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!