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Drop shipping, to be or not to be?

by fireboyz
5 replies
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Hello all, I am a seller in Australia, mostly doing business on ebay or shopify. Since this year Austrlia Post increased their price again, we need to pay more for postage.
Last year I spent some times to have a look at dropship, supplier send the parcel directly to my customers. I know there have lots of issue and may harm the business reputation if you have a lazy or not reliable suppliers. what do you think?
#drop #shipping
  • Profile picture of the author amcg
    Originally Posted by fireboyz View Post

    Hello all, I am a seller in Australia, mostly doing business on ebay or shopify. Since this year Austrlia Post increased their price again, we need to pay more for postage.
    Last year I spent some times to have a look at dropship, supplier send the parcel directly to my customers. I know there have lots of issue and may harm the business reputation if you have a lazy or not reliable suppliers. what do you think?
    How reliable is the supplier and how good is the product? I ask as returns could be your worst nightmare. I did an experiment with dropshipping devices from China to the UK and despite thin sales margins, it worked ok.

    The problem comes with returns; the returns rate effectively dictates whether it will work for you or not.
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    • Profile picture of the author fireboyz
      Originally Posted by amcg View Post

      How reliable is the supplier and how good is the product? I ask as returns could be your worst nightmare. I did an experiment with dropshipping devices from China to the UK and despite thin sales margins, it worked ok.

      The problem comes with returns; the returns rate effectively dictates whether it will work for you or not.
      Yes, I was thinking about clothes for office lady from china, after a few studies and read some comments about the size doesn't fit problems, so I moved to some kind of fashion accessories, and wish it has less returns rate.

      Thanks your advices
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  • Profile picture of the author Importexport
    Originally Posted by fireboyz View Post

    Hello all, I am a seller in Australia, mostly doing business on ebay or shopify. Since this year Austrlia Post increased their price again, we need to pay more for postage.
    Last year I spent some times to have a look at dropship, supplier send the parcel directly to my customers. I know there have lots of issue and may harm the business reputation if you have a lazy or not reliable suppliers. what do you think?
    Postage rates are only a problem if you don't have a good profit margin.

    If you buy small inventory direct from genuine manufacturers in China or other countries in Eastern Europe, Turkey etc, the profit margins will blow you away.
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  • Profile picture of the author lastreporter
    Originally Posted by fireboyz View Post

    Hello all, I am a seller in Australia, mostly doing business on ebay or shopify. Since this year Austrlia Post increased their price again, we need to pay more for postage.
    Last year I spent some times to have a look at dropship, supplier send the parcel directly to my customers. I know there have lots of issue and may harm the business reputation if you have a lazy or not reliable suppliers. what do you think?
    As a dropshipper who has been around the block, I would say your prospects are not very good. Margins and direct competition from China, some countries subsidize their postage, is making it impossible to turn a profit, at least it is for me and some of my friends who had been selling on Amazon and eBay for years.

    Sorry, I don't have better news for you.
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  • Profile picture of the author himanuzo
    If you want to do dropshipping business, I suggest you to search dropshippers that based on country which you live. e.g: Australia. Because you are intended to run the eBay and the buyers will send the payment to your PayPal account which based on your country (Australia).

    Before you start the business, you need to test test test dropshippers. For first time, you make small order and the stuff will be delivered to your home.
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