7 {{ upvoteCount | shortNum }}
7 {{ upvoteCount | shortNum }}

Value Added Wholesale and DropShip Business

by David McKee
5 replies
  • ECOMMERCE
    • |
The Wholesale and Drop-Ship online business is an incomplete model. Unfortunately I see lots of people using this model in a usually failing attempt to make money on Ebay, Amazon, etc. It is essentially a physical form of Affiliate Marketing...

What I see is dozens or hundreds of sellers, selling the same item, undercutting each other in price until there is no more reason to go on, as there is no profit.

I would like the forums opinion of doing it differently:

How about this... I get wholesale sent to me (yes that implies inventory). I add some value to the product (yes that implies some physical work). I then outsource both of the two things I just said (inventory and value add). I then sell the item as the other wholesalers/drop-shippers but now my product is unique and worth more.

This idea may also be applied to digital affiliate marketing I suppose...

Let me know what you think.

-DTM
#added #business #dropship #wholesale
  • Profile picture of the author MillionairesMentor
    David, I completely agree with you. Competing on price is extremely tough. Unless you can be the least expensive and still have a decent margin you are doomed to compete in a race to zero. Who wants to buy from the second or third least expensive? I have built and sold several multi-million dollar Internet companies and two of them were market and price leaders, so I definitely have been there. The "trick" lies in the balance of the value proposition and the entrepreneur's ability to manage COGS. Its definitely a bit of an art/science mix, but will ultimately make the difference between making it big or becoming a statistic.
    Signature
    Ben Neumann
    Email Marketing Mastermind Group
    The MillionairesMentor Program
    BenNeumann.com
    {{ DiscussionBoard.errors[6166988].message }}
    • Profile picture of the author David McKee
      Originally Posted by MillionairesMentor View Post

      David, I completely agree with you. Competing on price is extremely tough. Unless you can be the least expensive and still have a decent margin you are doomed to compete in a race to zero. Who wants to buy from the second or third least expensive? I have built and sold several multi-million dollar Internet companies and two of them were market and price leaders, so I definitely have been there. The "trick" lies in the balance of the value proposition and the entrepreneur's ability to manage COGS. Its definitely a bit of an art/science mix, but will ultimately make the difference between making it big or becoming a statistic.
      Thanks MillionairesMentor, and what you say is the rub... if there are 200 other sellers on Ebay selling the same gadget drop-shipped from China, and someone else gets them wholesaled to their own warehouse by the ship-load, they are going to beat everyone else on price hands down. But... If I can take that same gadget, improve or change it in some way that makes it both unique and desirable, then I have something nobody else has, at least for some time window.

      Here is an example of what I am talking about: There are some "Geek" Gadgets from a certain Chinese exporter that have color leds. These include watches, headbands, caps, and even clothing. These items are sold separately. But and complete ensemble of these items is not currently avialable.

      That could be the very simple value add.
      Signature
      Are you an affiliate marketer? My site has tons of free stuff and 14,000 pages of Clickbank research. www.affiliatesledgehammer.com
      Buy a Freedom Bulb! Don't let the government tell you what kind of light bulb you can use!
      {{ DiscussionBoard.errors[6167803].message }}
  • Profile picture of the author DROIDM4STER
    Dropshiping opportunity can be very rewarding if you sell it offline. or you being a wholeseller/distributor.

    I know a guy who earn tons on money up to now, he is an American speak fluent mandarin and is living in China. What he does is that he is affiliated to many factories and warehouses in China.He source things for his client in US and UK he started this affiliation with $0 startup cost.

    he then begin distributing products to western countries such as UK and US. Now whenever i need new niche item he will be the first in my mind. now the most best selling item would be electronic gadgets from china. But off course it will be hard to sell on Ebay or Amazon but to sell it offline is a piece of cake.

    and also look for retail stores in your local area and supply them with this kind gadgets that no one can get in your areas
    {{ DiscussionBoard.errors[6167127].message }}
    • Profile picture of the author David McKee
      Originally Posted by DROIDM4STER View Post

      Dropshiping opportunity can be very rewarding if you sell it offline. or you being a wholeseller/distributor.

      ...

      and also look for retail stores in your local area and supply them with this kind gadgets that no one can get in your areas
      Good idea DROIDM4STER! - still, I would prefer to have the business operate as an online business - perhaps as a personal portal to those offline businesses to order through.
      Signature
      Are you an affiliate marketer? My site has tons of free stuff and 14,000 pages of Clickbank research. www.affiliatesledgehammer.com
      Buy a Freedom Bulb! Don't let the government tell you what kind of light bulb you can use!
      {{ DiscussionBoard.errors[6168011].message }}
  • Profile picture of the author JohnBush01
    It is really hard to decide what kind of business should you start either wholesales or drop-ship and make sure that you have an idea on how to run those kind of business for your success.
    {{ DiscussionBoard.errors[6197166].message }}

Trending Topics