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How It works This is why eBay is so competitive everyone gets the items at the same cost and then floods the market You don t have to sell on eBay to use a dropshipper If you would like to use a dropshipper on your site you need to look at the pros and cons Pros No inventory Lower Overhead No packing or shipping 1000 s of products to choose from No order minimum Can sell 250 different products that each have a margin of 30 300 profit and doesn t cost you anything for inventory Cons Fee s to sign up or every time you drop ship a product Delay of stock Damaged Goods Unreliable Beware of fake dropshippers Unhappy customers because of unreliable vendors Good Articles Worldwidebrands com Free stuff Articles Lots of good info on this site Good Articles What is drop shipping Don t get taken by fake suppliers Dropshipping Pros and Cons Drop Shipping Sites DropShipDirect com No Fees Reliable Doba com Monthly fee expensive but 2 week free trial Simplx com No cost but you pay upfront and then get a rebate weeks later Questions to ask a Shipper 1 What s the wholesale price they can offer you on their products You ll need to make sure the wholesale price they offer is low enough that you ll be able to generate a good profit based on what you ll be able to sell their products for 2 Do they charge a handling fee for drop shipping If so how much Most companies that drop ship will simply add the cost of UPS or FedEx shipping onto your wholesale price but some will also charge you a handling fee generally between 1 and 5 This is to offset their cost of picking packing and processing the order for you 3 How do they ship their products Almost every company that drop ships products will use a major nationwide delivery service like UPS or FedEx Ask them to include tracking numbers with the order confirmations they send This will save you many potential problems when customers ask Where is my order 4 How do they bill you Most drop shippers will bill your credit card the wholesale price of the product plus shipping and handling as soon as they receive an order from you With others you may be able to set up a monthly billing cycle where you submit payment for all orders at the end of each month 5 How do they deal with product returns Be sure to find out what their policy is regarding returns Most reputable companies will offer some kind of guarantee or warranty on their products and will deal with returns for you This way if a customer contacts you with a return you can simply tell them the manufacturer will be happy to speak with them directly If your manufacturer doesn t accept returns look out You ll be the one stuck replacing defective merchandise for your customers


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