Wednesday 23 September 2009

Are there any downsides to Drop Shipping from Suppliers?

To Drop Ship or Not to Drop Ship....

So what exactly is drop shipping?
Put very simply drop shipping is when you, as a seller on eBay, get the manufacturer or distributor of your product to pack and send the item(s) directly to your customer for you.

When you make a sale you send an email to your drop shipper and they take care of everything from picking, packing and despatching straight to your customer. It saves you having to order in bulk, find somewhere to store the products and pack and despatch yourself. So everyone is happy and it's the answer to everything - or is it?

Here are one or two pointers to both sides of the 'drop ship' argument. Before you decide either way whether this method is right for you, you should look at the pros and cons, it could make the difference between success and failure.

These are some of the advantages.

  1. You don't need any storage space. You won't need to find a spare room or lock-up garage to keep stock and packaging materials. This is very useful if you sell large items.
  2. No shipping costs getting the products from your supplier to you. Again very useful if you deal in large or bulky items.
  3. Spend more time on important things. As you won't have to do the packaging yourself, or go to the local postal depot, you can spend more time marketing or dealing with your customers.
  4. No packaging materials needed. As all your packaging will be done for you, you'll save on having to buy these materials too.
These are some of the disadvantages.

  1. Drop shipping can be costly. You will have to pay the costs for materials and labour which is generally in the region of $2 - $5 per item (£1.50 - £4). If you're new to selling on eBay these costs can significantly reduce your profit margins, and may make the whole thing unviable to start with.
  2. You are responsible for the shipping of goods. Although the supplier is actually sending the goods for you, you are still responsible for any problems that occur, such as damage or delays etc. Although the shipping is actually out of your control, you'll still get the blame if something goes wrong. Cruel world isn't it?
  3. It can be hard finding a drop shipper. It's sometimes hard to find a supplier who will not only do drop shipping for you, but do it properly. There are a lot of suppliers who just won't do drop shipping because of all the paperwork involved.
  4. Check the packaging. It is also your responsibility to check that the packaging being used is up to the right standard, so your items don't end up damaged.
  5. Low stock levels. Most suppliers won't tell you when their stocks are low, and before you know it you have to explain to your customers why they can't have the product they've just bought.
Conclusion

If you are an established eBay seller such as an eBay Powerseller, or you already have a good supplier and have credit facilities to suit your demands, then drop shipping supplies can be a bonus for your business. The advantages outlined above speak for themselves.

However, for someone new to the world of selling on eBay the disadvantages of drop shipping are obvious. Any profits you may make at the beginning will quickly be swallowed up by the initial costs, and until you've been round the block a few times you won't be sure which suppliers are good and which are bad. 

All in all, the best advice would be to give drop shipping a miss until you are established. Doing your own packaging and posting may have its drawbacks, but at least you're in command, and costs can be kept to a minimum.

If you'd like to find out more about sourcing wholesale products for your own distribution, or get further information on drop shipping companies that DO want to drop ship, just go to the following LINK HERE NOW.  You could be glad you did.

All the suppliers on the database are pre-selected, so no nasty surprises for anyone here!

Friday 11 September 2009

It's all in the Title as a Seller on eBay

Why do 90% of eBay sellers fail?
Are you fed up with making little or no profit as a seller on eBay? Are you still scratching your head wondering why you aren't making the mega profits an eBay PowerSeller makes when your products are just as good as theirs?

It's all in the Title!

One of the major reasons that eBay auctions end unsuccessfully is that the title has been entered wrongly, or is not relevant to the subject. It's a sad fact, but it's true.

Why is the title so important?
You may have the best product in the world, but unless people know about it they can't buy it can they? A lot of people know what they're looking for when they go on eBay, and to pinpoint their search they use the search boxes.

The whole idea of choosing your title carefully is to get people to click on your listing. Your eBay auction title is just the first step in the buying process, but if you get it wrong - even by a little bit - it could also be the last.

Getting it right has become even more important since eBay introduced the 'Best Match' feature to their search engine. This means that when someone puts in a keyword for the item(s) they want to search for, the results will be the 'best match' for those keywords, and anything else will not show at all.

So how do I get it right?
There have been many techniques and ideas put forward by many people telling us the best way to do this, or the best way to do that, all with varying degrees of success. To give you the best advice I can, I am going to paraphrase one of today's more successfull eBay PowerSellers and tell you the way she does it - and as she is doing very nicely thank you, I think she must know what she is talking about!

These are the Tips and Tricks that work.
  • Include as many relevant keywords in your title as possible. Try to think of the words that people might use to look for your item. DON'T use words like 'amazing' or 'greatest' or 'wow' - you won't get any sales with those. You'd be surprised how many times these sort of words are used. BE RELEVANT.
  • Use capital letters at the start of EACH word in your title. It will make your title stand out more and be easier to read. You can also try putting some of the keywords in complete capitals too (important ones), and if your product is new, tell them it's NEW by capitals.
  • Always be descriptive. Make sure you say if your product is new (as above) and put it in the title. If you have, say, a branded product such as a Sony DVD Player for example, say so. Be creative and think what your buyers will type in the search box.
  • Check your spelling! Don't forget that if you spell a vital word wrong it will NOT show up in the search boxes. Just one misspelt word could ruin all your hard work. Double check your eBay auction titles carefully - this is extremely important.
  • Mystery and Intrigue! If you can add a little mystery or intrigue to your title all the better. This will result in more people clicking your link just to find out! If possible try not to reveal what the product is - just what it can do for them. This won't work for all listings though.
  • Don't use the Bold/Highlight options feature. EBay offers extras such as Bold and Highlight which you have to pay for. These haven't made a lot of difference to the amount of clicks, and are considered not worth the cost. Good relevant keywords are much better.
  • Use the gallery photograph. This sits next to your eBay auctions title (you know, the one with all the great keywords) so use it by having a good photo of your product. Remember, a picture paints a thousand words, and it really is true. If you can't put in a photo, upload some text. This won't count in the 'best match' search, but will give you the chance to say a bit more about your item, and draw attention to your great title!
If you follow all these tips you should find your eBay auctions will show much higher in the searches, and your eBay sales increase too.

Got any more tips?
To find more Tips and Tricks for selling on eBay check out my other posts on this blog, and follow Amanda's proven strategy to becoming a successfull eBay PowerSeller by following this LINK HERE. But only if you want to succeed!

Amanda O'Brien is a successfull eBay PowerSeller and author of The £2,500 Per Week eBay PowerSeller Secrets. Want to know more about starting an eBay business or simply want to improve your eBay sales?