Make Money on eBay: DROPSHIPPING - Proceed with Caution!
We all want to make money on eBay. One of the way to do that is by using dropshippers. There are some of the major advantages associated with using dropshippers, but there are also some major cautions. Ignoring some of the issues associated with dropshippers can have a major impact on your business. Once you know the potential problems, and the process to use in finding the right dropshipper for you and your business, however, there can be some real advantages.
The following is a brief list of the issues to be watched:
? Product out of stock – Many of the most popular products (The products that our buyers really want!) may continually be out of stock. One day the drop shipper might show an inventory on-hand and available. However, by the time the product is sold at auction, there was zero inventory on-hand. Nothing irritates a buyer like having made a purchase and then receiving notice that the product is no longer available! Irritated customers, and you cannot make money on eBay when this happens!
? Back Ordered – Those are the words that can destroy your long-term relationships with your customers. The drop shipper had it in stock when you listed at auction. The product may even have been in stock at the moment that you sold it at auction. By the time you receive payment and then pay the drop shipper, however, they are out of stock. The buyer receives a notice of ‘back order’ on their products. This can be a major problem that results in unhappy customers, negative feedback, and lots of refunds. Want to make money on eBay? Stay on top of back ordered merchandise!
? Higher price – Most drop shippers charge higher prices for products than would be paid for the identical product on the open market. This price difference was often big enough to make the difference between profit and loss on eBay. This higher pricing does make sense however, since the drop shipper has the cost of a warehouse and a staff to provide the very services that we receive. However, losing money because of the services is still losing money! Shop carefully before you list products for sale. Want to make money on ebay? Make sure that you will indeed make a profit on items sold using a dropshipper.
? Poor Customer Service – While some drop shipping companies provided truly outstanding customer service after the sale or when there are questions, others can be extremely difficult to deal with. In fact, some are virtually impossible to contact once they have your money. Once again the impacts of poor customer service were felt by your customers – not good! Do you want to make money on eBay? Stay on top of customer service with all of your buyers at all times.
? Pressure to buy in quantity and then store at our warehouse – Not all of the droppershipping companies will push for bulk purchases. However, some really push for bulk purchases, especially regarding products that are lower-cost, small in size, or light to ship. Some drop shippers may make bulk purchases seem to be their number one topic of discussion every time there is contact. Higher quantity pre-purchases were also presented to us as a potential solution to the out-of-stock and back ordered issues. Yet, there was never an offer of a lower price associated with these offers. If your goal is to make money on ebay, stay away from advanced bulk purchases from this source unless there is a price discount.
We have used and will continue to use drop shippers in our business. However, we recommend that you are quick to eliminate any drop shipper that frequently issues back order notices, especially when their online inventory shows stock on-hand. Eliminate drop shippers that fail to provide outstanding customer service. Never jeopardize your customers by dealing with companies that don’t share your concern for positive feedback. Don’t let a dropship company become the reason you don’t make money on eBay.
