Every day I get people asking me for what good reason dropshipping isn’t great for eBay and every day I give them the same rundown of five reasons. In this way, I figured I would post it as an article so everyone can learn. Here are the 5 reasons eBay sellers ought to stay away from dropshipping (in reverse order).
#5 – Unavailable Equals Awful Feedback
Dropshippers often run unavailable on famous items. This means that after you sell the item on eBay and afterward go to your supplier to have the item dropshipped you learn that the item isn’t in stock. You then have to tell your buyer the awful news and will as a rule get some terrible feedback in return. The eBay discussions are filled with sellers who have been destroyed by the awful feedback they received by taking a stab at dropshipping. They are likewise filled with protests from buyers who didn’t receive the item they ordered because the seller was utilizing a dropshipper – – and after the sale informed the buyer that the item was not available.
#4 – PayPal Will Hold Your Funds
About a year prior, in January 2008, eBay and PayPal issued some new policies. One of which is to stop funds. Here is the quote from eBay’s approach:
“In a little percentage of cases where it has been determined the gamble of dissatisfied buyers is higher, PayPal might delay the release of the payment funds to the seller until the buyer has left positive feedback or 21 days have passed without a dispute, guarantee, chargeback or reversal filed on that exchange.”
Any new eBay seller who tries utilizing dropshipping as a method for obtaining their items will find that they can’t access their funds until after the item has arrived at their customer’s entryway. This eliminates one of the most appealing aspects of dropshipping – the capacity to sell an item and afterward use the buyer’s payment to finance the purchase. With PayPal holding your money for 21 days this won’t be possible.
#3 – Direct from the Source Competition
This is a relatively new phenomenon that has come about by the recent explosion of “direct from China” dropshippers. Basically, this means that a considerable lot of these dropshipping companies are really selling the items on eBay directly themselves. They are “double plunging”. While they provide a website that will outsource items to your eBay customers direct from China, they are likewise selling the same items on eBay themselves. To witness this one just needs to search in the electronics category on eBay. A significant number of the postings have the item area show Hong Kong or some other area in China. Yes, the dropshippers themselves are competing with their customers.
#2 – Overall revenue is Below $0
That isn’t an error. The overall revenue you will face when utilizing dropshipping to sell on eBay is most frequently zero. Nothing. Nothing. As a matter of fact, the vast majority who first have a go at utilizing a drop shipper to supply their eBay items end up getting frustrated and crying “the price my drop shipper is selling the item for is MORE than the price the item is selling for on eBay.” And they are correct. You see wholesale is tied in with purchasing in amount. When you use dropshipping you are purchasing only one of an item and can’t expect a wholesale price.
Presently why paying somewhat more for an item may not be no joking matter in the event that you’re selling it for as much as possible at your neighborhood store, it is a HUGE deal when attempting to sell on eBay. eBay is a place people go to get a deal. They would rather not pay full retail price, and chances are they can track down the item at an absolute bottom price in the event that they simply glance a tad. Because even on the off chance that you can’t sell an item at the lowest possible cost (because you are utilizing outsourcing), there is a large number of other eBay sellers who can. So it is true. The price you get from your outsource supplier will often be more than the item sells for on eBay.
#1 – Dropshipping Does Not Work on eBay
Considering the other four reasons not to use dropshipping when selling on eBay this could seem self-evident. Furthermore, it ought to be! Basically dropshipping and eBay are a poisonous blend. While eBay is the place to sell items to people who need a deal, dropshipping is the method for purchasing items at the highest possible “wholesale” price. What’s more, while your drop shipper might offer a large number of items – – they presumably have a great many clients like yourself who are likewise posting the items on eBay. It just doesn’t work.
Well, I hope I have convinced you to avoid dropshipping when it comes to selling on eBay. For more data on why dropshipping on eBay is a terrible business decision please visit DropShipping Sucks and read the page. Not exclusively will it explain exhaustively why dropshipping will never lead you to eBay success, but it will likewise offer you an alternative that works.
That is in support of now and remember the age-old insight. Assuming that it sounds unrealistic, it typically is. This is definitely the case when it comes to eBay and dropshipping…