym equipment or things that take a lot of room.
2.There are no shipping costs getting stock sent to you to sell.However the dropshipping company will charge you or your customer to send out the goods plus a handling fee for saving you all that work.
3. Shipping and packing stock can be very time consuming so having this massive burden lifted from your shoulders can be a blessing and will grant you more time to concentrate on other aspects of your business.
4. There will be need to buy costly packing materials, such as bubble wrap, boxes and the like which take up a lot of space and can be very inconvenient if you live in a small home with limited space.
It probably doesn’t need me to tell you but like everything in life there are always some negatives to take into account.
These are the dropship negatives:-
1. You’ll find that the dropshipping costs can add quite a bit to the overall cost of the product as you need to pay for the suppliers staff to send out the product on your behalf. On occasions these might be five dollars or even more and then you need to factor in these costs as well as shipping if you want your customer to swallow them. You need to be careful when working out your profits that you take these costs in to the equation.
2. If things go wrong with shipping the headaches will still be yours as the customer will see this as your responsibility not the dropshippers.So with this in mind make sure you select your dropshipper and supplier carefully.
3. People contact me telling me they found a great product they have the ability to sell but can’t find a company that will supply on a dropship basis so give up. Remember not all companies want the hassle and paperwork involved that providing a drop shipping service and like to only sell in bulk to retailers.
4. On occasions you’ll find your dropshipper runs out of stock especially with high demand items. This can lead to unhappy customers who may feel agrieved that you sold a product you can’t supply.Usually with some careful handling you can keep most customers happy and avoid negative feedback.
Whilst dropshipping can work for some people for others it can be a major headache make sure you do thorough research and you should avoid most of the major problems.
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