18 replies
Okay so you work with 1 or a few dropshippers to support your online store or support you in your ebay selling etc etc.

Now here is the thing.

What if one day your customer finds out the source, like they happen to find out a store that sells the exact thing u sell but so much cheaper because its at wholesale and obviously you would have to mark up ur price.

Then its okay if you lose 1 customer but what if he or she spreads on facebook or worse on your facebook wall, or under your review section etc.

Wouldnt that be a downfall of your business?

SO how does dropship work exactly..

because dropshippers themselves DO sell directly to public too. So in other words they are also your competitors.

and i noticed some of the dropshippers state that they will not sell to ur customers direct during a partnership with u. So as to be loyal to you.

BUT HOW ON EARTH are they gonna know who is ur customer and who is not.. ?


hahahaha..
#drop #ship #works
  • Profile picture of the author SeeSharp
    They won't know it but I think they aren't very good in selling their stuff to the people. They have by far more stuff than they could sell alone so they make a jv with other guys to sell their stuff for them.
    If you do it just offer more quality in service and people will be buying from you.
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    • Profile picture of the author Newbieee
      Originally Posted by Exterior View Post

      They won't know it but I think they aren't very good in selling their stuff to the people. They have by far more stuff than they could sell alone so they make a jv with other guys to sell their stuff for them.
      If you do it just offer more quality in service and people will be buying from you.
      but the thing is that some dropshippers are that good, they have big community supporters in facebook and i have done a bit of research on them, they are established and for them to receive certain payment type means they are really establish, they accept payments that use my banks services, and i know that to have a merchant account with my banks u need to have a certain amount of sales and volume.

      so they cant be having little sales.

      so that is the problem, how are u able to compete with them when their prices will inevitably be lower than urs , their reach is bigger, they are more established, they have already a community of supporters.
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  • Profile picture of the author dave_hermansen
    Here's why dropshipping makes sense (IMHO)..

    In general, if a business wants to be successful, they need to focus on a single "approach" of doing business. A manufacturer needs to focus on manufacturing the best products they can. A distributor needs to focus on buying in bulk, and selling in smaller wholesale bulk orders, and a retailer needs to focus on marketing (or retailing) their products. The reason dropshipping makes sense is because most manufacturers and distributors don't (and choose not to) market products and retail them. They are focusing on their specific business model. In fact, many manufacturers will not even sell single items, they will only sell in bulk to distributors.

    Your job as the retailer is to focus on selling products at retail. The manufacturer (or distributor) will often times "dropship" for you because they do not focus on retailing products. They are not set up for it & they choose not to put their focus there.
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    • Profile picture of the author Newbieee
      Originally Posted by dave_hermansen View Post

      The reason dropshipping makes sense is because most manufacturers and distributors don't (and choose not to) market products and retail them. They are focusing on their specific business model. In fact, many manufacturers will not even sell single items, they will only sell in bulk to distributors.
      hi there

      thanks for your input.

      i understand where u are coming at.

      BUT really there are some out there that are really that good.

      their site is main to sell. only one section is under dropship where u can partner with them and they ship to ur customers. but their site is mainly to sell too.

      and they have a whole 60k community in their facebook.

      they also sell individual to direct customers.


      so that is really the problem.

      is not like they only deal with retailers.

      they sell, they wholesale and they dropship.

      so if ur customers one day find them and see that they can buy from their site direct and cheaper and they dont need to buy more than 1 piece then there goes ur business.

      because he will spread on ur facebook and all.
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      • Profile picture of the author Robert Mangan
        Well, time to find another drop shipper.

        Any distributor/wholesaler or manufacturer who under sells their online retailers (like you and me) isn't worth bothering with.

        You'll find plenty that will respect their suppliers, so just look for another niche or supplier.

        Robert
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        • Profile picture of the author Newbieee
          Originally Posted by Robert Mangan View Post

          Well, time to find another drop shipper.

          Any distributor/wholesaler or manufacturer who under sells their online retailers (like you and me) isn't worth bothering with.

          You'll find plenty that will respect their suppliers, so just look for another niche or supplier.

          Robert

          but do u know any supplier that do dropship only meaning they only serve retailers and dont sell to individuals themselves?

          because i know of wholesalers that sell to retailers only, because there is a minimum number of pieces u have to order.

          but dropship is 1 item only so they are also open to sell to direct customers.

          i dont think u can find dropshippers who only serve retailer's customer, after all its 1 item so they can sell to direct customers too.

          rite?
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        • Profile picture of the author dave_hermansen
          Originally Posted by Robert Mangan View Post

          Well, time to find another drop shipper.

          Any distributor/wholesaler or manufacturer who under sells their online retailers (like you and me) isn't worth bothering with.

          You'll find plenty that will respect their suppliers, so just look for another niche or supplier.

          Robert
          Exactly. We consider it a big red flag if the "dropship supplier" is focusing on selling to consumers. The only time we are okay with it is if they are selling at a higher MSRP price and allows us to sell below that.. You should look for new dropshipper. Start off by contacting the manufacturer of the brand name directly.. That's always a good first step!
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          • Profile picture of the author Newbieee
            hi dave,

            that is what i was thinking too.

            if they cant offer me at a lower price i cant do it.


            anyway, about brands, u said get the big name brand's manufacturer of a certain brand, but for example if u want to sell acer and u go to acer themselves and tell them that u want to sell their product, they will need you to fill up a form where they expect you to be established. or at least a registered company with liscence to re-sell and all that.

            so it becomes very complicated.
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            • Profile picture of the author dave_hermansen
              Originally Posted by Newbieee View Post

              hi dave,
              anyway, about brands, u said get the big name brand's manufacturer of a certain brand, but for example if u want to sell acer and u go to acer themselves and tell them that u want to sell their product, they will need you to fill up a form where they expect you to be established. or at least a registered company with liscence to re-sell and all that.

              so it becomes very complicated.
              Often times the manufacturer of the brand name will not dropship for you.. Especially if you are new & not established yet. However, they will often refer you to a distributor that buys in bulk from them & will dropship for just about anybody!
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  • Profile picture of the author Colin Palfrey
    Hi Newbieee,

    It's not so hard actually. Forget 'drop shipping' sites, all the ones I have seen are a scam anyway. By scam I mean they aren't playing fair with you and will undercutting you any chance they get. They are in fact agents themselves, not manufacturers.

    Go directly to the manufacturers. There are lots of manufacturers in Bangladesh and all over China. Phone them up and tell them your plan. If they aren't familiar with drop shipping then explain the process.

    Do this and you will have an exclusive offer for the public as manufacturers aren't bothered about individual sales. They will put up with some small orders from you initially as they will view your orders as a growing source of sales.

    Big tip though: Manufactures aren't retailers and when you see them acting that way it means that you're actually talking to an agent.
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  • Profile picture of the author Robert Mangan
    Another comment...

    I drop ship - you can see my site if you wish, just go to my contact page - and let me tell you this;

    Whatever it is you're thinking of selling, first go straight to the manufacturer and ask them if the drop ship. If they don't then ask them for a distributor list - you'll need to be operating from a company and have an EIN and probably website too. Then, call each supplier and ask them if they drop ship.

    Avoid drop ship lists - a complete waste of time.

    Sites like World Wide Brands can be a good place to start searching for suppliers. They're expensive to join though.

    I sourced my products by going straight to the manufacturer. Sure, some turned me down or don't do drop shipping but I found enough manufacturers that did let me sign a retail contract with them.

    THIS IS IMPORTANT:

    Every single manufacturer I retail for also sells direct to the public from their website.

    This is quite usual for many manufacturers these days.

    Don't let this put you off.

    First, get their wholesale/retailer price list and then see if you can sell at the prices they advertise on their own as cheaply as they do and still make a profit. If not then find another manufacturer.

    All manufacturers that I deal with on my site do list wholesale prices that allow me to compete with their own retail sites. I suspect genuine manufacturers that earnestly wish to deal with drop ship retailers will always leave enough margin to make worth a retailer's time and effort.

    Finally...

    I would also advise not to drop ship product overseas; customs can be a nightmare and you'll more than likely lose money on overseas orders.

    Robert
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    • Profile picture of the author Newbieee
      Originally Posted by Robert Mangan View Post



      I would also advise not to drop ship product overseas; customs can be a nightmare and you'll more than likely lose money on overseas orders.
      yes i was thinking about that too.

      but if the manufacturer is not in ur country then wouldnt that make no difference.

      Like u are in country A, and the manufacturer or supplier is in Country B. When they dropship to ur local area is B to A. Wont that be going tru custom too?

      so it makes no difference if ur customer is in Country C. Because from B to C also pass custom.

      am i right to say that?

      unless of cos u find a supplier from the same country as u. and u do locally, then all the problem is solved.
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    • Profile picture of the author TinMan100
      Originally Posted by Robert Mangan View Post

      Another comment...

      I drop ship - you can see my site if you wish, just go to my contact page - and let me tell you this;

      Whatever it is you're thinking of selling, first go straight to the manufacturer and ask them if the drop ship. If they don't then ask them for a distributor list - you'll need to be operating from a company and have an EIN and probably website too. Then, call each supplier and ask them if they drop ship.

      Avoid drop ship lists - a complete waste of time.

      Sites like World Wide Brands can be a good place to start searching for suppliers. They're expensive to join though.

      I sourced my products by going straight to the manufacturer. Sure, some turned me down or don't do drop shipping but I found enough manufacturers that did let me sign a retail contract with them.

      THIS IS IMPORTANT:

      Every single manufacturer I retail for also sells direct to the public from their website.

      This is quite usual for many manufacturers these days.

      Don't let this put you off.

      First, get their wholesale/retailer price list and then see if you can sell at the prices they advertise on their own as cheaply as they do and still make a profit. If not then find another manufacturer.

      All manufacturers that I deal with on my site do list wholesale prices that allow me to compete with their own retail sites. I suspect genuine manufacturers that earnestly wish to deal with drop ship retailers will always leave enough margin to make worth a retailer's time and effort.

      Finally...

      I would also advise not to drop ship product overseas; customs can be a nightmare and you'll more than likely lose money on overseas orders.

      Robert
      Dead on accurate answer, Robert
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  • Profile picture of the author Power Solutions
    Dropshipping is not for selling on eBay, or Amazon unless you do some research and find unique products on a regular basis, or concentrate on super niche products. eBay is full of wholesalers now who are importing directly from China. Dropshipping should be viewed as a tool to sell locally without having to carry inventory or shipping supplies. Or running your own ecommerce website, but how you get it ranked is another problem.

    Dropshipping on eBay is like buying a $6k Direct Buy membership to save money on your Coffee Maker.
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    • Profile picture of the author Newbieee
      Originally Posted by khawaja1971 View Post

      Dropshipping is not for selling on eBay, or Amazon unless you do some research and find unique products on a regular basis, or concentrate on super niche products. eBay is full of wholesalers now who are importing directly from China. Dropshipping should be viewed as a tool to sell locally without having to carry inventory or shipping supplies. Or running your own ecommerce website, but how you get it ranked is another problem.

      Dropshipping on eBay is like buying a $6k Direct Buy membership to save money on your Coffee Maker.
      i totally agree with all ur points there.

      i dont even think about doing it in ebay or amazon.

      and also the locally, but i mentioned just 1 post above this, that when ur supplier is in another country from u and u do locally, it will still go tru custom.

      so its considered international already. then all the extra hidden fees come in like custom fee, tax etc etc. problematic.
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  • Profile picture of the author Power Solutions
    The counter to low pricing is expertise. Become an expert in your products, that's always been sound sales advice. Unless you have a large bankroll to invest on infrastructure and inventory you can't compete on price. People will come to you for your advice.

    Take the example of an electronics salesman I always use. When I was buying a new satellite box he told me to stick with the basic version because there wasn't enough content to make hdtv worthwhile yet, but he recommended an hdtv ready tv so I could upgrade in a few years. Same thing when I was buying a new tv, he said there isn't enough content for 3d so just wait a few years and let the technology mature. Now I live in a different city and so does my father but we actually buy large ticket items from him and get them shipped because of the sound advice he gave us. He built a trusted relationship with us instead of worrying about the commissions and we gave him tons of business through recommendations.

    Either you become good at what you do, or you're just another scammer like the rest of the world.
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  • Profile picture of the author aeri
    I am opening up my e-commerce this week that incorporates dropship, and I did bring up that concern to the vendor I plan to work with because there isn't a separate section for dropshippers only, but I guess I have to make a very explicit note every time I order something from them to realize that it's a dropship order. There are other dropshippers for that website, and I see some pretty good feedback, so I am assuming that they do work if you're in the proper niche Also, my vendor is from China, and I find their shipping rates are a lot more reasonable for worldwide shipping than compared to the U.S. post office...
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  • Profile picture of the author HazeBlazer
    I doubt a significant amount of consumer will go through the research, sign up with the dropshipper, etc... I mean, I think the only large benefit of drop shipping over affiliate marketing is that you get to give your website a name and that you get word of mouth advertising for your website.
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