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Drop-shipping

Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
For those who dont know, drop-shipping is where a seller will advertise some goods somewhere(ebay/personal website/wherever). The seller takes orders and payment at whatever price they choose to set, then the seller will buy the goods from the drop-shipper and pass on the buyers details also.
The dropshipper will then send on the goods directly to the buyer so the seller never even comes into contact with the goods and doesnt pay out any money until they have been paid themselves. The seller keeps any profit made from the sale.

Potentially this looks great and it seems there are not many ways to lose out as a seller.

Has anyone had any experience with this though? and if so what tips/advice can they give me?

Comments

  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    but where do you find these drop shippers and whats stopping your buyers finding them also, and buying direct?
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    Well drop-shippers have been around for years and there is nothing stopping buyers going to them directly, but if buyers were likely to then why do people continue to pay retails prices for goods?
    Drop-shippers normally charge a joining fee of around £20 then £5 a month-ish.

    for example:
    Sell an xbox 360 game for £20 on ebay with £3 postage, buy the game from the drop-shipper for £8 and give them the postage then pass on the buyers address. profit - £12. Sell a few items and you've made your membership money back + some extra.

    oh and i paid up to join a website with a huge directory of wholesalers and drop-shippers both here and abroad so thats not a problem.
  • Former MemberFormer Member Posts: 1,876,328 The Mix Honorary Guru
    yeah i guess it depends on the discount really, i can't think you'd get that much off unless your buying in bulk, that's what wholesale is by definition......i don't get why people pay retail prices tbh, more money than sense i suppose.........sounds good in theory, none of your money tied up in anything, guess you're just depending on the reliability of your drop shippers to deliver the goods in good nick, on time and as described, because that's totally beyond your control......
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