The beginning of the end for Drop Shipping

2 replies
  • ECOMMERCE
  • |
It was only a matter of time in my mind.. but Drop shipping is on its way out...

Ebay is now penalizing, freezing, revoking accounts that drop ship. It is simply a matter of time before many of the other market spaces do the same.

What they are against, is the market space flipping, and not drop shipping when done correctly. So Selling an item on ebay, that you the seller buys on Amazon, and that item ships to the customer.. that is basically no more.

IF you have an actual drop ship business arrangement with a supplier E-bay will request proof of agreement and allow you to continue...

So The business model isn't dead.. its just being legitimized
#beginning #drop #end #shipping
Avatar of Unregistered
  • Profile picture of the author dave_hermansen
    Buying from Walmart or Amazon or wherever and then shipping it to a customer on Ebay (or any other platform) is NOT true dropshipping. It is buying at retail and selling at even higher retail.

    People who do this kind of stuff is what gave dropshipping a bad name and why so many platforms and payment processors have policies in place to disallow it.

    Buying from legitimate brands and wholesale distributors and having them ship to customers (a.k.a. REAL dropshipping) has never been a problem and will never be a problem in the future. If it was a problem, pretty much every single major retail website you can name would be out of business (Target, Walmart, Home Depot, Amazon, etc.).
    Signature
    StoreCoach.com- Learn How to Dropship the Right Way - Buy & Sell Websites - Partner with Coach
    My PROVEN ecommerce process, as seen on: Fox News, the NY Times & Flippa
    {{ DiscussionBoard.errors[11475172].message }}
    • Profile picture of the author MSutton
      Originally Posted by dave_hermansen View Post

      Buying from Walmart or Amazon or wherever and then shipping it to a customer on Ebay (or any other platform) is NOT true dropshipping. It is buying at retail and selling at even higher retail.

      Dave is correct. This isn't really dropshipping. This is called "retail arbitrage" but dropship ebook authors and system/course sites have calling it dropshipping to make it appeal to the dropshipper wannabe crowd who don;t have the skills to to market research, find a supplier and form a good relationship.



      Real dropshipping is when you have a business-to-business (B2B) relationship with a supplier and they ship directly to your customer.



      Ebay does not want an ebay buyer receiving an Walmart or Amazon box when they bought the item on ebay. It kills their brand. Amazon and Walmart are their biggest competitors. Not to mention, some customers get pissed off when they buy something on ebay then find out you got it cheaper on Amazon and sold it to them for a higher price. Whether it's moral or not is irrelevant, but ebay suffers from retail arbitrage.


      Retail arbitrage is a lazy "marketer's" way of "dropshipping". But it's not real dropshipping.
      Signature
      Article Spinner with Human Intelligence Built-In!
      {{ DiscussionBoard.errors[11478117].message }}
Avatar of Unregistered

Trending Topics