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Dropshipping? Does it work when Amazon etc are so cheap??

by adam westrop
7 replies
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I'm very interested in doing dropshipping as obviously the profit margin compared to being an affiliate is normally a lot higher (I promote physical products).

My question mainly surrounds price etc, it seems like anything you can promote via dropshipping in nice volume that Amazon sells and sells cheaper.

So do people dropshipping still get good conversions even though I assume in a lot of cases you need to place your prices higher then Amazon?

Am I right in thinking that dropshipping is really an ideal method of business for items which vary in design etc that you could have the advantage over Amazon? E.g. I imagine droppshipping electronics of any kind if a no no, but I imagine drop shipping candles or cheap sunglasses (not designer) could be a winner?

Thanks,
#amazon #cheap #dropshipping #work
  • Profile picture of the author HaroldD
    When I used to sell stuff on ebay I would occassionally buy cheap items on amazon and sell them on ebay. I was always amazed that people would buy through me when they can get it cheaper on amazon.
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    • Profile picture of the author TroelsJepsen
      I don't have any experience with selling physical goods other than as an affiliate.

      But I think, that a lot of people don't actually think like that. They probaby just consider wether or not it will be too expensive to buy the item from you, and if this is not the case, they'll buy it from you, if they like your site, and it makes them feel secure buying from you.
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    • Profile picture of the author luke4
      Originally Posted by HaroldD View Post

      When I used to sell stuff on ebay I would occassionally buy cheap items on amazon and sell them on ebay. I was always amazed that people would buy through me when they can get it cheaper on amazon.
      I do this too. Also try out hotukdeals and do the same from the websites they offer there
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      • Profile picture of the author Robert Mangan
        Adam,

        I run an eCommerce site that sells physical products entirely through dropship. I've found that on some products I am more expensive and on some I'm cheaper. Also, many manufacturers that I deal with have MAPPs in place so no one can sell below the advertized price.

        Like others have said, people will still lbuy from you even if you're more expensive than the big guys like Amazon. If you rank higher then you'll get more traffic and not everyone is comparison shopping so you'll get the order.

        And, if you have a TOLL FREE number, you also get orders from customers simply because you have one. People can't call Amazon if they have a question before they decide to purchase. Even if a large retailer has a TOLL FREE number and the customer calls them, chances are they'll talk to someone who knows nothing about the product and can't answer their question. Just by answering their questions means they often buy from you rather than the big guys who didn't answer their question but were cheaper than you. Offering GREAT customer service counts for a lot and does get you orders even though you are more expensive.

        Finally, some customers just prefer to deal with smaller retailers. I recently had a guy call me about a product I sell. He told me that Amzon was way cheaper. After trying to squeeze the price down I was still $100 more expensive than Amzazon (the product was around $3,500). He still went ahead and bought from me. He said he prefered to BUY FROM AND SUPPORT THE LITTLE GUYS.

        So, don't worry about your pricing. Keep it competitive but never feel forced to sell at a loss just to get the orders.
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  • Profile picture of the author markament
    Hi there Adam,

    I have two websites that sell products that are drop shipped. I make anywhere between $10 and $120 per sale. What's interesting is that some of the products are available cheaper at Amazon or even at Walmart, but I still get sales. I think part of this is because my sites simply rank high for specific keyword searches. Plus I always offer a few add-on products that are unique and interesting.

    One of the resources I use is a Dropship database that has a huge listing of where to find dropshippers all over the world. PM me for the details.
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  • Profile picture of the author gowireless99
    Dropshipping is not that good It is better to buy and then sell. For example, you sell an item on ebay and the dropshipper says that he/she does not have the item on stock, what do you do? Some Amazon buyers are very mean. If you don't ship the item, they will leave you a negative feedback
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  • Profile picture of the author MatthewNeer
    That could work really well. After all, thats why drop shipping companies were created, out of a need for them created by eBay.

    Just make sure you're profitable.
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