Thinking about drop shipping

17 replies
I was looking at one of my competitor's backlinks in Yahoo explorer and saw trhey had a ton of links from ebay and other similar sites. This got me wondering about drop shipping as an income stream. I haven't looked too far into it so I was wondering if anyone had any experience with it - good or bad.

Is anyone making good money from it? If so are there any good WSO's anyone has used and can recommend?
#drop #shipping #thinking
  • Profile picture of the author Cody Rainer
    Drop shipping isn't that great from what I've found. I sell on eBay and I tried using a drop shipper that specialized for eBay sellers. I found that it wasn't worth it. One main problem is that a bunch of people are using the same drop shipper, which isn't cool if you compete directly against these people. Your competition will undercut everyone until all the profits are gone.

    I'd stay away from drop shipping personally. It's a lot more hassle than it seems like it should be, but maybe others have a different experience.

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  • Profile picture of the author RedMatrix
    Don't. Do. It. . . . . . . . . . the margin is very low, and the wait time for the customer is too high if you sell on ebay.


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  • Profile picture of the author ryanzona
    I used to drop ship on Ebay, mostly in the computer parts arena. Got harder and harder to match the low prices of many vendors. If you have real good suppliers you might not have too many delivery/refund problems. But if you get a bad supplier, it can be a nightmare - I know.
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    • Profile picture of the author Sam England
      It is very important to find reliable companies to work with...this will always be a challenge but you will flourish when you find the good ones, I always do.

      I have been doing this successfully for over 5 years now, but stopped selling drop ship products on Ebay because of the constant inventory changes with companies and other people cutting each others throats by selling stuff so cheap isn't worth it...

      If you want to sell on Ebay then buy products that are on sale/closeouts and then you can be successful selling on Ebay...
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  • Profile picture of the author homeworkin
    I started out doing a lot of dropshipping. One of the companies I used was great the first few months- they were a specialty dropshipper for health care and supplements. I was selling over $2,000 a month of just their products on eBay. Then they went flaky on me. Really flaky. Lied about what was in stock. Then, after I had sold it, lied about when it would be coming back in stock. So, I'd check with the customer to see if a few extra days was ok, promise them something wonderful for the inconvenience, etc. Then I'd call a week later and the company would tell me that a mistake was made and the product was not reordered. I spent a lot of time refunding people. I learned to keep their products in stock if I wanted to sell them - but their stocking was so bad it was not worth it most of the time.

    I was not the least surprised when, a few months ago, I went to place an order with them and their web site was completely gone.

    Thank goodness no one ever slammed me with feedback, but that was under the old rules where sellers could leave negatives for buyers. I had similar problems with a couple of other dropship companies.

    I am still a PowerSeller on eBay (well, til they completely phase over to the Top Seller program). These days though, I only dropship products from one company and I stock 95% of what I sell. I just use dropshipping to fill in the gaps. These days customers will leave negatives/neutrals for no good reason. I had one customer leave a neutral because they had not used the item yet. Another left me a negative when I made a mistake and sent them a size larger than they ordered, instead of asking them to return it, I sent them a second item for free since they would be able to use the other one as their baby grew - still left me a nasty negative. So, I would really hesitate to use a dropshipper unless you completely trust them.

    If you can find a good dropshipper, there is money to be made in some markets. I would look at Worldwide Brands for a great dropship list.

    The best dropshippers are manufacturers who are willing to dropship. The few I still work with are all manufacturers (I have a retail web site where I occasionally dropship products, mostly I stock inventory). As a former eBay employee, I got a free membership to a well-known dropship company. I have never used it (and they refuse to cancel it by email - my time is worth too much to cancel by phone and have them try to talk me into staying). Every time I get curious, I look at some of their items, then price them on eBay. No profits, often they are selling at "wholesale" for more than the Amazon price.
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  • Profile picture of the author Biggy Fat
    Funny you should ask that because I did a post on my blog about dropshipping.

    The Wednesday Opportunity: Dropshipping | IM Rant

    But I've only got two words: STAY AWAY.
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  • Profile picture of the author Mark Johnson

    I have had a lot of success in the last 12 months from dropshipping. I do not however rely on eBay. As some other warrriors have pointed out eBay can be a price war cutting out the profit unless you have a unique product.

    I am thinking of launching a WSO about how I made dropshipping work for me, eventually earning upto $400 a day. Would anyone be interested in this WSO?
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  • Profile picture of the author Louise Green
    I tried this a few years ago.. made some money but nothing to write home about.

    I think you need to drop ship massive volumes to make a decent living from it, it was too much work for me but can see if someone spent all day, everyday, at it, they might get somewhere.

    Maybe I wasn't doing things right. I fully accept it may well have been my own fault to see such low returns because I do hear many stories about people doing very well from it.

    But in my experience it wasn't worth my time.. and more importantly, it wasn't fun.
    IMPORTANT MESSAGE: I'm currently on vacation & will answer all messages when I return - Happy Holidays!!
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  • Profile picture of the author Debbie Songster
    Its all about the relationship
    As someone else pointed out - go with the manufacturers who are willing to drop ship.
    Develop a good relationship with them. Times are tough. More and more manufactures are looking to do drop shipping or at the very least they are dropping their minimum order amounts.
    But its a 2 way street - don't be flake

    There are just as many retarded drop ship retailers (sellers) out there as there are bad drop shippers.

    I see both sides as I'm a manufacturer who drop ships.

    Don't use dropship companies. Too many hands in the pot mean less profit for you and most times with the dropship companies there is NO profit. Or they sell junk.

    As for ebay - I only sell close out items, liquidations, clearance,etc
    There are fewer and fewer items that you can sell on ebay anymore without taking a bath on the price.

    If you sell on ebay you really should make sure you have the item in your possession before listing it for sale. Buyers want it delivered yesterday. Your reputation will be in the hands of the drop shipper - not good

    Getting back in the grove after taking a year off following a family tragedy.

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  • Profile picture of the author source47
    Dropshipping is a tricky subject to get into. I will warn against dropship wholesale programs like Only because they aren't a true dropshipper. They are the middle man. They advertise products with a "retail price" that is higher than any where else that you can buy the product (like Amazon for example) then they'll list their price as the wholesale price which is more comparable to the actual "street price" thus leaving you with very little margins or even sometimes you can find the same product for cheaper on Amazon.

    The 'real' way to get into dropshipping is to contact manufacturers directly. Large companies will most likely ingore your requests to work with an individual selling on eBay. Most eBay sellers that are able to make some good money are those actually have a brick-and-mortar retail store that sell their additional inventory on eBay. You'd have much better luck setting up a dropshipping agreement with companies if you had an established retail business in that niche.

    You need to find a specific niche that will work. Consumer electronics are very popular for consumers. This means that everyone and their dog are trying to sell those things on eBay creating a lot of competition and very low profit margins.

    I'm not saying that it's impossible to get started with a eBay dropshipping business but you'll spend far too much time and money before you see a return on investment. I hope that this helps!
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  • Profile picture of the author NyceGuy
    I did try drop-shipping for quite a while, made some money but what I realized is that unless you are going to use a relatively unique product, it will be very difficult making money from it because of the so many other people trying to sell the same product online.

    Some people, for whatever reason, would be selling the same same product from the same manufacturer at a very small price compared to yours that you would find it more difficult to do the same.

    If you decide to do so, do not use middle men. I almost got hooked on, back in the day. One reliable source of info would They pretty much do a good job at helping you find reliable companies.

    Otherwise, do some homework the product you are attempting to drop-ship, and:

    1. Check the size of results on the search engines to see the popularity of the keyword.
    2. Check the sponsored listings to see the how many people are paying for ads on the product
    3. Check the product on google shopping, yahoo shopping, and msn shopping to see how many other stores are selling the product and for what price.
    4. Make a decision.

    Otherwise, I find Internet Marketing much more rewarding.
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    • Profile picture of the author Silas Hart
      Drop shipping is pretty awesome for beginners I think. What's funny about drop shipping is that it takes the skill of someone experienced in selling online (and sometimes offline too) to be successful, but once someone becomes successful, they convert over into buying bulk amounts of items from wholesale sources and do everything themselves because it provides much more money.

      For example, people might start drop shipping items by writing a very basic and dull description, possibly even copy and pasted, and stock pictures that everyone else is using. When compared to another seller selling the same exact thing the same exact way, the purchase will be made based on price alone which eBay makes it easy to do with their easy to access search option. However, with a thick awesome sales/description page, the use of different pictures (which does not actually cost more), things like animation, and good solid feedback, you can sell the same item for several dollars more. It's pretty cool.

      I'm currently writing a HUGE in-depth eBook on drop shipping products from Asia, buying things at their economic prices and reselling them over here, and the whole shipping process. Currently doing it with silk bedding, adult novelty items, glassware, cooking products, tea, herbs, certain toys, and making the most of my money from kitchen items, cell phones, and computer parts. No, I'm not promoting it, at least not yet. I will once I've gone through all of the steps to produce a quality eBook based on actually making money in physical products, and once my eBay account hits 10,000 pos. feedback and the powerseller status to back it up, I'll be releasing it. Even though I am making money in drop shipping now, I can't say its automated. The time and effort I'm investing now is best spent on reselling products I've bought in bulk which I really just earned the financial means to.

      Another thing about drop shipping is that if a product is manufactured for a 50 cents, it's jacked up 1000% by middlemen and people who went through the effort to find the source for products, and from the manufacturer to the reseller, they make great money. They also sell you on that if you dropship this now $5.00 item, you could sell it for $25.00! Well, people get on eBay and within 4-6 months, people just like you cut down the price so much you would be lucky to make a dime.

      Something else I wanted to add, and something I keep meaning to do a youtube video on... you don't have to go to people titled as Drop Shippers to actually Drop Ship an item. You can find really small sites online where business owners don't use eBay themselves, but may have a small website. I did this recently with some halloween costumes, I found a cheap site and once my eBay customers ordered from me, I went to the site and made the purchase and gave them my customers address. (I also called the site to confirm the order) Sometimes I find super cheap deals on bulk amounts of stuff online, and I sell it as wholesale on eBay. Sometimes I even do it in person.

      The main problem with drop shipping is laziness, and competition from people just like you. Seriously, the best sources are sources that are cheap and that no other people know about.
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    • Profile picture of the author kirbymurphy
      Originally Posted by NyceGuy View Post

      ...... I almost got hooked on, back in the day. One reliable source of info would They pretty much do a good job at helping you find reliable companies.......... is great, well worth the minimal cost. There are some suppliers on there that are very much garage based. Not that it's all bad, but some of them seem to vanish overnight.

      Luckily I Googled and found a long list of hate from former users.

      With dropshippers you may only get a small piece of the profit if you want to stay competitive with Ebay'ers, but if you can run 200-300 orders per week (or day if you're good) you can make good money with volume.

      Like someone mentioned above, if you can buy straight from the manufacturer it's best. If they are within reasonable distance, you can drive over with a rented truck and filler-up. Some sellers rent from storage lots, and if you find the right one and make a friend there, you can spend a lot of time on-site packaging and shipping, saving a trip back to your house/garage.
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  • Profile picture of the author Red Dragon
    I have tried drop-shipping and any profits went to middle men, so I got out of it. If I got into it again, I would do more research.
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  • Profile picture of the author Rezbi
    I tried it and didn't like it, especially when the supplier lets you down.

    I found affiliate marketing more profitable and less hassle.
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  • Profile picture of the author mikeyman120
    Just saw a video today from a warrior of a clickbank guru talking about ebay and the place he mentioned for wholesale and dropshipping was here:

    Alibaba Manufacturer Directory - Suppliers, Manufacturers, Exporters & Importers

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