This is probably stupid question of the day

by phil.wheatley

Posted: 8 years ago 9 replies

INTERNET MARKETING

Hi Guys

When people are selling hundreds of items on Amazon, normally with products bought wholesale (ali baba for example), I assume they must be drop shipping them, otherwise wouldn't you spend most of your life packing stuff in boxes???

Cheers
Phil

#day #question #stupid

PopeMarketing 8 years ago

Correct assumption. There's a variety of services available out there for drop shipping. Handing the postage and packing individually would wipe out all profit I'd imagine. Plus it would drive you insane.

Still can't get my head around why these people don't just reach out to the source of the product, cut out the middle man and increase their own margins... Not my industry though so what do I know

Cheers,

Shaun
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- IMstarter 8 years ago
  
  Not only would you be spending time packing boxes but also you would be paying more in postage and packaging.
  
  You can make use of Amazon FBA or there are other fulfilment services in the UK that will integrate with Amazon.
  
  Since these other fulfilment centres send out lots of packages daily they have cheaper rates with the delivery service which you as an individual would not have access to.
  
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Jonny2spoons 8 years ago

Most will use FBA in order to i) manage and fulfill high volume of orders and ii) get a slight boost in likelihood to get the buy box.

Even using FBA requires a fair bit of work in if you are shipping tens of thousands of products per month though so it only lightens load, it doesn't mean you have zero to do (unfortunately!).
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Van Dam 8 years ago

Yes most if not all are using dropshipping. As said, you would go crazy fulfilling all of those orders yourself.
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- DWaters 8 years ago
  
  Originally Posted by Van Dam
  
  Yes most if not all are using dropshipping. As said, you would go crazy fulfilling all of those orders yourself.
  
  The beauty of Amazon's FBA is that you do not have to fulfill any orders yourself. You just do large, low cost shipments to the Amazon warehouses and then wait for the sales to take place..... which they do!
  
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Jeff Burritt Banned 8 years ago

I used to stockpile some products, and ship them out myself. I had thousands of dollars in inventory in my house. I had to get packaging, boxes, labels, flyers, tape, etc. It was a pain. I made a little profit, but that was quickly eroded by all the time I spent prepping stuff and shipping stuff. I think this method may have worked 10-20+ years ago, but I would not recommend it unless you are doing etsy.

P.S. Even though I sold and threw away most everything, years later I still have box of items buried in my closet I keep thinking I'll put that on ebay, but never get around to it
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phil.wheatley 8 years ago

Thanks very much guys for taking my question seriously and coming back with so many good replies.

All the best
Phil
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Markets 8 years ago

I think I remember hearing that you can get deals with shipping companies when you are using them a lot, making shipping very cheap.
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- Jill Carpenter 8 years ago
  
  I'm almost through with a course right now which deals with FBA.
  
  You get the inventory, slap on some bar codes, and then ship it over to Amazon to do the shipping on demand.
  
  Of course, it looks like you will see a storage fee things happening if the inventory does not start moving after a certain period.
  
  I'll pm you link to what I'm watching.
  
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