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What YOU Must Know About The Advantages And Pitfalls Of Dropshipping
The following may be the most important information about dropshipping you will find.
Dropshipping can be a great way to get started with your online venture. Just be careful to make sure that you know the quality of the product your supplier offers, what their shipping policies are, and their reliability.
Your reputation is on the line with your customers, not the dropshippers reputation. You must be able to stand behind your product and service no matter what the source.
Make sure to order at least one of each of the items you would sell via the dropshipper. This gives you several things:
- It will show you the quality of the products. This is very important. You don't want to offer a product and have your customer receive something that is low quality or obviously not worth the money.
- It will show you what the packaging is like. How well is the product protected during the shipping process? Is it likely to break or arrive damaged due to inferior shipping or packaging?
- You can see first hand who they shipped through and how long it took for the item(s) to arrive.
There are many advantages to drop shipping.
1. When you are first starting out, capital may be an issue. With dropshipping you can get around that by selling the product first, collecting the money from your customer, buying from the dropshipper, and keeping the profit. Although your profit may not be as high as it would if you had purchased the products in bulk beforehand, it is still a profit that can get you started.
2. Another advantage is you don't have to have products stored around your house.
3. You don't have to worry about being stuck with inventory that you cannot sell. If a product doesn't sell, you can simply drop it from your offering and go on to other more sell-able products.
4. You can find and sell more items since you don't have the limitations of on-hand inventory.
If you are considering dropshipping to get yourself started you must also consider the *potential pitfalls*:
1. You will get a price break from a dropshipper, but it is often not as low as you could get from other avenues. Be careful to make sure that you have a product that is quality and the price point for you is one that will ensure a profit for you when sold. This is especially important if you will be selling via auctions. Auctions tend to sell new products for 25-30% below retail. If your price is not good enough, you could loose money on an auction.
2. Make sure that the dropshipper gives you a good shipping and handling fee. They have lots of shipping and get a very good price on it themselves. If shipping and handling is high, something is wrong.
3. Don't pay a 'fee' to do business with anyone. You are giving them business by buying product from them. If they want more money for your having the privilege of doing business with them, you know this is not a company that you want to even consider.
4. Find out how the dropshipper handles problems. If you have a customer return, how will they handle it. What kind of support will they give you.
5. Get references for the dropshipper. How long have they been in business and what is their financial standing? Check the Better Business Bureau. Google their company name to see if there are any complaints or problems you might need to know about before making the decision to do business with them.
If you are ready to make the dropshipping model your own, jump right in. Take these points into consideration, but don't let anything stop you. Be as informed as you can though, continue to learn and find out all you can about those you do business with.
The road to success is not always a smooth one. Can you avoid more of the pot holes, it makes the ride much more enjoyable?
Copyright (c) 2005, Melanie Burns -- All Rights Reserved Worldwide
Melanie Burns has passion and dedication to assistingYou to make Your Internet Business a Success!Join the weekly "Abundant Success Online" newsletter,mailto:firstname.lastname@example.org
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Why Ebay Is The Best Place To Make Your First $1000 Online
I'd like to begin with a question - and I'll bet the answer is going to surprise you (it sure did surprise me!).Q.
Profitable Paper Piecing on eBay--Part 1
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Selling Effectively on Ebay Motors
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You've finally found the wholesale source for the high demand widget that is selling like hotcakes on the Internet. Thoughts of watching the money pouring in and celebrating the new found success selling widgets has you so excited that you can't wait to buy 5 widgets at wholesale and double the investment.
eBay - Getting More Bids Using An Auction Preview
If you sell in small niches as I recommend and are organized enough that you know what you will be listing on eBay 1 to 2 weeks ahead of time, you should give serious thought to previewing your upcoming auctions for your customers. The result can be increased sales and higher final bids.
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I just received an interesting email from eBay and it got me thinking..
Get Yourself A Piece of The eBay Pie
Ebay is without a doubt the greatest internet marketing phenomenon of all time. Millions of people log on every minute and every second there are hundreds of items listed, sold and bought, and of course money is made.
8 Collectible Dolls That Sell Well on eBay
From the beginning, eBay's primary growth came from thecollectibles market. There are two basic models for eBaysales:1.
Ten Sure Fire Ways To Lose Bidders
The way some auction sellers approach their auctions, it's clear there are as many ways to lose bidders as there are to skin a cat. If you spend enough time in the auctions you'll see a lot of basic mistakes, but the question remains: why do so many people consistently make the same mistakes over and over again.
Effective Auction Listings - How To Create Them
Once you've created the best possible title for your item, you will move on to writing your auction description. Here, you have more space to give a detailed description of the item you are selling in the body of your auction.
How to Survive the Jungles of Ebay Selling
Come with me, we are going to take a safari into the jungles of eBay selling, sometimes wrought with danger but most often rewarded with treasure.Beware of non-paying bidders, beware of auction snipers waiting to try and steal your eBay auction at a very low bid, but welcome the loot you will receive selling outdated relics in your house for a small kings ransom.
eBay Auction Bidding Strategies--Overcoming the most Frustrating Situation on eBay
Auction Image Hosting for Ebay Auctions: Free Single Most Recommended Tip
It is a well known fact that the more pictures taken of an item, the better it will sell. Not only will you get more bids, but you will make a superior final profit.
5 Reasons Why Playing Music On Your Auctions Is A Bummer Of An Idea
There are 147 million registered users on eBay, and tens of millions of those are desperately fighting to make sales on eBay. When trying to make their auction listings as powerful as possible, many sellers use ill-advised tactics.
Professional eBay Auctions Reap the Profits for Sellers
eBay offer an unbelievable amount of traffic for ANYONE wanting to sell on their auction site, so much so that millions of items are listed on it everyday. So with all this competition how do you make sure that your listing doesn't get lost amongst the rest and that customers keep coming back to you.
The Ins and Outs of Dropshipping on eBay
Dropshipping is an attractive marketing technique, but when you take it to eBay it becomes a real phenomenon. There are tens of thousands of people running dropshipping business as you are reading this article.
The International Affiliate Program of EBay
eBay trades in more than 33 international countries with over 157 registered users worldwide with 75 million based in the USA and 10 million in the UK.eBay's affiliate program must be the mother of all affiliate programs as far as size and potential scope for earning an income through promoting other peoples items.
Drop Shipping Secrets and Sources Revealed
Unfortunately for those just breaking into the wholesaling business, drop-shipping source information is jealously guarded. With a firm understanding of the service they offer, it isn't hard to see why.
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