I still curious how drop shipping works

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Ok...

is it like this?

let say I going to sell a Toy in eBay

go to amazon and check ....various pricing of this toy I want to sell in Ebay.

finally find one which sell the cheapest.

than I post in eBay sell this toy and mark up the price " profit "

than I received the payment and I LOG in my amazon to buy that toy and ship to that customer ?

But I think back the package from amazon surely have the label stated amazon.

hmmm..is it how drop shipping works like this?
#curious #drop #shipping #works
  • Profile picture of the author hbennick
    That's the basic premise of the DSDomination ilk of drop shippers. Really hard to make any real money. They will tell you that they had $1,000,000 in sales last month, but the won't tell you that they only make $100 in profit.

    Originally Posted by Devilfish168 View Post

    Ok...

    is it like this?

    let say I going to sell a Toy in eBay

    go to amazon and check ....various pricing of this toy I want to sell in Ebay.

    finally find one which sell the cheapest.

    than I post in eBay sell this toy and mark up the price " profit "

    than I received the payment and I LOG in my amazon to buy that toy and ship to that customer ?

    But I think back the package from amazon surely have the label stated amazon.

    hmmm..is it how drop shipping works like this?
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  • Profile picture of the author zxperts
    Originally Posted by Devilfish168 View Post

    Ok...

    is it like this?

    let say I going to sell a Toy in eBay

    go to amazon and check ....various pricing of this toy I want to sell in Ebay.

    finally find one which sell the cheapest.

    than I post in eBay sell this toy and mark up the price " profit "

    than I received the payment and I LOG in my amazon to buy that toy and ship to that customer ?

    But I think back the package from amazon surely have the label stated amazon.

    hmmm..is it how drop shipping works like this?
    You have the right idea. Generally the easiest way to start is to check Amazon and find some stuff you think will sell. Then check ebay and see if that item has sold recently on ebay and for how much. If a small-ish item (less than $40 bucks or so) is selling on ebay for 17% more than what it sells for on Amazon, then you can probably just drop shit it straight from Amazon.

    (NOTE: There are a few states in the United States that charge tax which needs to be figured in on top of the regular paypal and ebay fees if it is going to be a larger and more expensive item. If it is a bunch of small items, then you are probably best off to just sell as much as you can and when you sell to one of those states you won't make (much) profit on that item but you will sell enough to other states that don't charge tax to make up for it).

    You'll want to mark it up $3 or more, for your profit. If you can find several items to do this with and get proficient at it, there are many other places you can use as a drop ship source. So, they buy on ebay, the money goes into your paypal, you use a business paypal debit card (probably) to buy the item on Amazon and have it shipped directly to their address. Amazon prime offers free 2 day shipping for about $70 a year. You get a month free when you first sign up.

    There is a bunch of research involved, but if you're willing to stick with it, there's a potential for a lot of profit.

    Hope that helps!

    zxperts.com
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  • Profile picture of the author funmom91
    Do not use your Amazon Prime account for this. I actually considered drop shipping myself. It is against Amazon's TOS to drop ship with your prime account.
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  • Profile picture of the author JosephI
    There are drop shipping companies that act as middlemen between you and the factories.
    You create an account with them.
    They give you access to their inventory with pictures, description, price etc.
    All for some kind of usually fixed monthly fee whether you sell or not.
    You do what you want with the info, sell the items anywhere in any form.
    When you have a sale, contact them, pay for the item, give them the info and they will ship it
    for you with your company name, address etc that you set up. Customer never deals with them
    or know they exist. Only you.
    Returns are handled as agreed.
    That's the short explanation.
    Cheers
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  • Profile picture of the author TeKn1qu3z
    The basic idea is you promote someone else's product and if you sell it you get some commission while you drop shipper handles all other aspects of the sales process such as packaging and shipping and handling
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  • Profile picture of the author JosephI
    Basically, except that in drop shipping you set the product selling price, shipping cost, collect sales tax if required etc, in your own store or however you want to sell it so its not a commission.
    The drop shipper sets the prices to you, the seller.
    Cheers
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    • Profile picture of the author Devilfish168
      Actually I plan to do drop shipping
      but don't know where to start.

      As mention , actually I got the rough idea.

      > let say I want to buy a toy promote go amazon search the cheapest .
      Ok I find that seller.

      than go ebay post on my profile selling this toy.
      Once the buyer send me money and his/her address ,

      I will go order that toy from that seller at amazon.

      Right?

      problem is the package..as we all know stuffs brought from amazon.
      It come with the amazon package.
      Once reach the buyer ...isn't he/she feel " weird " ???
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      • Profile picture of the author LABEShops
        Originally Posted by Devilfish168 View Post

        Actually I plan to do drop shipping
        but don't know where to start.

        As mention , actually I got the rough idea.

        > let say I want to buy a toy promote go amazon search the cheapest .
        Ok I find that seller.

        than go ebay post on my profile selling this toy.
        Once the buyer send me money and his/her address ,

        I will go order that toy from that seller at amazon.

        Right?

        problem is the package..as we all know stuffs brought from amazon.
        It come with the amazon package.
        Once reach the buyer ...isn't he/she feel " weird " ???
        If the item is fulfilled by amazon, it will be in their box, yes. You could look for amazon sellers not using FBA but even at that, you risk negative feedback and get very low profits.
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        Owner of LABEShops.com & 20+ Niche Online Stores as well as Scifispace.com and other sites. Recommended Host: Evolve

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  • Profile picture of the author JosephI
    That's not drop shipping! That's buying and reselling. You buy it, ship to you, repackage and remail to your customer.

    Here's your definition of drop shipping from in internet. The one I gave above doesn't seem to cut it.

    Drop shipping is a retail method in which you don't keep products in stock. Instead, you join with a wholesale supplier that stocks its own inventory - you transfer customer orders and shipment details to them, and they ship the goods directly to the customer for you.

    You have a lot of homework to do before you start thinking of drop shipping.
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  • Profile picture of the author prince215
    drop shipping always sucks in my opinion i was about to start an E commerce site base on drop shipping system then i realize once i got an order and i paid to the company where ever i'll drop ship the goods what i'll get maximum $2,$5 its nothing if i get only 1 order in a week what's the benefit to me so i left that idea and started my own manufacturing group where my team is manufacturing Sports, Martial Arts, Boxing MMA, Leather and Surgical goods and i'm getting good amount of profit and orders as well if you wish i can help you to establish a good sports and leather business in USA or Canada or Australia or Singapore and UK etc. where ever you based you may check my aliaba.com gold profile here
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  • Profile picture of the author DWaters
    Originally Posted by Devilfish168 View Post

    Ok...

    is it like this?

    let say I going to sell a Toy in eBay

    go to amazon and check ....various pricing of this toy I want to sell in Ebay.

    finally find one which sell the cheapest.

    than I post in eBay sell this toy and mark up the price " profit "

    than I received the payment and I LOG in my amazon to buy that toy and ship to that customer ?

    But I think back the package from amazon surely have the label stated amazon.

    hmmm..is it how drop shipping works like this?
    Something to watch out for with using this business model. By the time you get a buyer from Ebay to place the order that item may no longer be available for sale at the right price on Amazon. Amazon prices are NOT static and you can easily get burned if you are not careful

    From my experience it makes much more sense to do the opposite. Buy on Ebay and resell on Amazon. I often get 50 t0 100 percent ROI this way. On the items I deal with the ebay prices are usually well below the Amazon prices.
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  • Profile picture of the author onlinecommerce
    Buying from Amazon and selling it on ebay is not proper drop shipping. It is more online arbitrage similar to retail arbitrage. It is just a terrible model overall don't bother with it.

    Drop shipping is when you have a supplier such as a manufacture/distributor/wholesaler who ships out goods to your customs as you sell them. You sell a hat to Sally, you tell your supplier to ship the hat to Sally and pay the wholesale price for the hat.
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  • Profile picture of the author skugrid
    You can also use different merchants for drop shipping, monitoring their coupons and prices. Some merchants don't like when you drop ship (casa.com is in my black list), but others don't really care.
    Had great success with kohls and jcpenney.
    Don't just stick with Amazon - it's great, but there are alternatives.

    --
    skugrid.com
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  • Profile picture of the author Importexport
    The OP may be curious about how dropshipping works, but I am still curious as to why so many people think that dropshipping is the only way to make money selling physical products.

    Numerous posts on the forum show that dropship profit margins are pathetically low. They are so low in fact that many who do it just end up working as cheap labor for the dropship wholesalers.

    Huge margins are possible by buying direct from manufacturers in China and other countries, and you don't need a lot of capital to do it.

    Here's an email received today:

    "Ok. From extremely skeptical to successful completion. Credit given where credit is due. I followed the book instructions you laid out. Took my time to double check everything and was able to successfully import an order from China. Not only that but it was also a "sample order" for less than 300.00. A 300% mark up has allowed to get initial investment back and I have 70% of my inventory left. Stop promoting your book. Your encouraging competition for me Many thanks."
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    Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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